GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The study of wants and needs
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The study of managing our limited resources to meet our unlimited wants
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The study of managing our needs and wants with goods and services
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The study of satisfying our needs with unlimited resources
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Detailed explanation-1: -Economics is the study that establishes an effective relationship between unlimited wants and scarce resources so that all the unlimited wants are mostly satisfied by the use of scarce resources. At micro level it deals with individual variables like consumer or producer and how they influence the market.
Detailed explanation-2: -One of the defining features of economics is scarcity, which deals with how people satisfy unlimited wants and needs with limited resources. Scarcity affects the monetary value people place on goods and services and how governments and private firms decide to distribute resources.
Detailed explanation-3: -Economics is the study of how we make choices in the face of scarcity and how those choices motivate behavior.
Detailed explanation-4: -’Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources. The basic concern of an economy is to allocate the scarce resources to the best possible use in the face of unlimited wants. Thus, the problem of scarcity forces an economy to make a choice among various alternatives.
Detailed explanation-5: -When faced with limited resources, we have to make choices. Again, economics is the study of how humans make choices under conditions of scarcity. These decisions can be made by individuals, families, businesses, or societies. Let’s consider a few decisions that we make based on limited resources.