Economics concerns the allocation of resources for which of the following processes?

• A. The creation of natural resources
• B. Production, distribution, and consumption of goods and services
• C. Only the consumption of services
• D. Only the production of goods

Answer: (B)

Verified step by step guidance

1. Understand that economics is the study of how scarce resources are allocated to satisfy human wants and needs.
2. Recognize that this allocation involves multiple stages: producing goods and services, distributing them to consumers, and finally consuming them.
3. Note that the creation of natural resources is generally considered part of natural sciences or environmental studies, not economics.
4. Identify that focusing only on production or only on consumption misses the full scope of economic activity, which includes both plus distribution.
5. Conclude that economics concerns the allocation of resources for the entire process of production, distribution, and consumption of goods and services.