Question

Why is there a need for economising of resources?

Answer 1

There is a need for economising resources because society has unlimited wants but the resources available to satisfy these wants are limited and scarce. Since resources also have alternative uses, it is essential to allocate them efficiently to maximize output and satisfy the maximum possible wants. Economising ensures the best use of limited resources to achieve maximum satisfaction, avoiding wastage and inefficiency in production and consumption. This need arises directly from the economic problem of scarcity and choice faced by every economy.