The economics is that branch of knowledge which is concerned with the consumption, production, and transfer of wealth. It helps the business to forecast or predict its demand and supply of the 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: –
- Business Economics
- Indian Economy
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.
Business Economics has two types shown as following: –
A. What is MicroEconomics: –
MicroEconomics 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 firm or company like Maruti Suzuki is a firm in the automobile industry.
B. What is MacroEconomics: –
MacroEconomics 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 use the theories and policies of the MacroEconomics to get know about employment status in the country i.e. weather a country achieve 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:
- GDP ( Gross Domestic Product)
- Economic Growth
- Total Consumption Expenditure
Nowadays economy of india stand world’s 12th economy in the world.