Economics is the study of how society manages its:

• A. technological advancements
• B. legal systems
• C. political institutions
• D. scarce resources

Answer: (D)

Verified step by step guidance

1. Understand the fundamental definition of economics: Economics is primarily concerned with how society allocates its limited or scarce resources to satisfy unlimited wants and needs.
2. Recognize that while technological advancements, legal systems, and political institutions are important aspects of society, they are not the core focus of economics itself.
3. Focus on the concept of scarcity, which means that resources such as time, money, labor, and raw materials are limited in supply relative to the desires for them.
4. Recall that economics studies the decision-making processes individuals, firms, and governments use to manage these scarce resources efficiently.
5. Conclude that the correct answer is 'scarce resources' because economics is the study of how society manages these limited resources to meet various needs and wants.