Question

Which of the following is the most complete definition of Economics?

a. The study of the forces that allocate a society's limited resources among competing needs.
b. The study of scarcity and how people deal with the problem of scarcity.
c. The study of how choices are made.
d. The study of institutions and policies.

Answer 1

Economics is the study of how humans make decisions in the face of scarcity and how we allocate limited resources to meet our unlimited wants.

Step-by-step explanation:

Economics is the study of how humans make decisions in the face of scarcity. These decisions can be individual, family, business, or societal decisions. Scarcity refers to the fact that human wants for goods, services, and resources exceed what is available. Therefore, economics focuses on how we allocate limited resources to meet our unlimited wants.