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Business economics is micro economics in character, this is so because :

  • A.It studies that problems of an individual business unit
  • B.It is related to resources
  • C.It studies the market
  • D.It influences on national income

Answer: A

Business economics is micro in character because it studies the problems of an individual business unit.

Microeconomics studies individual economic units, a consumer, a firm or an industry. Business economics applies economic theory to the decisions of a single firm, such as demand forecasting, pricing, cost and production decisions, so it is microeconomic in nature.

Studying national income is macroeconomics, and 'related to resources' or 'studies the market' do not explain why the subject is micro.

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