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Which of the following examples was used by the authors to explain economics?

a) a light that guides you out of a dark room, illuminating the world around you
b) a Swiss army knife that provides you with a variety of tools to solve problems
c) a traffic signal used to coordinate activity between many people, without which there would be chaos
d) a rigid way of thinking that can be used to solve some specific problems

User Ijaz Ahmad
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Answer: A.

a light that guides you out of a dark room, illuminating the world around you

Explanation: Economics is the study of mankind in the ordinary business of life. - Alfred Marshall.

Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses. - Lionel Robbins. Economics comes in whenever more of one thing means less of another.

At the most basic level, economics attempts to explain how and why we make the purchasing choices we do. Four key economic concepts–scarcity, supply and demand, costs and benefits, and incentives–can help explain many decisions that humans make.

User Alhpa Delta
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