PRINCIPLES OF ECONOMICS AND BANGLADESH ECONOMY NOTES
Business economics is defined as the study of how businesses manage scarce resources. Microeconomics is the study of the decisions of individuals, households, and businesses in specific markets, whereas macroeconomics is the study of the overall functioning of an economy such as basic economic growth, unemployment, or inflation. Scarcity in microeconomics is not the same as poverty. It arises from the assumption of very large (or infinite) wants or desires, and the fact that resources to obtain goods and services are limited.
- wants exceed resources necessary to obtain them
- therefore we must make choices
- every choice leads to a cost
Range of Business Economics
In general terms, Business Economics deals with issues such as: the ways markets work; what firms do, what their motives are, how they perform; and the role of government in regulating business activity”. The program at Harvard University uses economic methods to analyze practical aspects of business, including business administration, management, and related fields of economics.
The University of Miami defines Business Economics as involving the study of how we use our resources for the production, distribution, and consumption of goods and services. This requires business economists to analyze social institutions, banks, the stock market, the government and they look at problems connected with labor negotiations, taxes, international trade, and urban and environmental issues.
Courses at the University of Manchester interpret Business Economics to be concerned with the economic analysis of how businesses contribute to welfare of society rather than on the welfare of an individual or a business. This is done via an examination of the relationship between ownership, control and firm objectives; theories of the growth of the firm; the behavioral theory of the firm; theories of entrepreneurship; the factors that influence the structure, conduct and performance of business at the industry level.
Many Reasons to Study Economics
Economics is an insightful study of how people behave and organizations operate under constraints of resources. It provides powerful tools to understand and analyze many aspects of our lives and help us to be an informed, perceptive decision-maker. Decision-making is an integral part of business or governmental organizations. The economics department at Georgia State University offers a modern curriculum to prepare you for future endeavors and to meet unforeseen challenges successfully. There are many good reasons to study economics:
(1) To be a knowledgeable worker, consumer, investor, and citizen
Economics training helps develop methodical ways of thinking and problem solving which can be used in our lives as effective members of the workforce, responsible and knowledgeable citizens, informed consumers, savers, and investors, and perceptive participants in the global economy.
(2) To acquire a set of important skills for career-building
A key element for getting a job and succeeding in a career is your set of desirable skills. Economics training offers individuals a terrific set of marketable skills. They include written communication and presentation skills, quantitative communication skills, and analytical problem-solving skills. Learning to communicate your ideas in writing and presentation to a broad range of audiences is a key component of our economic curriculum. Economics majors are also trained to understand numerical data and recognize their importance, use a variety of data analysis and computing tools, and communicate quantitative information to others. Moreover, there is no better major to acquire analytical problem-solving skills than economics. Economic principles can be applied to identify the core elements of many problems confronting business and government and to formulate effective decisions to tackle those problems.
(3) To seek employment that interests you
Finding employment that interests you can be crucial for a successful and fulfilling career. Studying economics is exciting and fun, and it opens a wide variety of career opportunities for individuals. Economics graduates have gone on to rewarding professional careers in industry, trade, banking and finance, law, consulting, government, research, and education. The career flexibility is coupled with the fact that economists often receive high salaries.
(4) To gain a solid foundation for other advanced fields of study
Because of vigorous and comprehensive training, economics majors are sought by not only employers but also graduate schools. Graduate study in law, business, politics, or public policy commonly demands logical thinking abilities and strong investigative and quantitative skills. Indeed, economics is one of the most highly respected academic disciplines
With the major changes that have taken place in the world of work, the rapid changes in technology and globalization, it is not uncommon for individuals to make several career changes during their lives. Today’s hot specialized degree has often become tomorrow’s target for downsizing. Companies that were relatively unchallenged in the domestic market have suffered as a result of global competition. As a result, experts in career development recommend that one seriously consider a flexible degree such as economics.
Majors in economics receive average starting salaries that are in the upper range of salary offers made to majors with other business degrees and significantly above most majors in other areas of the liberal arts.
Economics is a discipline in which you learn a unique way of thinking. This unique way of thinking is a primary reason that economics is also a flexible degree. Economic concepts have been applied to a number of different areas that would, at first, seem totally unrelated to economics. However, the concepts of economics are critical to finding solutions to problems in a wide variety of areas.
(8) RICH IN SKILLS
(a) Analytical/Critical Thinking Skills – There is no better major for learning analytical problem solving than economics. You have learned how to take a problem, and break it down into its separate elements (ceteris paribus). You have learned that economics has a core set of tools that can be applied in a wide variety of settings (the same tools apply to both consumer and firm behavior, for example). All of business is problem solving, and this is the expertise you have learned from the
logical constructs in economics.
(b) Quantitative Skills (Mathematical and Statistical Technics) – This means the ability to understand numbers and their importance, and the ability to communicate quantitative information to others. All the graphs in economics represent quantitative concepts, and as an economics major you will certainly have no fear of graphs. Further, many classes use explicit numerical problem solving. You also have the opportunity to explicitly learn a wide range of statistical and computing tools, in Statistics, and Econometrics. You have the opportunity to explicitly learn a broad range of mathematical tools in Mathematical Economics, Game Theory, Experimental Economics and a wide variety of other courses.
(c) Communication Skills (Written and Oral) – This means communicating with a variety of audiences in a variety of formats. In economics, you will learn to communicate your ideas in writing- through essay exams, papers, and homework. In addition, the small class sizes in the upper level classes allows you the opportunity to speak in class. All of these tools improve your interpersonal communication skills. Some classes also present the opportunity to work with other students explicitly.
On a Lighter Vein: TOP 10 REASONS TO STUDY ECONOMICS
- Economists are armed and dangerous: “Watch out for our invisible hands.”
- Economists can supply it on demand.
- You can talk about money without even having to make any.
- You get to say “trickle down” with a straight face.
- Mick Jagger and Arnold Schwarzenegger both studied economics and look how they turned out.
- When you are in the unemployment line, at least you will know why you are there.
- If you rearrange the letters in “ECONOMICS”, you get “COMIC NOSE”.
- Although ethics teaches that virtue is its own reward, in economics we get taught that reward is its own virtue.
- When you get drunk, you can tell everyone that you are just researching the law of diminishing marginal utility.
- When you call 1-900-LUV-ECON and get Kandi Keynes, you will have something to talk about.