Nature of Business Economics (i) Business Economics is a Science. In business economics, we apply these laws for policy planning at the level of a firm. Spencer and Siegelman: Business Economics is the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning by management. Language: English, Hindi. a consumer, a household, a firm, an industry, etc. You will complete videos of Chapter-1 i.e. star star star star star: 5 (8 ratings) Instructor: Vrinda Chugh. It studies the effects of a change in price of a commodity factors and forces on the demand of a particular product. PAPER 3: BUSINESS ECONOMICS Level of Knowledge: Basic Knowledge Objective: To familiarize the basic concepts and theories of economics, elementary statistics and mathematics. Conceptual: Managerial economics is conceptual in nature as it is based on economic theories and concepts. Businessinvolves decision-making. Scope of Managerial Economics It is simply a systematic body of knowledge which can establish a relationship between cause and effect. Nature and Scope of Business Economics | CA Foundation | Business Economics. Available on Android & iOS. Economic theory, we try to explain economic behavior: Business economics, we try to prescribe policies for a business manager which are most likely applied to achieve his objectives. What is Science? It analyses the way in which the decisions are taken by the economic agents, concerning the allocation of the resources that are limited in nature. Business Economics, also called Managerial Economics, is the application of economic theory and methodology to business. It does not work on an arbitrary collection of prescriptions but analyze all business problems on the basis of well-established economic concepts. Joel Dean: Business or Managerial Economics is the use of economic analysis in formulating policies. Nature & Scope of Business Economics. B) What is Micro Economics? Scope of Economics Microeconomics : The part of economics whose subject matter of study is individual units , i.e. Further, Mathematics, Statistics, and Econometrics are decision sciences. It is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources & the interaction among these individuals and firms. PART A: ECONOMICS (70 MARKS) 1. Nature and Scope of Business Economics Characteristics or Nature of Business Economics / Managerial Economics: a) Managerial Economics is a Science: Managerial economics is a science because it establishes relationship between causes and effects. Business Economics integrates these decision sciences with Economic Theory to arrive at strategies to help businesses … Description; Course Contents; How to Use; This course is for CA Foundation Students having exams in May 2019. In economic theory, we build ‘laws’ such as the law of Demand and the Law of Diminishing Returns. Business Economics is defined as the use of economic analysis to make business decisions involving the best use of an organisation’s scarce resources.