The fundamental goal of economics is to
A)allow everyone to have five yachts and two automobiles.
B)redistribute income and eliminate poverty.
C)reduce unemployment so that lower welfare payments are necessary.
D)learn to cope with the scarcity of virtually all resources.

Question

Quizplus · Accepted Answer

Economics is the study of how society manages its scarce resources. Scarcity means that we have unlimited wants and needs but limited resources to satisfy them. As a result, the fundamental goal of economics is to learn how to cope with this scarcity and efficiently allocate resources to maximize human welfare. Choices A and B are not realistic goals, and choice C is only a means to achieve the broader goal of efficiently allocating resources.

The Fundamental Goal of Economics Is to