The Economic Problem

The stinting riddle Scarcity: is a situation where on that point in not enough to remunerate everyones expects. e.g- intimately a million people in India live in slums who would like to cleanse their lifestyle by ensuring basics only those who argon quick in well-off suburbs would like to improve their living accommodation by adding a swimming pool. coating: rich or poor, everyone faces scarcity Characteristics of scarcity: 1.It is a coition concept 2.it is a universal proposition phenomenon as there atomic number 18 never enough resources to retaliate everybodys wants, or in other words, the economic problem of scarcity rises because wants exceed resources Why scarcity? Wants > ask -Perception of wants and needs take changing What is an economic problem? ?Wants be oceanic ?Resources to satisfy atomic number 18 limited --- Resources macerate alternative uses What is a resource? -scarce materials argon called resources. Howe ver, in economics, factors of go by be known as resources. Factors of end product: are the economic resources of cap, enterprise, labor and get to. There are three primary(prenominal) 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 gouge change 2.Land is geographically immobile but occupationally mobile Ch aracteristics of Capital- 1.Supply of capit! al 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 hooked The greater the human capital >< the more they are undecided of producing Difference between a resource and a gratis(p) good Scarce materials are called resources Free goods are those resources that are not scarce for example air or sunshine Enterprise- is...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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