Difference Between Economics and Business

Economics vs Business
 

Many students face a common dilemma when deciding between the subjects that they should take on for their universities entrance/advanced level exams or which majors and subjects they should pick when studying for their bachelor’s degrees. One such choice that needs to be made is between studying economics and business studies. While a student has the option to study both, certain universities like a variety of subjects to be taken on by students instead of studying subjects cover similar aspects such as business and economics. The article aims to offer a clear explanation on each subject matter and shows how these two are similar and different from one another.

Economics

Economics is defined as a social science that explores how the actions of firms, individuals, employees, customers, and the government can affect the country’s economy. Economics has links to a wide variety of subject matters including business studies, politics, international relations, mathematics, etc. Main concepts that are used in the teaching of economics include supply and demand, interest rates, exchange rates, international trade, inflation, production, balance of payments, etc. Economics centers around the world’s key issues such as globalization, international trade, trade unions, politics, and how the choices made by different entities such as firms and governments can affect the country’s local economy as well as the global economy. Learning economics will teach you to think logically and to learn theories and utilize them to understand how economies work. Students will be taught how to understand the issues and concepts evolving around complex aspects of an economy and how economies are managed in a way that all groups of people in a country are benefitted as a whole.

Business

Business studies explores the actions of individual businesses and industries as a whole and revolves mostly around topics of organization, management, human resources, business strategy, sales and marketing, product analysis and development, accounting, finance, etc. Business studies also takes into consideration how external forces in the economy, political situation of the country, government regulations, laws, etc. affect businesses and industries and explore how businesses respond to such changing environmental conditions. Business studies also explains how companies manage their business strategies, marketing tactics and theories that are used, human resource management and motivation theories and also explains some basics on accounting and financial management. However, business studies generally does not teach students how to start up and run their own business and will only provide knowledge and tools to study successful companies, which can then be applied to business startups. Entrepreneurship courses, however, explore this area in greater depth.

What is the difference between Economics and Business?

Business studies and economics are quite related to one another in that they both explore a few concepts common to both areas of study. However, economics focuses mostly on how players in the economy and their actions can affect the local and global economies while business studies focuses on businesses, industries, management strategies, human resources, etc. Economics is more academic than business studies and has a large number of models and theories. Business studies, on the other hand, has lesser theories and lesser understanding than economics but requires more learning and working through a large number of topics and business related concepts. Economics, in a sense, explores concepts in greater depth, whereas business studies explore a large variety of concepts in greater breadth.

Summary:

Economics vs Business

• Business studies and economics are quite related to one another in that they both explore a few concepts common to both areas of study.

• Economics is defined as a social science that explores how the actions of firms, individuals, employees, customers, and the government can affect the country’s economy.

• Business studies explores the actions of individual businesses and industries as a whole and revolves mostly around topics of organization, management, human resources, business strategy, sales and marketing, product analysis and development, accounting, finance, etc.

• Economics is more academic than business studies and has a large number of models and theories, whereas business studies requires more learning and working through a large number of topics and business related concepts.

• Economics, in a sense, explores concepts in greater depth, whereas business studies explore a large variety of concepts in greater breadth.