Question

State the fundamental fact that has led to the emergence of economic problem.

Answer 1

All the economic problems revolve around the basic fact that the resources in the economy is scarce whereas the wants are unlimited. In a survey conducted throughout the world it was found that the ratio between all the need of the earth and resources in it is 1.7:1 which is 7 times more than what the earth has all together. Therefore, the problem of these resource allocation for the satisfaction of wants is the biggest task of the economy.