Economics: A Core Online MBA Course

Economics by definition is the social science that analyzes the production, distribution, and consumption of goods and services. It is a core concept of businesses at large, so it is easy to see why it is such an integral part of an online MBA program. However, students often gravitate towards the MBA as a path towards managerial and leadership roles within businesses. This can reduce economic principals into redundancy in many students’ minds, but it is nevertheless an important topic for all business leaders to become proficient in.

An Overview of Economics and its Relevance to an Online MBA Program

The study is economics is divided into two main principals of study: microeconomics and macroeconomics.

Microeconomics primary deals with business on a more individualized or consumer-based level. This means the study is geared towards how businesses allocate their resources and how they price their goods or services directly to the consumer. Prime theories within the topic include supply and demand along with other price point marketing strategies. The study also concerns how a business can utilize their available resources in order to maximize production and profitability, which also concerns how a business can better compete in an industry with several competitors.

Macroeconomics by comparison is the study of the economy as a whole and its impact on all underlying businesses. This means that government level issues such as taxation are covered more rigorously, but also economy-wide theories that include the Gross National Product and how it adjusts to changes in unemployment, national minimum wage, and pricing strategies as a whole.

The two fields appear to be independent from one another, but actually co-exist and compliment one another. This could be seen through such examples as an increased inflation rate in macroeconomics impacting on the price of raw materials and how this would later affect the pricing scheme delivered to the consumer after production in microeconomics.

This is relevant to an online MBA for several reasons, but the primary concern is seen through a manager’s discretion on pricing schemes. Being able to accurately price a good or service is the cornerstone of a business’ profitability or failure, so students must become comfortable with economic principals for success in a managerial role.

Is Economics an Easy Online MBA Component to Pass?

The study of economics in an online MBA program is very intensive and aims to deliver a substantial amount of content in a short period of time. This can either be very easy to some or very difficult to others, but all students must be prepared to make the time commitment needed to succeed in this crucial component.

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