Differences between commerce and economics

The relationship between commerce and economics

1. Economics is concerned with how man can satisfy his unlimited wants with the limited resources. Since the wants are unlimited, choice must be exercised and should be based on the most immediate necessities of man.
2. Commerce is a branch of production which deals with exchange of goods and services and all activities that facilitate the transfer of goods from producers to the final consumers.
3. Commerce therefore facilitates satisfaction of ends (wants). Commerce is also known as business economics that is a part of economic activity which is mainly concerned with exchange and all activities which facilitate exchange.
4. Since resources are scarce business/persons who are engaged in trade and aids to trade, must make economic decisions involving choices of what goods to be exchanged in order to maximize profit.
5. Like economics, commerce is faced with the main economic problem of choosing few alternatives as a result of scarcity of resources and unlimited wants of consumers.
6. Economics is concerned with the problem arising from the production and distribution of goods and services.
7. Both the study of commerce and economics are interested in the distribution of goods.

Distinction between commerce and economics

1. Economics is concerned with all activities involving production, distribution exchange and consumption while Commerce is concerned with one section of economic activity that is exchange and distribution.
2. Economics is very wide which comprises of all activities of economy while Commerce deals with commercial occupation only.