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Unit - I (Concept of Business Economics)

Relationship between traditional economics and business economics are as follows:

1.Traditional economics studies economic theories, concepts and models in a theoretical approach whereas business economics studies these concepts from practical basis.
2.Traditional economics include micro and macro economics whereas business economics is fundamentally microeconomic in nature.
3.Traditional economics can be studied as both positive and normative science whereas business economics is a normative science. 
4. Traditional economics studies individual unit of an any economy firm as well as macroeconomics whereas business economics deals only with the economic activities of the firm.
5. Traditional economics deals with both economic and non-economic factors whereas business economics studies economic factors
6. Traditional economics studies human behaviours on the basis of certain assumptions whereas these assumption may not be true under the study of business economics.
7. The scope of traditional economics is broad whereas the scope of business economics is narrow because it is only a branch of traditional economics.

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