Which of the following is a reason to study economics?

• A. To memorize historical dates
• B. To learn how to perform chemical experiments
• C. To understand how scarce resources are allocated
• D. To study the structure of living organisms

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the core focus of economics, which is the study of how individuals and societies make choices about allocating scarce resources to satisfy unlimited wants.
2. Step 2: Recognize that economics is not concerned with memorizing historical dates, performing chemical experiments, or studying biological structures, as these belong to other disciplines.
3. Step 3: Identify that the key reason to study economics is to understand the allocation of scarce resources, which involves analyzing trade-offs, opportunity costs, and decision-making processes.
4. Step 4: Recall that scarcity means resources are limited, so economics helps explain how these limited resources are distributed efficiently among competing uses.
5. Step 5: Conclude that the correct reason to study economics is to understand how scarce resources are allocated, which is fundamental to economic theory and practical decision-making.