Articles on Managerial Economics

Understanding Managerial Economics – Beginner and Advanced Concepts

Managerial Economics can be defined as amalgamation of economic theory with business practices so as to ease decision-making and future...

Scope of Managerial Economics

Managerial Economics deals with allocating the scarce resources in a manner that minimizes the cost. As we have already discussed,...

Nature of Managerial Economics

Managers study managerial economics because it gives them insight to reign the functioning of the organization. If manager uses the...

Managerial Economics and Micro Economics

Managerial Economics is basically a blend of Economics and Management. Two branches of economics i.e. micro economics and macro economics...

Principles of Managerial Economics

Economic principles assist in rational reasoning and defined thinking. They develop logical ability and strength of a manager. Some important...

Role of a Managerial Economist

A managerial economist helps the management by using his analytical skills and highly developed techniques in solving complex issues of...

Consumer Demand – Demand Curve, Demand Function & Law of Demand

What is Demand? Demand for a commodity refers to the quantity of the commodity that people are willing to purchase...

Price Elasticity of Supply

Just like the law of demand, the law of supply also explains the qualitative relationship between price and supply. Qualitative...

Determinants of Price Elasticity of Supply

Like price elasticity of demand, price elasticity of supply is also dependent on many factors. Some of these factors are...

Marketing and Seasonal Demand for Goods and Services

What is Seasonal Demand ? Marketing is the process of meeting needs that are both existing as well as unmet....

Introduction to Business Economics

Historical Development of Business Economics For much of the 20th century, if you had wanted to study business management, you...

What is Fractional Reserve Banking and its Connection to Modern Economics

What is Fractional Reserve Banking ? If you are entrepreneur setting up your own business, you need to understand how...

The Changing Contours of the Global Currency Reserve System

What is a Reserve Currency ? The term reserve currency means that it is the currency that is used by...

What is Capital Account Convertibility and How it Affects a Country

What is Capital Account Convertibility ? Capital Account Convertibility means that the currency of a country can be converted into...

The Rise of the Informal Economy and the Need to Embrace it and engage with it

What is the Informal Economy or the System D? We see them everywhere and we even do business with them...

Currency Wars and the Making of the Next Financial Crisis in the Global Economy

The Recent Currency Wars The recent drop in the value of several emerging market currencies coupled with the fact that...

The Future of Energy and its Implications for Businesses and Societies

The Oil based Paradigm and its Impact on Businesses and Societies The whole edifice of society is built on energy....

Why There Cannot be Growth without an Energy Transition

The Other Causes of the Present Recession We all need to grow in order to survive and progress through our...

Role of Venture Capitalists and Angel Investors in Incubating New Ventures

Venture Capitalists as Incubators of New Start-ups Venture capitalists or Angel investors are entities and individuals who fund startups and...

New Immigration Policies in the West and their Impact on Immigration

It is not a Flat World After All The famous cheerleader for globalization, Thomas Friedman, called the current day world...

Economic Benefits of Immigration and how to Manage Flow of Migrants

Recent Developments in Europe In recent months, the world has witnessed unprecedented flows of refugees and migrants from the conflict...

How Employment Rules and Tax Laws Affect Managers and Working Professionals

How Labor Laws and Employment Rules Impact Managers The nature of the employment rules and the governmental policies that regulate...

Advantages and Disadvantages of Deregulation for Businesses and Consumers

What is Deregulation and how does it Work ? Deregulation is the phenomenon wherein governments signal their intention to leave...

Impact of Political Stability on Businesses and Working Professionals

The Perils of Political Instability and Uncertainty If there is one thing that business leaders and entrepreneurs hate that is...

What is Inflation and How Does it Affect Professionals, Businesses, and Individuals

Inflation and What it Means for Consumers We all would have heard the term inflation and most of us would...

How Rising Oil Prices Threaten Economic Growth and Impact Businesses and Managers

How Rising Oil Prices Cause Inflation It is a fact of business that increases in the prices of raw materials...

Rekindling the Animal Spirits in the Global Economy to Rejuvenate Growth

The Metaphor of the Animal Spirits to Describe the Markets For those of us who observe the financial markets gyrate...

Is Less Government the Answer in Market Economies or the Other Way Around ?

The Debate between Neoliberalism and Socialism An ongoing debate in the United States and in Europe is whether there must...

Are Asian Economies headed for a Repeat of the 1997 Asian Financial Crisis?

Slowdown in China There has been a noticeable slowdown in the Chinese economy over the last few months. Coupled with...

The Age of Austerity in the West in Response to the Global Economic Crisis

The Age of Austerity The gloomy economic conditions all over the world have prompted governments to cut back on social...

What Is Hyperinflation ?

Hyperinflation is what, in layman terms can be called as the economic equivalent of doomsday. Modern societies have become more...

Famous Cases of Hyperinflation

The common perception amongst lay people is that hyperinflation is the economic equivalent of a doomsday. True, that the consequences...

Relationship Between Inflation and Government

The relationship between inflation and the government’s stance on the issue is filled with obscurity and confusion. There have been...

Definition of Inflation

The definition of inflation has undergone a subtle change across the ages. Economists earlier used to define inflation in a...

Why Does the Definition of Inflation Matter?

