Moderate

Economics is the study of ?

Correct answer: C. how society decides what how and for whom to produce

  • A. Production technology
  • B. Consumption decisions
  • C. how society decides what how and for whom to produce
  • D. the best way to run society

Explanation

Economics studies how scarce resources are allocated among unlimited wants, including what to produce, how to produce it, and for whom. The other options describe only parts of this broader allocation problem.

Last updated

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.

Practise Microeconomics

1,705 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Economics questions like this

Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

Related questions