Business economics come under applied microeconomics and is also known as managerial business. Business economics was introduced by an American economist called Joel Dean in his book named â€˜Managerial Businessâ€™. It is a study of how traditional economic theories are used in practice by a firm. It is about creating a link between abstract ideas and business practice.
Business economics is associated with problem-solving and decision-making. Decision making is about choosing between limited alternative resources such as capital, land, labor, and enterprise, which later on is supposed to result in profit maximization by, effective means through efficient ways. It is known to be a science of decision making.
In manuals as business economics homework answers, you can get an integration of logical thinking, applied science, mathematics, and economics. It integrates theory with practice.
Specific areas of business economics:
Business economics is narrow as it is a branch of microeconomics, but has sufficient scope in areas like-
But what is the importance of business economics? Letâ€™s study in detail.
Importance of Business Economics in current economics
Business economics is an important and useful subject. It helps in understanding and analyzing various economic problems and deducting the same. It has both, theoretical and practical utility. With manuals as business economics homework answers, you can get a better idea of the concepts.
The study of business economics helps us to understand the economic behavior of human beings as an individual. It is concerned about why and how people trade for utilities with each other. It studies the human behavior with laws of demand and supply. At what and which time is the utility most demanded.
How does an individual manage between his income and expenditure? Thus, it is important to study the economic human behavior which business economics deals with. You can understand basic facets of this subject via manuals as business economics homework answers.
Financial planning is indeed an important part of the economy. It provides knowledge and technique on ways of planning. How an idea will be executed, how will it be carried on is what all comes with an economic plan. Thus financial planning is done in advance. The purpose of financial planning is to bring stability and development in the country.
Without it, a country would not know what to do further. Whether a country is developed or underdeveloped or developing, all the countries do an economic planning so as to use its natural resources in an effective yet efficient way.
Business economics studies how different environment and situations influence the progress and working of an economy. It discusses suggestions to overcome economic problems and deduct complications faced by the people of a country and the government itself. You can check out manuals as business economics homework answers for details!
It is a system in which the allocation of resources such as land, labor, and capital are looked after. Everything should be evenly distributed yet in an efficient manner. Thus, it is a crucial element of business economics to study the functioning of an economic system.
Inflation means the general rise in the prices of an economy and decreased rate of purchasing capacity of its people. Depression or deflation means the reduction in the prices of an economy, and an increase in purchasing capacity of the people, so as to meet their daily needs. Inflation occurs when the demand for goods or services are higher than an economyâ€™s producing capacity.
In such cases, cost controlling takes place. Inflation and deflation are balanced and are looked after in business economics. Cost controlling is another major as well as an important factor thatâ€™s studied in it. Thus, it is important to have a price monitoring in an economy, so as to run it properly without any complications whose sufferers are its people and the government itself.
Economic development is another significant element studied in Business Economics. On one side there are countries which are developed, whereas, on the other hand, there are countries which are developing or underdeveloped. Developing countries have an aim to achieve, which is to transform into a developed country, as soon as possible.
A countryâ€™s development is determined by the resolution of its problems like, overpopulation, poverty, unemployment, and when it has faster and better communication and transportation facilities along with its human resource, which is making a productive use of technology.
Thus, in business economics, economic development consists of a plethora of determinants, which decides whether a country is developed, developing or it is underdeveloped. With manuals as business economics homework answers, you can get a better grasp of concepts.
This study is of great help to business people. Business people through business economics can examine the different types of markets and how they are influenced by various influencers. Not only that, but they can also study about the fluctuations in business, production and its cost, labor and its cost, and local prices of goods and services.
They can plan and execute a proper strategy of products and services by demand and supply. They can also by making use of freedom, change their firm, switch to a new business or switch to a different type of market.
If business economics is most useful to any person, then it is to the finance minister. It is beneficial to the finance minister and his work related to the nationâ€™s economy in the finance department. He gets to study and appropriately examine public revenue, government spending, public income and government debt.
Through this, he can make a safe financial budget for the people as well as he can create a safe monetary policy for the people. Thus, the study of business economics is the key help to the finance minister of any country.
Thus, these were some of the importance, which was shown for business economics. Business economics is a small branch of microeconomics but has its scope and importance at the same time. It is a crucial topic for a country and its economy. Thus, the study of business economic homework answers is the backbone of an economy. For details, you can seek the help of professional business economics homework answers.