Answer the following questions in brief . Write about the functions of an economy
Answers
Write about the functions of an economy
No economy is free from economic problems. Even the richest nation of the world experiences alternating crises. Why? The answer is that the resources to satisfy growing needs of the people are limited in nature. In brief, the answer is ‘scarcity’. That is why an economy has to make a large number of choices. In fact, scarcity and choice go hand in hand.
No economy is free from economic problems. Even the richest nation of the world experiences alternating crises. Why? The answer is that the resources to satisfy growing needs of the people are limited in nature. In brief, the answer is ‘scarcity’. That is why an economy has to make a large number of choices. In fact, scarcity and choice go hand in hand.Scarcity and choice are at the heart of economic activity. One observes interaction between scarce resources and unlimited human wants. Scarcity arises when resources for producing goods and services that people desire are insufficient to meet all our wants. Scarcity is not to be confused with poverty.