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)the application of sophisticated mathematical models to address social problems.
D)a normative science.
E)the study of how to reduce inflation and unemployment.

Question

Quizplus · Accepted Answer

Economics is the study of how to allocate scarce resources among unlimited human wants. It is not a normative science, which would prescribe how things should be done, but rather a positive science that describes how things actually work. It also includes the study of inflation and unemployment, but these are only two aspects of the broader subject matter of economics. And while some economists do use mathematical models to address social problems, this is not the only or even the primary method used in the field.

Economics Can Best Be Described as