Business Economics: Business Economics is a refereed journal that serves as an essential resource and provides practical information for

people who apply economics in their jobs. It provides a leading forum for debating solutions to critical business problems or the analysis of key business issues, best-practice models, tools and hands-on techniques from professionals in business. It represents an important channel for summaries of action-oriented analysis aimed at solving business problems. Giving insight into how to apply economics within business and how economic professionals respond to challenges in the workplace. And it will represent and interpreting current economic information and issues that are educational and useful on the job. Business Economics is also part of economic theory which focuses on business enterprises and inquiries into the factors contributing to the diversity of organizational structures and to the relationships of firms with labour, capital and product market. Here are the 2 Contents of Business Economics: Subject matter Business Economics is concerned with economic issue and problems related to business organization, management and strategy. Issues and problems such as the following: an explanation of why firms emerge and exist; why they expand: horizontally, vertically and specially; the role of entrepreneurs and entrepreneurship; the significance of organizational structure; the relationship of firms with the employees, the employees, the providers of capital, the customers, the government; the interactions between firms and the business environment. Ambiguity in the use of term The term Business Economics is used in a variety of ways. Sometimes it is used as synonymously with - Industrial Economics - Industrial Organization - Managerial Economics Economics for Business. Industrial Economics is the mostly closely over-lapping of these terms whilst there may be more substantial differences with Economics for Business and Managerial Economics. One view of the distinctions between these would be that Business Economics is wider in its scope than Industrial Economics in that it would be concerned not only with "Industry" but also businesses in the service sector and that it also takes seriously the insights of the "business strategy" literature. Economics for business looks at the major principles of economics but focuses on applying these economic principles to the real world of business. Managerial economics is the application of economic methods in the managerial decisionmaking process.

Principles of Economics: 1. People face trade-offs. Every decision involves choices, and more of one good means less of another good. Income and wealth are not limitless, since there is only so much time available. Trade-offs applies to individuals, families, corporations and societies. 2. Cost of something is what you give up to get it. When we make a decision we implicitly compare the costs and benefits of our choices. Opportunity cost is whatever must be given up to obtain something. Some costs are obvious out-of-pocket expenses; other costs are less obvious but must be included in total opportunity cost. 3. Rational people think at the margin. Basic economics assumes that people act rationally and try to act so as to gain the most benefit for themselves compared to the associated costs. Microeconomics focuses on small or marginal) changes and it is often rational to consider the marginal rather than the average effects of decisions. 4. People respond to incentives. If rational people compare costs and benefits, then changes in either one may change decisions. An example of an incentive that people respond to, are changes in prices. In general, people are more likely to buy something if it is cheaper. If an action becomes more costly, then there is an incentive to switch to other choices. Note that all actions have substitutes. Sometimes people will encounter emergencies with costs that are beyond the cash they have available. In these situations, they may consider getting a cash advance to ease the pressure of liquidity in the present. Explicit costs vs. implicit costs The cost of something, say a business, includes both the explicitly cost (usually the price) and the implicit costs. One major implicit cost is the opportunity cost. Opportunity costs include the next best opportunity given up. Only actions have costs; if there are no choices, then there are no costs. Be aware that cost is subjective. For example, compare the psychological benefit of a new computer. Decide whether you would rather have the vacation to Europe, or a brand new computer. Another example is in credit card comparison. Some people might only compare the annual fees, but you should compare the added benefits and features too. Certain features may be more valuable to you and be worth the cost, while others may be more valuable to another individual. Disagreement in Economics Business economics is both a science and a study of policy united by a common way of thinking. As a science, economists develop models and deliberately simplify accounts of how

cause and effect work in some part of the economy. Based on assumptions of what is important, models are created and used to make suggestions about policy and improve basic economic outcomes. Policy involves decisions about scientific theories, personal values and particular circumstances. Positive statements are claims about what the world is like, although they may be false. For example, "Minimum wage laws cause unemployment". Normative statements are claims about how the world ought to be, and are based on values as well as positive knowledge. For example, "The government should raise minimum wage". Economists may disagree over either positive or normative statements or both, but the great majority tend to agree over basic positive propositions. As such, most disagreements are over normative/policy issues. Public Goods Public goods include things such as fireworks displays, and basic research. According to basic economics, a free market is unlikely to provide enough public goods, due to the free rider problem. A free-rider is a person who consumes a good without paying for it. Public goods create a free-rider problem because the quantity consumed is not directly related to the amount paid. As a result: there may not be enough incentive to pay for public goods through individual action; you cannot be prevented from consuming the good even if you do not pay for it and; it creates an external benefit on those not involved.

