The fundamental problem of economics is

JAMB Economics 2023 228 views
Source: JAMB · 2023

The fundamental problem of economics is

  1. The establishment of a political framework to determine the what, how and for whom of production
  2. To establish an equitable distribution of income
  3. The scarcity of productive resources relative to society's unlimited wants ✓
  4. Finding striking determinants between the forces of supply and demand
Explanation

The basic problem of economics is scarcity. Resources such as land, labour and capital are limited, but human wants have no end.

Because of this, people and governments must choose what to produce, how to produce it and for whom.

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