Which of the following best describes the study of economics?
A)how to plan an economy
B)how to limit human wants so that scarce resources are sufficient
C)why resources are scarce
D)the allocation of scarce resources among alternative uses
E)how to distribute income as equally as possible

Question

Quizplus · Accepted Answer

Economics is primarily concerned with the allocation of scarce resources among alternative uses. This means that economics is concerned with studying how to distribute resources such as labor, capital, and land so that they can be used most efficiently to satisfy unlimited human wants. While understanding why resources are scarce is important, it is not the central focus of economics. Planning an economy and limiting human wants are also not the primary goals of economics. Similarly, while income distribution is an aspect of economics, it is not the only or primary concern of the field.

Which of the Following Best Describes the Study of Economics