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Introduction of Micro-Economics — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIntroduction of Micro-Economics3 Marks
Question
Why does an economic problem arise? Explain.
OR
State reasons why does an economic problem arise.
✓

Answer

An economic problem is basically the problem of choice which arises because of the scarcity of resources available. Main reasons for economic problem are:
  1. Human wants are unlimited.
  2. Resources to satisfy them are limited.
  3. Resources have alternate uses.
In such a situation, every individual and society have to make a choice, as to which wants should be satisfied by making use of scarce resources, which have alternative uses.

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