Which of the following examples was used by the authors to explain economics?

• A. The process of photosynthesis in plants
• B. The structure of the human genome
• C. The formation of igneous rocks
• D. How individuals decide to allocate their limited income among various goods and services

Answer: (D)

Verified step by step guidance

1. Understand that economics is primarily concerned with how individuals and societies allocate scarce resources to satisfy unlimited wants.
2. Recognize that the examples given (photosynthesis, human genome, igneous rocks) relate to natural sciences and do not involve decision-making about resource allocation.
3. Focus on the example that involves decision-making about limited income and choices among goods and services, as this directly relates to economic behavior.
4. Recall the fundamental economic problem: scarcity and choice, which explains why individuals must decide how to allocate their limited income.
5. Conclude that the example illustrating how individuals decide to allocate their limited income among various goods and services best explains economics.