Economics
A)studies human behavior when scarcity exists and choices must be made
B)provides the only reasonable explanation of how people make decisions
C)can accurately explain all human behavior since it is based on the assumption of rationality
D)is better at showing the way things ought to be than the other social sciences are
E)is the only social science that can explain the existence and behavior of public institutions

Question

Quizplus · Accepted Answer

Economics is the study of how humans make choices under conditions of scarcity. It is concerned with analyzing the allocation of scarce resources among competing uses. While it is true that economics can provide insight into human decision-making, it is not the only social science that does so. Additionally, the assumption of rationality is not always accurate in explaining human behavior. Finally, while economics can provide guidance on how things ought to be, it is not necessarily the best social science for doing so.