Economics vs. Business - Overview in Differences of Studies

Santiago Bel
October 29, 2025

Choosing what to study in college is one of the most important economics decisions 

a student can make. While majors like economics, business, and finance or 

accounting often get grouped together, they each offer distinct skills, career paths, 

and long-term opportunities. Understanding these differences can help you make 

better informed decisions about what is the best fit for you - personally, 

professionally, and economically. 

Economics is fundamentally the study of decision-making under scarcity. It helps us 

understand how individuals, firms, and governments allocate resources, respond to 

incentives, and react to shifting conditions in markets and society. PhD candidate in 

Economics at the University of Texas at Austin Andrew Yusik Kim says, “I think 

[economics] helps us learn how to think logically about incentives and markets, but 

it’s a bit more theoretical.” Although it can be more analytical, often involving 

mathematics, statistics, and abstract modeling, its versatility allows graduates to enter 

a large range of industries-from government policy to tech, domestic or international economic development, consulting or data analysis. 

Business, by contrast, is a broader, more applied field focused on the day-to-day 

mechanics of managing people, resources, and organizations. Business study includes 

a range of disciplines – marketing, management, finance, operations, and 

entrepreneurship – with an emphasis on communication, leadership, and strategic 

thinking. While business degrees don’t always result in the highest starting salaries, 

they can provide a wider array of skills that can be applied to countless industries. 

Finance is the closest study to economics within the field of business. Whether it be 

treasury, accounting, financial planning & analysis, or even risk management, the 

fields of finance have a special focus on handling money. It offers a wide array of 

applications ranging from banking to corporate finance. In many cases, within 

business, finance skills are the most flexible in being able to be applied and transferred 

across many distinct industries. 

It is also important to consider career paths that can blend the study of economics 

and business. A popular example of this is studying economics as a pre-grad and then 

doing an MBA (Master’s in Business Administration). This can lead to being a more 

competitive candidate in the work market and having a successful career in 

consulting, investment banking, private equity, and even corporate finance to name a 

few, though this pathway isn’t required to find stability in these fields. 

While studying, economics and business undergrads can have multiple overlapping 

courses and find it common to attend the same events and use the same networking 

channels. 

Sophomore Tomas Lozano studying economics at the University of Michigan says, 

“I have many friends in both The College of Literature, Science and the Arts and at 

the Ross School of Business. While studying economics I’m part of the Michigan 

Business Group, where I use what I’m learning for creative problem solving, 

contribute to consulting projects, and work as a marketing analyst. I think trying to 

be a well-rounded student really helps me to get multiple perspectives and be more 

prepared to solve problems in the future.” 

Altogether, both studying business and economics have their own benefits and 

specializations. Though they overlap in some areas, there are many different pathways 

that can be taken, and it’s up to the individual to decide what is best.