Business economics helps understand economic behavior and incorporates ideas from other disciplines. It covers important concepts like demand and supply, costs, and utility that support managers in analyzing problems and solutions. Business economics also helps frame policies and assess the economy, while inculcating ethical norms and sharpening intellectual abilities.

1. SIGNIFICANCE OF BUSINESS ECONOMICS

2. 1. The study of Business Economics helps us to
understand the economic behavior of human
beings.

3. 2. It also incorporates useful ideas from other
disciplines such as psychology, sociology, etc.

4. 3) Business economics covers various important
concepts, such
as Demand and Supply analysis; Short run
cost and Long run costs; and Law of Diminishing
Marginal Utility. These concepts support managers
in identifying and analysing problems and finding
solutions.

5. 4. Business economics helps managers
in framing various policies, such as pricing
policies and cost policies, on the basis of
economic study and findings.

6. 5. Business Economics helps us to assess the
performance of the economy. We can judge the
position, progress and future of an economy.

7. 6. Business Economics inculcates certain ethical
norms like honesty, responsibility and
adaptability etc. It upholds the moral and
cultural values of individual. It makes them
honest and dignified citizens.

8. 7. Predicting the economic events. It tells us to
predict the consequence of various economic
phenomena.

9. 8. The study of Business Economics sharpens the
intellectual calibers of individuals. It imparts
certain qualities like rational behavior, proper
allocation of resources etc.