The study of how society manages its scarce resources is known as what?

• A. Economics
• B. Politics
• C. Sociology
• D. Accounting

Answer: (A)

The main idea being tested is how society allocates limited resources to satisfy its people’s wants. Economics studies this allocation by looking at the choices individuals, firms, and governments make, how markets use prices to coordinate those choices, and how resources like labor, capital, and land are distributed to produce goods and services. It also explores efficiency, trade-offs, and how policy can influence outcomes. The other fields focus on different areas: politics deals with power and governance, sociology examines social behavior and institutions, and accounting tracks financial information. Because the question centers on allocating scarce resources and understanding how those decisions are made, economics is the best fit.