Which of the Following Is the Best Definition of Economics

question 178

Multiple Choice

Which of the following is the best definition of economics?

• A) Economics is the study of how to manage corporations to generate the greatest return on shareholder investment.
• B) Economics is the study of how to manage city and country government to generate the greatest good to its citizens.
• C) Economics is the study of how society chooses to allocate its scarce resources.
• D) Economics is the study of how to track revenues and costs within a business.

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Definitions:

Perfectly Elastic

This describes a situation where a small change in price leads to an infinite change in the quantity demanded or supplied.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly in response to a change in price.

Total Revenue

The total amount of money a firm receives by selling goods or services.