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Among competing issues, what is the most crucial concern of economics?

a. Issue of equality in the distribution of income and wealth among households.
b. Budget deficits in the domestic economy and trade deficits in the international economy.
c. Efficient use of limited productive resources to satisfy economic wants.
d. Degree of competition in stock and bond markets in the economy.

1 Answer

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Final answer:

The heart of economics is the efficient allocation of scarce resources to meet societal needs, as it deals with issues like ensuring well-being, economic equity, environmental health, and the impact of government policies.

Step-by-step explanation:

Efficient use of limited productive resources

The most crucial concern of economics is the efficient use of limited productive resources to satisfy economic wants. Economics is fundamentally about managing scarcity and making choices that allocate resources in a way that maximizes their benefit to society. This involves trade-offs that impact well-being, security, equity, and environmental health.

Economics plays a critical role in addressing societal issues by examining how production impacts environmental pollution and how investments in education can enhance skills. It also delves into the workings of big businesses and labor unions, and scrutinizes the effects of government spending, taxes, and regulations on production and consumption decisions. Therefore, understanding economics is key to grasping the major challenges the world faces, becoming a knowledgeable citizen, and thinking critically about global issues.

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