The Overview By Gunjan Porwal

What is Economy??

Economy
The correct and effective use of

available resources
Activities related to the production

and distribution of goods and services in a particular geographic region

Economics
Economics is a social science which studies the

activities of the people It is about making choices in the presence of scarcity The study of choice problems caused by scarcity at individual level is what economics all about

Why to study Managerial Economics?

Useful to Household
Useful to businessmen Useful to laborers Measure wages, causes,effects and remedies Useful to politicians Monetary and fiscal policy

Why to study Managerial Economics?

Useful to social reformers Example: chipkoo movement Useful to society Incidence of taxation, development of cottage industries Useful in international economic problems Current US crisis, debt crisis in Europe

Two Parts of Managerial Economics

Micro Macro

Micro Economics
Deals with individual household, ndividual firm
Consumer Behaviour and Demand Producer behaviour and Supply

Forms of Market and Price Determination

Cost and Revenue

Macro Economics
Concept of National Income
Fiscal Policy Business Cycles

Inflation