Managerial Economics
CHAPTER
1
Nature and Scope of Economics
Nowadays, understanding of economic issues has become quite indispensable for all sections in the society. Everyone wants to get rich; wants to increase their wealth holding; wants to have hold over productive resources; wants to expand their business activities. People want to earn more and more profits, and exercise control over the market and other economic system; people want to raise their living standard and enjoy more and more consumption; people want to make their future secure; everyone wants to grow from the current position; given these, people want to update their knowledge of economic issues and take advantage of that.
Besides, people want to grow even in the adverse circumstances or at least survive under these circumstances. This shows that people want to become economically stronger and viable. So that they can lead a better life style.
This requires proper understanding of the economic issues.
Such understandings might be developed through formal and informal methods of learning. Most of the people learn informally in the society through their experiences as they get exposed to certain real life situations.
However, those who want to make a career in different dimensions, they need to learn it formally. For this, they need to learn it properly, that is possible through pursuing a formal course structure. This gives them a proper understanding of economics. They can apply this knowledge in different contexts. According to Samuelson and Nordhaus (“Economics”; sixteenth edition; 2000), “Often economics appears to be an endless procession of new puzzles, problems, and difficult dilemmas. But as experienced teachers have learned, there are a few basic concepts that underpin all of economics. Once these basic concepts have been mastered, learning is much quicker and more enjoyable.”
2 Engineering and Managerial Economics
DEFINITION OF ECONOMICS
It is very difficult to
1
Nature and Scope of Economics
Nowadays, understanding of economic issues has become quite indispensable for all sections in the society. Everyone wants to get rich; wants to increase their wealth holding; wants to have hold over productive resources; wants to expand their business activities. People want to earn more and more profits, and exercise control over the market and other economic system; people want to raise their living standard and enjoy more and more consumption; people want to make their future secure; everyone wants to grow from the current position; given these, people want to update their knowledge of economic issues and take advantage of that.
Besides, people want to grow even in the adverse circumstances or at least survive under these circumstances. This shows that people want to become economically stronger and viable. So that they can lead a better life style.
This requires proper understanding of the economic issues.
Such understandings might be developed through formal and informal methods of learning. Most of the people learn informally in the society through their experiences as they get exposed to certain real life situations.
However, those who want to make a career in different dimensions, they need to learn it formally. For this, they need to learn it properly, that is possible through pursuing a formal course structure. This gives them a proper understanding of economics. They can apply this knowledge in different contexts. According to Samuelson and Nordhaus (“Economics”; sixteenth edition; 2000), “Often economics appears to be an endless procession of new puzzles, problems, and difficult dilemmas. But as experienced teachers have learned, there are a few basic concepts that underpin all of economics. Once these basic concepts have been mastered, learning is much quicker and more enjoyable.”
2 Engineering and Managerial Economics
DEFINITION OF ECONOMICS
It is very difficult to