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QUESTION: What Are The Important Of Economics In Nigeria

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Nofiu Ridwan
National open university of Nigeria (Noun)
Bsc. Economic
300Level, Nigeria.
Nigeria's foreign economic relations revolve around its role in supplying the world economy with oil and natural gas, even as the country seeks to diversify its exports, harmonize tariffs in line with a potential customs union sought by the Economic Community of West African States (ECOWAS), and encourage inflows of ...

1 UpVote

Habeeblah Olamilekan
Kwara state polytechnic,ilorin
Masscommunication
Graduate, Nigeria.
Economics plays a huge role in our lives; even when you cannot always directly observe its impact, the importance of economics still remains concrete. The understanding of this phenomenon will certainly give you some advantages in building your own capital. In fact, basic principles of economics are not as difficult to learn as we may think. In this article, you will find some clues to help you understand the real importance of economics in our lives.

1 UpVote

Rufai Oladimeji
Lagos State University
English
100Level, Nigeria.
Examples of the importance of
economics

1. Dealing with a shortage of raw
materials. Economics provides a
mechanism for looking at possible
consequences as we run short of raw
materials such as gas and oil. See also:
Effects of a world without oil.

2. How to distribute resources in society.
To what extent should we redistribute
income in society? Is inequality
necessary to create economic incentives
or does inequality create more economic
problems?

3. To what extent should the
government intervene in the
economy. A critical divide in economics
is the extent to which the government
should intervene in the economy. Free
market economists, like Hayek and
Friedman, argue for limited government
intervention and free markets. Other
economists, like Stiglitz or Krugman,
argue government intervention can
overcome inequality and underprovision
of public goods. For example – should
the government provide health care free
at the point of use or is it more efficient
to encourage private health care? See
also: To what extent should the
government intervene in the economy?

4. The principle of opportunity cost.
Politicians win elections by promising
more spending and cutting taxes. This is
because lower taxes and more spending
is what voters want to hear. However, an
economist will be aware that everything
has an opportunity cost. Spend more on
subsidising free university education, and
it means higher taxes and lower spending
elsewhere. Giving students £4,000 a year
to spend at university may be a noble
ideal. But, is it the best use of public
money? Are there better uses of money,
such as spending on primary education?
See: Opportunity Cost

5. Social efficiency. The free market leads
to countless examples of market failure.
I feel one of the best uses of economics
is to provide solutions to overcoming
market failure. For example, driving into
the centre of town creates negative
externalities such as pollution and
congestion. There is overconsumption.
An economist can suggest a tax on
driving into towns to internalise the
externality. Of course, new taxes are not
popular, but, it would provide a better
solution for society. You may not want
to pay £10 a week to drive into a city
centre. But, if it saved you 2 hours of
sitting in a jam, then maybe you would
be quite happy to pay it.

6. Knowledge and understanding. One of
the principal jobs for economists is to
understand what is happening in the
economy and investigate reasons for
poverty, unemployment and low
economic growth. For example, in a
political debate such as – Should, the UK
leave the EU? There are many emotional
arguments made about immigration.
Economic studies can try and evaluate
the costs and benefits of free movement
of labour. Economic studies can try to
examine the economic effects of
immigration. This can help people make
a decision about political issues.

7. Forecasts . Economic forecasts are more
difficult than understanding the current
situation. However, although forecasts
are not always reliable, they can help
give decision makers an idea of possible
outcomes. For example, in 2003, the UK
took a decision about whether to join
the Euro. Many economists suggested the
UK could struggle with a common
monetary policy. The Euro was not an
optimal currency area with the UK in.
This analysis was a factor in UK
government deciding not to join. In
retrospect, the analysis under-estimated
the costs of the Euro. But, if it had been
taken on purely political grounds, the UK
may have joined.

8. Evaluation. Economics is not a
definitive science like Maths. Because of
many unknown variables, it is impossible
to be definitive about outcomes, but a
good economist will be aware the result
depends on different variables, and there
are different potential outcomes. This
should help avoid an overly ideological
approach. For example, a government
may have the philosophy ‘free markets
are always best’, but an economist would
be aware of a more nuanced view that in
some markets, like health care,
transport, government intervention can
overcome market failure and improve
welfare. But, at the same time, it doesn’t
mean state intervention is always best.

9. Behavioural economics Why do people
behave as they do? Can governments
subtly nudge people into better
behaviour, e.g. banning cigarette
advertising? Are we subject to bias and
irrational behaviour? For example, can
we be sucked along by a bubble and lose
a fortune on the stock market?
Behavioural economics examines the
reasons why we make decisions. See:
Behavioural economics.

10. Applying economics in everyday life.
Modern economists have examined
economic forces behind everyday social
issues. For example, Gary Becker argued
that most crime could be explained by
economic costs and benefits. See:
Applying economics in everyday life .

1 UpVote

Fadeyi Oluwaseun
Ladoke Akintola University Ogbomosho
B.tech Marketing Management
200Level, Nigeria.
Economics is the important you get to know how societies, governments, businesses, households, and individuals allocate their scarce resources. The economics can also provide valuable knowledge for making decisions in everyday life. Economics is concerned with the optimal distribution of resources in society.

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