Which of the expressions below best describes the aim of economic theory?
A) to predict how people think about money
B) to understand why money motivates some people more than others
C) to predict the choices people will make
D) to learn what we can do to prevent people from having unrealistic wants

Question

Quizplus · Accepted Answer

The aim of economic theory is to predict the choices people will make. Economic theories aim to understand how people make decisions when faced with scarcity and limited resources. By predicting these choices, economic theories can be used to guide policy decisions and improve economic outcomes. Option A is too narrow in scope, as economic theory is concerned with more than just how people think about money. Option B is also too specific, as economic theory seeks to understand human behavior in general, not just why some people are more motivated by money than others. Option D focuses on unrealistic wants, which is not necessarily the main focus of economic theory.

Which of the Expressions Below Best Describes the Aim of Economic