Economics is the study of how individuals and societies allocate:

• A. unlimited resources to satisfy limited wants
• B. unlimited resources to satisfy unlimited wants
• C. scarce resources to satisfy unlimited wants
• D. scarce resources to satisfy limited wants

Answer: (C)

Verified step by step guidance

1. Understand the basic economic problem: Economics studies how to allocate scarce resources because resources are limited, but human wants are unlimited.
2. Identify the key terms: 'scarce resources' means resources are limited in supply, and 'unlimited wants' means people always desire more goods and services than can be produced.
3. Recognize that economics is not about unlimited resources, since resources like time, money, labor, and raw materials are finite.
4. Focus on the correct phrase that captures this fundamental concept: 'scarce resources to satisfy unlimited wants'.
5. Conclude that the correct answer must reflect the scarcity of resources and the unlimited nature of wants, which is the core of economic study.