what is economics?

Economics investigates human behaviour and its consequences in a world with scarce resources.
Families, businesses and all of society face the same problems: so much we want to do but so little time and not enough
resources. Economics is about how we choose.

Economics is a way of understanding our society and community and how they interact to form “The Economy”. It offers insight
into the ways in which businesses are structured and compete, and the ways in which people interact and make decisions.
Economics considers the criteria we use to meet these challenges by considering costs and benefits and how to measure them.
Economics provides a framework for decision making and is also about how to design institutions that help us make decisions
and ensure that our decisions are ‘good’ from a social viewpoint.
An economist examines the role of markets in making decisions, when and how markets are regulated and the role of the
government. An economist addresses issues such as:
• Will an increase in taxes stimulate the economy?
• Will a fall in the value of a currency cause interest rates to rise?
• What causes inequality in the distribution of wealth?

To answer these macro, or community, questions, the economist has to understand decisions made at the micro, or individual
level, including:
• How do people and firms react to economic incentives such as goods and prices, taxes, different legal rules or market
structure?
• What does this imply for the wellbeing (welfare) of people?

Microeconomic principles are applied to the analysis of many issues, such as:
• What happens when the sale of certain drugs is made illegal?
• Commercial pressures leading to species extinction
• Power generation and pricing
• The pricing of commercial fishing licenses
• The control of pollution
• Why do concerts become ‘sell-outs’?
The study of Economics offers an insight into a broad range of issues in Australia and around the world, including:

• A contest with the taxman – the impact of tax rates on tax evasion and wastefully invested resources

• The cost of toilet paper in Zimbabwe

• Foreign Aid: What good is it?

• Micro-credit, Fertility Decision and Women’s Empowerment in Bangladesh

• Regulating a fishery when prices are uncertain

• Resource Abundance, Poverty and Development

• Are we really making the best use of our water?

• Environmentalism, Democracy, and Pollution Control

• Creating markets for greenhouse gas emissions

• What drives productivity growth in Australia?

• Can we explain the cycles in our economy and in the world?

• Will the China boom continue? What does it mean for Australia?

• How can we reduce the number of people living in poverty around the world?

• How can we make our welfare system more effective?

• Our population is ageing – what challenges to do we face?

• How should responsibilities be divided between state and federal governments?

Why Study Economics? The University of Adelaide offers
the widest range of course
offerings in the field of economics
A Bachelor of Economics is a degree employers value because it teaches highly in South Australia. We are
valued problem solving skills. In order to understand society, the interaction of committed to providing the very
people, how and why they make decisions and how they value their resources best quality learning opportunities
(time, wealth etc) there must be a coherent framework for discussion. and an excellent, well-rounded
The study of economics gives you the skills to make decisions using a universal professional education. You
framework that can be applied to many situations. You will learn to think logically will be given the education and
and analytically, to be able to discuss views clearly in a variety of forums and to be encouragement to develop to
able to write concisely. Economics is intellectually stimulating and rewarding as it your full potential; which is why
provides an understanding of the “big picture”. our graduates make intellectual
contributions at the highest levels
Economics is a general program within which you are able to specialise in areas of business, government and the
of your own passion or interest, including environmental economics, international community.
studies and accounting. By studying economics you can take your interest further
and make a real difference in society.
Why study
Economics at
Economics is a global the University
language, recognised of Adelaide?
worldwide; wherever you The School of Economics is also
one of the few within Australian
travel your knowledge and Universities which offers graduate-
level coursework components for
skills will be immediately the Masters and PhD Degrees,
should you choose to study
relevant. further.
 The School of Economics

The University of Adelaide

economics@adelaide.edu.au
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