Economics is related to the utilization of our scarce resources to attain maximum satisfaction. Business Economics is the integration of economic theories for decision making purpose within a business entity. However, there are some more differences between Economics and Business Economics which are given below:
Differences between Economics and Business Economics :
1. Formulation of theories and laws: Economics formulates laws or theories like damand and supply theories, monetary theories etc. Where Business economics applies such therories and laws in the decision making in business operations.
2. Nature: Economics consists of both the features of microeconomics and macroeconomics. But business economics is mainly a micro analysis.
3. Science: Economics is both positive and normative science where business economics essentially a normative science.
4. Scope: The scope of economics is wider. It studies all matters relating to the national and international economic problems. But the scope of business economics is limited. It deals with the decision making and organization of a business firm only.
5. Area of oConcentration: Economics deals with the theories of rent, wages, interest and profits. But business economics concentrates its study on the profit aspects of distribution only. It mainly deals with the problems of entreprenures in business organization.
Thus, economics is a whole subject where business Economics is a part in it.