Economics

Economics

The economics is that branch of knowledge which is concerned with the production, consumption, and transfer of wealth. It helps the business to forecast or predict its demand and supply of goods in the future and it also helps the government get to know about the economic growth or employment in the country.

We will cover two main subjects and their sub-subjects in this tutorial shown as following: –

  1. Business Economics 
    1. Micro Economics 
    2. Macro Economics 
  2. Indian Economy
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1. Business Economics 

Business economics ​can be said as the integration of Economic Theory and Business Practices for the purpose of decision making and planning for the management. It means decision making on the basis of the use of tools of Economic Theories like demand, supply, price, competition, etc. and determination of policies as defined in the business practices. 

Meaning of Business Economics 2 - Economics
Meaning of Business Economics

Business Economics has two types shown as following: –

  1. Micro Economics 
  2. Macro Economics 

A. What is Micro Economics: –

Micro Economics is that economics deals with the particular industry. A firm can use theories of microeconomics to deal with its industry changes. An industry means a group of firms or companies like Maruti Suzuki is a firm in the automobile industry. 

B. What is Macro Economics: –

Macro Economics is that economics deals with the whole economy of the country. A country uses the macroeconomics theories to remove obstacles faced by the individual or companies of the country. The government uses the theories and policies of Macro Economics to get to know about employment status in the country i.e. whether a country achieves full employment or not. 

2. Indian Economy

Indian Economy is the study of the whole economy of India. With the help of this subject we can understand the following concepts of the economy: 

  1. GDP ( Gross Domestic Product)
  2. Economic Growth
  3. Employment 
  4. Total Consumption Expenditure
  5. Multiplier 

Nowadays the economy of India stands the world’s 12th economy in the world.