Which of the following best describes economics as a field of study?

• A. Economics is a social science that studies how individuals and societies allocate scarce resources.
• B. Economics is a branch of engineering focused on designing efficient machines.
• C. Economics is a form of literature that analyzes historical events.
• D. Economics is a natural science concerned with the laws of physics.

Answer: (A)

Verified step by step guidance

1. Understand that economics is fundamentally concerned with the allocation of scarce resources, which means how individuals and societies make choices when resources are limited.
2. Recognize that economics is classified as a social science because it studies human behavior, decision-making, and interactions within societies.
3. Eliminate options that describe economics as a branch of engineering, literature, or natural science, since these fields focus on different subjects such as machines, historical narratives, or physical laws respectively.
4. Focus on the definition that highlights economics as a social science studying the allocation of scarce resources, as this captures the essence of economic inquiry.
5. Conclude that the best description of economics is: 'Economics is a social science that studies how individuals and societies allocate scarce resources.'