Economics provides a theory to explain
A)how a successful business can be started.
B)how managers can cheat and get away with it.
C)how people make choices.
D)how businesses compete in the market.

Question

Quizplus · Accepted Answer

Economics provides theories and models that help explain how individuals and societies make decisions about production, consumption, and distribution of goods and services. This includes factors such as scarcity, supply and demand, trade-offs, incentives, and opportunity costs. While economics can be applied to business and competition in the market, its primary focus is on understanding human behavior and choices. Choice A is too narrow and specific, choice B is unethical and outside the scope of economics, and choice D is only one aspect of what economics explains.

Economics Provides a Theory to Explain