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What is business economics and why study at Intergrated Business Faculty

To understand what is business economics and why to study business economics, we will first try to clarify four fundamental terms of economic science:

• scarcity,
• resources
• use of alternative resources and
• economic compromise

What is scarcity?
Scarcity simply means that people want more than what is available, or when something is rare and not in sufficient quantities to fully satisfy one's desire or need.
We want more than we have at the moment. Consumers want more clothes, comfortable homes and better cars, but their national budgets can not withstand it. Businessmen (the companies) want to spend more on ads and introduce modern production machinery, but their budgets do not allow it. The same applies to the state which usually wants to spend more than it collected through taxes. So, we all want to buy more than we have available money. Therefore, with the money that we have, we need to decide what to buy. Hence, we can say that business economics, similar to the general economy, is a science of choice. Its aim is to meet the highest level of customer satisfaction, and the highest level of firm’s profitability.

What are resources?
Resources are factors of production (means of production) which firms use to produce goods and services. Resources are: land, labor force including skills and abilities of workers, machinery, buildings, raw materials, money etc.).

What is alternative use?
Not only scarcity, but also alternative use is also in the centre of the business economics. If each resources had only one use than things would be simple. However, water for example, can be used for production of juices as well as ice-cream, and many other products. The same holds true for other resources: human resources, forests, oil, iron, etc. The main issue that each firm should ask is: What amount of resources should be allocated for each use? Every firm does that in this way or another, successfully or unsuccessfully. To do that successfully is the objective of the business economics.

Why study business economics at the Integrated Business Faculty?
Because the study of individual scientific disciplines is integrated at IBF that is business economics, in addition to the study of certain subjects is taught through the simulation of complex economic reality, with multidimensional combination of various aspects of business. The uniqueness of this integrated approach is due to the fact that it is the only one applied in the country, thus enabling students, upon graduation, to fit into everyday business activities at the workplace. This is proven by:
- High rate of employment (80%) of our graduates,
- High grades for students’ knowledge and responsibility by companies where internship was conducted.