ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -’Scarcity of economics’ is the central problem of economics . It means that the resources in the world are limited whereas the wants of a man are unlimited and never ending. Due to this, the resources are always insufficient to satisfy all human wants and needs.

Detailed explanation-2: -The central problems of an economy revolve around the following factors: What to produce? How to produce? For whom to produce?

Detailed explanation-3: -Solved Question on Basic Problems Of An Economy What to produce? How to produce? For whom to produce? What provisions (if any) are to be made for economic growth?

Detailed explanation-4: -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-5: -Scarcity of resources: Resources like labour, land, and capital are insufficient as compared to the demand. Therefore, the economy cannot provide everything that people want. Unlimited Human Wants: Human beings’ demands and wants are unlimited which means they will never be satisfied.