Anonymous

Describe The Fundamental Economic Problem?

7 Answers

Ian John Profile
Ian John answered
The fundamental economic problem is simply the problem facing a society on how it chooses to utilize its finite amount of labor and resources to satisfy the seemingly infinite number and variety of human wants and needs.

Economics is the way in which ruling bodies prioritize their resources and strive to ascertain which needs and wants of the populace are most deserving of being satisfied.

The fundamental needs of society tend to be the ones that are most frequently addressed; such as food, clothing, warmth and shelter. As such, most economies across the world today attempt to consistently provide for the needs of the people in their society.

Once the basic needs of humanity are addressed, the population drives demand for any extra goods and services. A personal computer is an example of an item somebody wants above basic needs. This demand is met by companies making computers and selling them to the public.

The issue of choice is also important. Businesses realize consumers have a choice about which items to demand and as such, to become more economically viable, they must make a choice about which items and services to supply.

At its heart, the fundamental economic problem is about meeting the needs of the people through supply and demand. It has to address the basic needs of the population, and also their wants and choices of goods and services. The crux of the problem lies in prioritizing which of the wants and choices should be met first.
Manoj Wickramaratne Profile
Any economic system has to deal with some fundamental economic problems. These problems are common to all economies. The following list gives the Four most fundamental economic problems faced by any economy.

1- What to produce?
2- How much to produce?
3- How to produce?
4- For whom to produce?

How these problems are dealt with differ from one economic system to another.
Aisha Profile
Aisha answered
The fundamental economic problem for the developing countries is to allocate scarce resources efficiently and in the best possible manner.
Anonymous Profile
Anonymous answered
The fundamental economy problem is scarcity, this is because there's no enough for everyone. Most people seem to want more than they already have. In fact, if each of us were to make a list of all the things we want, it would include more things than we could ever hope to obtain.

Answer Question

Anonymous