Which of the Following Statements Best Describes the Study of Economics

question 248

Multiple Choice

Which of the following statements best describes the study of economics? Economics studies how

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

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Definitions:

Interest Income

Income earned from deposit accounts, investments, or loans, often subject to taxation at ordinary income tax rates.

Global Bank

A financial institution that provides a wide range of banking services in multiple countries.

Basic Standard Deduction

represents the portion of income not subject to tax that can reduce the taxable income, set by the IRS, varying by filing status.

Dependent

An individual, typically a child or family member, who relies on another for financial support and qualifies for certain tax benefits.