Describe what an economist is and briefly explain the profession’s qualifications and role in government and private business.
Answers
Explanation:
Economists study the ways a society uses scarce resources such as land, labor, raw materials, and machinery to produce goods and services. They analyze the costs and benefits of distributing and consuming these goods and services. Economists conduct research, collect and analyze data, monitor economic trends, and develop forecasts. Their research might focus on topics such as energy costs, inflation, interest rates, farm prices, rents, imports, or employment.
Most economists are concerned with practical applications of economic policy in a particular area, such as finance, labor, agriculture, transportation, real estate, environment, natural resources, energy, or health. They use their understanding of economic relationships to advise business firms, insurance companies, banks, securities firms, industry and trade associations, labor unions, government agencies, and others. On the other hand, economists who are primarily theoreticians may use mathematical models to develop theories on the causes of business cycles and inflation, or the effects of unemployment and tax legislation.
Depending on the topic under study, economists devise methods and procedures for obtaining the data they need. For example, sampling techniques may be used to conduct a survey, and econometric modeling techniques may be used to develop forecasts. Preparing reports usually is an important part of the economist's job. He or she may be called upon to review and analyze all the relevant data, prepare tables and charts, and write up the results in clear, concise language. Being able to present economic and statistical concepts in a meaningful way is particularly important for economists whose research is policy directed.
Economists who work for government agencies assess economic conditions in the United States and abroad and estimate the economic effects of specific changes in legislation or public policy. For example, they may study how the dollar's fluctuation against foreign currencies affects import and export markets. Most government economists are in the fields of agriculture, business, finance, labor, transportation, utilities, urban economics, or international trade. Economists in the U.S. Department of Commerce study domestic production, distribution, and consumption of commodities or services; those in the Federal Trade Commission prepare industry analyses to assist in enforcing Federal statutes designed to eliminate unfair, deceptive, or monopolistic practices in interstate commerce; and those in the Bureau of Labor Statistics analyze data on prices, wages, employment, productivity, and safety and health. An economist working for a state or local government might analyze regional or local data on trade and commerce, industrial and commercial growth, and employment and unemployment, and project labor force trends.