Which of the following is one primary purpose of studying economics?

• A. To memorize historical events unrelated to production or consumption
• B. To understand how scarce resources are allocated among competing uses
• C. To learn how to maximize personal happiness regardless of resource constraints
• D. To avoid making any choices in daily life

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the fundamental problem economics addresses, which is scarcity—limited resources versus unlimited wants.
2. Step 2: Recognize that economics studies how individuals and societies make choices to allocate these scarce resources efficiently.
3. Step 3: Identify that the primary purpose of studying economics is to understand the allocation of scarce resources among competing uses, not to memorize unrelated historical events or avoid making choices.
4. Step 4: Note that maximizing personal happiness without considering resource constraints is not the focus of economics, since economics always considers trade-offs due to scarcity.
5. Step 5: Conclude that the correct purpose is to understand how scarce resources are allocated among competing uses, which helps explain decision-making in production, consumption, and distribution.