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The decisions of the firm are made almost always within the broad framework of economic within which the firm operates, known as macro economic conditions. with regard to these conditions

Ø The economy in which the business operates is predominantly a free enterprise economy using the prices and markets

Ø The present day economy is the one undergoing rapid technological and economic changes

Ø The intervention of government in economic affairs has increased in recent times and there is no likelihood that this intervention will stop in future.

The above facts set the limit within which the modern business management must operate. It can ignore neither the working of the market, not the pace of economic change, nor the activities of government in the economic sphere. Since it has to work within the economic system with generally the above features present, the management which keeps itself well and continuously informed of changes in the economic system is called progressive management

¨ Econometrics

¨ Economic base analysis

¨ Economic equilibrium

¨ Elasticity (economics)

¨ Macroeconomics

¨ Managerial economics

¨ Marginal cost

¨ Market economy

¨ Microeconomics

¨ Moral hazard

¨ Minimum wage

¨ Market structure

¨ Market anomaly

¨ Modern portfolio theory

¨ Monopoly

¨ Monopoly profit

¨ Monophony

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