Which of the Following Statements Provides the Best Definition of Economics

question 87

Multiple Choice

Which of the following statements provides the best definition of economics?

• A)The study of the most equitable distribution of scarce resources.
• B)The study of the use of scarce resources to satisfy unlimited human wants.
• C)The study of the production of goods and services.
• D)The study of the productive capacity of a nation's factors of production.
• E)The study of production and increasing its efficiency.

---

Definitions:

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as output quantity changes, typically downward sloping for firms in competitive markets.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing a firm's net gain.

Marginal Cost

The cost increase associated with the production of an extra unit of a product or service.

Market Price

The present cost at which a product or service is available for purchase or sale in the market.