Wants and needs of every society are unlimited while the resources available with society to satisfy these wants and needs are limited and these limited resources too have alternative uses.Therefore, the society has to decide the goods and services to be produced with these resources and also the quantity in which these goods and services should be produced so that maximum possible wants of society may be satisfied.
Managerial Economics: Managerial economics can be viewed as an economics applied to problem solving at the firm level.
Managerial economics deals with integration of economic theory with business practices for facilitating the decision making planning process by management.
They put the following arguments in favour of their opinion: 1.
Difference in the Opinion of Economists: There is vast difference in the opinion of economists on almost every issue.
The economic theories and economic tools frame this part.
This part is divided into static dynamic economics. Applied Economics tries to apply the results of economic analysis to descriptive economics.Macro-economic examines the aggregates and averages of economic variables which included study of money, banking and financial institutions, general price levels, inflation theory of employment, income distribution, monetary and fiscal policies and problems of economic stabilisation.Science is a systematised body of knowledge which establishes relationship between cause and effects. Use of Economic Laws and Principles: Study of economics involves the use of number of economic laws and principles.In other words, the society has to decide how to make the best and most efficient use of available resources.Modern view of economics is not confined only to the allocation of resources but is also concerned with the development of these resources.There are many examples of Applied Economics such as Industrial Economics, Managerial Economics and Agricultural Economics.In descriptive economics actual facts about a particular economic subject for the aim of study.Indian Economics is the example of descriptive economics.Meaning of Business: Human beings in order to satisfy their needs take up many activities.Business includes activities such as farming, mining, manufacturing, banking, trading, insurance, transport, construction and warehouse etc. Concept of Business Economics: Business Economics was attached different meanings in accordance with the objectives set.According to one school of thought, business economics was conceived as an activity aimed at profit maximisation.