Business economics state that we can decide how much of a public good to produce, by considering a cost-benefit analysis of public goods. The total benefit is equal to the total dollar value that an individual places on a given level of production of a public good. Total Cost is what we must give up to get more of the public good. These are often difficult to calculate especially the benefits. For example, what is the benefit of saving a human life, and what is the benefit of more flowers in the downtown? Once we decide on the benefits, then we want to provide enough of the public good to maximize net benefits. That is, total benefits - total costs. The private market will usually not produce enough of a public good. However, it is often done by government because it can compel everyone to contribute through taxes. The problem is not that people are selfish, per se, but the free-rider problem. If some people do not voluntarily contribute, others who do contribute will feel that it is unfair and may stop contributing as well. Common Property Resources These resources include clean air, oil pools, congested roads, fish, whales and other wild life. The problem here is that it is hard to exclude people, but one persons use reduces that of others'. Over-use of these resources is sometimes dramatically referred to as, "Tragedy of the Commons". This tragedy refers to the common grazing rights in medieval England, in which all

families could graze sheep on the common land which was collectively owned and as population and number of sheep increased, common land became over-grazed. People did not reduce their use, because social and private incentives differed. Each individuals best move is to get as much of the resource as possible before it is gone. The social optimum is to restrict use. The problem is that each individual creates a negative externality by reducing amount available to others. A few possible solutions were: 1. Custom or regulations could put a maximum on how much each family could use the resource; 2. 3. They could have internalized the externality by auctioning off rights to graze and; They could have created private property rights.

Property Rights Economists realize that property rights are very important for efficient use of resources. When an individual owns and controls the resource, they have an incentive to increase its value. When everyone owns a resource, or rather, no one owns the resource, there is no one to charge for use, or who can attach a price. An example of such is air that we breathe. For some goods we can establish property rights, like the pollution permit. For other goods, like national defense or clean air, the government can improve the outcome by regulating or providing the product. As defined business economics focuses on the business organizations. Consequently, it deals with the study of human personnel. Focused on the organizational chart of a business. How each division functions, in relation to each division. This study is more importantly necessary for the success of a business. Why? Because business is usually operated and run by personnel. This study had to deal much on the different role of each individual in the pursuit of a successful and profitable business.

Running a business vision is to have profit. How do we have to earn a profit? Of course, it has to be well organized and should be dealt with in consistent with our product. Say, a hardware business, of course, we have to hire people who are familiar with construction materials. We don't need nurses or technicians on this kind of business. a pharmacy, needs pharmacist. And these are people, how they will function, who will be responsible for each department. And there Business Economics will come in. Do we need this type of people in the business or are we just adding expense to the organization? Remember, in the business, its always sales over expense in order to have a profit. Personnel involve salary, and salary is an expense. In every expense we made must be with a cause or reason.

Business economics has to consider how important an organizational chart to an organization is. It should be well defined. Each function and each personnel handling such position should be able to comprehend their role to the organization. A manager, for example, has to have a staff to manage with. How many staff has to be hired proportionate to the needs of the company. Does he need more than two clerks? The bulk of the job for each employee, is it consistent with the prescribed rules of the government?

Business economics then will play its role in the determination of ratio, proportion, over workload, income and expense. Determine the importance of each created, hired personnel to work hand in hand in order to achieve the mission and vision of the company with a harmonious and workable atmosphere. These are needed for a company worth working with. Business Economics can be used in economical business; it has sub-disciplines of economics such as managerial economics, Industrial Organization and other types of industrial sequences. Well, without the business economics, industrial types or labour types of business will be gone and cannot develop a good structure in a business. Business economics has a great role in every economical businesses, he is like a root to all economical type of structure that is growing to make a leaves in that tree, and he is the key to make that tree stand for better or good, If he cut's out, the economical business well go down and make a global crisis. Example of an economical business labour like Filipino people, they are a good workers, they send to another country such us=A0Bangladesh, japan, China, and etc. If they are being gone, or been cut out, the economy will face a global crisis,(well, they told me that) that is the truth. Sometimes Business economics help the Group or industrial type of business that takes a long time holding labour groups in the business. If we are talking about relationship with its employee, it is indeed needed a good mood or a good morale to make the employee a better employee to the business. Even, if the employee are taking much pressure in there works, just talk to them and make them happy always. If Business always talks, then talk to them as they talk to you, so that business will not be vulnerable to other businesses. Some role of business men are just talk normal and make things easier for their good businesses, they even invest other company so they can make more money for their company. Employees, they will be hired if they got great attitude and great stability to work for your company, if they got a high performance, you can promote them and put them in a=A0fit table position for there right attitude so your company will add up its performance in business economic growth. Businessmen are fitted to be a reporter for their company, like knowing the employees inner attitude, knowing the growth of the economical business, and taking the responsibility to be a good businessman in the company or generational industry. Business firms has its own relationship of the government, if its not, then there is no business will overcome it or made it, Government and business firms has got own=A0prevalence, And cannot be detach from the government of business papers that is from the business, even government has its economical business in there governmental company.

Conclusion: Business economics is in fact useful for the success of a business. Why because without a proper analysis and determination of the proper organizational chart will greatly affect the operation of a business. The operation lies on the specific functions of each individual who does the major role in running the business. It has to be defined, analyzed properly.

Bibliography: http://www.nabe.com/busecon.htm http://www.basiceconomics.info/ http://www.palgrave-journals.com/be/index.html http://targetstudy.com/subjects/economics/business-economics.html