Definitions, Scope, Importance And Methodology Of Economics - SS1 Economics Past Questions and Answers - page 1

Three reasons why the study of economics is important include:

1. Economics is important because it provides tools and models to study how societies allocate scarce resources like labour, capital, and natural resources, and how they make decisions about what to produce, how to produce, and for whom to produce.
2. Economics is useful for businesses, policymakers, and consumers to make informed decisions about buying and selling goods and services.
3. Economics is used in policy-making, with the goal of promoting economic growth, reducing inequality, and achieving other social objectives.

International economics is the study of how countries trade with each other and how international institutions such as the World Trade Organization and the International Monetary Fund affect international trade and finance while environmental economics is the study of how economic activities affect the environment and how environmental policies can be designed to promote sustainable development.

Lionel Robbins defined economics as "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."