Which of the following is correct? a) The word economy comes from the Greek word for "rational thinker

Business Dec 10, 2020

Which of the following is correct?

a) The word economy comes from the Greek word for "rational thinker."

b) Economists study the management of scarce resources.

c) Because economists believe that people pursue their best interests, they are not interested in how people interact.

d) All of the above are correct.

Expert Solution

Answer: B

The point of an economy to allocate scarce resources and that is what economists are studying. Economists do believe that people peruse their best interest but they do care how people interact since it affects markets outcomes through supply/demand. The word economy comes from the Greek word "household management" too and thus only B is correct.

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