Question

Economics is best defined as the study of_______.
A. financial markets and making money.
B. how people allocate limited resources to satisfy unlimited wants.
C. how to budget personal income.
D. how the government runs the financial system.

Answer 1

Answer:

B. how people allocate limited resources to satisfy unlimited wants.

Explanation:

Lord Robbins in 1932 defined economics as the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.

Economics studies how people allocate limited resources to satisfy unlimited wants.