Economics can best be described as
A)the study of how a society ought to allocate its resources.
B)the study of the use of scarce resources to satisfy unlimited human wants.
C)a normative science.
D)the application of sophisticated mathematical models to address social problems.
E)the study of how to reduce inflation and unemployment.

Question

Quizplus · Accepted Answer

Economics is concerned with the study of how individuals and societies allocate scarce resources among competing wants and needs. This involves understanding the production, distribution, and consumption of goods and services. The central problem of economics is scarcity, meaning that resources (such as land, labor, and capital) are limited in relation to the unlimited wants and needs of individuals and society as a whole. Therefore, economics is about making choices and trade-offs to maximize the benefits from the limited resources available.

Economics Can Best Be Described as