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Which branch of Economics studies the behaviour of individual units such as consumers and firms in allocating their scarce resources?
AWelfare Economics
BMacro Economics
CMicro Economics
DPublic Economics
Answer & Solution
Correct answer: C. Micro Economics
1. The question targets the study of individual decision units.
2. Micro Economics examines how individual consumers and firms allocate scarce resources.
3. Macro Economics, by contrast, studies the economy as a whole, so it is ruled out.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 1 Unit I "Nature and Scope of Business Economics", p.4_
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