The Economic Problem

The stinting chore Scarcity: is a situation where in that location in not enough to remunerate everyones expects. e.g- almost a million people in India live in slums who would like to meliorate their lifestyle by ensuring basics just those who argon quick in well-off suburbs would like to improve their living accommodation by adding a swimming pool. terminal: rich or poor, everyone faces scarcity Characteristics of scarcity: 1.It is a proportional concept 2.it is a universal proposition phenomenon as at that place atomic number 18 never enough resources to match everybodys wants, or in other words, the economic problem of scarcity rises because wants exceed resources Why scarcity? Wants > necessarily -Perception of wants and needs take changing What is an economic problem? ?Wants be straight-out ?Resources to satisfy atomic number 18 limited --- Resources burn out alternative uses What is a resource? -scarce materials argon called resources. However, in economics, factors of subject be known as resources. Factors of end product: are the economic resources of detonating device, enterprise, labor and reach. There are three main facts of production: Land- all the resources provided by nature is known as land.

Labour-The human input into the production process Capital- Man do goods which are employ in the process of production Enterprise- is a special form of labour. Characteristics-land 1. turn in of physical land is limited though supply of other natural resources asshole change 2.Land is geographically immobi le but occupationally mobile Characterist! ics of Capital- 1.Supply of capital increases with time if an economy is growing. 2.Spending on capital goods is known as an investment Human capital- when human are trained and do The greater the human capital >< the more they are suitable of producing Difference between a resource and a unembellished good Scarce materials are called resources Free goods are those resources that are not scarce for example air or fair weather Enterprise- is...If you want to get a full essay, order it on our website: BestEssayCheap.com

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