What is Managerial Economics
Managerial economics is a management study of business, also known as BBM, MBA which focuses on the application of economic theories, concepts, tools, and methodologies in managing or planning a business.
It is a stream of management studies which emphasises decision making and problem-solving skills in the business field of work with the application of theories of microeconomics and macroeconomics. In short, it is the in-depth study of economics for business analysis.
This field, managerial economics, has been pursued by many students seeking skills and experience in business or setting up one.
The study of managerial economics offers a wide variety of opportunities and scope for the future of its students.
The number of students enrolled in this study has increased over the years due to the massive demand in employment and jobs in India and abroad for this field of work. Managerial economics studies are a combination of economics and managerial theories for managing businesses related fields.
Eligibility Criteria (UG & PG) of Managerial Economics
For Managerial Economics Undergraduate Course
Anyone from any background subject of study in 12th grade can study bachelors in managerial economics.
One must have scored aggregate marks of a minimum of 50% to be able to apply for the study of managerial economics.
For a bachelor’s degree, there are no separate subjects in managerial economics but one has to pursue a BBM, BA in economics or B.Com. degree as they have basic economics as a part of their course, which will be beneficial for pursuing an MBA later.
For Managerial Economics Postgraduates Course
One has to have aggregate marks of a minimum of 45% to 60% in a bachelor’s degree.
The admission process is based on entrance exams for several universities or Institutions.
Entrance Exam for Managerial Economics
The entrance exam for a bachelor’s degree is not necessary for many universities. One has to complete their 12th grade in either arts, science, or any other related subjects. Here are some of the entrance test for the study of managerial economics;
CUCET- This entrance test is conducted by Chandigarh for various UG and PG courses of management studies. It is a university-based exam which is conducted every year by the university.
The above-mentioned entrance tests are not necessarily important to study managerial economics since most universities proceed with the admission process merit-based and not necessarily require entrance test exams. However, for prestigious institutions like IIM, the entrance test is necessary.
Scope of Managerial Economics in India and Abroad
The study of managerial economics has a wide range of scope for future career aspects in India as well as abroad.
The candidates can further opt to pursue a Ph.D. in managerial economics or even opt to study abroad for future scopes abroad. After completing an MBA or MBE, one can work as a financial risk manager, chartered financial analyst, professional project management, financial advisor, business consultant, and many more.
The reason why many students choose to study managerial economics is due to its vast opportunities in India as well as abroad with the rise in many new and existing business companies that need skilled employees who are of managerial economics background for business decision making, risk analyzing, problem-solving skills and much more which are essential for the business development.
Course Fees Managerial Economics
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A wide variety of subjects are studied in the field of managerial economics. They include;
For Managerial Economics Undergraduate Degree
Micro and macroeconomics
Business and management studies
International economics of trade and relation policy
For Managerial Economics Postgraduate Degree
Economics analysis for business decision
Quantitative analysis for business
Banking and foreign exchange management
Business finance and accounting
Industrial structure, organisation, and policy
Business policy and strategy
Indian and global economic environment
Forecasting and business planning
For the undergraduate degree, the subjects can be of various fields from BA, B.com, BMS or related subjects of economics.
Careers in Managerial Economics
The study of managerial economics offers a broad range of career opportunities due to its vast cover in the subject of the study.
Students with a degree in Managerial Economics can pursue careers in a wide range of sectors, from banking, financial analyst or advisor, marketing, international management consultant and they can even develop their business company with skills embedded during the study.
Most of the job opportunities offer high-paying jobs, especially for Masters and Ph.D. students in managerial economics. The career aspects are available not only in India but abroad as well. It is believed that more career opportunities will be available in the future for this field of study.
A wide range of topics and new courses related to managerial economics is believed to be introduced in the coming years. As the field of business widens with a lot of growing industries and businesses today.
New subjects of economics in management are expected to develop in the coming years due to large demand and growing trends in the field of managerial economics.
Topics of efficient management in business administration will also be introduced in the coming years, along with the application of financial modelling.
Job Profiles and Top Recruiters
Managerial Economics Job Profiles
The job profiles for managerial economics students include the following;
Working in banking sectors of commercial banks, central banks or private/investment banks.
Analysing financial data, statistics, and financial models of the company.
Researching the company’s structure, finance, and business planning and content as needed.
Provide financial advice to companies and strategies for efficient planning of their business
Start a business company of their own.
Work as an investment advisor to give investment suggestions and advice with Financial modelling.
Measure and evaluate the associated financial risks of the company.
Managerial Economics Top Recruiters
JP Morgan Chase and co
McKinsey and co
State Bank of India
Rs. 6 to 15 lakhs p.a. (Approx.)
Rs. 6 to 10 lakhs p.a. (Approx.)
Rs. 7 to 13 lakhs p.a. (Approx.)
Rs. 6 to 12 lakhs p.a. (Approx.)
Rs. 8 to 20 lakhs p.a. (Approx.)
Rs. 7 to 15 lakhs p.a. (Approx.)
Required Skillset for Managerial Economics
An individual pursuing managerial economics should have relevant skill sets and interest in the field of the subject in the study.
One has to have skills in problem-solving, risk management, with well-known theories and concepts in the fields of economics which is the essence of study in the field of managerial economics.
A better understanding of the subject, keen interest, and dedication towards the subject are the required skillsets for a future career, for individuals pursuing managerial economics.
Course Curriculum for Managerial Economics
The study of managerial economics, as a core course of MBE/MBA study, provides in-depth knowledge on the management of business and understanding risk by applying economics techniques, theories, tools, and methodologies.
This course study aims at presenting and developing micro and macroeconomics approaches to make business decisions.
The Individual gains knowledge of concepts and problems solving skills from the perspective of decision-makers, business firms, and managers’ point of view by application of economics in the study.
The study of managerial economics has a wide range of curriculum due to its vast opportunities and experience gained from pursuing the course.
Frequently Asked Questions (FAQs)
Question: Which university offers the study of managerial economics?
In India, IIM is the best university to study managerial economics, and abroad there are many universities like Harvard University and Stanford University and more that provide the study of managerial economics, and most people prefer to study abroad to pursue further studies in this course.
Question: Can an individual with a managerial economics degree develop a business of their own?
Yes, an individual with a degree in Managerial Economics can start their own business with the skills and knowledge developed with the course studied.
Question: Can a BA degree candidate pursue an MBA/MBE degree?
Yes, an individual with a BA degree and precisely economics major can pursue MBA or MBE, since they have knowledge in economics which is essential for the study of managerial economics.
Question: What is the average salary of a managerial economics degree?
For MBA and MBE degree in Managerial Economics, the average salary ranges from Rs. 6 to Rs. 10 lakhs p.a. (approx.). The salary range differs as per their skills and experience in the field of study.
Question: Who are the best Companies recruiting for managerial economics degree?
Prestigious companies like Goldman Sachs, Tesla, and JP Morgan Chase and co are the top recruiters for managerial economics. However, the chance of being recruited by these companies differs according to the degree, skills, and experience of an individual.