DIFFERENCE BETWEEN BUSINESS ECONOMICS AND ECONOMICS

• • DIFFERENCE BETWEEN BUSINESS ECONOMICS(MANAGERIAL ECONOMICS
    AND ECONOMICS
  • SHASHI AGGARWAL ECONOMICS AND LAW CLASSES
  • MEANING OF BUSINESS ECONOMICS
  • BUSINESS ECONOMICS  IS THAT PART OF ECONOMIC THEORY WHICH DEALS WITH THE APPLICATION OF ECONOMIC TOOLS AND CONCEPTS TO THE SOLUTION OF BUSINESS PROBLEMS OR THE PROBLEMS OF RESOURCE ALLOCATION AMONG THE COMPETING ENDS.
  • EDWIN MANSFIELD,” MANAGERIAL ECONOMICS IS CONCERNED WITH THE WAYS IN WHICH MANAGER SHOULD MAKE DECISIONS IN ORDER TO MAXIMISE THE EFFECTIVENESS OR PERFORMANCE OF THE ORGANISATIONS THEY MANAGE.
  • JOEL DEAN,” THE PURPOSE OF MANAGERIAL ECONOMICS IS TO SHOW HOW ECONMIC ANALYSIS CAN BE USED IN FORMULATING MANAGERIAL POLICIES.
  • MEANING OF ECONOMICS

  • ECONOMICS AS A SCIENCE IS CONCERNED WITH THE PROBLEM OF ALLOCATING RESOURCES AMONG COMPETING ENDS. ECONOMICS PROVIDE THE TOOLS AND CONCEPTS WHICH EXPLAIN THE BEHAVIOR PATTERN OF ECONOMIC VARIABLES SUCH AS DEMAND,SUPPLY,PRICE AND COMPETITION.

  • ECONOMICS IS THE STUDY OF HOW SOCIETY USES ITS LIMITED RESOURCE. ECONOMICS IS A SOCIAL SCIENCE DEALS WITH PRODUCTION DISTRIBUTION AND CONSUMPTION OF GOODS AND SERVICES.
  • MICRO ECONOMICS:-IS THE BRANCH OF ECONOMICS ANALYSES BASIC ELEMENTS IN THE ECONOMY INCLUDING INDIVIDUAL AGENTS,MARKETS AND THEIR INTERACTION AND OUTCOME OF THEIR INTERACTIONS.
  • MACRO ECONOMICS ANALYZES THE ENTIRE ECONOMY.
  
  
  
  
  • DIFFERENCE BETWEEN ECONOMICS AND MANAGERIAL ECONOMICS
  • ECONOMICS
       o    DEAL WITH THE BODY OF PRINCIPLES
  
  
       o    IT IS  BOTH MICRO ECONOMIC AND MACRO IN NATURE
       o    MICRO ECONOMICS AS BRANCH OF ECONOMICS DEALS WITH ECONOMIC PROBLEMS OF INDIVIDUAL          AS WELL AS FIRM
  • MICRO ECONOMICS AS A BRANCH OF ECONOMICS DISTRIBUTION THEORIES FOR EX WAGES,INTEREST,PROFIT
  • SIMPLIFIED THE MODEL. IT HYPOTHESIZED ECONOMIC RELATIONSHIP AND BUILD MODEL.
  • MAKES CERTAIN ASSUMPTIONS
  • MANAGERIAL ECONOMICS
  1. INVOLVES APPLICATION OF ECONOMIC PRINCIPLES TO THE PROBLEMS OF THE FIRM
  2. IT IS ONLY MICRO
  3. DEALS ONLY WITH ECONOMIC PROBLEMS OF THE FIRM. DOES NOT DEAL WITH ECONOMIC PROBLEM OF INDIVIDUAL
  4.  
  5. ONLY PROFIT THEORY IS RELEVANT
  6. SCOPE IS NARROW
  
  
  7. MAKES MODIFICATION IN ECONOMIC MODELS TO MAKE IT SUITABLE TO RELEVANT SITUATIONS
  8. IT PROVIDES FEEDBACK SUCH AS THE OBJECTIVE OF THE FIRM,MULTI PRODUCT NATURE OF MANUFACTURE,BEHAVIORAL CONSTRAINTS ENVIRONMENTAL,LEGAL CONSTRAINS ON RESOURCE AVAILABILITY.