OTA, in your own words based on your experience, respond to the following questions. I have responded with what I know of the subject.
A) Define the difference between macro and microeconomics. Where does managerial economics fit?
As I understand it, macroeconomics focuses on the “big picture” with respect to the overall business activity, interest rates, federal budget, federal taxes and international trade. Microeconomics, on the other hand, is a more defined focus on the individual aspects such as consumers or specific business units.
B) What is economics? What roles does it play in the study of business administration? What is its relationship to economic theory and the decision sciences?
As I understand it, economics is the process of research, analysis and making decisions to increase value. Managerial economics is a subset to the variety of subjects encountered in typical business administration activities. Decisions are impacted by supply chain management, accounting, finance, government policy, global business, and so forth.
C) Discuss why one thinks economics is paramount (or not important) to those pursuing an MBA?
A) You are right in your thoughts. You can also further explain it, like below.
Macroeconomics examines the aggregate behavior of the economy - how the actions of all the individuals and firms in the economy interact to produce a particular level of economic performance as a whole.
For instance, overall level of prices in the economy (how high or how low they are relative to prices last year) rather than the price of a particular good or service.
Microeconomics on the other hand focuses on how decisions are made by individuals and firms and the consequences of those decisions. For instance, how much it would cost for a university or college to offer a new course ─ the cost of the instructor's salary, the classroom facilities, the class materials, and so on. Having determined the cost, the school can then decide whether or not to offer the course by weighing the costs and benefits.
In Macroeconomics there is a much wider role for Government
- Fiscal Policy
- Monetary policy
- Federal Taxes