Thursday, 12 December 2013

Making sense of Economics

Making sense of Economics

The economy has been in the news a lot in recent times. It has always been a core influence on how our world and society works, but it seems to have become more relevant than ever today. How would someone unfamiliar with economics go about making sense of the way these issues affect us all?

If you are, or have become, interested in how the economy works, studying economics is an effective way to help you understand it. NEC’s distance learning A level Economics course has been written by experts to give you all the knowledge you need to get started.

A level Economics is also a first step towards the many career paths that make use of economic theory. This could be any career in finance, but it could also be something less immediately obvious; even journalism stands to benefit from a good understanding of economic principles.

As with all our courses, learners who enrol on A level Economics will be supported by an experienced and knowledgeable personal tutor throughout their studies. Terry Cook, who has been teaching Economics since 1974, is one such tutor. Here are some of his thoughts on the subject and how studying it will increase your understanding of the contemporary issues affecting us today:

“The subject of economics is fascinating, and it has increasingly become a very popular choice at AS and A Level. Everything that we do is affected in some way by economics. One topic that has been in the news in recent months is the deficit that the UK has in its public finances, i.e. we have been spending more money than we have been receiving. The present government is aiming to reduce the size of this deficit.”

“Some people seem to think that reducing the size of the deficit means the same as reducing the size of our debt, but this is not the case. Even if we managed to reduce the size of the deficit by half, there would still be a deficit and so the total debt owed would increase. The best way to understand this is to see a deficit as a ‘flow’ concept and a debt as a ‘stock’ concept.”

“It just goes to show that in economics, you have to look very carefully at the statistics. Another example to illustrate this is the rate of inflation. For example, last year the rate of inflation in the UK (as measured by the Consumer Prices Index) fell from 2.5% per annum to 2.2% per annum. A lot of people think this means that prices are falling, but this is not the case. Prices are still rising, but the rate of increase is slowing down, i.e. goods and services are costing 2.2% more than a year ago compared with costing 2.5% more than a year ago.”

If you’re looking to gain a qualification towards your career, or simply wish to study the subject out of interest, visit our website for full details on our Economics and other tutor-supported distance learning courses. You can also get in touch and speak to one of our team, who will be happy to answer your questions.

To keep up with the latest NEC news and events, sign up to our email newsletter or follow our blog (simply enter your email address in the box on the right-hand sidebar). You can also find us on Facebook and Twitter.

No comments:

Post a Comment