What is "Business Economics"?

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Zillions
Posts: 391
Joined: Sun May 24, 2020 12:58 am

What is "Business Economics"?

Post by Zillions »

Please explain this like you would to a 12-yr-old.

What is the study of "Business Economics" and how does it relate to the larger field of Economics? More importantly, Is it a lucrative UG major? Is this something that would need a Master's to get into the workforce? It was suggested as a major for my kid by her high school counselor and I am trying to research more to figure out what this is.

Maybe I'm very stupid but I've never heard of "Business Economics" before.

I've only heard of Business or Economics.

Yes, I asked the counselor. It's a very large public school so it might be a while before I hear back. I thought the good folks here might have some answers for me sooner.

Thanks in advance. Your feedback is much appreciated as is your tolerance for a potentially very stupid question.
muffins14
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Re: What is "Business Economics"?

Post by muffins14 »

What is your student interested in? Are they enjoying math and science?

I’m not familiar with business economics, but what did you think of the Google results?

https://en.m.wikipedia.org/wiki/Business_economics

https://eller.arizona.edu/programs/unde ... -economics

If they like math and science, then economics, statistics, computer science, or social science may be interesting. Or math or physics
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JSNO
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Re: What is "Business Economics"?

Post by JSNO »

A number of universities offer degrees in both Economics and in Business Economics. Below is a very broad generalization of what I think the major differences between the two are.

Economic departments typically sit in the College of Arts / Humanities. Subjects can range from very theoretical to very applied, with some subjects very quantitative/math heavy. Graduates of these programs can be hired by businesses, policy organizations, and the government. A number of graduates from Economics programs will pursue masters and PhDs in economics.

Business Economics is a degree that often sits in the College of Business. Subjects tend toward being more applied, focusing on issues of interest to businesses. While some subjects will be quant/math focused, the overall program will probably be less quant/math demanding than a pure economics degree. Graduates of these programs are typically hired by businesses, and few if any graduates would pursue a PhD.

As a general rule, an economics degree provides a broad education that keeps lots of career options open and can be paired with more focused minors to target specific careers. In my opinion, an economics degree is broader and more challenging than a business economics degree.
cadreamer2015
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Re: What is "Business Economics"?

Post by cadreamer2015 »

I spent my 42 year career as a business economist. My undergraduate and graduate degrees are in economics. You could look at the professional association for business economics for more detailed information https://www.nabe.com/
But in general, business economics is about using economic analysis to help businesses make better decisions. Often but not always in strategic planning roles.
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Bench
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Re: What is "Business Economics"?

Post by Bench »

At my university, which offers both, there is no difference in the economics curriculum. Econ is through Arts and Sciences and Business Econ is through the business school. The main difference is in gen Ed requirements. With Business Econ one has to take several business courses (a disadvantage, in my opinion, as other courses could be more interesting and potentially more valuable — more math, computer science, etc.). The degrees are also different (BA vs. BBA).
DRIP
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Re: What is "Business Economics"?

Post by DRIP »

Source: I majored in Business Economics at UCLA (Bachelor of Arts), with a minor in accounting, approx. 20 years ago.

Some background: UCLA doesn't offer a traditional undergraduate business degree (e.g. marketing, accounting, finance). Instead, the Business Economics B.A. (conferred by the Economics Department, College of Social Sciences) is touted by the school (and largely considered by students) as a practical degree to pursue for someone looking to get into a business job function out of undergrad. It is a bit more challenging to obtain than the standard Economics degree, with minimum prerequisite grade requirements and additional course requirements. I believe there is an application process as well to get into this specific major at UCLA, as compared to the traditional Economics degree, which is also a B.A.

1. As other have mentioned, business economics is the study of economics (macro economics [interest rates, inflation, GDP, CPI], supply/demand, financial markets), with an added practical focus (e.g., courses in economics of entrepreneurship, micro economics applied to pricing & strategy). The nice thing about UCLA's Business Economics degree is that it gives students a solid economics foundation (taught by the Economics Department faculty), and couples that with courses from the separate business school (e.g. taxation, business law, and accounting). Many students choose to also get the accounting minor, which is just a few more courses than the major requires, and which satisfies the CPA education requirement.

