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practice testMultiple Choice

Practice Test

Question 1 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

What is one purpose of studying economics?

Answer
A
to find reasons why some resources become scarce
B
to examine principles that influence the production of goods and services
C
to determine the principles that explain why consumers buy services
D
to understand the reasons why people purchase certain goods

Explanation

Economics studies how people and societies make choices about producing and using goods and services, especially when resources are limited. Examining principles that influence the production of goods and services is therefore a broad purpose of studying economics. Choices A and C focus only on consumer purchases, while B focuses only on scarcity.

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