Which of the following is the best reason for studying economics?

• A. To understand how individuals and societies allocate scarce resources
• B. To improve artistic skills
• C. To memorize historical dates
• D. To learn how to predict the weather

Answer: (A)

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 when faced with limited resources.
2. Step 2: Recognize that economics deals with the concept of scarcity, meaning resources are limited while human wants are unlimited.
3. Step 3: Identify that economics analyzes how these scarce resources are allocated efficiently to satisfy various needs and wants.
4. Step 4: Compare the given options and note that improving artistic skills, memorizing historical dates, or predicting the weather are not related to the fundamental purpose of economics.
5. Step 5: Conclude that the best reason for studying economics is to understand how individuals and societies allocate scarce resources.