What is the main cause of all economic problems?
Dear Student
The main cause of all economic problems are limited resources and unlimited human wants. It arises due to scarcity of resources which can be put to alternative uses. Every society has to decide on how to use its scarce resources. Thus broadly the central problem of an economy is allocation of resources.
Causes of economic problems are:
The main cause of all economic problems are limited resources and unlimited human wants. It arises due to scarcity of resources which can be put to alternative uses. Every society has to decide on how to use its scarce resources. Thus broadly the central problem of an economy is allocation of resources.
Causes of economic problems are:
- Scarcity of resources
- Unlimited human wants
- Resources can be put to alternative uses
