WHAT DOES AN ECONOMIST DO? FUNCTIONS AND ACTIVITIES - CULTURE VOCABULARY - 2025

An economist is a professional who is in charge of analyzing the processes of supply and demand for goods and services in the economy of a country or region, through the use of mathematical models, with various variables, which can be simulated and provide projections about current and future reality.

It is in charge of studying the behavior of factors that are measured by the indicators that explain the processes of macroeconomics and microeconomics. You can work in the public and private sector, analyzing data and generating relevant information for natural, legal and non-legal persons.

Economists are trained to analyze the events of everyday life, in terms of determining the cost of doing or not doing some activity.

Therefore, it is important to take into account the decisions made by economic agents, made up of individuals or groups of individuals. It can be analyzed from the cost of not performing an activity versus the time that is dedicated to another activity.

The decisions made by economic agents have positive and negative consequences in the short, medium and long term. Therefore, it is recommended to follow the recommendations of economists from various ideological currents, to have a more concrete scenario in individual and group decision-making.

The most common recommendations from economists are to invest in hard currency savings instruments.

Activities and functions that economists do

1. Analyze the Supply and Demand Processes in the Sectors of the Economy

An economist reviews the statistical data through measurements made by the issuing entities (central banks), in which the behavior of the primary, secondary and tertiary sectors can be seen and projections made on them.

2. Interpret Financial Statements

Companies listed on the Stock Exchange publish the reports of audited Financial Statements (reviewed by external persons or companies), which indicate the health of private and / or public companies so that shareholders can make decisions to own or sell their shares., according to the case. Economists review these details to make projections.

3. Formulate Financing Plans

The public and private sectors have access to credit through various international financial entities.

Economists draw up financing plans projected from 5 years onwards, in which debt funds are obtained for investment projects, indicating the available own funds and the guarantees that these plans must contain for their success.

4. Conduct Market Studies

The analysis of supply and demand is vital, prior to undertaking in a certain area of ​​business, taking into account the data of the issuing entities and census offices, to make estimates through particular mathematical models that allow reviewing the possible levels of profitability. Needs create opportunities for entrepreneurship.

5. Formulate Public Policies

Economists are in charge of making plans that energize the different productive activities that take place in a country.

These plans help to foresee the production of goods and services that are generated in a period of 12 months, in which the national taxes to be collected, expenses during the financial year, investment in road infrastructure, education and health are estimated..

6. Carry out Teaching and Research Activities

Economists have sufficient capacity to dedicate themselves to imparting and sharing knowledge about the phenomena of study such as the distribution of the limited resources available, the supply processes, scarcity and shortage, in universities and other types of institutions.

Therefore, supply and demand classify and quantify the needs to be covered. The generation of bibliographic material for economic studies is an integral part of the profile of an economist.

7. Educate the Population about Economic Issues

Economists, being part of a social science, have a responsibility to educate the population about how to have healthy finances and know how to use the financial instruments offered by banks.

By making these details known, the population would make more conscious personal decisions when undertaking a business activity as a natural person, forming a legal entity or through a cooperative.

8. Analyze and Evaluate International Treaties

The economists, together with a multidisciplinary team, review the terms and quantify the investments and income that the Nation can obtain, the pros and cons, with the purpose of generating more fluidity in the commercial negotiation processes between companies from different regions.

9. Create Economic Plans

With the tools that economists have, they can plan prospectively, that is, future planning, through the use of consolidated data on strategic matters for nations and multilateral entities.

The availability of resources to meet the needs of the oldest population and the need for its distribution are evaluated.

10. Advise National and International Organizations

They have the profile to advise public entities such as the issuing entities, Executive and Legislative Powers of the countries in public policies in the economic and social fields.

They also advise multilateral entities, unions, companies and groups on Microeconomics and Macroeconomics.

Access to information is the main need for economists to be able to establish diagnoses and forecasts about present and future situations, providing efficient solution options to generate the greatest possible welfare within the economic circle.

Any imbalance makes possible the generation of resolution alternatives, including access to own funds from savings and access to debt funds.

The opportunity cost is a way of determining the best way to use a resource, taking into account the restrictions that exist in its use.

Time is the scarcest resource available to people when making decisions that can influence their economic future.

Therefore, economists seek to guide the public, in an ethical and fair way, the positive and negative effects.

References

1. Buchanan, J. Eumed.net Virtual Encyclopedia: What Should Economists Do? Recovered from: eumed.net.
2. Economics Rules: the rights and wrongs of the dismal science. Recovered from: centreformacroeconomics.ac.uk.
3. Economics. Recovered from: economics.illinois.edu.
4. Lucas, R. (1988). Complutense University of Madrid: What Economists do. Recovered from: ucm.es.
5. The Principles and Practice of Economics. Recovered from: pearsonhighered.com.
6. The Undergraduate Policy Committee Department of Economics. (2016). Being an Economist, A Handbook for Students Interested in Economic. Tampa, University of South Florida.