Economics can best be described as the study of:
A) how to increase the level of productive resources so there is maximum output in society.
B) how to use productive resources to maximize income level.
C) how people,institutions,and society make choices under conditions of scarcity.
D) how business structures influence the allocation of income among firms.

Question

Quizplus · Accepted Answer

Economics is the study of how people, institutions, and society make choices under conditions of scarcity. It analyzes how individuals and organizations allocate resources, make decisions, and interact with one another in markets. Economics also examines the role of government and public policy in enhancing or impeding economic performance. While A and B focus on maximizing output and income, respectively, these are important concepts within the study of economics, but they do not capture the breadth and depth of the field. Option D is too narrow in focus because it only considers the influence of business structures on income allocation, whereas economics addresses a wide range of topics besides just the business structures.

Economics Can Best Be Described as the Study Of