Which of following statements about economics is the most accurate?
A) It explores how choices are made between conflicting wants and desires in a world of scarcity.
B) It relies entirely upon normative analysis.
C) It typically uses controlled experiments to learn about consumer and firm behaviour.
D) It uses models that cannot be tested empirically due to the complex nature of the economy.

Question

Quizplus · Accepted Answer

Economics is the social science that studies how individuals, businesses, governments, and societies allocate scarce resources. Since resources are scarce, people must decide how to allocate them among competing wants and desires. Therefore, the statement (A) is the most accurate.

Which of Following Statements About Economics Is the Most Accurate