Economic problem occurs when

JAMB Economics 2023 172 views
Source: JAMB · 2023

Economic problem occurs when

  1. There is scarcity relative to demand ✓
  2. There are no buyers for our goods
  3. Many people are out of work
  4. All raw materials are imported
Explanation

An economic problem arises when there is scarcity relative to demand. This means the resources available cannot satisfy all our wants, so we must choose.

Unemployment and import dependence may be real troubles, but they are not the root of the economic problem.

Was this explanation helpful?

Something wrong or missing? Tell us — we read every report and fix issues fast.

pastQuestions.ng pastquestions.ng