We will know What is business economics? and Features & characteristics of Business Economics.
What is business economics?
Meaning:
It is the branch of economics that deals with the application of economic principles and methods for business and managerial decisions of firms.
Features / Characteristics of business economics
Following are the features/ characteristics
1. Microeconomic Character:
It is microeconomic in character that studies problems of business firms. So, it doesn’t study the economy as a whole. Hence, Its scope does not extend beyond the study of the individual consumer, individual demand, supply, etc.
2. Normative economics:
It belongs to normative economics. It means business economics is more perspective than descriptive. Hence, It explains what management should be in a particular situation. Hence, it also deals with future planning, policymaking, decision-making, and rational utilization of available resources.
3. Pragmatic:
It is more pragmatic than traditional economics. Therefore, it is also called applied microeconomics. It avoids difficult issues of economies theory. So, it tries to solve managerial problems that appear in their day-to-day functioning.
4. Use of the theory of the firm:
It uses economics concepts and principles which are known as the theory of the firm. Thus, the scope of business economics is narrower than the scope of pure economic theory.
5. Helpful in Managerial Decision Making
It integrates the theories of traditional economics and business practices. Hence, the main aim of business economics is to help management in making correct decisions and preparing plans and policies for the 6. future.
6. Science and art:
It studies cause and effect relationships. Business economics integrates the decision sciences with economic theory to arrive at strategies to help the business achieve its goal. So, It is an art as it uses all the theories in a practical way. Hence, It is the creative thinking of a person to accomplish the desired goal.
7. Co-ordinating Nature:
It is co-ordinating nature as it coordinates different business activities within the organization. Hence, It helps coordinate all the departmental activities.
Hence, these are the feature or characteristics.
Other Important Links:
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Model Question Paper of Macroeconomics: CLICK HERE
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