Question

a. Business economics makes a manager a more competent model builder.
b. Business economics helps in reaching a variety of business decisions in a complicated environment.

• A. Both (a) and (b) are true
• B. Both (a) and (b) are false
• C. (a) is true, but (b) is false
• D. (a) is false, but (b) is true

Answer 1

Answer: (A)

Both (a) and (b) are true

Both the statements are true.

• Business economics makes a manager a more competent model builder: as the managers have to apply the economic theories and models in the practical world and study its impacts.
• Business economics helps in reaching a variety of business decisions in a complicated environment: as the main objective of this economics is to analyze the environment and accordingly form business plans and decisions so that the organization can properly work in the long run.