Economics is a social science that involves the study of how individuals, firms, and societies
A) maximize happiness.
B) maximize incomes.
C) choose among alternatives to satisfy their unlimited wants.
D) develop their tastes and preferences.

Question

Quizplus · Accepted Answer

Economics is the study of how individuals, firms, and societies allocate scarce resources among competing alternatives to satisfy their unlimited wants. This involves making choices and decisions about what goods and services to produce, how to produce them, and for whom to produce them. Maximizing happiness or incomes are not necessarily the primary goals of economics, but rather are outcomes of economic decision-making. Developing tastes and preferences is also not the main focus of economics, but rather is a subject of psychology or sociology.

Economics Is a Social Science That Involves the Study of How