The student majoring in economics will acquire a set of analytical tools and a way of thinking that will help him or her to better understand and predict the behavior of individuals, groups, and societies. Things that were invisible become visible, the complex and hard to understand become simple and easily understood. An important part of economics is the study of how individuals, groups, and societies deal with scarcity through markets or exchange-like institutions.
Economic theory is sufficiently powerful to explain many varieties of exchange relationships.
This is evident in the number of fields in which economic analysis is currently utilized, such as business, history, law, psychology, political science, and sociology. Economics has always been a highly-respected field of study, but in the past three decades, its reputation has soared. There are perhaps three major reasons for this change. First, many people have come to realize that economics plays an important role in their everyday lives. The budget deficit, the national debt, the value of the dollar on foreign exchange markets, interest rates, the savings rate, taxes, government expenditures, economic growth all matter.