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economic problem
The economic problem—sometimes called the basic, central, or fundamental economic problem—is one of the fundamental economic theoretical principles in the operation of any economy. It asserts that there is scarcity; that is, that the finite resources available are insufficient to satisfy all human wants and needs. The question then becomes how to determine what is to be produced, and how the factors of production (such as capital and labor) are to be allocated. Economics revolves around methods and possibilities of solving this fundamental economic problem.
The economic problem arises mainly due to two facts: human wants are unlimited, but the means to satisfy human wants are scarce.
==Overview==
The economic problem is most simply explained by the question: "How do we satisfy unlimited wants with limited resources?" The premise of the economic problem model is that wants are constant and infinite due to constantly changing demands (often closely related to changing demographics of the population), but resources in the world to satisfy human wants are always limited to the amount of natural or human resources available. The economic problem—and methods to curb it—revolve around the idea of choice in prioritizing which wants can be fulfilled and what to produce for the economy.
Opportunity cost is the next best alternative given up by choosing another item. We make choices every day. We have to, as we have limited resources but so many wants. We therefore have to decide which wants we will satisfy and those which we will not. All choices involve giving something up - this leads to "opportunity cost". This problem of 'what to give up' exists not only for consumers like us but for governments and businesses too.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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