Business Economics (MGS 1102) has been developed to meet the scope and sequence of a preliminary economics course. This is a compulsory unit for the 100 level of the Bachelor of Business Administration (BBA) degree programme offers by the Faculty of Management, University of Peradeniya. This aspect of unit deals with fundamentals of economics that enables student to learn and rehearse both microeconomics - study of the economic behavior of individual units of an economy and macroeconomics - study of how the aggregate economy behaves as a whole in a collective sphere.