Which of the Following Statements Best Describes the Study of Economics

question 105

Multiple Choice

Which of the following statements best describes the study of economics?

• A) Economics studies how firms make profits.
• B) Economics studies how to organise production so that scarcity does not occur.
• C) Economics studies how businesses reach decisions.
• D) Economics studies how we make choices in the face of scarcity.
• E) Economics studies how to create incentives so that scarcity does not exist.

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Definitions:

Point-To-Point Service

A transportation or telecommunications service that directly connects two locations without any stops or transfers.

Variable Operating Costs

Expenses that fluctuate with the level of output or business activity.

Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Intermodal Service

A transportation service that combines multiple modes of transport, such as rail, ship, and truck, to move goods efficiently from origin to destination.