Question

Write a short note on the emergence of economic problems.

Answer 1

Answer:

Causes of Economic Problem

Causes of Economic Problem Scarcity of resources: Resources like labour, land, and capital are insufficient as compared to the demand. Therefore, the economy cannot provide everything that people want. Unlimited Human Wants: Human beings' demands and wants are unlimited which means they will never be satisfied.

Answer 2

Explanation:

The fundamental economic problem is the issue of scarcity but unlimited wants. Scarcity implies there is only a limited quantity of resources, e.g. finite fossil fuels. Because of scarcity, there is a constant opportunity cost – if you use resources to consume one good, you cannot consume another