Fundamentally, economics deals with which of the following?

• A. The study of weather patterns and their effects on agriculture
• B. The allocation of scarce resources to satisfy unlimited wants
• C. The development of new technologies for industrial production
• D. The management of government budgets and public policies

Answer: (B)

Verified step by step guidance

1. Understand the fundamental definition of economics: Economics is primarily concerned with how individuals and societies allocate scarce resources to satisfy their unlimited wants and needs.
2. Recognize that economics is not focused on specific fields like weather patterns, technology development, or government budgeting, although these areas can be related to economic analysis.
3. Identify the key terms in the problem: 'scarce resources' and 'unlimited wants' are central concepts in economics, highlighting the problem of scarcity and choice.
4. Recall that economics studies decision-making processes regarding resource allocation, production, distribution, and consumption to optimize satisfaction and efficiency.
5. Conclude that the correct fundamental focus of economics is 'The allocation of scarce resources to satisfy unlimited wants,' as it captures the essence of economic study.