Frequently Asked Questions

Here are answers to some commonly asked questions about studying economics at the University.

1. How do I get started studying economics, if I want to try it out?

Take ECON 201 (Principles of Microeconomics) and ECON 202 (Principles of Macroeconomics). Microeconomics is about small units, like consumers and firms and industries. You'll learn about competition and monopoly, what determines prices and profits, and the impact of various government regulations. Macroeconomics is about big units, like whole countries and their gross domestic product, their rate of inflation, their level of employment, and so forth. You'll learn about fiscal and monetary policy, federal budget surpluses and deficits, and what determines interest rates. At UVA, it is best to take ECON 201 first, then ECON 202, because ECON 202 will assume that you have already covered the 201 material. This is even more true for ECON 301 and 302 (Intermediate Micro and Intermediate Macro): students must take 301 first, before taking 302.

2. How do I learn about majoring in economics?

The best way is to visit the economics major page on the department's web site. It may be helpful to talk to other students who are studying economics. Grad students in economics sometimes are a good source of information about studying economics at the University. They often are found on the second floor of Wilson Hall.

For more information about what economics is and how it can be useful to you, go to http://www.vanderbilt.edu/AEA/students/.

3. Is there a minor in economics?

Yes. Not a lot of students minor in economics formally, but the option is there. Visit the economics minor page on the Department's website. More common than a formal minor is simply selecting particular economics courses that fit in with a broader educational objective. For example, the politics major who is interested in the global economy (and may be interested in some help passing the Foreign Service exam) might want to take International Trade, International Finance, and Macroeconomics. An English major planning to go to law school might want to take Law and Economics and Antitrust Policy. A sociology major with an interest in public policy might want to take Economics of Welfare and Economics of the Public Sector. If you plan to take only a few courses, Intermediate Microeconomics (ECON 301) is particularly useful and is a prerequisite for most 400-level offerings.

4.Can I take a statistics course at another school and use those transfer credits to satisfy your statistics prerequisite?  And how about the calculus requirement?

Yes, transfer credit can work, but only if you completed the course prior to beginning your studies at UVa. And remember that only some courses will transfer to UVa as STAT 212 or MATH 132. Those transfer credit decisions are made by Gloria Gates (located in Garrett Hall), and she in turn is guided by the Statistics and Math Departments. Introductory college courses in statistics rarely, if ever, receive STAT 212 transfer credit.

5. If I major or minor in economics, what electives should I take?

This depends on your interests and career goals. No single schedule is best for all students. However, here are some general considerations.

• Any student interested in graduate work in economics, business, or public affairs should take ECON 372.

• Any student seriously considering graduate work (an M.A. or Ph.D.) in economics should seek guidance from the Director of Undergraduate Studies or their faculty advisor at the earliest possible time. Solid preparation in mathematics is essential. Besides the required first semester of Calculus, one should take MATH 132 (Calculus II) and MATH 231 (Calculus III). In addition, MATH 331 (Analysis), MATH 351 (Linear Algebra) and MATH 312 (Probability and Statistics) are highly recommended.

• Students interested in law should consider ECON 333, 408, 415, 418, 419, 420, 431, and 433.

• Students interested in business should consider ECON 303, 372, 410, 415, 418, 419, 420, 434, 435, 436, and 471.

• Students interested in international and foreign affairs should consider ECON 309, 355, 421, 422, 441, and 451.

• Students interested in public policy should consider ECON 304, 305, 333, 372, 415, 416, 418, 420, 431, 433, 442, and 443.

• Students interested in history should consider ECON 206, 355, 440, and 507.
  

All students should recognize the importance of being able to write clear and effective memos, reports, briefs, and letters. ENWR 201 and 202 (Intermediate Composition) and courses that satisfy the second writing requirement are recommended.

6. What is the Distinguished Majors Program in economics?

The department's Distinguished Majors Program affords students the opportunity to research and write a thesis during the fourth year. The program is selective, but if you are good at economics and like it, and if you want to try your hand at economic research, you should read more about the program. If you have further questions about the program, you should make an appointment to speak with Professor William Johnson, the head of the program.

7. ECON 372 seems similar to ECON 472.  What’s the difference between these two courses?

Both courses teach econometrics. Econometrics is the toolkit of statistical techniques—in particular, regression analysis—that help us decide whether causal stories about economic behavior are supported by actual data. We believe strongly that every economics major should study econometrics, and we expect that within a few years it will be a required course.

