ECONOMIC PROBLEM

1.	ECONOMIC PROBLEM
Answer» Theeconomic problem– sometimes called thebasicorcentral economic problem– asserts that an economy's finiteresourcesare insufficient to satisfy all humanwantsandneeds. It assumes that human wants are unlimited, but the means to satisfy human wants are limited. The economic problem is the problem of rational management of resources or the problem of optimum utilization of resources. It arises because resources are scarce and resources have alternative uses Three questions arise from this: • What to produce? • How to produce? & • For whom to produce? What to produce? 'What and how much will you produce?' This question lies with selecting the type of supply and the quantity of the supply, focusing onefficiency.

Answer»

Theeconomic problem– sometimes called thebasicorcentral economic problem– asserts that an economy's finiteresourcesare insufficient to satisfy all humanwantsandneeds. It assumes that human wants are unlimited, but the means to satisfy human wants are limited. The economic problem is the problem of rational management of resources or the problem of optimum utilization of resources. It arises because resources are scarce and resources have alternative uses

Three questions arise from this:

• What to produce?

• How to produce? &

• For whom to produce?

What to produce?

'What and how much will you produce?' This question lies with selecting the type of supply and the quantity of the supply, focusing onefficiency.

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