Final answer:
True. Economics is the study of how humans make decisions in the face of scarcity and allocate scarce resources to satisfy unlimited wants.
Step-by-step explanation:
True
Economics is the study of how humans make decisions in the face of scarcity. Scarcity means that human wants for goods, services, and resources exceed what is available. Resources such as labor, tools, land, and raw materials are limited, and even time is a finite resource. Therefore, economics focuses on how individuals, families, businesses, and societies allocate scarce resources to satisfy their unlimited wants.
For example, a business may have a limited budget and needs to determine how to allocate it among various expenses such as wages, marketing, and supplies. This decision involves making choices and trade-offs because the business cannot afford to spend money on everything it wants. Similarly, individuals and families may have to decide how to allocate their time and money between work, leisure, education, and other activities.