Browse More Topics Under Introduction to Business Economics
Nature of Business Economics
Business Economics
Business Economics gives information about the elements that affect (increase or decrease) the production efficiency of resources.
It helps to examine economic issues for selecting the best course of action from all the ones available.
This course of action directly influences the performance of a business.
So, it is important to make a sound decis.
Decision Making
In Business, allocation of resources is a very crucial task.
And, there are always several alternatives (recipients of the resources) present.
Now Evaluating all the alternatives based on the information collected and choosing the most efficient one is nothing but Decision Making.
An economic issue becomes more complex because it is based on politi.
Economic Theory
It consists of various techniques such as demand-supply, cost, and consumption to analyse all aspects of a business situation.
Also, it provides us with the past and present information regarding the growth in production and demands.
It is because of Economic Theory that we know that both Quantity and Quality of Resources whether Human or Non-human.
How can economics help a business?
By developing these five skills, you can strategically leverage the power of economics to identify opportunities and further your firm’s success.
Keep in mind:
While some skills are needed to apply economics to a managerial role developing your knowledge of economics can shift your way of thinking about business challenges. What macroeconomic factors affect business decision-making?
Two examples of macroeconomic factors that affect business decision-making:
Employment: The economy is cyclical.
In prosperous times, companies hire more to keep up with high consumer demand.
In a down cycle, companies hire fewer new employees and may conduct layoffs. 