Economics is the study of b) How society manages its scarce resources.

Economics is related to the study of scarcity. Scarcity is when the supply of outputs is less than the demand of the output. This occurs because the resources used to produce an output is limited while the demand for the output is limitless. Understanding scarcity can lead to many relationships. it helps us understand how resources are allocated to produce a certain number of outputs. It determines wealth distribution and how consumers and producers behaves on certain economic factors.