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What Are The Basic Economic Problems of Any Economy
What Are The Basic Economic Problems of Any Economy
What Are The Basic Economic Problems of Any Economy
The economic problem –sometimes called 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.
Examples of economic problems. The fundamental economic problem is the issue of scarcity –
but unlimited wants. Therefore, an underlying feature of economics is concerned with dealing
how to allocate resources in society to make the most efficient and fair use of resources.
Three Basic Economic Problems. Because of scarcity, every economy has to face three basic
economic problems: A. Since we do not have enough resources, we have to decide what types
pollution, energy shortages and government deficits are some of the complex problems
basic problem confronting an economy is “What to produce” so as to satisfy the wants of the
people. ... But because resources are in fact scarce relative to human wants, an economy must
of limited resources and infinite demands, society needs to determine how to produce and