Two branches of economics i.e. 4. Micro Economics is the study of the behaviour of individual consumers and firms whereas microeconomics is the study of economy as a whole. @media (max-width: 1171px) { .sidead300 { margin-left: -20px; } } – Explained! World’s Largest Collection of Essays! However, the main points of differences are the following: 1. Managerial Economics is also closely related to other subjects, viz., Statistics, Mathematics and Accounting. Relationship with economics : Managerial economics borrows concepts from economics to idealize the strategic actions needed for decision making in a problem situation. ADVERTISEMENTS: In this article we will discuss about the relationship of economics with other subjects. Managerial economics makes the use of mathematics, statistics, management theories, economic data and modelling techniques in order to help business managers to carry out their operations with maximum efficiency. Econometrics is defined as use of statistical tools for assessing economic theories by empirically measuring relationship between economic variables. Economics is classified as a social science. Business and economics go hand in hand. Published by Experts, Top 10 Must Successful Steel Industries of India, 4 Important Types of Coal Available In India, Essay on the Importance of Radiology and Imaging Services in Hospitals. Interrelation and differences between managerial and traditional economics. Terms of Use and Privacy Policy: Legal. It may be viewed as a special branch of Economics. Filed Under: Economics Tagged With: Economics, Managerial Economics, Managerial Economics and Economics, Managerial Economics and Traditional Economics, Traditional Economics. The main difference between the branches of economics is that traditional economics is primitive and is used in underdeveloped and less technologically advanced economies, whereas managerial economics is a result of globalization and evolution of economics to include managerial decision making. The theory of economics in today’s world is a broad subject which is divided into microeconomics and macroeconomics. The traditional Economics has both micro and macro aspects whereas Managerial Economics is essentially micro in character. 6. Traditional economics refers to the more primitive principles of modern economics that are most commonly used in underdeveloped countries that have not yet embraced the rapid technological and globalization changes that have occurred in the study of economics over the years. While business deals with selling product or services to a consumer, economics deals with supply and demand of all products in the country. Sound decision-making in Managerial Economics is considered to be the most important task for the improvement of efficiency of the business firm; but in Economics it is not so. Thus, it is obvious that Managerial Economics is very closely related to Economics but its scope is narrow as compared to Economics. 3. Its analysis of problems is micro in nature, whereas Economics analyzes problems both from micro and macro point of views. • Traditional economics is employed by less developed nations with no sophisticated management … The following article clearly explains the difference between economics and managerial economics. Economics is the mother science on which management is based. It uses factual data for solution of economic problems. Managerial economics has an applied bias and its wider scope lies in applying economic theory to solve real life problems of enterprises. However , given that MBA is an open Microeconomics and managerial economics are the sub-divisions of economics along with others such as macroeconomics, behavioral economics, development economics, environmental economics or financial economics. Coming from Engineering cum Human Resource Development background, has over 10 years experience in content developmet and management.

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