Which of the following is a reason for studying economics?

• A. To learn how to predict weather patterns
• B. To understand how scarce resources are allocated
• C. To improve decision-making in business and government
• D. To analyze how individuals and societies make choices

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the fundamental purpose of economics, which is the study of how scarce resources are allocated among competing uses.
2. Step 2: Recognize that economics helps analyze the decision-making processes of individuals, businesses, and governments when faced with limited resources.
3. Step 3: Identify that economics provides tools to improve decision-making by evaluating costs, benefits, and trade-offs in various scenarios.
4. Step 4: Note that economics is not concerned with predicting natural phenomena like weather patterns, but rather with human behavior and resource allocation.
5. Step 5: Conclude that studying economics is essential to understand how individuals and societies make choices, allocate scarce resources, and improve decision-making in business and government.