Economics may best be defined as:
A)the interaction between macro and micro considerations.
B)the study of the behaviour of people and institutions in the production, distribution, and consumption of scarce goods.
C)the empirical testing of value judgments through the use of induction and deduction.
D)the use of policy to refute facts and hypotheses.

Question

Quizplus · Accepted Answer

Economics is the social science that studies how individuals, businesses, governments, and societies make choices about the production, distribution, and consumption of goods and services. It concerns itself with the behavior of people and institutions in the allocation of resources that are limited or scarce. Economics is not concerned with making policy decisions but rather the analysis and interpretation of economic data and theories. Option A is incorrect because macro and micro considerations are not the definition of economics but rather separate areas of study within economics. Option C is incorrect because while induction and deduction are tools used in economic analysis, it is not the definition of economics itself. Option D is incorrect because economics is not used to refute facts and hypotheses but rather to analyze and interpret economic data and theories.

Economics May Best Be Defined As