What Are The Basic Problems In Economics?


18 Answers

Sudipa Sarkar Profile
Sudipa Sarkar answered
The term economics came from two Greek words 'oikos' and 'nemesis'. 'Oikos' means 'household' and 'nemesis' means 'management'. So, economics deals with the subject matter of household management. Economics is always considered as a social science where general people are really concerned with the problem of choice as the supply of most of the necessary, comfortable and luxury items are scarce in nature.

Modern economists are more concerned about four basic problems of economics. These are:

(a) what to produce
(b) how to produce
(c) how much to produce and
(d) for whom to produce.

All these problems are associated with the 'problem of choice'.

In a free market economy the basic problems are solved through price mechanism but in a socialist economy these problems are solved through government planning. Though this economic planning is very expensive to chalk out and execute, the socialists think that government should incur this expenditure for the sake of the general mass. Again in a mixed economic system both planning and market mechanism operates to reach at the solution. Here planning is made for public sector enterprises whereas market mechanisms are in force in private sector.
Anonymous Profile
Anonymous answered
-what to produce?
-how to produce?
-for whom to produce?
-are the resources economically used?
-problem of full employment?
-problem of growth?
Anonymous Profile
Anonymous answered
THE BASIC PROBLEM OF ECONOMICS IS THE "SCARCITY OF RESOURCES" . Human wants are unlimited but to fulfill those wants,resources are limited. This resource gap creats problem.
If wants are kept in control the problems economics may not arise.
ray of light Profile
ray of light answered
The basic problem of economics is people have limited and less resources but they have unlimited wants. Second one is inflation (commodities high price).
stephen joe Profile
stephen joe answered
Economics is a study concerning about how humans allocate their resources for their own use. Basically, the problem is that the resources we have are LIMITED whereas humans' needs and wants are potentially UNLIMITED. This leads to another problem... how are we going to allocate the limited resources we have to satisfy most of our wants?
thanked the writer.
Anonymous commented
as we all know wants are unlimited, but resources also have alternative uses, so the best way to satisfy most of our wants we should use resources at their optimum level.
Anonymous commented
Numbers of problems with different nature are experienced here; it may be lacking in technology application, employees orientations, production management, marketing process and strategical approach. Business consultancy firms are helping the businesses of all sizes at particular shortfall identified.
Anonymous Profile
Anonymous answered
Scarcity and shortage..
alade tope Profile
alade tope answered
We can used how limited resource to satisfy our wants if we are have limited population and there is large number of working class people like 18 year to 50 year which are still working class and government are ready to establish company and sale there product in cheaper rate to people this can satisfy our wants.
nadeem g Profile
nadeem g answered
It refers to the fact that consumers have unlimited wants but have limited resources to satisfy these wants. So,since the consumer cannot satisfy all his wants, he has to make a choice, and this involves an opportunity cost.
Anonymous Profile
Anonymous answered
Scarcity of resources and also unlimited needs or wants                                    solution is to make a choice
bryan watson Profile
bryan watson answered
Well we are in recession for a start. We are in dept up to our necks.
we need alternative energy sources so we can get away from the highly overused oil. We need to sever our dependency on forghien oil. Prices are way to high. The stock market is terribly low. And our government kept secretes from us. Have you seen that guy who was trying to sell barack"s vacant senate seat? Gov. Is to busy doing underhanded things like that instead of fixing problems at hand.

well I hope this helps ^_^

Answer Question