ECON 372 and ECON 472 take different approaches to teaching econometrics. They are not perfect substitutes. You should probably not take one if you have already taken the other. However, if you do choose to take both, both will count as economics electives.

ECON 372 focuses on applied regression analysis, without delving fully into its mathematical underpinnings. It’s excellent preparation for data analyst jobs at investment banks and consulting companies.

8. What opportunities are there for students to do research in economics?

The best opportunity to do research in economics is the Distinguished Majors Program. This highly competitive program accepts 12-15 rising fourth years.

Students may also register for ECON 495 or 496 (Independent Study). This requires a GPA of 3.3 and usually the GPA is much higher. An economics faculty member must approve and direct the 495/496—a significant time commitment for which the professor receives no pay. You're most likely succeed in enlisting a faculty sponsor if you've done well in that person's course and if you've already completed 301 (or 311) and 372 (or 472). Fewer than ten 495 and 496 projects are approved in a typical year.

Students often offer to do no-credit research assistance work for free. Here again, very few faculty accept such student help. Alas, we have no test tubes to clean or white rats to feed. Almost every aspect of economics research work requires a lot of prior training.

9. Is funding available to support undergraduate research in economics?

Students may apply for small grants from the Marshall Jevons Fund to support undergraduate research in economics. Typical uses of the funds include attending conferences, conducting interviews, and acquiring specialized data. Applications should be one page in length and should describe the research project, identify the course or program the research is related to, identify the proposed use of funds, and contain a budget ($500 is the maximum awarded). Priority is given to economics majors but any undergraduate student enrolled in an economics course, or doing research on economics in a program outside the Department of Economics, is eligible to apply. Please submit completed applications and a Marshall Jevons Funding Request Form to Kathryn Faulkner at kjb4n@virginia.edu or P.O. Box 400182, Charlottesville, VA 22904.

Students also may apply to receive a Harrison Undergraduate Research Award. These awards generally are given to second- or third-year undergraduates to support outstanding research projects in all academic fields.

10. What do economics majors do after graduation?

Quite a few things. Some of them take jobs in consulting firms like Bain or McKinsey, or with large firms like Procter & Gamble or American Electric Power. Others take jobs in banking, either investment or commercial, and finance. Some work for the government, generally at the federal level, and a number of them go to law school. Economics is a great major for law school—economics majors score higher on the LSAT exam than students in any other field. It is common for majors who take jobs in consulting, business or banking, to stay there for a couple years, then go to a graduate school of business to get an MBA. Some of these students then return to their first job, but most do something different after getting the MBA.

11. Is an economics major for everyone?

No, it really isn't. If you dislike working with numbers, graphs, and equations, if analytical reasoning troubles you, and if studying the world of business is philosophically repugnant to you, economics is probably not a good fit. But if you are looking for a field of study that keeps lots of doors open professionally, is recognized as good preparation for entry-level jobs, and is valued by graduate professional schools (particularly business, law and medicine), then economics may be the major for you.

12. What's the difference between an economics major and the Comm School?

The economics major is an option for students who want a traditional liberal arts education in the College of Arts and Sciences. The Commerce School is an undergraduate business school. Pre-professional programs like the one at the Commerce School are designed mainly for students who plan to enter business as soon as they complete their undergraduate studies. The focus of such programs is on acquiring practical skills that are useful in starting a career in business. Although many students in the College of Arts and Sciences, including those who major in economics, also enter business immediately after they graduate, the focus in the College is on acquiring a broad education. The benefits of a liberal arts education, and of majoring in economics, are not limited to jump-starting ones career. Like an annuity, the payoff lasts a lifetime. As for acquiring practical business skills, many College graduates choose to enter Masters in Business Administration (MBA) programs after working for a few years and gaining some business experience.

Preparing for a career is important, but there is more to a college education than preparing for a career. There are comparatively few business careers that require specific undergraduate training. Accounting is the exception. If you are a UVA undergraduate and you want to be an accountant, then you must get your training at the Commerce School. But if you want to pursue other kinds of jobs in business—such as marketing, finance, management, and information technology—going to the Commerce School is not necessary. Economics majors and others in the College get these kinds of jobs all the time.

