-:Managerial Economics:-
" Managerial economics applies the principles and methods of economics to analyse problems faced by management of a business , or other types of organization and to help find solutions that advance the best interests of such organization."
Economics is a social science , it's basic function is to study how people individuals, households, firms and nations , maximize their gains from their limited resources and opportunities.
" Economics is that branch of social science which is concerned with the study of how individuals , households, firms, industries, and government take decision relating to the allocation of limited resources to productive uses, so as to derive maximum gain or satisfaction . "
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Nature of Economics
1- Economics is a science :-
Science is an organised branch of knowledge , that analyses cause and effect relationship between economics agents. Further , economics helps in integrating various sciences such as mathematics , statistics etc to identify the relationship between price demand , supply and other economic factors.
- Positive Economics:- A positive science is one that studies the relationship between two variables but does not give any value judgement ;i.e. it states 'What is'. It deals with the facts about the entire economy .
- Normative Economics:- As a normative science , economics passes value judgement , i.e ' What ought to be '. It is concerned with economic goals and policies to attain theses goals.
2- Economics is an art:-
Art is a discipline way things are to be done , so as to achieve the desired end . Economics has various branches like production , distribution , consumption and economics , that provides general rules and laws that are capable of solving different problems of the society.
Therefore, economics is considered as science in terms of its methodology and arts as in application . Hence , economics is concerned with both theoretical and practical aspects of the economics problems which we encounter in our day to day life .
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Relation between Science , Engineering , Technology and Economics :-
Science -
Science is that boundary-less knowledge that never stops growing and never stops amazing us . Best part of science is that people die into it just for the sake of knowing more . Majority of scientific stuff has nothing to do with humans or human life .
Engineering & Technology -
Technology is something that is more human concentric . It always has to do with us . Scientists started studying the behavior of small clusters of molecules of different compounds and elements are found that their physical and chemical behaviour very different to the same element or compound in normal situations . The procedures to create and manipulate these small clusters become to be known as nanotechnology . The nano-technologists started finding out ways how this newly found knowledge can help human . The art of making devices and systems to benefit the mankind is engineering .
Economy & Production -
Economy is the financial well being of a country or a geographical locations . Some metrics of a well to do country or city could be the turnover in the markets of the country or city . The turnover in economy is called the velocity of money .
It shows how many times money changes hands . It is well known that every time money changes hands since humans will not transact to lose money it is usually gain . Now to transact humans need to produce something that can be sold for money . This production essentially means taking something available as it is , then adding value to it by working on it .
So you can collect natural rubber and cotton to the person who grows and produces those two commodities . After the tennis ball maker works on the two commodities then the tennis ball is more than the cast of rubber and cotton . The excess value is the tennis ball maker gain .
Thus the engineer and his antecedents the technologist and the scientists help in improving the economy of the region .
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