A Hypothetical Economist

He also applies his economic insight into the investigation of economic phenomena. He develops scientific models. He collects data. He tests hypotheses. He prepares research papers that are presented at economic conferences and published in economic journals.

On occasion Professor Grumpinkston consults with businesses and governments. For example, the Shady Valley City Council recently asked the Professor to analyze the likely impact of a tax on left-handed people. How much revenue would such a tax generate? Would this tax discourage left-handed people from moving to Shady Valley and if so by how many? Would the tax affect the need for sidewalks?

Alternatively, OmniConglomerate, Inc. recently asked the Professor to estimate the demand for a new product that it had under development, the OmniStraight 2000 shoe string straightener. How many OmniStraight 2000s would the public be willing and able to buy at the anticipated $3 selling price? What would the quantity demanded be at a lower price? Or a higher price?

Economic Thinking

Professor Grumpkinston, for example, is inclined to think about the marginal utility that he is likely to receive from drinking a can of OmniCola before dropping his coins into the soft drink vending machine. Is he thirsty enough to justify the expense? Would this money be better spent on a Double-Dot Caramel Nougat Cluster candy bar instead?

Branches and Fields

As such, economists tend to specialize in different fields of study, which tend to fall into one of two major branches. First, the branches:

• Macroeconomics: This is the study of the entire, or aggregate economy. It is concerned with topics such as business cycles, unemployment, inflation, and economic growth. Many economists are macroeconomists.


• Microeconomics: This is the study of parts of the economy, including markets, consumers, firms, and industries. It is concerned with topics such as commodity pricing, short-run production, efficiency, and market control. Many economists are microeconomists.

Learning the Trade

• A bachelors degree with a major in economics is usually the minimum standard for employment as a professional economist. This degree provides the fundamental knowledge base needed to think like an economist. Similar to any bachelors degree, this one takes four to five years to complete and involves several non-economic courses.


• A significant number who pursue life as an economist opt for a masters degree. This degree makes it possible to concentrate exclusively on the study of economics for a couple years. It also enables some degree of specialization in one or more fields.


• The ultimate training as a professional economist comes through a doctorate degree. This degree provides rigorous study into economic theories, analysis of economic issues, and the base of knowledge accumulated by other economists. Those who pursue this degree spend three to five years (or more) learning how to apply the scientific method to economic phenomena, usually through concentrated specialization on one specific topic in a specific field.

Noble Prize