Which description defines economics?

• A. The art of managing a personal budget
• B. The study of ancient trade routes
• C. The study of the production, distribution and consumption of goods and services
• D. The measurement of inflation and unemployment

Answer: (C)

Economics is the study of how societies allocate scarce resources to produce, distribute, and consume goods and services. This description fits best because it captures the full flow of economic activity: creating things (production), moving them to people (distribution), and using them to satisfy needs and wants (consumption). Together, these processes show how choices are made when resources are limited. The other descriptions miss the full scope: managing a personal budget is about individual finances, studying ancient trade routes is history, and measuring inflation and unemployment is just looking at economic indicators rather than defining what economics is about.