Economics is the study of scarcity and resource allocation both on micro and macro levels. Specifically, how societies produce, distribute and consume products (goods and services) as well as behavior that impacts choices of individuals, businesses and governments.
Studying exciting and dynamic interdependence between the problem of shortage – to satisfy unlimited needs and wants with limited resources – is what Economists do for a living. Mainly, figuring out all the complex economic activities of the problem of scarcity in a rapidly changing world.
And with the world offering only limited resources while the world population having unlimited needs and wants, choices have to be made one way or another. Economic theories simply examine the ways in which these choices are made the most effectively, nothing more nothing less.
It is done at the lower level of individual markets with single businesses and their customers, the level of national economy with the government and the international level of the entire countries trading with each other.
As a result of ongoing globalization, countries around the world are becoming increasingly interdependent through increased international trade, freer movement of labor and less restricted flows of capital.
All this is creating one global economy of the planet Earth.
In short, studying Economics in relation to business management includes government influences on economic, environmental, legal and ethical issues and how they impact different business functions. The international economy that developed thanks to globalization has effects on both local and multi-national businesses and governments.
—
❝ The Super Business Manager website is all about business. It provides business resources for better decision making. These business resources are especially useful for CEOs, directors and managers, business owners, investors, entrepreneurs, asset managers, politicians and government advisors, business teachers, business journalists and business students.
With this online project, I aim to make business education accessible to everyone in the world in order to improve business knowledge and managerial skills. Having business acumen means more money, wealth and power; better-managed businesses, better-managed human life and ultimately better-managed world.
You will find here not only high-quality articles on business management, but also posts on business education, business journalism, personal finance and life management. Welcome! ❞
Jerry Grzegorzek, Editor-in-Chief
BA (Hons), MA, PGCert, PGDip
