Final answer:
Economics is the study of choices made by individuals and societies in response to the scarcity of resources. It entails determining how to allocate limited labor, capital, land, raw materials, and time to satisfy various wants and needs. the correct option is (c).
Step-by-step explanation:
Economics is fundamentally the study of choices. In the context of multiple options, economics examines how decisions are made when resources are limited. This concept revolves around the principle of scarcity, which acknowledges that the desires for goods, services, and various resources surpass the quantities that are accessible.
Choices have to be made because resources such as labor, capital, land, and raw materials are not unlimited, and yet these are the very inputs needed for creating the goods and services that humans value. Additionally, time is a scarce resource. Whether rich or poor, each person has only 24 hours in a day to allocate towards work, leisure, or rest. The act of choosing one thing inherently means forgoing another, leading to what is known as opportunity cost.
In summary, while economics can explore a vast array of human activities including job creation, healthcare, and education, it is essentially about how individuals and societies allocate their scarce resources to satisfy their most pressing needs and desires.