Essay On Economic Problems

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The economic problem is defined as that there is not enough resources to satisfy unlimited human needs and we are a society with unlimited wants.These resources can be resources that come from the land, labor resources,capital resources or entrepreneur and it is considered as a basic economic problem.Therefore,we have to choose,we have to make trade off,we have to do those things because the resources are limited and cannot be our own unlimited demand.There is a saying said that”fish and bear’s paw can not have both”,when a choice is made, it is a trade off as it is defined as an exchange to get another things,it is because when we decided on which wants to satisfy,we have to give up something.Without scarcity,the science of economic would not exist.For example, a man has only one hour, and he can choose A, B, C to spend one hour to complete one of the three things to do, if he chose A, he has to give up B and C that it will define as opportunity cost.Then,economic systems are the basic arrangements made by societies to solve the economic problem such as centrally-planned economy,free market economy,mixed economy and other economy system.So,how economic problems and these concepts that will affect individuals,families,firms,governments and societies?

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