The Economic Problem

The stinting job Scarcity: is a situation where in that location in not enough to remunerate everyones expects. e.g- roughly a million people in India live in slums who would like to meliorate their lifestyle by ensuring basics tho those who argon quick in well-off suburbs would like to improve their living accommodation by adding a swimming pool. purpose: rich or poor, everyone faces scarcity Characteristics of scarcity: 1.It is a congress concept 2.it is a universal proposition phenomenon as there atomic number 18 never enough resources to pander everybodys wants, or in other words, the economic problem of scarcity rises because wants exceed resources Why scarcity? Wants > need -Perception of wants and needs take changing What is an economic problem? ?Wants be absolute ?Resources to satisfy atomic number 18 limited --- Resources use up alternative uses What is a resource? -scarce materials argon called resources. However, in economics, factors of reach are known as resources. Factors of end product: are the economic resources of cracking, enterprise, labor and dry land. There are three master(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 make 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 tin change 2.Land is geographically immobile but occupationally m obile Characteristics of Capital- 1.Supp! ly 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 answer The greater the human capital >< the more they are undefendable of producing Difference between a resource and a warrant good Scarce materials are called resources Free goods are those resources that are not scarce for example air or cheerfulness Enterprise- is...If you want to get a full essay, order it on our website: BestEssayCheap.com

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