It explains the economy as a whole, how it is best organized to provide goods, services, jobs, stable prices and other economic goals. Economists study the ways a society distributes scarce resources such as land, labor, raw materials, and machinery to produce goods and services choices that must be made because time, income, wealth, workers and natural resources are limited. Principles of economics are useful at all levels of decision-making and provide an essential framework for analyzing and understanding such major issues as inflation, unemployment, deregulation of banking, tax reform, fluctuations in foreign exchange rates, labor productivity and foreign debt crises.
Most economists are concerned with practical applications of economic policy in a particular area.
They use their understanding of economic relationships to advise businesses and other organizations, including insurance companies, banks, securities firms, computer and data processing companies, management consulting firms, industry and trade associations, labor unions, and government agencies. Some economists work abroad for companies with international operations and for organizations like the World Bank and United Nations. Economists use mathematical models to develop programs that predict, for example, the nature and length of business cycles, the effects of inflation on the economy, or the effects of tax legislation on unemployment levels. Preparing reports on the results of their research is an important part of the economist's job. Being able to present economic concepts in a meaningful way is particularly important for economists who are involved in making policy for their organizations.