A sensible question to ask if you are in your second year and are trying to decide between economics and commerce is: am I tired of taking liberal arts classes? If there are College courses you would still very much like to take—those "great courses" in Art History or Biology that you have heard about—you will have more difficulty taking them if you transfer to the Commerce School than if you stay in the College. If you transfer, the commerce curriculum will largely fill your last two years. On the other hand, if you have had your fill of courses in the College, and you are ready to focus on a business career, the Commerce School may be just the place for you.

13. What is the best way to prepare for an MBA program?

Most MBA programs are designed for people with a Bachelor's degree and a few years of practical business experience. It is not necessary to study business as an undergraduate to enter or succeed in an MBA program. An economics major provides excellent academic preparation. Consider what some prominent MBA programs have to say about what they look for in an applicant:

• Stanford University: "Are there course prerequisites?"
  No. We admit students with diverse undergraduate majors representing subject areas from the sciences to the liberal arts and humanities. However, we highly encourage familiarity with calculus, statistics, micro-and macroeconomics, and a spreadsheet program.

• Harvard University: We are looking for candidates who possess strong academic abilities. There is no minimum grade point average required to apply. We look closely at your prior academic performance . . . and your work experience when evaluating your ability to handle the coursework of our MBA program. Given the analytical rigor of our curriculum, we pay particular attention to your ability to master quantitative concepts.

• MIT: "Is there any academic preparation required prior to applying/enrolling? Do I need an undergraduate degree in business to apply?"
  The Sloan School welcomes applications from college graduates from all areas of concentration: the humanities, the social sciences, the physical sciences, and engineering. The only specific requirement is that the applicant must have completed formal courses in differential and integral calculus and in economic theory, both macro- and microeconomics. If these subjects have not been taken in a previous academic program, they may be covered by formal courses prior to enrollment.

• University of Pennsylvania: "Is an applicant at a disadvantage without previous course work in business?"
  No. Many students at Wharton have not had business courses prior to entering the program. Generally, 40% of our class is made up of people with liberal arts backgrounds. Math Camp and Pre-term (one week and three weeks respectively) offer incoming students an opportunity to "brush up" on their quantitative skills before classes begin. Approximately 95% of all incoming students will participate in Pre-Term. Candidates are also encouraged to complete introductory courses in calculus and statistics prior to entrance, since much of the course work requires quantitative skills.

• Northwestern University: "Does the admissions committee favor certain undergraduate majors or recommend certain undergraduate courses?"
  We choose students from many undergraduate disciplines and favor no particular major in the admission process. We prefer students to choose undergraduate majors of personal interest in which they will do well. We recommend that students take courses in economics, computer science, English, mathematics through calculus, and communications (particularly debate and public speaking). It is also helpful, but not necessary, for students to have had some exposure to accounting before enrollment.

• University of Virginia: While no specific undergraduate major is required for admission, students should possess dexterity with mathematics as well as some background in accounting, economics, and statistics.
  

14. I've heard that SYS 444 counts as an economics elective. Is this true?

Not for CLAS students. If you’re a SEAS student who’s double-majoring in economics, SYS 444 will count as an economics elective, but only if you did NOT take the equivalent course in economics. ECON 418 and ECON 419 are substantially the same as SYS 444. So SEAS students may NOT count SYS 444 for economics major credit if they are proposing also to count either ECON 418 or 419.

15. One of my grades blocks me from declaring economics.  May I appeal that outcome?

Yes. In principle, any rule or ruling can be appealed. We aim to apply rules consistently: they should apply to everyone, and every case, regardless of particular circumstances. But we also want these rules to work well: to guide students into majors in a fair and appropriate way.  Appeals can be a way for us to discover that a particular rule is flawed, and should be modified. When truly extenuating circumstances exist, we should be flexible. To learn more about the appeals procedures, email the Economics Director of Undergraduate Studies.

16. I’m a Financial Economics concentrator.  In Fall 2008, 434 and 436 are offered in the sametime slot.  That will make it impossible for me to complete the concentration by my May 2008 graduation date.  What can I do?

We see this conflict but can’t avoid it.  Instead, students who graduate in January or May 2008 may use ECON 437 (Behavioral Finance) to satisfy the requirement for “one course from among ECON 434, ECON 435 or COMM 372”.