Which term refers to the study of how scarce resources are allocated?

Which term refers to the study of how scarce resources are allocated?

• A. Need
• B. Economics
• C. Economy
• D. Good

Answer: (B)

Scarcity and allocation are the core ideas here—the study of how limited resources are distributed to satisfy wants. Economics is the field that analyzes those decisions, including how prices, incentives, and markets guide what gets produced and who obtains it. Need describes a basic requirement, but it isn’t the field of study. An economy refers to the system of production and distribution in a society, not the study itself. A good is a tangible item or service. So economics is the term that specifically studies how scarce resources are allocated.

Scarcity and allocation are the core ideas here—the study of how limited resources are distributed to satisfy wants. Economics is the field that analyzes those decisions, including how prices, incentives, and markets guide what gets produced and who obtains it. Need describes a basic requirement, but it isn’t the field of study. An economy refers to the system of production and distribution in a society, not the study itself. A good is a tangible item or service. So economics is the term that specifically studies how scarce resources are allocated.