Question

how do economic problem arise?

Answer 1

The economic problem – sometimes called the basic or central economic problem – asserts that an economy's finite resources are insufficient to satisfy all human wants and needs. It assumes that human wants are unlimited, but the means to satisfy human wants are limited.

Answer 2

Human wants are unlimited but resources to satisfy them are limited and this gives rise to the problem of choice, such as what should be produced and how and for whom production should be done. The problem of choice is the economic problem.