curtin university is a trademark of curtin university of technology cricos provider code 00301j adam...

Curtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J

Adam Richardson

Careers in Economics

Why wouldn’t you study Economics!It pays to study Economics because economics is everywhere . . . An understanding of Economics is not only essential in any career but also in lifeEconomic issues dominate the global and national agenda – both microeconomics & macroeconomics

Why Study Economics?

Colin BarnettPremier of W.A.

Notable Economics Graduates

Cate Blanchett

Notable Economics Graduates

Tiger Woods

Notable Economics Graduates

Notable Economics Graduates

Notable Economics Graduates

NoBorat is an IT

graduate

Donald Trump

Notable Economics Graduates

Arnold Schwarzenegger

Notable Economics Graduates

Kofi Annan UN Secretary General

Notable Economics Graduates

Economics graduates have an extensive range of potential career options in the private and public sectors both in Australia and overseas.◦ banking◦ business◦ economic research◦ environmental management◦ finance and insurance◦ government and politics◦ management and law◦ mining & manufacturing ◦ public policy

Why Study Economics?

How much do Economists earn?Economics graduates are the best

paid!Graduate earnings surveys

consistently show that economics graduates earn more than graduates of many other disciplines.

Why Study Economics?

Source: www.jobsearch.gov.au

Weekly Earnings in 25 Jobs This data is from the Government’s

job search website - it provides an indicator of expected earnings from different occupations.

At the low end of the wage ladder are telemarketers, and checkout operators, while the highest paying jobs include economists and doctors.

Why Study Economics?

Source: ABS Census 2006

Accountants $1403 ICT/Systems analysts $1600Legal Representatives $1402Economists $2250

Source: JobOutlook- Department of Education, Employment and Workplace Relations 2010.

Accountants = 41.3 hrs/weekLegal representatives = 46.1 hrs/week ICT/systems analyst = 40.1 hrs/weekEconomists = 40.3 hrs/weekAverage (all occs)= 41.3 hrs/week

Source: JobOutlook- Department of Education, Employment and Workplace Relations 2010.

Because we all work different hours..... Convert to hourly rate-

◦Acc = $33.97/hr (1403/41.3)◦ICT = $39.90/hr (1600/40.1)◦Law = $30.43/hr (1403/46.1)◦Econ = $55.83/hr (2250/40.3)

Source: JobOutlook- Department of Education, Employment and Workplace Relations 2010.

Accountants = 9.7% ICT/systems analyst = 6.9% Economists = 12.7%

Why is this so high? Are we unhappy in our jobs? Are we more inclined (and supported) to movebetween industries because of the versatility and

adaptability of our qualifications?

Source: JobOutlook- Department of Education, Employment and Workplace Relations 2010.

Commercial Analyst

Level 23- 240 St Georges Terrace

Total Revenue

Total Cost

2009 240,000 laptops

48,500,000 23,100,000

2010 250,000 laptops

57,000,000 32,000,000

Asked to comment on 2010-

Everyday “typical/common” comment:

We made profit of $25,000,000

We are awesome, we are WINNERS!

(TR-TC)

(57,000,000 – 32,000,000)

Total Revenue

Total Cost

2009 240,000 laptops

48,500,000 23,100,000

2010 250,000 laptops

57,000,000 32,000,000

Asked to comment on 2010-

Analytical (Economist) comment:

The marginal (additional) cost of increasing production by 10,000 laptops exceeds the marginal (revenue)… There is a disincentive to act! (MR<MC)

MR= 8,500,000 (57m-48.5m)MC= 8,900,000 (32m-23.1m)

We would have been better off leaving production at 2009 levels and earned more profit. (25m vs 25.4m)

$25,000,000 profit… Nice!! However, this is not the optimum, nor an improvement

Conclusion

Why Study Economics?

Economists have the most interesting jobs, they are well paid and they are ‘normal’ people!It makes you more “informed” and a better decision maker