05 Outline what is meant by 'the economic problem'.

[Haiderabbas]

KN: The economic problem is scarcity ie- unlimited wants but limited resources so choices must be made.
App: for e.g. a government must pick between building roads or hospitals because money is limited.
An: Scarcity forces prioritisation and trade-offs, which affects what gets produced and who gets resources.

[Naveen fatima]

[KN]The economic problem is the issue that resources are limited but human wants are unlimited.
[APP] For example, a country may not have enough land, money, or workers to produce everything people desire.
[AN] This means choices have to be made about how to use resources. It also leads to opportunity cost, where choosing one option means giving up another. In addition, it forces governments and businesses to prioritise what is most important to produce.

[SofiaRazaKhan]

[KN]the economic problem is that resources are limited but human wants are unlimited meaning not everything people desire can be produced.
[APP]For example, a clothing business may not have enough fabric, employees or money to produce both summer and winter collections at the same time, so it must choose which one to focus on first.
[AN]as a result, this means the business has to decide how to use its limited resources, resulting in opportunity cost, since producing one type of clothing means giving up another option.

[masabtahir]

kn] economic problem is limited resources but unlimited wants
app] as government has to build a motorway but the hospitals demand increase because of any disease
an] thus the government has to forgive one thing and make a single thing only at time so the left one is oppurtunity cost this is called scarcity

[Ruqyia Salman]

[KN] The economic problem refers to the situation where people have unlimited wants but resources are limited, creating scarcity.
[APP] For example, a government may not have enough money or labour to build all the schools and hospitals needed by the population.
[AN] This scarcity means that choices must be made about how to use limited resources most effectively, leading to opportunity costs.