Economics — Analyze Markets, Policy, and Human Decision-Making
What Is Economics?
Economics is the study of how individuals, businesses, and governments allocate scarce resources. The major is divided into microeconomics (individual and firm behavior) and macroeconomics (national and global economic systems). Students learn economic theory, statistical analysis, econometrics, and policy analysis. Economics is one of the most rigorous and quantitative social science degrees, providing a foundation in mathematical modeling and data analysis that is valued across finance, consulting, government, and tech. The major teaches you to think systematically about complex systems and make evidence-based predictions about the consequences of policy decisions, market changes, and individual choices.
Why Study Economics?
Economics is one of the highest-paying social science degrees and provides exceptional career flexibility. The analytical and quantitative skills you develop are valued by employers in finance, consulting, tech, and government. Economics is also the top feeder major for top MBA and law school programs. The ability to analyze data, build models, and think critically about incentives and tradeoffs is a rare and valuable skill set that commands premium compensation.
Skills You Will Develop
Common Classes in Economics
Here are the 8 core courses you can expect in a typical Economics program:
Principles of Microeconomics
Supply and demand, consumer theory, firm behavior, market structures (perfect competition, monopoly, oligopoly), and market failures.
Principles of Macroeconomics
GDP, inflation, unemployment, monetary policy, fiscal policy, international trade, and the determinants of long-run economic growth.
Intermediate Microeconomics
Advanced consumer and producer theory, game theory, information economics, and welfare analysis using calculus-based methods.
Intermediate Macroeconomics
IS-LM model, aggregate supply and demand, economic growth models, business cycles, and macroeconomic policy analysis.
Econometrics
Statistical methods for analyzing economic data: regression analysis, hypothesis testing, instrumental variables, and causal inference techniques.
Labor Economics
Labor markets, wage determination, human capital theory, discrimination, immigration, and the economics of education.
Public Economics
Government spending, taxation, public goods, externalities, and the economic analysis of government policy and programs.
International Economics
Trade theory, trade policy, exchange rates, balance of payments, and the economics of globalization.
Career Paths in Economics
Salary ranges are approximate national averages. Growth projections are from BLS through 2032 and will vary by location and experience.
Degree Pathways for Economics
Associate (A.A.)
Two-year introduction to economics. Transfers well to four-year programs but not sufficient for economics careers on its own.
Bachelor's (B.A. / B.S.)
The standard entry for analyst, consulting, and finance roles. B.S. programs emphasize more math and statistics.
Master's (M.A.)
For more advanced analytical roles and as preparation for Ph.D. programs. Applied economics, development economics, and financial economics are popular specializations.
Doctoral (Ph.D.)
For academic economists, senior government positions (Federal Reserve, Congressional Budget Office), and research-intensive roles. Highly competitive and quantitative.
Industry Outlook
Economics graduates are among the highest earners in the social sciences, with median mid-career salaries exceeding $100,000. The analytical and quantitative skills transfer seamlessly to finance, consulting, tech, and government. The rise of data science has made economics training even more valuable, as econometric methods are increasingly applied to business analytics and policy evaluation. Top consulting firms (McKinsey, BCG, Bain) and investment banks actively recruit economics majors.
Expert Tips for Economics Students
- 1
Take as much math as you can handle. Calculus, linear algebra, and statistics are the skills that separate economics from other social sciences and open doors to the highest-paying careers.
- 2
Learn to code. R, Stata, and Python are essential for modern economics. The ability to analyze data programmatically makes you competitive for analyst, consulting, and data science roles.
- 3
If you are considering graduate school in economics, your math background matters more than anything else. Take real analysis, linear algebra, and probability theory to prepare.
- 4
Seek internships in consulting, finance, or government policy. Economics is a field where practical experience and networking significantly impact career outcomes.
- 5
Consider the B.S. over the B.A. if your school offers both. The additional quantitative coursework signals stronger analytical skills to employers and graduate programs.