From the moment you first bought something, you became a consumer of the economy. As a consumer, you may have a lot of questions about the things which occur around you, including: “Why are petrol prices so high?”, “Why is there a tax on my income?”, “Why is it more expensive to buy something overseas than it would be to buy in Australia?” and countless more. A high school understanding of economics would answer all these questions, thus being a necessity to understand many financial factors which influence everyone’s daily lives.

A fundamental knowledge of economics is essential when it comes to understanding the importance of, and subsequently deciding many political policies. Many government policies proposed have some sort of economic basis, or might be entirely economic - and it’s a shame to see many people against a necessary policy because on face value it seems undesirable. For example, when there are proposed tax hikes, many individuals are outraged, as it would result in a decreased disposable income, fair enough. However, this outrage is often misplaced when considering the wider benefits of taxations. The most commonly known use of taxation is for the provision of goods which no one themselves are willing to pay for, such as street lights or roads. However, governments may decide to increase a certain taxation to decrease existing levels of foreign and domestic debt, or even contract the level of economic activity in order to avoid rising prices of goods (inflation) which is not desirable by any consumer.

Many key decision making skills needed in life are achieved from studying economics. Economics teaches the need to analyse all the benefits and costs that come with a decision, and weigh them up to select the most desirable outcome. This mindset can be applied to everyday decisions such as deciding whether or not to save up money for a concert in the future or spend the money now on clothes, deciding to study for a test early or leaving it to the night before.

So when picking your electives, don't forget to weigh up the cost and benefits!