The three basic economic questions are what to produce, how to produce it, and for whom to produce it. All three are to answer how we allocate resources to meet our needs and wants. But, then, the way we answer them also
Economic Problem
What Are the Consequences of Scarcity in Economics?
The ultimate consequence of scarcity is making choices. We face limited resources. But, on the other hand, we have limited needs and wants. So, we have to choose what goods we should produce. Another choice is how we make
Does Scarcity Only Work For The Poor? What Causes Scarcity?
The answer is no. It happens to anyone. The key is the insufficiency of resources to satisfy needs and wants. And scarcity occurs when we use the limited resources available to meet our unlimited wants and needs. So,
Why is Money Not an Economic Resource?
The reason money is not an economic resource is because it is not productive. For example, have you ever seen a copywriter write with money or an employee transporting goods from a factory with money instead of a logistics vehicle? We create
Economic Efficiency: Meaning, Prerequisites, Why It Matters
What’s it: Economic efficiency is the state in which resources are allocated to the economy's highest value uses. It involves making the best possible use of resources and avoiding waste. Under these conditions, no subsequent allocation of
How are Economic Resources Allocated?
Scarcity requires us to make choices to allocate economic resources to their highest use. And, every choice involves opportunity cost, the next best alternative we give up when choosing something. Economics deals with scarcity, which arises
Economic Resources: Definition, Types
What's it: Economic resources is another term for factors of production. They include human resources such as labor and entrepreneurship and non-human resources such as land and capital. Sometimes we refer to them briefly as inputs or
Economic Problems: 3 Basic Questions For An Economic System To Answer
What's it: Economic problems arise because we face scarcity. Our resources are limited to satisfy our unlimited wants and needs. Economics has its roots in it and studies how we allocate limited resources to meet our needs and
Opportunity Cost: Meaning, Importance, Examples
Choice makes you face the opportunity cost, whether you realize it or not. At some time, you may have to choose between the two options that you both want. But, because your resources are limited (for example, you don't have enough money in your