Economics is a social science that studies how individuals, institutions, and society allocate scarce resources to satisfy unlimited wants and needs. This means making decisions on how to best use limited resources like money, time, and natural resources to meet the endless desires and needs of people.
Here's a breakdown of the options:
1. Allocate scarce resources to satisfy unlimited wants and needs:
- This is the correct definition of economics. It focuses on the efficient allocation of resources to fulfill the never-ending human desires within the constraints of scarcity.
2. Reduce the amount of goods and services they need:
- This statement does not align with the purpose of economics. Economics is more concerned with how resources are managed and distributed to meet wants and needs, rather than reducing the quantity of goods and services needed.
3. Get rich or die trying:
- This statement is not an accurate representation of economics. Economics is about understanding how resources are utilized in society, not solely focused on individuals trying to become wealthy at any cost.
4. None of these is how we have defined economics:
- This option is incorrect because the correct definition of economics is about the allocation of scarce resources to fulfill unlimited wants and needs.
In conclusion, economics is primarily concerned with the allocation of scarce resources to meet unlimited wants and needs, making option 1 the most accurate choice.
