Which of the following is a reason to study economics?

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

Answer: (C)

Verified step by step guidance

1. Identify the core focus of economics, which is the study of how individuals and societies make choices when faced with limited resources.
2. Understand that economics deals with scarcity, meaning resources are limited while human wants are unlimited.
3. Recognize that economics analyzes how these scarce resources are allocated efficiently to satisfy various needs and wants.
4. Compare the options given and note that memorizing historical dates, studying living organisms, or performing chemical experiments are not related to the allocation of scarce resources.
5. Conclude that the correct reason to study economics is to understand how scarce resources are allocated.