Which of the following statements best describes the study of economics?
A) Economics studies how firms make profits.
B) Economics studies how to organise production so that scarcity does not occur.
C) Economics studies how businesses reach decisions.
D) Economics studies how we make choices in the face of scarcity.
E) Economics studies how to create incentives so that scarcity does not exist.

Question

Quizplus · Accepted Answer

Economics is the study of how individuals, businesses, and society make choices when faced with scarcity, which means there are limited resources but unlimited wants and needs. Economics looks at how individuals and businesses allocate their resources to achieve their objectives, and also analyzes the effects of the actions of governments and other institutions on markets and the economy as a whole.

Which of the Following Statements Best Describes the Study of Economics