BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If the recourses were unlimited, people would be able to satisfy their wants.
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If recourse has only single use, then also economic problem would not arise.
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All countries, without exception, face problem of scarcity.
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Developed countries do not face Central Economic Problems
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Detailed explanation-1: -The central problem of an economy does not deal with the time of production as it is assumed that human wants are unlimited and goods are required throughout the year. Therefore, the the problem of ‘When to produce?’ is not regarded as a central problem of the economy.
Detailed explanation-2: -The central problem of an economy is allocating scarce resources to meet unlimited wants and needs. Causes of this problem can include: Limited resources: There need to be more resources to meet the wants and needs of the entire population.
Detailed explanation-3: -The central problems of an economy revolve around the following factors:. What to produce? How to produce? For whom to produce?
Detailed explanation-4: -1 Answer. Central problems are found in all economies (both developed and developing economies) as every economy faces problem of scarcity of resources.