Economics is best defined as the study of
A) financial decision-making.
B) how consumers make purchasing decisions.
C) the choices made by people faced with scarcity.
D) inflation, unemployment, and economic growth.

Question

Quizplus · Accepted Answer

Economics is the study of how individuals, businesses, governments, and societies make choices when faced with limited resources. This concept is known as scarcity, and it is the fundamental problem of economics. Therefore, option C is the most comprehensive definition of economics from the given choices. Options A and B are too narrow in focus, as they only consider certain aspects of financial decision-making and consumer behavior. Option D is a subset of economics, as it pertains to specific macroeconomic variables, but it does not encompass the entire field of economics.

Economics Is Best Defined as the Study of