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Economics



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Department of
Economics

Wylie Hall 105

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625 North Jordan Avenue
Phone: 855-0576
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Description of Major

The economics major provides students with an understanding of basic microeconomic and macroeconomic theory, the application of theory to current issues, and the statistical tools necessary to understand how to begin working with economic data. Application areas offered include (but are not limited to): international economics, monetary economics, econometrics, financial economics, game theory, laboratory experimental economics, public economics, economic history, and the economics of developing countries. Economics is fundamentally a social and behavioral science. It focuses on problem solving by individuals, governments, and business firms in the world we live in, where productive resources are scarce. The analysis of economic problems relies on a well-developed body of theory that has been extensively tested against empirical evidence. If you like thinking logically, problem solving, and, in general, taking things apart to see how they work, then the economics major may be for you.

Skills & Knowledge Developed in this Field of Study

Analytical thinking, problem solving, logical reasoning, and communication skills; ability to assess costs and benefits in order to choose among alternatives.

Minors and Second Majors that Expand Career Options with this Major

Liberal Arts and Management Program (LAMP) or business, cognitive science, computer science, mathematics, political science, and foreign languages.

Career Options

Careers Specific to the Bachelor's Degree

The two largest employers of economics majors are consulting firms and financial institutions. Other employment opportunities include international business and government service (local, national, and international). Positions include financial analyst, investment analyst, business analyst, market research analyst, equity derivatives analyst, securities and commodities broker, tax analyst, and information technology consultant.

Other Career Possibilities with a Bachelor's Degree

An economics major is excellent preparation for law school (economics majors have the highest scores on the LSAT--Wall Street Journal, 11/3/98). Economics is also the most frequent undergraduate major of students enrolled in MBA programs. An economics major provides sound preparation for graduate programs in accounting, finance, social science, and public and environmental affairs. Economics graduates also find employment in teaching, journalism, and information technology.

Careers that Normally Require a Graduate Degree

Research and teaching at colleges and universities.

Employment Opportunities

Job Outlook

Average annual growth rate of starting salaries for IU economics majors is 9% over the last five years. Graduates with an economics degree can expect excellent job prospects in a wide range of career opportunities.

Salary Information

Average starting salary for years 2001-2003 economics graduates was $46,586 - $41,000. Many also receive signing bonuses, relocation compensation, stock options, and built-in annual bonuses, along with generous fringe-benefit packages.

Potential Career Growth

The combination of strong problem solving skills and the breadth of a liberal arts education result in rapid career advancement for economics majors.

Placement Statistics for IU Graduates with this Major

These were the starting salaries: 1996 $31,550; 1997 $37,333; 1998 $39,420; 1999 $41,333; 2000 $46,586; 2001 $46,667; 2002 $49,750; 2003 $41,000. A partial list of employers includes Goldman Sachs, AC Nielsen BASES, JP Morgan Chase, Deloitte, A.G. Edwards, G.E. Capital, Bank America Securities, Bank One, Saloman Smith Barney, Andersen Consulting, A.T. Kearny, Hewitt Associates, Price Waterhouse Coopers, McKinsey and Company, Bain Consulting, Proctor & Gamble, Toyota, Board of Governors of the Federal Reserve, New York Federal Reserve Bank, Cleveland Federal Reserve Bank.

High School Preparation

Basic requirements for admission to IU include a variety of courses in English, mathematics, and social science. We specifically recommend four to five years of math, including calculus or pre-calculus; two to three years of lab science; three years of foreign language, and advanced writing.

Special Opportunities

Our honors program recognizes students with marked potential to excel in the study of economics. Honors students have the opportunity for more intensive contact with faculty and more leeway to pursue topics that interest them. Students with an interest in political science can opt for an interdepartmental major or minor in economics and political science. This program lets students explore important issues arising in both the public and private sectors and provides the basic theoretical tools necessary to investigate them. We also offer an interdepartmental major with mathematics. It’s designed to enable our students to model economic questions mathematically and then to analyze and solve those models a skill of increasing importance today. Another opportunity we offer economics majors is employment as undergraduate interns. In these positions, upper-level students gain valuable experience in grading, leading collaborative learning sessions, and doing research. The department has recently moved into newly renovated quarters in historic Wylie Hall. This building provides ample classrooms, faculty and graduate student offices, and a computer laboratory. In addition, a departmental conference room, lounge, and reading/meeting room make it easier for faculty, staff, and students to meet and interact.

Noted Alumni

Edward Boehne, Ph.D. 1968, President of the Federal Reserve Bank of Philadelphia James Douglas Grant, B.A. 1970, author and publisher of Grant’s Interest Rate Observer Lyle Gramley, consulting economist of the Mortgage Bankers Association of America Al Broadus, President of the Federal Reserve Bank of Richmond Jerry Jasinowski, B.A. 1962, President, National Association of Manufacturers, Washington, D.C.
Majors and Careers Series Spring 2000

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Created by Brian Smith, Dawn Bourbina, Ben Tesnar, and Stephen Grogg
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