ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The study of how society uses its inputs.
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The study of individual decisions through free market price adjustments.
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The study of the way economies go about gathering information and setting up systems to make decisions.
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The study of how society uses its outputs.
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Detailed explanation-1: -Economics is the study of scarcity and its implications for the use of resources, production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society.
Detailed explanation-2: -Economic decisions involve production, distribution, exchange, consumption, saving, and investment of economic resources. Private and Public Goals. Economic decisions are made to serve the goals of individuals and private organizations (private goals) and society as a whole (public goals).
Detailed explanation-3: -In reality, economics is vitally important subject because it is the study of making choices. More specifically, it is the study and practice of making choices in a world of limited resources (scarcity). You cannot go for a day without making economic decisions.
Detailed explanation-4: -These are – production, consumption, and distribution of goods and services. Ans. Adam Smith defined economics as the “science of wealth.” The definition implies that the economy is determined by the wealth generated when people produce valuable commodities that are consumed. Ans.