Which of the following is the best definition of economics?
A)the study of how a provincial government allocates tax dollars
B)the study of how consumers spend their income
C)the study of how producers decide what inputs to hire and what outputs to produce
D)the study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices
E)the study of how consumers and producers meet each other at the market

Question

Quizplus · Accepted Answer

Economics is the study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices. This definition encompasses all aspects of economic decision-making, including consumer behavior, producer behavior, government policy, and market interactions. The other options provide limited or narrow definitions of economics that exclude important components of the field.

Which of the Following Is the Best Definition of Economics