Economics is a science that:
A)typically uses controlled experiments to learn about consumer and firm behavior.
B)uses models that cannot be tested empirically due to the complex nature of the economy.
C)explores how choices are made between conflicting wants and desires in a world of scarcity.
D)relies entirely upon normative analysis.
E)primarily focuses on budgetary decisions made by political leaders.

Question

Quizplus · Accepted Answer

Economics is the science that studies how people choose to use their scarce resources in order to satisfy their needs and wants. It explores choices that must be made when resources are limited, and this concept is known as scarcity. Therefore, option C is the correct answer. Options A, B, D, and E are incorrect because economics does not typically use controlled experiments, it has models that can be tested empirically, it does not rely entirely on normative analysis, and it does not primarily focus on budgetary decisions made by political leaders.

Economics Is a Science That