Currency Wars and the Making of the Next Financial Crisis in the Global Economy
February 12, 2025
All over the world, governments are held accountable for the unemployment rates prevalent in their country. It is as if, the government’s main duty is not to govern but rather to provide employment to every willing person in the country. Therefore, whenever unemployment rears its ugly head, governments find themselves under increasing pressure to change […]
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 […]
Social Media and Access to Personal Information With the advent of Social Media sites such as Facebook, Twitter, Instagram, and others, many people post so much personal information about themselves that anybody who can access their public profiles can get to know a lot about them. Indeed, with an estimated one Billion people on Facebook, […]
In the previous few articles we have seen how the GDP approach to calculating economic growth has led to the proliferation of dangerous fallacies. One particularly dangerous fallacy is that war is good for economic growth. This creates the notion that economics as a science is somehow opposed to human welfare and peaceful living. Simply […]
Quantitative easing is an alternative way that modern central banks have invented to prop up the economy in a short period of time after a crisis. This technique was extensively used by the Federal Reserve i.e. the central bank of the United States to prop up the economy after the slump of 2008. The Fed […]
Managerial Economics is basically a blend of Economics and Management. Two branches of economics i.e. micro economics and macro economics are the major contributors to managerial economics.
Micro Economics is the study of the behaviour of individual consumers and firms whereas microeconomics is the study of economy as a whole.
All the firms operating in the market have to take under consideration the constituent of the economic environment for its proper functioning. This economic environment is nothing but the Micro economics elements.
Micro Economics is a broader concept as compare to Managerial Economics. Micro Economics forms the foundation of managerial economics. Almost all the concepts of Managerial Economics are the perceptions of Micro Economics concepts.
Managerial economics can be perceived as an applied Micro Economics. Demand Analysis and Forecasting, Theory of Price, Theory of Revenue and Cost, Theory of Supply and Production are major bare bones of Micro Economics that underpins the Managerial Economics. Managerial Economics applies the theories of Micro Economics to resolve the issues of the organization and for decision making.
All Managers want to carry out their function of decision making with maximum efficiency. Their business planning can be effectively planned and performed with comprehensive knowledge and understanding of micro economic concept and its applications.
Optimum decision making to achieve the objective of the organisation i.e. for profit maximizing or for cost minimizing, is possible with proper compliance of micro economic know how, regardless of the technological constraints and given market conditions. Micro Economic Analysis is important as it is applied to day to day dilemma and concerns.
The reliance of Managerial Economics on Micro Economics is made clearer in the points below:
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