Question

Explain the relationship of managerial economics with other disciplines

Answer 1

Explanation:

Managerial Economics is economics applied to decision making. It is a special branch of economics, bridging the gap between pure economic theory and manage­rial practice. Economics has two main branches—micro-economics and macro-economics.

Micro-economics:

‘Micro’ means small. It studies the behaviour of the individual units and small groups of units. It is a study of particular firms, particular households, individual prices, wages, incomes, individual industries and particular commodities. Thus micro-economics gives a microscopic view of the economy.

The roots of managerial economics spring from micro-economic theory. In price theory, demand concepts, elasticity of demand, marginal cost marginal revenue, the short and long runs and theories of market structure are sources of the elements of micro-economics which managerial economics draws upon. It makes use of well known models in price theory such as the model for monopoly price, the kinked demand theory and the model of price discrimination.

Answer 2

Answer:

There is a strong link between economic growth and poverty reduction as under:

Economic growth generates employment which in turn improves economic standards of the people.

It helps in the generation of employment schemes for poor people.

It improves the infrastructure where poor people get opportunities as a means of welfare.

It improves the literacy which helps the children of the poor people to get education free of cost ,the same education helps them to get job etc.