Which of the following statements is FALSE?
A) Scarcity is the basic reason for studying economics.
B) Scarcity forces people to make decisions about how to best satisfy their material wants and needs.
C) The study of economics is simplified because value judgments have no effect on the choices people make because of scarcity.
D) People must make tradeoffs, or give up one thing to get something else, because of scarcity.

Question

Quizplus · Accepted Answer

The statement C is false because the study of economics is not simplified by the absence of value judgments; in fact, value judgments often significantly influence the choices people make, especially in the context of scarcity. Economics involves understanding how people make decisions based on their values and the trade-offs they are willing to make.

Which of the Following Statements Is FALSE