Which One of the Following Is the Most Accurate Definition

question 214

Multiple Choice

Which one of the following is the most accurate definition of economics?

• A) Economics is the study of stocks and bonds.
• B) Economics is the study of how people allocate unlimited resources.
• C) Economics is the study of how consumers choose to spend their income.
• D) Economics is the study of how society chooses to allocate scarce resources.

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Definitions:

Concentration Ratio

A measure used in economics to assess the extent of market control held by the top firms within an industry, indicating the degree of market competition.

Brand-Name Hotel

A hotel that is part of a famous or widely recognized chain, often distinguished by a well-known trademark or brand identity.

Concentration Ratio

An indicator that measures the total market share of the top firms in an industry, used to assess the level of market concentration.

Competitive

Describes a market situation where multiple sellers are vying for the same customer base, promoting innovation and price reduction.