Assignment

Relation of Economics to :

Physical Science
Economics, like many of the physical sciences, can be greatly analyzed with the different tools of
mathematics. This is due to the structure of economics. Economics works similarly with the physical
sciences. It's just that one can't directly manipulate variables in economics unlike what one does in the
experiments for the physical sciences. Aside from these, I'll give two concrete examples: economics in
the environmental and health sectors

There are also fields in economics which tackle things which are related to things which the physical
sciences explore. For example, economics also studies the environment by exploring the allocation of
natural resources. For this reason, Environmental Economics is also a subfield of the interdisciplinary
science called Environmental Science.

Economics also deals with the health sector. We all know the importance of resources produced by the
health sector. Economics also deals with the allocation and production of these resources and other
aspects of the health sector through the field called Health Economics.

Commerce
The origin of commerce is deeply rooted in the economics activities of mankind. In the words of
Evelyn Thomas. Economics is the study of man `s behavior in earning his living. To earn this living.
Men enter into a wide variety of occupations concerned with the production of the goods and services.
That is needed by the community in which they live.

Economics provide a theoretical background to analyze the effort of human being in earning their
livelihood through the operations of production and the processes of exchange. Economics
scientifically studies the sum total of all economics activities and help in arriving at broad principles or
laws that characterize the human behavior under different sets of circumstances. In commerce these
very activities are studies from the occupational point of view and lays down norms for systematically
carrying them out. Commerce can rightly be described as practical economics or business economics.

Commerce and economics are inter-related subjects. Commerce is concerned with mans behavior in
the pursuit of wealth. The word wealth has a different connotation in economics. It consist of those
goods and services which have three characteristics (i) utility power to satisfy a wants (ii) limitation of
quantity scarcity in availability (iii) power of being transferred capable of having its ownership
transferred from one person to another. A commodity which satisfies all the conditions has value and is
wealth from economic point of view. Any commodity which does not have value, even though very
useful, will not be called wealth because it does not satisfy all the three conditions. The air and
sunshine are essential for man but do not have any price because there supply is abundant.
In economics it is investigated how wealth is produced and how it is transferred between man and man
and one community to another and finally how it is used or consumed by those who possess in
economics these matter are studied from the point of view of mankind in general, whereas in commerce
they are considered from the point of view of the business man.

All these factor which add value i.e. capacity to command price. To existing goods play there parts in
producing wealth. Matter can neither be created nor destroyed. Its form can be altered. And it may be
transferred from one man to other and from one place to other where they are more acceptable. The
production of cotton goods, beside growing and weaving, includes bleaching and printing and also
there transportation and distribution to the ultimate consumer. A trader who brings the commodity from
a place where it has less utility to a place where it has more demand creates place utility in them
similarly. Other persons such as retailer. Transport workers, insurance agents. Are all doing their parts
greater or lesser degree? To operate the vast productive machine and to increase the value of raw
materials and other commodities. The goods may be produced in anticipation of demand. These will
have to be stored at the time when these are not needed. This is possible with the help of warehousing.
The running of a business and transporting the goods involve risk. Unless otherwise the risk is covered
the producers and traders will not increase the volume of their work. So insurance services help in
increasing the volume of production and distribution. The activities of various mercantile agents in the
chain of distribution. Linking manufacturers on the end and ultimate consumer on the other end are a
part of commerce.

It is a well known fact that human wants are unlimited. The resources to satisfy these wants are limited.
It is not possible to satisfy all the wants. Robbins has defined has economics as a study of human
behavior as a relationship between ends and scarce means which have alternate uses. In Robbinss view
the resources can be employed differently to satisfy more and more wants. Commerce creates place
utility in goods. The goods produced anywhere are brought to a place where these are needed it is not
only that goods are made available to the consumers but these are supplied at competitive prices. There
is specialization in production of goods. Certain prices or countries specialize in producing certain
goods. These goods will be produced at a reasonable price. With the help of commerce these goods are
made available at all those prices where these are needed. The development at trade at international
level solve the problem of choice too, the availability of deferent goods enables the consumer as per his
choice. The scarce resources of the consumer are put to best use.

The economic development of the society and the development of commerce are inter linked. The rapid
increase in population his increase the demand for all type of goods. The increase the purchasing power
of consumers is creating demand for various goods and services. All this has given inputs to commerce.
To meet the ever increasing in demand, production is carried on a large scale. The advancement in
science and technology has brought the era of mass production. The division of labour and scientific
management has increased productivity and profitability. The specialization in every activities has
tremendously increased the economic activities i.e. production, consumption, exchange distribution.
The improvement in transport and communication faculties has increased the volume of trade. The
production is now undertaken for international markets. The setting up of exchange banks, financial
institutions, insurance companies, warehouses. Advertisement agencies, etc. indicate the development
of commerce.

Business Administration
"Economics is a social science that studies the production, distribution, and consumption of scarce
goods and services." Money is a scarce good that is unevenly distributed. Just why this is the case and
the consequences of an uneven distribution of income and wealth are the central questions in the
science of economics. And these questions can be asked at the micro-level (household), the meso-level
(industry) and the macro-level (countries).

Business Economics has developed itself into a sub-science within economics. Business economics is
concerned with predominantly the economic problems of businesses. In this sense, some regard
business economics as a form of micro economics. It is also sometimes referred to as the interface
between business administration and economics.
There are other areas of economics with specific questions, such as development economics, feminist
economics and economic geography. All of the above questions and areas have in common that they
concern making choices and the consequences thereof.