In short, you can think of it as a specialized, more practical offering than a pure economics degree, for someone concerned about getting a solid corporate/office job out of UG.

However, if a student wants to become a professional economist (e.g., work for the Federal Reserve), that career path will likely be best served by graduate studies in economics. If the student chooses to go the Business Economics route, s/he would want to ensure that s/he not only meet the degree requirements, but also take any classes necessary (e.g. math, statistics, econometrics) to ensure that they can qualify for graduate studies in economics. And, if this is indeed their interest, a pure economics degree may work better. In my case (and I would guess most of my degree-mates' cases), we didn't want to become economists, so Business Economics is a great degree (I went on to get an MBA).

2. Employment outlook - This degree is a solid choice for someone who may not want to go into a hard science/engineering route, but who still wants a solid UG background that will be looked upon favorably by employers. If one doesn't intend on studies beyond UG, this degree may be (a bit) more practical than, say, a regular economics degree. This is especially because of the exposure to business / accounting / management classes...employers like that. In other words, in my opinion, for "real world" first jobs, it certainly looks good on paper.

Career path examples (no masters needed at all):
- Accountant/CPA
- Financial analyst (e.g at a Fortune 500 company)
- Management consulting
- Investment management
- Investment banking

I have classmates that went on to do the above & more. Personally, I took a job out of UG as a financial analyst at a F500 firm, pursued an MBA part-time, and now work in accounting for the government. As with many business career paths, a masters can help, but certainly isn't necessary.
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steve r
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Re: What is "Business Economics"?

Post by steve r »

I am an economics professor and textbook author. All of the above is essentially correct, but there is no absolutes.

For both majors, the main courses will be 2 principles classes (microeconomics, macroeconomics). 2 intermediate classes (intermediate micro, sometimes called managerial or price theory, and an intermediate macro class or a class in money, banking, financial markets from an economics stand point (as opposed to finance). (To be clear, those who teach these classes will note differences in the above classes.) Usually, but not always, a class in econometrics (advanced statistics with an economics twist).

Beyond that, other classes in the major might include (often as EC electives) a second intermediate level macro course, game theory, international economics, international finance (economics course, taught differently as a finance course), a second econometrics class, public policy, labor, etc.

Again, no absolutes but at small liberal arts schools, these tend to focus more on income inequality and social topics. You may be offered classes in political economy or understanding the economics Karl Marx (but not always) and other economic philosophers. In general these will be "economic" majors. At these schools you will have a host of liberal arts classes such as foreign language, humanities, etc.

At large schools majors can either economics or bus. econ. External requirement vary.

When the major is in a school/college of business (within the larger university), you will typically take a boat load of "core" business classes. Thus, at many such schools calling the major "business economics" makes sense. As mentioned above, at universities without a business school/college, similar business classes are taken (accounting, finance, management, marketing, etc.).

Lately, there is a third economics major with the word "analytics" in the title. That will typically require more statistics and computer languages/skills. These majors are hot right now with big data everywhere.

Students in rigorous "economics" programs from better schools can get into business if that is the path they choose. Their school's rigor, combined with the schools reputation helps with employment offers.

Again, no absolutes but students from lower and mid tier schools (or with OK GPAs) going into business may be best served with more business classes. That helps with employment offers. Having a class in finance, for example, helps get a job in finance (as an economics or business economics major).

Again, no absolutes but to be an analyst with an "economics" or "business economics" major will probably require using your electives to take more econometrics courses (and computer language and skills courses).

To get a job as a high level economist, say at the Federal Reserve, a Ph.D. is required. You can get into such programs with either of the above, but you will definitely need more calculus level math. And the more the better to get into the best Ph.D. programs. IMHO math skills are far more important than the economic course mix as an undergraduate.

So, with either, you can go either direction, but it will depend on the electives and extra classes you take. But I cannot stress this enough, there is no absolutes -- and you can create your own path with either.
"Owning the stock market over the long term is a winner's game. Attempting to beat the market is a loser's game. ..Don't look for the needle in the haystack. Just buy the haystack." Jack Bogle
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