Economics vs Business Economics

Economics vs Business Economics

1. Economics Vs Business Economics

2. Vs Economics focuses primarily with the theoretical aspect, associated with concepts, theories, models and building theoretical framework Whereas Business Economics devotes with the practical aspect, and is associated with the applications of the selected theories and concepts to solve business problems and help the business decision making process .( prgmtic ) Business Economics Economics

3. Vs The Economics has both micro and macro aspects within its purview Business Economics is fundamentally micro-economic in nature. It studies the activities of an individual firm or unit. There is an extensive application of the concepts and theories of microeconomics in it. Business Economics Economics

4. Vs The Economics is concerned with both positive and normative economics Business Economics is essentially normative in nature. Business Economics explains what objectives and avenues a business should pursue and how they are to be. Therefore, it is normative in nature Business Economics Economics

5. Vs Economics studies the complex economic phenomena and rational human behaviour by developing certain meaningful and consistent assumptions, hypothesis and developing models. Business Economics endeavours to solve real life complex business problems. It selectively applies economic models with required modifications to solve the business problems. Business Economics Economics

6. Vs Economics concentrates only the economic aspect of the problems . Business Economics deals with some non-economic aspects of the problems along with the economic aspects. Business Economics Economics

7. Human and Behavioural factors, Environmental factors( Environmental laws), technological consideration that influences business decisions Gives importance to non economic consideration

8. C ulture , religion , the role of family, class, tradition, role of the individual, social and political dependence , the role of overnment , religion, language as a resource of human capital , corruption, factors that belong to the social pathology. of economic freedom

9. Some other variables also used in modern economic empirical research are democracy, rule of law, the state share of spending in the economy, legal structures……………

10. Vs Economics has within its ambit not only profit maximization but also other aspects like Utility maximization, distribution theories of wage, rent interest and welfare economics as well. Business Economics focuses on the theory of profit only Business Economics Economics

11. Vs Economics carefully analyse and interpret how the activities of individuals will affect the progress of a country ( Inflation, Savings, Unemployment, Consumption, aggregate demand…) Whereas Business is more concerned about how the actions of their employees and management will affect the progress of the company and maximization of shareholder’s wealth Business Economics Economics