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Nature or Characteristics:

Micro Economic

economic Concepts Pragmatic Normative Decision making Goal-oriented

1.

A link between traditional economics and decision science (Tools)

Scope of Managerial Economics: Applied Economics:


Micro Internal Macro External

Micro Economics Demand Analysis-forecasting


1. 2. 3. 4. 5.

Cost-production Pricing decisions Profit analysis Capital Management. Macro: 1. General trends. 2. Money-banking 3. Public Finance, fiscal-policy. 4. Government Policies 5. Social factors 6. Social organisations 7. Political enviornment. 8. Foreign Trade.

Other Disciplines: Economics, Mathematics, statistics, Accounting, Operations, Research.

Significance of B.Economics: 1.The gap between the theory and practice. 2.Decision-making 3.Tools 4.Concepts 5.Data 6.Forecasting 7.Guide.

ECONOMIC THEORIES
1.OPPORTUNITY COST
2.INCREAMENTAL COST 3.TIME PERSPECTIVE 4. DISCOUNTING 5. EQUI-MARGINAL 6. RISK-UNCERTAINTY

National Income

1. 2. 3. 4. 5.

Concepts: GNP=GDP+X-M NNP=GNP-Depreciation GDP=C+I+G NDP=GDP-Depreciation GNP at Market Prices=GNP at factor cost +Indirect Taxes.

6. GNP at FACTOR COST = GNP at MARKET

PRICES INDIRECT TAXES +SUBSIDIES. 7. NNP AT MARKETPRICES = GNP at MARKETPRICES DEPRECIATION. 8. PERCAPITA INCOME = NI / TOTAL POPULATION. 9. DISPOSABLE INCOME= PI- P TAXES

MEASUREMENT OF NATIONAL INCOME


A . PRODUCT METHOD B . INCOME METHOD C . EXPENDITURE METHOD

MANAGERIAL USES OF NATIONAL INCOME


1. BUSINESS MANAGERS-GDP,DISPO-INCOME 2.MARKETING MANAGERS DATAS 3.ADVERTISING AGENCY 4.CONSUMER BANKING MANAGERS INCOME+

EXPENDITURE TREND 5.FINANCIAL MANAGERS- INFLATION,INTEREST