Eco-500 Essay

1989 WordsAug 23, 20158 Pages
Managerial Economics ECO 500 Ans-1 Economics is the science that deals with the production, allocation, and use of goods and services. It is important to study how resources can best be distributed to meet the needs of the greatest number of people. As we are more connected globally to one another, the study of economics becomes extremely important. Two major subdivisions in the study of economics, ones are macroeconomics and microeconomics. Macroeconomics is the study of the entire system of economics. Microeconomics is the study of how the systems affect one business or parts of the economic system. Ans-2 The science of Managerial Economics has emerged only recently. With the growing variability and unpredictability of the business environment, business managers have become increasingly concerned with finding rational and ways of adjusting to an exploiting environmental change. Nature of Managerial Economics: Managerial economics is a science applied to decision making. It bridges the gap between abstract theory and managerial practice. It concentrates more on the method of reasoning. In short, managerial economics is “Economics applied in decision making”. Micro-economics: ‘Micro’ means small. It studies the behaviour of the individual units and small groups of such units. It is a study of particular firms, particular households, individual prices, wages, incomes, individual industries and particular commodities. Thus micro-economics gives a microscopic view of the economy. Ans-3 Yes, I agree with this statement because A market is any arrangement that enables buyers and sellers to exchange goods and services, usually for money payments. A market may be a location at a certain time, a newspaper advertisement, a website on the Internet, or any other arrangement that works to

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