The founding fathers of economic science—William Stanley Jevons, Thomas Malthus, John Stuart Mill, and Edward Aveling—all in their different ways, explored how the things we do, from working or sleeping to the purchases we make for our homes, affect our future incomes.

2. What is economic?
 “Economic” is a relatively new term, having been coined in
1930. Until then, the term “economics” referred to an
extensive body of science devoted to the understanding of
how to maximize productivity of factories, farms, mines,
and businesses.
 The founding fathers of economic science—William
Stanley Jevons, Thomas Malthus, John Stuart Mill, and
Edward Aveling—all in their different ways, explored how
the things we do, from working or sleeping to the
purchases we make for our homes, affect our future
incomes.
 Today, economics is the field of study that studies those
things and other factors that affect an economy, from the
global economy to an individual company.

3. How does the market system work?
 Business economics focuses on the dynamics of the
markets that affect a particular business organization, or
industry, in three major ways:
 i) Allocative: the process through which buyers (usually
businesses) determine the relative values of different goods
and services that they wish to purchase
 ii) De-bottlenecking: the process through which producers
derive their competitive advantages from outcompeting
other producers in a given marketplace.
 iii) Efficient markets hypothesis: a systemic theory that
describes how markets efficiently allocate resources in the
absence of any externalities Why should I study
economics? One of the best ways to learn about the
economy is to be immersed in it.

4. Value of goods, services, and resources
 The role of balance sheets, debt, equity, and valuation Pre-
monopoly or oligopoly competition and their nature
Contracts and business accounting Cost of capital Real
estate and the macroeconomy Financial and economic
reporting and forecasting Business economics is a branch
of economics that uses models to explain the
macroeconomy, financial markets, business activities, and
business management systems.
 The macroeconomy is an applied economic study of the
general economy. Financial markets, or financial
economics, study the banking system, stock markets, and
the credit system.
 The financial markets usually involve long-term (periods of
ten years or more) assets and debt instruments. Business
economics studies how an economy functions and how it
has evolved.

5. Factors affecting prices
 Margin expansion Costs and revenues Balance sheet management
International trade Revenues, profits, and losses Balance sheet management
The ABCs of Business Costs and Income Statement What Is a Profit and Loss
Statement? A profit and loss statement is a way to analyze a business by
showing the income the business receives from its investments and its
expenses Some factors that can affect the balance sheet and income statement
 1. Sales
 2. Interest
 3. Other revenue
 4. Operating expenses
 5. Other
 6. Income taxes
 7. Net income (before taxes)
 8. Changes in assets and liabilities .
 9.Changes in liabilities
 10. Net income/(loss) Additional Resources for Beginners: Who Writes the
Business Encyclopedia?

6. How to measure gross domestic product (GDP)
 Why the Bureau of Economic Analysis (BEA) is used
History of the BEA and its role in the nation's
measurement and communication of the U.S.

7. Role of public policy in business economics
 History of the field What to expect from this course
What will I learn? If this sounds interesting to you,
click here to find out more about the course.

8. Conclusion
 As noted in the beginning of this article, the
components of a small business are closely interrelated
and should be a part of your long-term financial plan.
If you are new to owning and managing a small
business you will want to have a lawyer to answer your
legal and financial questions. There are many fine
accounting and tax firms to choose from as well. When
you’re ready to go out on your own you will be a little
nervous, but at least you’ll know what you’re getting
into and have a lot more clarity regarding the value
and opportunity in owning a small business.

9. Thanks & Regards
 https://www.homeworkassignmenthelp.com/
 What's App : +91-9540660064
 Email-Id : hahassignment@gmail.com