State three reasons which give rise to an economic problem. - Vidyadip

Question

State three reasons which give rise to an economic problem.

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Answer

There are three reasons which give rise to an economic problem.:
i. Wants of people are unlimited - It is due to unending circle of wants. After the satisfaction of one wants, another want arises.
ii. Resources are limited - Problem of allocation of resources arises because resources are not enough to satisfy wants of every individual.
iii. Resources have alternative uses - Scarce resources have alternative uses. When an individual chooses to use a given resources for something, he/she is unable to use that resources for anything else.

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