Advertisement Remove all ads

Why Do Central Problems of an Economy Arise? - Economics

Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads

Why do central problems of an economy arise?

Advertisement Remove all ads

Solution

Central problems arise in an economy because

1. Human wants are unlimited.

2. Resources are scarce in relation to their wants. The resources available with each individual to satisfy their needs are limited. These individuals have to rationally manage their expenditure to promote economic interest.

3. Resources have alternative uses. For example, land may be used for agricultural activity or for industrial purpose.

Concept: Central Problems of an Economy
  Is there an error in this question or solution?
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×