Which of the following statements about the discipline of economics is NOT true?

• A. Economics studies how individuals and societies allocate scarce resources.
• B. Economics involves examining choices made under conditions of scarcity.
• C. Economics only focuses on the production of goods and ignores services.
• D. Economics analyzes both microeconomic and macroeconomic phenomena.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the core definition of economics. Economics is the study of how individuals and societies allocate scarce resources to satisfy unlimited wants. This includes both goods and services.
2. Step 2: Recognize that economics involves examining choices made under conditions of scarcity, meaning resources are limited and decisions must be made about their best use.
3. Step 3: Note that economics does not only focus on the production of goods; it also includes the production and consumption of services. Therefore, any statement claiming economics ignores services is incorrect.
4. Step 4: Understand that economics is divided into two main branches: microeconomics, which studies individual and firm behavior, and macroeconomics, which looks at the economy as a whole.
5. Step 5: Conclude that the statement 'Economics only focuses on the production of goods and ignores services' is NOT true because economics studies both goods and services.