Which of the following statements best describes economics?

• A. Economics is solely concerned with the study of money and banking.
• B. Economics only examines the behavior of businesses and ignores consumers.
• C. Economics is the study of natural sciences such as biology and chemistry.
• D. Economics is the study of how individuals and societies allocate scarce resources to satisfy unlimited wants.

Answer: (D)

Verified step by step guidance

1. Understand that economics is a social science focused on decision-making.
2. Recognize that economics studies how individuals and societies manage scarce resources.
3. Note that economics involves analyzing choices to satisfy unlimited wants and needs.
4. Eliminate options that incorrectly limit economics to money, banking, or natural sciences.
5. Conclude that the best description is economics as the study of allocation of scarce resources to satisfy unlimited wants.