IGCSE Economics Paper-2: Specimen Questions with Answers 25 - 25 of 100

Passage

Managerial Economics deals with practical business-problems relating to production, pricing, and sales.

Question 25 (4 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

What do you mean by managerial economics?

Explanation

Managerial Economics is Pragmatic

  • It is scrutinizing the tools and techniques of economics which are helpful in decision making for a business. However, managerial economics is, not a part of economic theory. It is a separate discipline, involved in selection of economic principles and methods.
  • The business people require knowledge about economics to prosper. A business manager must have the knowledge about the fundamental concepts of economics and theories for a detailed analysis of business situations. Economics studies division making in view of many wants against scarcity means. Relates to managerial decision-making in achieving a business goal by using the given business resources in the most effective manner.
  • Managerial economics is confined only to a part of business management. It is primarily addressed to the analysis of economizing aspects of business problems and decision making by a business firm or an organization. It is not directly concerned with managerial problems and actions involving implementation, control, conflict resolution, and other management strategies in day to day operations of the business.

🎯 Select Paper