Nature and Scope of

Business Economics

Name : DHRUVIL SHAH

Class : SYBCOM
Roll No. : 61
 MEANING
 Managerial Economics was formerly known as
"Business Economics."

 It is also called as "Applied Economics".

 The word Business Economics is formed from

the two words Business and Economics.
 The word 'Business Economics' "Business"
means a state of being busy.

 In other words Business if referred to

commercial activities aimed at making profit.

 In Managerial Economics the concepts,

principles and theories in pure economic
science are applied to any business activities.

 Therefore it is also called as Applied

Economics.
NATURE OF BUSINESS ECONOMICS
 Business Economics  Pragmatic approach

 Normative economics
 Micro-economics
 Managerial Economics is
 Macro-economics a Science

 Theory of firm  Applied Economics

 Managerial Economics
 Decision making requires Art
 SCOPE OF BUSINESS ECONOMICS

 Business Economics provides management

with a strategic planning tool.

 Thus the perspective of business world would

be clarified in regards to its working.

 Business Economics is mainly concerned with

the application of economic principles and
theories.
 The scope of Business economics covers two
areas of decision making.

1) Operational or Internal Issues

2) Environmental or External Issues