What is the Difference Between Economics and Managerial Economics?

Economics and managerial economics are related but have distinct focuses and objectives. Here are some key differences between the two:

Scope: Economics studies the overall economy, including the production, consumption, and distribution of goods and services in a society. Managerial economics focuses on the application of economic principles and analysis to solve managerial problems and aid decision-making within a firm.
Perspective: Economics takes a broader, macroeconomic perspective, considering the aggregate behavior of households, businesses, and governments. Managerial economics takes a microeconomic perspective, focusing on specific decisions and strategies within a firm.
Decision-Making Focus: Economics analyzes decisions made by individuals, households, businesses, and governments in the economy as a whole. Managerial economics analyzes decisions made by managers within a firm, such as pricing, production, investment, and resource allocation.
Objective: Economics seeks to understand and explain the functioning of the economy, including factors like inflation, unemployment, and economic growth. Managerial economics aims to provide insights and tools to improve managerial decision-making within a firm.
Theoretical vs. Applied: Economics is more theoretical, while managerial economics is more applied. Managerial economics is also known as business economics, as it combines economic principles with business and management concepts to address specific managerial problems.
Education: Managerial economics majors are awarded a Bachelor of Science degree, while economics majors earn a Bachelor of Arts degree. Managerial economics requires more units of calculus, statistics, an introductory computer science course, and introductory accounting.
Career Paths: Managerial economics graduates are prepared for a variety of careers, including business economics, international business economics, environmental and resource economics, and agribusiness economics. Economics graduates may pursue careers in various fields, such as government, consulting, research, and education.

On this page

Comparative Table: Economics vs Managerial Economics

Here is a table highlighting the differences between Economics and Managerial Economics:

Feature	Economics	Managerial Economics
Scope	Studies the overall economy, including production, consumption, and distribution of goods and services in a society.	Focuses on the application of economic principles and analysis to solve managerial problems.
Perspective	Takes a broader, macroeconomic perspective.	Combines economic principles with business and management concepts to address specific managerial issues.
Theories	Mostly theoretical.	Incorporates real-world business constraints, market imperfections, and managerial goals into its analysis.
Data Analysis	Utilizes a range of economic data, statistics, and models to study economic phenomena at a broader level.	Relies on specific business data, market research, and financial analysis to support managerial decision-making.
Policy Orientation	Seeks to understand and explain the functioning of the economy, including factors like inflation, unemployment, and economic growth.	Aims to provide insights and tools to improve decision-making within organizations.
Nature	General in nature, concerned with fulfilling the needs of individuals and entities.	Specific in nature, focused on decision-making and economic theories that guide the managerial decision-making.

In summary, while both Economics and Managerial Economics are related, they have distinct focuses and objectives. Economics studies the overall economy and its various aspects, while Managerial Economics focuses on applying economic principles to address specific managerial problems within organizations.

Guilherme Mazui

Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.