what does the term 'economic problem' means?
Answers
Answer:
An economic problem refers to any such problem in the economy that is concerned with the production of goods and services to satisfy the unlimited wants of the economy through the utilization of scarce resources.
Explanation:
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Answer:
An economic problem is basically the problem of choice in the use of scarce resources for satisfaction of unlimited human wants. It has to pick within its limited resources, what it needs to produce that gives maximum satisfaction to its people. The economic problem arises because. Human wants are unlimited.
Scarcity refers to a basic economic problem—the gap between limited resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.