CBSE Class 11-commerce Answered
Why economics problems arries
Asked by Ajay121bisht | 08 Jul, 2019, 07:24: PM
Expert Answer
Economic problem arises because:
1. Resources are scarce in relation to the demand of the economy and hence all goods cannot be produced.
2. Unlimited Human wants which cannot be satisfied due to limited resources and hence a choice has to be made.
3. Resources have alternate uses: resources are not only scarce but they alternate uses and as result economy has to make a choice between alternative uses of given resources.
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