The study of economics is best described as a study of
A) the factors that influence the stock and bond markets.
B) capitalism.
C) the choices made in producing goods and services.
D) coping with scarcity, and choices made as a result of scarcity in a society.
E) how people earn a living.

Question

Quizplus · Accepted Answer

Economics deals with the allocation of scarce resources to satisfy unlimited wants. The study of economics is essentially the study of how to cope with scarcity and the resultant choices that individuals, firms, and societies make to satisfy their needs and wants. Choices made in the production of goods and services are a key aspect of economics, as is the allocation of resources to ensure efficient and effective production. Capitalism is a system that is often used to organize economic activity, but it is not synonymous with economics. The study of economics goes beyond the single issue of earning a living, and it includes a broad range of topics, including macroeconomics, microeconomics, finance, and international trade. Finally, while the stock and bond markets are important aspects of economic activity, they are only a small part of the overall field of economics.

The Study of Economics Is Best Described as a Study