Entrepreneur's job is to combine the factors of production. Knowledge of economic laws and principles enables him to have an ideal combination of the different factors of production. In ideal combination entrepreneurs gets maximum returns from input because the cost per unit is minimum and the consumer gets the goods at a low price as a result the demand for output increases because a number of people who can effort to purchase increases.
Study of economics helps them in framing their business, policy and making effective decision related to their enterprises. Its studies also help them to solve their operational and management problems.
Economics guide the entrepreneurs in allocating the resources in different productive cannels in a rational way. This reduces waste and helps in getting maximum return.
Its study helps them in improving the efficiency of workers through different incentives such as increasing wage rates, improving working conditions and providing other facilities.
Economics guide consumers to distribute their income in purchasing of different commodities in such a way that they can satisfy their maximum number of wants within the given resources.
Its study helps them to distinguish b/w the productive and un-productive expenditures. In this way they can control their expenses and disposing off they're saving to d/f productive channels, which create a source of income for them in future.
By the study of economics businessmen learn the procedures and practices followed in trade and commerce. They get information about banking, monetary policy of government which helps them to organize and adjust their business activities and increase the margin of profit and improve the quality of his goods and services.
Economic guides the statesmen in locating the causes of socio-economic social and economic and problems and to take correct measures to solve them for the welfare of the nation for e.g. unemployment is a social as well as an economical problem which creates disturbance in the country and brings up many social evils. Study of economics helps the statesmen in locating its causes and provides suitable measures to solve this problem.
Economics also enables the statesmen to understand the working process of the economic system and analyzing its issues. Its study guides them to make such economic policies through which distribution of national wealth can be distributed equally among all the members of the society.
Statesmen get acquainted through economics with the working mechanism of economic variables such as production, consumption, saving, investment etc. Knowledge of such things helps them a lot in taking steps to ensure a prosperous life of the people.
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