Which of the following is the best definition of economics?
A) how to get rich by playing the stock market
B) how to reduce people's wants, given the scarcity of resources
C) how rational government officials determine what goods should be produced
D) how people use limited resources to try to satisfy unlimited wants

Question

Which of the following is the best definition of economics?  
A) how to get rich by playing the stock market 
B) how to reduce people's wants, given the scarcity of resources 
C) how rational government officials determine what goods should be produced 
D) how people use limited resources to try to satisfy unlimited wants

Quizplus · Accepted Answer

Economics is the study of how individuals, businesses, governments, and societies use limited resources to try to satisfy unlimited wants. This definition encompasses the main focus of economics which is the allocation of resources in order to maximize efficiency and meet the needs of individuals and society as a whole. Option A is incorrect because economics is not solely concerned with how to get rich through playing the stock market. Option B is incorrect because reducing people's wants is not the main focus of economics, rather it is the allocation of scarce resources. Option C is incorrect because economics is not only concerned with government officials and what goods should be produced, but also with how individuals and businesses make economic decisions to allocate resources.

Which of the Following Is the Best Definition of Economics