MANAGERIAL

ECONOMICS
Part I: Nature and Scope of
Managerial Economics
 OUTLINE OF THE PRESENTATION

01 Microeconomics and
Macroeconomics
Difference between 03 Characteristics of
Microeconomics and Managerial Economics
Macroeconomics
What are the Characteristics of
Managerial Economics
02 Positive and Normative
Economics
Difference between Positive
and Normative Economics
 01
MICRO AND MACRO
Difference between Microeconomics and
Macroeconomics
MICR
O
Microeconomics focuses on the
decisions that businesses and
individual consumers make in
relation to the changing prices of
goods and services in an economy.
MICROECONOMICS

01 02
Supply and demand for Consumer behaviour, as
goods in different an individual or as a
marketplaces group

03
Demand for service and labour, including
individual labour markets, demand, and
determinants like the wage of an employee
MACR
O
Macroeconomics is the study of a
country's economic development
and actions. It also entails
researching the laws and other
forces that shape the economy as a
whole.
MACROECONOMICS

01 02
The Economy as a Whole Studies Economic Growth,
National Income, Inflation,
GDP

03
Concerned with National and World
Economies
02
POSITIVE AND
NORMATIVE
Difference between Positive and Normative
Economics
BRANCHES OF MODERN ECONOMICS

Positive Economics
Refers to the economic
phenomena happening in a
Country

Normative Economics
Refers on the value of economic
fairness, or what the economy "should
be" or "ought to be."
POSITIVE VS. NORMATIVE ECONOMICS
Positive Economics
“Describes the facts and makes value judgments”

Example:
1. The current unemployment rate in the Philippines is 20%
2.The Department of Health is spending 25% of its 2023 Budget in
procuring COVID-19 Vaccines
Normative Economics
“Describes the facts without making value judgments or
opinions” Example:
1. The level of unemployment must be 5% maximum
2. Budget spending cannot be greater than 10%
CHARACTERIS 03
What are the Characteristics ofTICS
Managerial
Economics?
Characteristics of
Managerial Economics
1. Microeconomics
2. Pragmatic
3. Takes the help of Macroeconomics
4. Aims in helping the Management
5. A Scientific Art
6. Prescriptive rather than Descriptive
1. Microeconomics

It aids the management in

forecasting and evaluating
the trends of the market.
2. Pragmatic

It resolved daily and

difficult issues of
economic theory
3. Takes the Help of
Macroeconomics
It employs economic
concepts and principles,
which are known as the
theory of Firm or
‘Economics of the Firm’
4. Aims at Helping the
Management
It aims at supporting the
management in taking
corrective decisions and
charting plans and policies
for future.
5. A Scientific Art

It helps the management in

the best and efficient
utilization of scarce
economic resources.
6. Prescriptive and rather
than Descriptive
It not only describes the
goals of an organization
but also prescribes the
means of achieving these
goals.
THANKS
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