Currency Wars and the Making of the Next Financial Crisis in the Global Economy
February 12, 2025
Real Estate markets are extremely complicated. The price movements in this market are usually slow and difficult to come by. A major factor behind this is the type of investors who put their money in the real estate markets. Therefore, an understanding of the real estate markets has to be rooted in an understanding of […]
We have spoken in great detail about GDP. By now, we are aware of the dangers of setting GDP maximization as a country’s prime economic objective. To study more about the GDP we need to have a closer look at what it is made up of i.e. its components. Once we know the components and […]
The definition of unemployment provided us with some insight as to how the statistics are different than what an uninformed person would expect them to be. In this article, we will have a step by step look at how the unemployment rate for any country is calculated. Every country has its own mechanism of calculating […]
Of all the markets in the world that are being affected by the policy of quantitative easing (QE) tapering, the bond markets are the most affected. This is because the policy rules mandate that the primary investments being made by the government as a result of the money created must be in the bond markets. […]
How Economies Work Best When Free Market Forces are Truly Free and Fair According to Economic Theories, Free Market Economies work best when they are left to themselves and be guided by the Hidden Hand of Markets. In other words, what this means is that any capitalist economy works towards optimal outcomes as long as […]
Managers study managerial economics because it gives them insight to reign the functioning of the organization. If manager uses the principles applicable to economic behaviour in a reasonably, then it will result in smooth functioning of the organisation.
Managerial Economics is an essential scholastic field. It can be compared to science in a sense that it fulfils the criteria of being a science in following sense:
Managerial economics is also a science of making decisions with regard to scarce resources with alternative applications. It is a body of knowledge that determines or observes the internal and external environment for decision making.
Managerial economist is required to have an art of utilising his capability, knowledge and understanding to achieve the organizational objective. Managerial economist should have an art to put in practice his theoretical knowledge regarding elements of economic environment.
Managerial economics helps the management in decision making. These decisions are based on the economic rationale and are valid in the existing economic environment.
The resources are scarce with alternative uses. Managers need to use these limited resources optimally. Each resource has several uses. It is manager who decides with his knowledge of economics that which one is the preeminent use of the resource.
Managers study and manage the internal environment of the organization and work for the profitable and long-term functioning of the organization. This aspect refers to the micro economics study.
The managerial economics deals with the problems faced by the individual organization such as main objective of the organization, demand for its product, price and output determination of the organization, available substitute and complimentary goods, supply of inputs and raw material, target or prospective consumers of its products etc.
None of the organization works in isolation. They are affected by the external environment of the economy in which it operates such as government policies, general price level, income and employment levels in the economy, stage of business cycle in which economy is operating, exchange rate, balance of payment, general expenditure, saving and investment patterns of the consumers, market conditions etc. These aspects are related to macro economics.
Managerial Economics deals with human-beings (i.e. human resource, consumers, producers etc.). The nature and attitude differs from person to person. Thus to cope up with dynamism and vitality managerial economics also changes itself over a period of time.
Your email address will not be published. Required fields are marked *