Academics

What is Economics?

Economics is the study of how people, businesses, and governments make choices when resources are scarce. It’s about more than money and markets, but rather a way of thinking that helps you understand decision-making in everyday life and big global issues.

Why Study Economics?  Here is a brief list of reasons

1) Economics helps you answer some of the most important questions facing society today:

• Why are prices rising—and what actually causes inflation?
• How do interest rates affect jobs, housing, and student loan costs?
• Why do some workers earn much more than others?
• How do businesses decide where to invest, automate, or expand?
• What role should governments play in markets, healthcare, climate policy, and education?
• How does data shape decisions in business, public policy, and everyday life?

By studying economics, you’ll learn how to think critically about trade-offs, incentives, and data. You will also apply those tools to real-world problems. Economics majors develop skills in analysis, problem-solving, and communication that are highly valued by employers and graduate programs across many fields. Economics is a way of thinking that helps you make sense of the world and make better decisions within it.

2) High Earning Potential and Strong Career Outcomes

Economics majors are well-positioned for competitive earnings and strong career growth across multiple industries. According to the U.S. Bureau of Labor Statistics, the median annual wage for economists was $115,440 in May 2024, with the highest-earning professionals exceeding $212,710 per year. 

This reflects the value employers place on economic reasoning, quantitative analysis, data interpretation, and decision-making skills. Graduates with economics training find opportunities not only as professional economists, but also in business, finance, consulting, data analytics, government, and policy research—fields that consistently offer above-average compensation and demand for analytical talent. 

In addition to traditional economic roles, economics majors pursue careers as financial analysts, policy advisors, data scientists, market researchers, and business strategists, leveraging their skill set in varied sectors where strong analytical and problem-solving abilities are essential for long-term career success.

3) Strong Performance on the LSAT, GRE, and Other Major Graduate and Professional Exams

Students with an economics background bring strong analytical preparation to graduate and professional school admissions exams. National studies show that economic majors regularly perform above average on major standardized tests, including the Law School Admission Test (LSAT), with economics among the highest-scoring undergraduate majors tested. 

In fact, research tracking LSAT performance across majors places economics near the top of the list for average scores, often exceeded only by highly quantitative fields such as mathematics and physics. 

While specific test preparation and results vary among individuals, economics coursework builds rigorous skills in logical reasoning, critical thinking, quantitative problem-solving, and structured argumentation. These skills align closely with the competencies assessed by exams such as the LSAT, GRE (used for many graduate programs), and GMAT (used for business school admissions). 

This strong exam performance can enhance applicants’ competitiveness for law, business, and graduate programs, particularly at selective schools where test scores play an important role in admissions decisions.

4) Excellent Preparation for Graduate and Professional School

An economics degree provides a solid academic foundation for graduate study in economics as well as related fields such as business, law, public policy, and data science. The structured training in economic theory, mathematics, statistics, and empirical methods equips students with core analytical and research skills essential for success in advanced programs. 

Economics majors learn to evaluate evidence, interpret data, and apply models to real-world challenges—skills that are highly valued in graduate curricula and competitive professional fields. This preparation not only enhances students’ academic readiness, but also strengthens their applications to graduate programs by demonstrating proficiency in quantitative reasoning and independent analytical thought. 

Whether pursuing a master’s in economics, MBA, JD, public policy degree, or a Ph.D., students with an economics background enter graduate study with a competitive edge, having already mastered many of the foundational concepts that advanced education builds upon. 

5) Skills students with economics training bring to employers

• Data-driven analysis — working with real data to identify patterns, test ideas, and support decisions
• Strategic thinking under uncertainty — evaluating trade-offs, risk, and incentives using economic models and simulations
• Clear communication — turning analysis into concise, actionable recommendations

Careers in Economics: Companies & Positions

Economics majors work across consulting, finance, technology, insurance, manufacturing, and analytics-driven industries.

• Accenture – Technology Consultant, Strategy Analyst
• Allstate – Catastrophe Modeling Analyst, Risk Analyst
• Aon – Analytics Analyst, Risk Consulting
• Amazon – Economist, Business Analyst, Data Scientist
• Bank of America – Quantitative Analyst, Risk Management
• CME Group – Market Analyst, Research Associate
• Citibank – Business Intelligence Analyst, Strategy Analyst
• Expedia Group – Market Analyst, Pricing Analyst
• Ford Motor Company – Data Scientist, Economic & Market Analysis
• The Hartford – Risk Management Analyst
• KPMG – Economic Valuation, Forensic & Analytics Services
• Northwestern Mutual – Financial Analyst, Planning & Analytics
• SpaceX – Supply Chain Analytics, Operations Analyst

Common skill areas: data analysis, forecasting, pricing, risk assessment, operations, and strategy.

Government, Public Sector & Policy Careers for Economists

Economists play a key role in policy analysis, regulation, forecasting, national security, and economic development.

• Southwest Michigan First – Director of Economic Development
• Bureau of Labor Statistics – Economist, Data Analyst
• U.S. Department of Agriculture – Economist, Policy Analyst
• Central Intelligence Agency – Economic Analyst, Analytic Methodologist, Targeting Analyst
• Congressional Budget Office – Macroeconomist, Budget Analyst
• U.S. Department of Justice – Economics Analysis Group (Antitrust & Competition)
• Federal Trade Commission – Economist (Antitrust, Consumer Protection)
• U.S. Department of Homeland Security – Economist (including Coast Guard analysis units)
• U.S. Department of Housing and Urban Development – Economist, Housing Policy Analyst
• U.S. Army Corps of Engineers – Economic Analyst, Project Evaluation
• U.S. Department of State – Foreign Service Officer, Economic Affairs
• Many state and local governments, who have positions such as – Senior Economic Development Manager

Economists in government apply data and economic reasoning to public policy, regulation, infrastructure, national security, and community development.

7) Interested in more information?

• American Economic Association – Careers in Economics
  Explore diverse career paths where economics skills apply.
• Occupational Outlook Handbook – Economists (BLS)
  U.S. government overview of economist jobs, duties, and outlook.
• USAJobs
  Official federal job site for economist, analyst, and policy positions.