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Economics is best defined as the study of A

Business Dec 10, 2020

Economics is best defined as the study of

A. how society manages its scarce resources.

B. how to run a business most profitably.

C. how to predict inflation, unemployment, and stock prices.

D. how the government can stop the harm from unchecked self-interest.

Expert Solution

Choice 'A' how society manages its scarce resources is the correct answer

The primary purpose of society's economy is to ensure that resources are equally distributed. Resources are things that facilitate the proper performance of business activities. Besides, assets, stock, and money are examples of resources that facilitate market operations today. Moreover, resources such as money supply are adequate to businesses because it increases the development operations that will help it achieve targeted goals. Assets are valuable structures that attract more value and profits in an economy. Profits earned from business and government assets are used to finance development activities within a state's economy. Therefore, when a country manages its resources appropriately by ensuring that available resources are equally distributed, its economy will likely thrive and become dominant in the global market.

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