What does economics study?

Economics primarily focuses on the production, distribution, and consumption of goods and services. This encompasses how societies allocate their scarce resources to meet the diverse needs and wants of individuals and groups. By analyzing these aspects, economics helps us understand how markets function, how prices are determined, and how resources are managed in both microeconomic contexts (individuals and businesses) and macroeconomic contexts (entire economies).

Studying the production side involves looking at how goods and services are created, including the resources required and the processes employed. Distribution examines how these goods and services are distributed to consumers and the various factors influencing this process, while consumption looks at how individuals or businesses utilize these goods and services.

This foundation allows economists to develop models and theories that can predict the outcomes of various economic activities and policies, making option B the most accurate representation of what economics studies.