explain causes of economic problem
Answers
Answer:
Explanation:
Scarcity
If we have scarcity in our economy then we can’t satisfy our needs and desires......
Answer:
The Basic Problem - Scarcity. Scarcity, or limited resources, is one of the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants
BASIC PROBLEMS which arise from the central problem of scarcity of resources are: What to produce? How to produce? For whom to produce?
Explanation:
The Problem of Allocation of Resources: ADVERTISEMENTS: The first and foremost basic problem confronting an economy is “What to produce” so as to satisfy the wants of the people. ... But because resources are in fact scarce relative to human wants, an economy must choose among various goods and services.
Basic economic problems refer to the everyday problem people encounter while making their choice in trying to satisfy their numerous wants with the limited resources available for them. These major economic problems are what to produce, how to produce, for whom to produce and the efficiency of the resources used.
Therefore, scarcity of resources gives rise to the fundamental economic problem of choice. As a society cannot produce enough goods and services to satisfy all the wants of its people, it has to make choices. ... Choices or alternatives (or opportunity cost) are illustrated in terms of a production possibility curve.