Question : The study of how individuals allocate their limited resources to satisfy unlimited wants is known as:
Option 1: Public economics
Option 2: Welfare economics
Option 3: Microeconomics
Option 4: Development economics
Correct Answer: Microeconomics
Solution : The correct answer is (c) Microeconomics.
Microeconomics examines the behavior and decision-making of individual economic units, such as consumers, households, and firms. It analyzes how these units allocate their scarce resources, such as time and money, to fulfill their unlimited wants and needs. Microeconomics explores topics such as supply and demand, market structures, consumer behavior, production costs, and the distribution of resources. By studying the choices and interactions of individuals, microeconomics provides insights into how resource allocation occurs in specific markets and how individual decision-making shapes market outcomes.
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