Business Economics
Candlefocus EditorBusiness economics covers a wide range of topics and uses a variety of theories and models to analyze decisions, markets, and operations. It applies microeconomic principles to business management decisions, such as setting prices, determining optimal output levels, making investment choices, and resource allocations. It also examines macroeconomic factors, such as aggregate economic activity, global economic systems, and fiscal policy.
Business economics is closely related to accounting, finance, and marketing, and especially to economics. It is an effective tool for predicting customer demand, assessing the impact of regulatory policy, and understanding the competitive environment. Business economics is a powerful analytical tool for strategizing for long-term success and a valuable tool for decision-making in the short-term.
Managerial economics, a subset of business economics, helps managers make better decisions. This approach applies economic principles to the management of businesses, and focuses on the techniques and decision-making skills needed to make and analyze strategic business decisions. Managerial economics incorporates concepts such as demand and supply analysis, cost-benefit analysis, pricing models, and financial resource management.
The National Association for Business Economics (NABE) is the premier professional association for business economists in the United States. It serves as a forum for the exchange of ideas and insights on the economy, economic forecasting, forecasting methodology, and business strategy. NABE publishes the monthly NABE Business Conditions Survey, which provides data on real sector activity, and bi-monthly NABE Business Sentiment Survey, which measures business activity from the perspective of corporate executives. The association also produces an annual Business Economics Outlook publication and participates in congressional hearings and other activities related to the profession.
Business economics is an important field for those interested in the decision-making process of businesses, their financial and market operations, and their impact on the global economy. It is a valuable tool for strategizing for long-term success and a tool for understanding the environment in which businesses operate. Business economists play an important part in formulating economic policies and making economic forecasts.