What fundamental economic problem arises from the fact that resources are limited while human wants are unlimited?
Understand the Problem
The question is asking about the core economic problem that results from the scarcity of resources relative to unlimited human desires. This is a foundational concept in economics.
Answer
The fundamental economic problem is scarcity.
The fundamental economic problem that arises from limited resources and unlimited human wants is scarcity. Scarcity forces societies and individuals to make choices about how to allocate resources efficiently.
Answer for screen readers
The fundamental economic problem that arises from limited resources and unlimited human wants is scarcity. Scarcity forces societies and individuals to make choices about how to allocate resources efficiently.
More Information
Scarcity implies that choices must be made regarding which wants and needs will be satisfied. Economics, as a discipline, is largely the study of how societies deal with scarcity.
Tips
A common mistake is to confuse scarcity with shortage. Scarcity is a fundamental, permanent condition, while a shortage is a temporary situation.
Sources
- Economic problem arises due to the fact that - BYJU'S - byjus.com
- What Is Scarcity? - Investopedia - investopedia.com
- Economic problem arises due to the fact that ______. - toppr.com
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