Because Resources Are Scarce Relative to Wants, the Study of Economics

question 232

Multiple Choice

Because resources are scarce relative to wants, the study of economics concerns

• A) how money is important to people.
• B) how individuals, businesses, and governments make choices.
• C) how money is used to buy what people want.
• D) None of the above are correct.

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Definitions:

Self-sufficient

The ability of an individual, household, or community to provide for all their essential needs without relying on external resources.

Specializes

Refers to the focus of a business, region, or economy on the production of a limited scope of goods or services to gain a greater degree of efficiency.

System of Exchange

A structured arrangement through which trade is conducted, often involving a medium of exchange such as money.

International Trade

The exchange of goods and services across international borders or territories, which involves the importation and exportation of goods.