The study of economics is primarily concerned with:
keeping private businesses from losing money.
demonstrating that capitalistic economies are superior to socialstic econemes.
choices which are made in seeking to use scarce resources eftcently.
determining the most equitable distribution of societys output.
The Correct Answer and Explanation is:
The correct answer is:
C. choices which are made in seeking to use scarce resources efficiently.
Explanation (300 words):
Economics is fundamentally the study of how individuals, businesses, governments, and societies make choices to allocate scarce resources in a way that maximizes utility and efficiency. Scarcity means that resources (such as time, money, labor, and raw materials) are limited, while human wants are virtually unlimited. As a result, economics seeks to answer three essential questions: what to produce, how to produce, and for whom to produce.
These decisions involve trade-offs, because choosing one option typically means giving up another. For instance, if a government allocates more budget to healthcare, it may have to reduce funding in other areas such as education or infrastructure. Economics analyzes these decisions to determine the most efficient and effective use of resources, aiming to maximize benefits while minimizing waste.
The correct answer, C, reflects this core idea of economics—making choices under conditions of scarcity. Whether at the level of a consumer deciding what to buy, a business choosing how much to produce, or a government planning the national budget, economics helps in evaluating the trade-offs and opportunity costs associated with each choice.
The other answer options are incorrect because they misunderstand the scope of economics:
- A: While businesses are part of economic systems, economics is not primarily about keeping them from losing money.
- B: Economics is a neutral science that can study both capitalist and socialist systems; it does not aim to prove one superior to the other.
- D: Although distribution is a topic within economics, the study is not primarily about equity but about efficiency and decision-making.
In conclusion, the study of economics is centrally about understanding and improving the way scarce resources are allocated through the choices made by individuals and institutions.
