Which of the following statement is incorrect?

a)
Business economics is a normative in nature

b)
Business economics is closely related with statistics

c)
Business economics only considers micro variables

d)
Business economics is also called Managerial economics

Correct answer is option 'C'. Can you explain this answer?

Question

Which of the following statement is incorrect?

a)
Business economics is a normative in nature
b)
Business economics is closely related with statistics
c)
Business economics only considers micro variables
d)
Business economics is also called Managerial economics

Correct answer is option 'C'. Can you explain this answer?

Answer

Incorrect Statement: Business economics only considers micro variables.

Explanation:

Business economics is a branch of economics that applies economic theory and quantitative methods to analyze business enterprises and the factors contributing to the diversity of organizational structures and the relationships of firms with labour, capital, and product markets. It is a normative science that offers prescriptions or recommendations for improving managerial decision-making. It is closely related to statistics, as it makes use of statistical tools and techniques to analyze and interpret business data.

Business economics considers both micro and macro variables. Microeconomics deals with the study of individual economic units, including individuals, households, and firms, while macroeconomics deals with the study of the economy as a whole, including national income, employment, inflation, and monetary and fiscal policies. Business economics considers both micro and macro variables in analyzing business decisions and strategies.

Therefore, the incorrect statement is option C, i.e., Business economics only considers micro variables.

Answer

As business economics not only consider micro variables but also consider some of the variables of Macro economics(In Nature of Business economics there is point of incorporates elements of macro analysis) may this ans helps you.

Answer

B

Answer

The incorrect statement is: Business economics only considers micro variables

Business economics, also known as managerial economics, incorporates both microeconomic and macroeconomic variables. It uses concepts from both branches to help managers make decisions and solve problems in business. While it does focus heavily on microeconomic factors such as individual markets, firms, and consumer behavior, it also considers macroeconomic factors like inflation, interest rates, and economic growth that can impact business environments.

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