In general, economics is the study of:
A)the allocation of scarce wants to unlimited resources.
B)the allocation scarce resources to unlimited wants.
C)the allocation of resources between the government and the private sector.
D)the allocation of workers between firms.

Question

Quizplus · Accepted Answer

Economics is the study of how societies allocate scarce resources to unlimited wants. This means that choices have to be made about what to produce, how to produce it, and who gets to consume it. Economics is concerned with understanding these choices and the consequences of them for individuals, firms, and society as a whole. Option A is close, but it implies that resources are unlimited, which is not the case. Option C is too narrow, as economics is not just about the allocation of resources between government and the private sector, but also between different sectors of the economy. Option D is also too narrow, as economics also deals with the allocation of other factors of production like capital and land, not just workers. Economics is fundamentally concerned with the allocation of scarce resources, such as time, money, and natural resources, among competing unlimited wants, such as material possessions or leisure time. Therefore, choice B is the correct answer. Choice A is close, but it misstates the focus on resources being allocated to wants rather than wants being allocated to resources. Choices C and D are both incorrect, as economics does not exclusively deal with the allocation of resources between the government and private sector or the allocation of workers between firms, though it may touch on these topics in some contexts.

In General, Economics Is the Study Of