1.

What are the 2 important words to remember in the definition of economics

2? And state their importance.
The word 'economics' is derived from two Greek words, 'eco' meaning home and
'nomos' meaning account, which refers to household management.
Economics can be defined in a few different ways. It’s the study of scarcity, the
study of how people use resources and respond to incentives, or the study of
decision-making. It often involves topics like wealth and finance, but it’s not all
about money. Economics is a broad discipline that helps us understand historical
trends, interpret today’s headlines, and make predictions about the coming
years.

2. What is the role of a manager in relation to the scarce resources of the

company?
The role of a manager in relation to the scarce resources of the company are
responsible for setting the overall direction of a company and making sure that
major organizational objectives are achieved. Their leadership role can extend
over the entire organization or for specific divisions such as finance, marketing,
human resources, or operations

3. Give the importance of the study of managerial economics, as a student and

as a consumer?
The importance of the study of managerial economics as a student and as a
consumer it prepares to establish careers in every area of business and industry,
including marketing, analysis, consulting, financial services, accounting,
entrepreneurship, real estate and government.

4. In what way does the study of managerial economics help in the pursuit
of economic knowledge?
Managerial economics helps in taking all decisions concerning the firm's capital.
It properly analyses investment avenues before investing any amount into them
to make sure the profitability of an investment. It is the main importance of
managerial economics in a business or as an organization, that’s why studying of
managerial economics help in the pursuit of economic knowledge.