Question

What is economic problem and causes of economic problems...? Explain

Answer 1

The economic problem is sometimes called the basic or central economic problem..it assumes that human wants are unlimited, but the means to satisfy human wants are limited...
All soceity face the economic problem,which is the problem of how to make the best uses of limited or scare resource..

Answer 2

Answer →

↗ By economic problem , we mean problem of choice or the problem of economical use of scares resources ( or problem of economising the resources)

↗ Causes of economic problem -

Economic problems arise due to following 3 causes -

☞ Unlimited wants -

Human wants are unlimited. No man can satisfy his wants fully .

☞ Limited and scarce resources -

Most of the goods and services satisfying human wants are limited.

☞ Alternative uses-

Another cause of economic problem is that limited resources also have alternative uses .