We discussed the definition of inflation in a lot of detail in the previous article. The previous article was meant...

Price Fixing: A Flawed Approach

The wrong definition of inflation has caused a lot of harm to modern day nations as well as their economies....

How Inflation Is Currently Measured?

There is a general saying in the business world, “What cannot be measured cannot be managed!” This is true of...

Problems: Measurement of Inflation

There is a general saying in the business world, “What cannot be measured cannot be managed!” This is true of...

The Problem with Comparing Inflation Numbers

In the previous couple of articles, we listed down the problems with the procedure used to collect numbers related to...

How Should Inflation Be Measured?

In the previous few articles, a series of arguments has been made as to why the current way we use...

Inflation: A Hidden Tax

Economists may argue on many things. However, they all agree on one thing i.e. the biggest possible economic nemesis that...

Myth: Inflation and Scarcity

The change in the definition of inflation has caused a lot of confusion. A prime example of this confusion is...

Inflation and Wealth Redistribution

We have already ascertained that inflation is a hidden tax. It is a discretionary power that governments have at their...

The Disturbing Wealth Gap and Why it Matters ?

If economist Karl Marx were alive today, he would have famously proclaimed that his assertion was correct. He once famously...

Is a World Without Inflation Possible?

In the previous many articles, we have been discussing a lot about the various concepts of inflation. We have understood...

What is Meant by Inclusive Growth and Why it is Important ?

We often hear the term inclusive growth in the papers and in various media where experts pronounce that while growth...

Importance of Infrastructure in a Nation’s Development

Why are Some Countries more advanced than the others ? Why are the Western countries more advanced than many Asian...

Evaluating the Pros and Cons of Supply Side Economics

What is Supply Side economics ? Supply side economics is that branch of economics that deals with production of goods...

Pros and Cons of the Uber Economy

What is the Uber Economy ? We all have heard if not used the services of the app based ride...

Ubernomics: The Questionable Business Model of a Unicorn

Uber is the most valuable startup in the world today. It is valued at $51 billion which is more than...

Companies Need to Create Long Term Value to Survive the Uber Competitive Market

The 24/7 Real Time Global Marketplace Makes Firms Live for the Moment The present global marketplace as well as regional...

Why Savers are Losers in the 21st Century ?

Saving money has historically been considered to be a virtue. Perhaps, it was the most important one with the most...

Top Five Factors That Spur Economic Growth

The world has witnesses the rise and fall of many great economic empires. It is safe to say that we...

Overview of the Sharing Economy and the Emerging World of Work

How the Sharing Economy Looks Like ? Anybody who has hired an Uber cab or a cab from any other...

The 10 Trillion Dollar Sovereign Wealth Fund Game!

Imagine a fund with so much money that it held 1% of all the equity from all the stock exchanges...

The Great Chinese Debt Binge

The global financial system is in the middle of a manufactured boom. Earlier, the economies would boom on their own...

Soak the Middle Class

The economic paradigm has always been defined as the battle between the haves, and the have-not’s i.e. the “rich” and...

Small Bribes that Lead to Big Losses

Corruption is a serious problem in many countries in the world. The world’s fastest growing economy India has taken a...

Economics of Low Cost Airlines

Airlines are a tough cut-throat business. A large number of airlines across the world are making losses, and others are...

The Labor Theory of Value

The most fundamental question in economics is the determination of the price of any good or service, i.e., the question...

What Happens When Countries Do Not Pay Back Their Debt?

Sovereign debt is regularly in the news even though we may not realize it. Several poor countries keep defaulting on...

The Economics of Biofuels

Fossil fuels are considered to be the biggest environmental hazards of our time. The biggest objective of several global organizations...

The Business Case for Immigration: How Immigration and Immigrants Help the Economy

The Backlash against Immigration The issue of immigration has been in the news lately for all the wrong reasons. Starting...

The Left Wing Theory of Economic Growth

Economics is not a natural science. Instead, it is a social science. This means that there are no perfect and...

Saving vs. Spending

John Maynard Keynes once said that saving money is an individual virtue but a societal vice. This has been the...

Quantitative Easing and Income Inequality

Ever since quantitative easing has been implemented as a mainstream policy, Central banks have had to fend off charges that...

The Liquidity Trap

The liquidity trap is a concept which is believed by some economists whereas it is not believed by the others....

How Venture Capital is Destroying the Economy?

Uber has recently launched an Initial Public Offer (IPO). The company is trying to sell $10 billion worth of shares...

Is Deflation Really Bad for the Economy?

The word deflation has an extremely negative connotation in economic circles. Modern day economists portray deflation as the situation which...

How the Law of Diminishing Returns Helps Explains the Contemporary Global Economy

What is the Law of Diminishing Returns and why we are Regressing Progressively? Economics is a fascinating subject that helps...

Is the McKinsey Model of Internal Democracy Worth Emulating by Other Corporates?

What is the McKinsey Model of Internal Democracy and How it Works and its Advantages The famous business consulting firm,...

What are Monopolies and How They Help and Harm the Economy and Their Regulation

How Economies Work Best When Free Market Forces are Truly Free and Fair According to Economic Theories, Free Market Economies...

Courses

Links

Subscribe

Articles on Managerial Economics