what is the problem of fuller utilisation of resources?
Human wants are unlimited but resources to meet these wants are limited. These limited resources can also be put to alternative uses. Scarcity of resources creates the problems of choice making. The problem with the economy is how to use its available resource i.e., land, labour, capital and other resources, so that maximum production with minimum efforts and wastages is made possible. Economic development will suffer, if certain resources remain idle.
The problem also has two aspects:
1. All resources must be fully utilised- No resources should remain unutilised or idle. If resources remain idle then it’s wastage of resources. The problem of unemployment is nothing but the problem of non-utilisation of available human resource. If all resources are utilised then the quantity of goods and services produced would be more. So, every economy makes plans and policies to make fuller utilisation of resources.
2. Efficient utilisation of resources-The scarce resources should not remain underutilised. In other words, each of the resources must be most efficiently utilised. Resources are said to be most efficiently utilised if any reallocation of these resources between their alternative uses cannot increase total production in the economy. If resources are not most efficiently utilised they are said to be underutilised. Under utilisation of resources also leads to wastage of resources. So, every economy should try to utilise the scarce resources most efficiently and adopt better technology and technologies of production to ensure better utilisation of resources.
Since, the resources are scarce in relation their demand, the economy cannot afford to waste them. Hence, the economy must make sure that there is fuller utilisation of resources.
The problem also has two aspects:
1. All resources must be fully utilised- No resources should remain unutilised or idle. If resources remain idle then it’s wastage of resources. The problem of unemployment is nothing but the problem of non-utilisation of available human resource. If all resources are utilised then the quantity of goods and services produced would be more. So, every economy makes plans and policies to make fuller utilisation of resources.
2. Efficient utilisation of resources-The scarce resources should not remain underutilised. In other words, each of the resources must be most efficiently utilised. Resources are said to be most efficiently utilised if any reallocation of these resources between their alternative uses cannot increase total production in the economy. If resources are not most efficiently utilised they are said to be underutilised. Under utilisation of resources also leads to wastage of resources. So, every economy should try to utilise the scarce resources most efficiently and adopt better technology and technologies of production to ensure better utilisation of resources.
Since, the resources are scarce in relation their demand, the economy cannot afford to waste them. Hence, the economy must make sure that there is fuller utilisation of resources.