Business Economics is a useful subject. In fact it is the most significant of all social sciences. Its study is highly useful for analyzing and understanding the various economic problems. Its study brings utility to all sections of the people. Business Economics became the intellectual religion of the day. Business Economics is described as both light giving and fruit bearing science. It enriches our knowledge and brings results. The Theoretical Significance Of Studying Business Economics is explained from the following points:
Theoretical Significance Of Studying Business Economics :
1) Understanding economic behavior : The study of Business Economics helps us to understand the economic behavior of human beings.
2) Working of the economic system : Business Economics explains the conditions which influence the progress of the economy. It makes suggestions for overcoming the complicated problems faced by the people and the government in various economic systems. Hence it has area significance for understanding the working of the economic system.
3) Intellectual Value : The study of Business Economics sharpens the intellectual calibers of individuals. It imparts certain qualities like rational behavior, proper allocation of resources etc.
4) Economic tools : Mrs. Joan Robinson described Economics as box of economic tools. It provides a good knowledge regarding the nature, causes and effects of various economic phenomena.
5) Economic growth : Business Economics suggests various ways and means for maintaining the growth rates in the developed economies. It also analyses the factors obstructing the economic growth of these countries.
6) Economic development : Developing countries aim at achieving economic development with in a short span of time. Business Economics enables us to understand the nature and conditions necessary for the successful organization of business firm.
7) Performance of the economy: Business Economics helps us to assess the performance of the economy. We can judge the position, progress and future of an economy through several theories and models of Business Economics.
8) Economic planning: Economic Planning is an important branch of Economics. Economics provide a good knowledge and information regarding the techniques of Economic planning. It sharpens our mental abilities by clearly explaining the types, aims and objectives of economic plans.
9) Prediction : Business economics serves as the best means for predicting the economic events. It tells us to predict the consequence of various economic phenomena.
10) Ethical value : 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.