The Economic Problem

The stinting business Scarcity: is a situation where in that location in not enough to remunerate everyones expects. e.g- to the highest degree a million people in India live in slums who would like to modify their lifestyle by ensuring basics and 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 relation back concept 2.it is a universal proposition phenomenon as there atomic number 18 never enough resources to carry out everybodys wants, or in other words, the economic problem of scarcity rises because wants exceed resources Why scarcity? Wants > call for -Perception of wants and needs take changing What is an economic problem? ?Wants be oceanic ?Resources to satisfy atomic number 18 limited --- Resources deplete alternative uses What is a resource? -scarce materials argo n called resources. However, in economics, factors of sacrifice argon known as resources. Factors of end product: are the economic resources of corking, enterprise, labor and destroy. There are three principal(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 foundation change 2.Land is geog raphically immobile but occupationally mobil! e Characteristics 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 equal The greater the human capital >< the more they are open(a) of producing Difference between a resource and a surplus good Scarce materials are called resources Free goods are those resources that are not scarce for example air or temperateness Enterprise- is...If you want to get a full essay, order it on our website: BestEssayCheap.com

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