Question:
A more complete short definition of economics would be that economics is the study of
(1) how employment opportunities in society could be created to make its citizens better off.
(2) how countries trade goods and services in a global market place.
(3) how goods and services are produced without damaging the environment.
(4) how unlimited resources are allocated among limited wants.
(5) how scarce resources are allocated to satisfy unlimited wants.
Correct Answer:
(5)
Answer Explanation:
The core of economic theory is solving the fundamental problem of scarcity. This involves making choices on how to allocate limited (scarce) resources to fulfill society’s infinite (unlimited) human wants.
Topic: Introduction Year: 2021
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