Economics may be defined as ________

Step 1: Analyze the question The question asks for a definition of Economics. The best definition should capture the core economic problem: unlimited wants against limited (scarce) resources.

Step 2: Explain the concept The most widely accepted definition comes from Lionel Robbins (1932): "Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."

Key ideas:

• Scarcity: resources are limited, but human wants are unlimited.
• Choice: because of scarcity, people must choose.
• Opportunity cost: every choice means giving up the next best alternative.
• Allocation: deciding how scarce resources are used.

Step 3: Evaluate each option

• A. The study of human behaviour in the allocation of scarce resources: This matches Robbins' definition. It covers scarcity, choice and human behaviour. ✅
• B. The study of money and banking: This is only a branch (monetary economics), not the whole subject. ❌
• C. The study of markets and prices: This describes price theory/microeconomics, which is only part of Economics. ❌
• D. The study of production and distribution: This is part of what economics covers, but it leaves out scarcity and choice, the heart of the subject. ❌

Step 4: Answer The correct option is A.

Exam tip: In definition questions, pick the option that mentions scarcity, choice or limited resources. Options that describe only one area (money, markets, production) are usually too narrow. Remember: Economics = Scarcity + Choice.