1. The study of economics guides individuals, firms and government when dealing with the allocation of scarce resources to different uses — i.e. policy making. 
  2. The study of economics serves as an aid to business men in taking decisions on how to maximize profit by allocating resources to the activities they think will yield the highest profit.
  3. It also helps individuals, firms and government in making choice since resources are limited to satisfy our unlimited wants.
  4. It also prepares students for a career in life.
  5. It helps us to understand the nature of the complexity of economic activities.

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