Which of the following statements explains what the subject of Economics covers?
[1] It studies how to increase income for households.
[2] It studies how to reduce the total production of the economy.
[3] It studies how people use limited resources to gain the greatest possible satisfaction
of their unlimited wants.
[4] It studies how to control the behaviour of households, firms and government.
Economics is a social science that assesses the relationship between the consumption and production of goods and services in an environment of finite resources and infinite wants.
So, the correct answer is [3].
Comments
Leave a comment