Managerial economics refers to the integration of economic theories in the business practices in order to help the business make better decisions making along with future planning. It is considered as the means for the business managers to analyze the future condition of the organization and manage unpredictable variables to reduce the negative impact on the company. However, managerial economics is not only helpful for businesses, but it also plays a crucial role in administering and controlling societal issues as well such as the ongoing COVID pandemic. And this is the main reason why government authorities all over the world use managerial economics in order to develop policies and regulations to restrict the exploitation from negative societal aspects such as poverty, job loss, inflation, unemployment, pandemic, etc. The main reason why managerial economics can be useful in tackling societal issues can be understood by its major elements and their importance for the society which are as below:
Micro and Macroeconomic Theories: These are the most important elements of managerial economics which mainly deals with understanding different aspects of the economy which can impact the lives of people. For instance, macroeconomic theories mainly deal with supply and demand of a particular industry, product, or consumer while macroeconomics deals with a larger concept of the economy such as local, national, and international trade. The governing authorities can use both the economic theories to best place their city, state, or country in such a manner that the economic position of their region strengthens which will ultimately lead to an improved lifestyle, growth, and satisfaction for the population living in the area.
Decision Making: Managerial economics is highly essential for governing authorities to make better and informed decisions for their people regarding numerous societal issues after specifically analyzing the intensity of the issue, potential complications, and measures to resolve them even before they occur. For instance, in the case of the COVID 19 pandemic, most of the governments of different nations have been able to make decisions regarding lockdown, restrictions in trade, movement along with issuing particular and special guidelines for the healthcare industry to manage the social issue. All these decisions are taken using managerial economics where economists and government bodies are able to evaluate how the disease can affect the lives of millions and kill many and to protect them, decide on the best strategies that would deliver reduced economic impact without causing the people to suffer.
Managing Complications: Managerial economics also plays an important role in the management to administer societal issues such as unemployment, poverty, inflation, etc appropriately with a little negative impact on people. For instance, in order to tackle unemployment, the government can consider providing financial help to the most underprivileged people to not only reduce their sufferings but also keep the economy stable.
All these aspects of managerial economics are highly effective to manage societal issues and if you want to pursue a career in social welfare, then you should successfully complete a managerial economics course from a reputed university which also requires submitting an assignment on the same. You can take managerial economics help from Need Assignment Help assignment writing service to get good grades and take your career to new heights.