Economics has been derived from two Greek words “eco” and “nomos” where eco means home and “nomos” means accounts so basically it has been derived from household activities. In Present times Economics has been the subject of driving the nations on business platforms by effective use of Microeconomics and Macroeconomics.
Microeconomics deals on small or basic levels and Macroeconomics deals on huge or major statuses.
Good business may be defined as “Doing something economically for profitability and advancements” here we can understand the importance of economics in every business of life.
The engagement of economics in our daily lives has become scientific because of the availability of scientific research knowledge and measurability due to available scientific tools.
Economics plays a vital role in business development on both stages of micro and macro for the following advantages.
1- Economics helps to design the business as per available sources and also guides how to produce more resources in the future.
2- Economics provides working stages from the root levels to the Top Levels in business management and this is the main character of economics to estimate the business using possible available sources.
3- Economics provides knowledge and future guidelines by recording different activities in production and profitability.
4- Economics gives working regulations for the usage of manpower and machines which provides ease for labor and machines.
5- Economics controls the possible wastage of time by producing benchmarks at different levels in business administration.
6- Economics defines proper financial policies of the business and regulates business profitability.
7- Economics guides the concept of “supply and demand” and helps the government to make financial policies to promote governmental and private business trends.
8- Economics helps Government and private companies to create job opportunities for the public.
9- Economics helps to control inflation by raising the supply of different commodities in the market and produce more business opportunities on micro and macro levels.
10- Economics operates infrastructure to produce revenue for future extensions and expansion of business.
Conclusion
Economics is a naturally designed scientific way of life and nobody can deny its importance and application as it is only the source of survival in the present fast-growing business era.
The present world population is living the life of economical war of earning more from others, to generate and invent more from others using less financial and manpower resources so economics is fully acceptable in business life.
