Moderate

Economics deals with_______________?

Correct answer: D. all of the above

  • A. production of goods and services
  • B. consumption of goods and services
  • C. distribution of goods and services
  • D. all of the above

Explanation

Economics examines how scarce resources are used in production, how goods and services are distributed, and how they are consumed. Therefore all three activities fall within its scope.

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About Microeconomics

Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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