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The study of economics arises due to A
The study of economics arises due to
A. money.
B. scarcity
C. greed.
D. resources.
Expert Solution
The correct answer is B: Scarcity.
Scarcity refers to a situation where the supply of a resource is less than the demand. In economics, scarcity exists due to unlimited human wants and limited resources. Thus, because of scarcity, human beings are forced to choose since they cannot meet all their needs. Therefore, lack of enough resources has led to the rise of the study of economics. Finance is the field of study that educates people on how to make money. The reason why finance came into being is because of money. Economics study did not grow because of money, but understanding economic concepts can help one to make better financial decisions.
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