Meaning & Scope of Business Economics Commerce YouTube Lecture Handouts

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Title: Business Economics

Business Economics

Meaning & Scope of Business Economics

Meaning

  • Business economics is an applied economics field that investigates the financial, organizational, market-related and environmental concerns that businesses face.
  • The ideas of scarcity, product factors, distribution and consumption are all covered in business economics.
  • Business economics is the application of economic theory to business activity in order to help managers make better decisions and plan ahead.
  • Business economics is also called as managerial economics, is the study of how economic theory and business practice interact.
Scope of Business Economics

Microeconomics

  • The study of individualistic economic behavior when making economic decisions is referred to as micro economics. It investigates a single customer, producer, manager or form as well as the price of a certain commodity or a household.
  • Microeconomics is the social science that studies the implications of human behavior, specifically about how those decisions affect utilization and distribution of scarce resources.
  • Microeconomics is the study of economic tendencies or what is likely to happen when individuals make certain choices or when the factors of production change. Individuals such as buyers, sellers and business owners create groups and these groups create the supply and demand for resources, using money and interest rates as a pricing mechanism for coordination.
Microeconomics

Macroeconomics

  • Macroeconomics is a branch of economics that concentrates on the entire economy it calculates the total worth of the numerous separate units to determine the larger influence on the entire country. This principle underpins all of the major reforms and initiatives.
  • Macroeconomics is the study of aggregates or averages that cover the entire economy, including total employment, national income, national production, total investment, total consumption, total savings, aggregate supply, aggregate demand, general price and cost structure.
  • The part of income and employment, or simply income analysis, is a subset of macroeconomics. Unemployment, economic volatility, inflation or deflation, international commerce, are all issues that macroeconomics addresses.

Areas Covered

  • Theory of demand
  • Theory of supply
  • Theory of wages
  • Theory of rent
  • Theory of interest
  • Theory of profit
  • Theory of income and employment
  • Theory of general price level and inflation
  • Theory of economic growth
  • Theory of distribution

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