Business Economics Major Career Brief

Overview

Economists study how scarce resources can be efficiently allocated to produce the maximum number of goods and services. Economists conduct research, collect and analyze data, monitor economic trends, and develop forecasts. They apply economic theory to endeavors such as banking, finance, manufacturing, education, law, international trade, labor, insurance, agriculture, health, criminal justice, energy, natural resources, and telecommunications.

The field of economics provides a framework for analyzing and solving problems that arise from scarcity. Public issues—inflation, unemployment, budget deficits, and environmental pollution, for example—as well as individual and business decision-making, are examples of the economist's work.

View the Department of Economics website for more information.

Return to Top

Degree Requirements

Includes: foundation courses required for Professional Admission*, general education requirements, professional core courses, free electives, and a set of Business Economics Courses.

• International Financial Management
• Industrial Organization
• Economics of Regulated Industries
• Econometrics
• Experimental Economics
• Labor Economics
• Monetary Economics
• Public Sector Economics
• International Trade Theory
• Information Economics and the Internet
• Law and Economics

*Students must achieve Professional Admission (a competitive and selective application process) to move from the pre-professional phase to the professional phase.

**Check the Degree/Academic Progress Report (APRR's) for your specific academic program requirements per your catalog at http://catalog.arizona.edu.

Return to Top

Other Preparation

The college has a wide variety of professional fraternities, honoraries and student clubs. Student organizations offer: career information; networking opportunities with alumni, corporate representatives, faculty, and fellow students; social and professional activities; and provide leadership roles and skills building opportunities.

Student organizations for economics majors include the Economics Undergraduate Society.

Visit the FESO - Federation of Eller Student Organizations website for more information.

Return to Top

Additional Opportunities

Career Opportunities

Given the analytical nature and diversity of the discipline, economics provides a solid background for many jobs and professions. The study of economics also offers excellent preparation for advanced education in business, law, economics, finance, public policy, international relations, and medicine.

Economists work in government, business, and education.

• Government economists monitor and assess economic conditions and provide economic analysis to guide governmental programs and policies.
• Business economists provide the analysis required to make optimal decisions in all major aspects of business activity.
• Academic economists, in addition to teaching conduct research and may act as consultants to business and government agencies.

A bachelor's degree in economics is sufficient for many entry-level research, administrative, consulting and management trainee jobs. However, to work as an "economist" one generally has to have an advanced degree. Candidates for a graduate degree in economics should have a strong mathematics background with courses in differential, integral, and vector calculus, linear algebra, differential equations, statistics and econometrics. Graduate training is required for some positions and for more rapid advancement.

Since Finance is a sub field of Economics, examples of careers and job descriptions include:

Financial Planner
Financial planners advise clients on financial matters ranging from personal budgeting to investment strategies. They often give recommendations on tax planning, estate design, wills, stock portfolios, life insurance and real estate holdings. Financial planners earn income by charging a fee to clients and earning a commission from products. A common career path involves working for financial institutions (banks, insurance, securities brokerages) at the entry level, and receiving training in both sales and financial products.

A high percentage of financial planners are independent practitioners or partners in a small firm. The designation of CFP, Certified Financial Planner enhances the professional recognition and lends credibility to the planner. Additionally certain licenses (for example, series 7) must be acquired when trading in securities or commodities.

The job requires initiative, ability to market clients, strong interpersonal skills, analytical ability, effective communications and persistence.

Analyst
A security analyst is a researcher involved with portfolio management and the analysis of bonds, stocks and other forms of investment. The largest employers of security analysts are the large brokerage houses, often located in New York. A security analyst is often assigned one type of industry to research and prepare reports. The entry level analyst is generally an assistant who prepares financial reports for internal use or for clients' needs, and not for the general public's knowledge. Most security and investment analysts prefer to remain in their profession doing analytical work, but some do leave to move into bank lending and security sales positions or to manage departments of analysts.

Other titles for security analysts are portfolio manager, director of research, trust administrator, account manager and broker. Typical promotions are from junior analyst to senior to consultant. Sources of employment include investment counseling firms, mutual funds organizations, insurance companies, banks, brokerage houses and research firms.

Security Sales and Trading
A security salesperson is one who buys or sells stocks, bonds, or shares of mutual funds for an investor. They are often called customer brokers, registered representative or account executives. Before they can qualify as a registered representative, they must pass the Security and Exchange Commission's general security examination. Courses in finance and investment subjects are usually helpful in securing employment. Once a salesperson has completed training and licensing requirements, earnings are usually in the form of commissions from sales of securities.

Successful security sales people enjoy their work and earn substantial commissions. They can move into management positions, such as branch manager, but most prefer to remain in sales. The reason for the lack of interest in advancing into management positions relates to the higher earnings potential in sales and the sheer excitement of the business. Most work with high net worth individuals.

Brokerage houses regularly close or merge. Experienced security salespeople find themselves changing employers occasionally but there is little negative impact on their earnings.

Insurance
The insurance business is a major part of the financial planning program so the industry needs a variety of experts in this area. Three types of employment in the industry are underwriters, claims, and sales.

Underwriters appraise and select risks their company will insure. They analyze information in insurance applications, reports from loss control consultants, medical reports, and actuarial studies which describe the probability of insured loss. Underwriters assume great responsibility because their company may lose business to competition if they appraise risk too conservatively, and their company will have to pay too many future claims if their decisions are too liberal. Underwriters outline the terms of the contracts, including premium amounts. Most underwriters specialize in one of the four major categories of insurance: Life, Property Damage, Personal Liability, Health.

Claims representatives investigate claims, negotiate settlements with policyholders, and authorize payments.

Insurance agents sell policies that protect individuals and businesses against future losses and financial pressures. They may be either an employee of an insurance company or an independent agent who represents several companies. Beginning agents are usually paid a salary. After that time they are paid strictly on commissions.

Return to Top

Employment Outlook

According to the Bureau of Labor Statistics, the demand for economists should at least equal the supply through 2005. Prospects improve for bachelor's degree recipients in economics who go on to earn advanced degrees - law or MBA, or Ph.D. in economics, for example. If you are planning to pursue an advanced degree in economics, it is recommended that you take as much advanced math as possible.

Return to Top

Salaries

Starting salaries vary by size and type of employer, location, course work, and experience.

• UA graduate high offer: $38,000 (UA Career Services 2004)
• National average salary offer: $39,710 (NACE Salary Survey/Fall 2003)

Return to Top

Recruitment Opportunities

Economics graduates obtain jobs through various avenues, leading to placements with a wide range of firms and organizations.

Recruitment opportunities include the annual "Career Week", sponsored each fall by UA Career Services and the spring "Career Showcase" coordinated by Eller BPA Student Council and Delta Sigma Pi.

A sample of employers that recruited Eller College Economics majors for both placement and career-related experience in the 2000-2001 school year through the Career Services office:

Return to Top

For More Information

Professional Associations

Return to Top