Question

You have unlimited wants and limited resources to satisfy them. Explain this statement by giving two examples.Answer in 200 words

Answer 1

Human wants are unlimited and the resources to satisfy them are limited. All economic problems arise due to scarcity. The things that satisfy our wants are limited in availability. The resources which the producers have are limited in supply. These resources have alternative uses. We require food to satisfy our wants of nourishments. The farmers need resources like land, labour, capital, water, fertilizers etc. These resources are limited and have alternative uses. These resources can be used to produce food crops and non-food crops such as rubber, cotton, jute etc. They give rise to the problem of choice between different commodities.