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What is the best definition of economics?

1) The study of business organization and activities
2) The study of money and finance
3) The study of supply and demand
4) The study of government policies and their impact on the economy

1 Answer

2 votes

Final answer:

Economics is best defined as a social science examining human decision-making when dealing with scarcity and the allocation of finite resources to meet unlimited demands.

Step-by-step explanation:

The best definition of economics is the study of how humans make decisions in the face of scarcity. Economics is a social science that involves understanding human behavior in allocating limited resources to satisfy unlimited wants. These resources include labor, tools, land, and raw materials, all of which are finite in supply. The study of economics considers individual, family, business, and societal decisions. Additionally, economics employs a scientific approach to analyze choices, making it not just a social study but also a rigorous discipline akin to other sciences.

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