What is economics primarily concerned with?

Economics is fundamentally about making choices in the face of scarcity. It examines how individuals, businesses, and societies decide to allocate limited resources that have various possible uses. Scarcity indicates that resources are not abundant enough to satisfy all human wants and needs, leading to the necessity of making trade-offs and prioritizing certain uses over others.

The correct answer highlights this core principle, emphasizing that economics investigates how resources can be utilized in different ways to best meet people's needs and desires. This includes not only the production and distribution of goods and services but also the efficient allocation of resources in various sectors of the economy.

In contrast, while the production of goods, distribution of wealth, and management of businesses are all important aspects of economic study, they are components of the broader theme of resource allocation and are influenced by the fundamental problem of scarcity. Therefore, they do not encapsulate the primary concern of economics as comprehensively as the correct choice does.