Basic or Central Problems of an Economy
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The scarcity of resources in relation to wants give rise toMarks:1
Explanation:Scarcity of resources is a relative phenomenon, which represents that the resources available in the economy are limited in relation to unlimited wants. This give rise to an economic problem of choice between unlimited wants and limited resources.
Human Wants areMarks:1
Explanation:Human wants are unlimited. Some wants are recurring in nature like food , water etc. on the other hand some wants depend on other economic factors like income, taste and preferences etc. When a particular want is satisfied another crops up.
Growth of resources can occur due to improvement inMarks:1
Explanation:Growth of resource represents increase in productive capacity in the economy due to increase in effiency through technological progress.
The law of scarcity of resources states thatMarks:1
wants are unlimited.
Explanation:Scarcity of resources is a relative phenomenon which represents that the resources available in the economy have a limited supply as compared to their demand due to which all wants can never be satisfied.
The problem of distribution of income among factors of production is related withMarks:1
for whom to produce?
The problem of for whom to produce is related with the distribution of income among factors of production or among rich or poor. A few rich or many poor or vice-versa.