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

[Sir Afzal Shad]

05 Outline what is meant by 'the economic problem'.
Hint: KN: Unlimited wants but limited resources > APP: Government cannot build all schools/hospitals > AN: Scarcity forces choices.

Possible Structure - 3 Marker
[KN] >> [APP] >> [AN]

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Sample Answer:
[KN] The economic problem is when customers have unlimited wants but there are limited resources.
[APP] For example, government has a limited budget to either build a school or a hospital but the people living there want both.
[AN] Since governments would spend on one (school), the others looking for a hospital may get dissatisfied. This would lead towards lower healthcare facilities, which means greater number of people gets sick, and increased absenteeism in businesses.

[hassanalizafar]

[KN]The economic problem means that people have unlimited wants but resources are limited(finances).
[AAP] For example, a government may not have enough money to build both new schools and new hospitals, even though citizens want both.
[AN] This creates competition for resources, difficult spending priorities, and opportunity cost.As a result, scarcity forces individuals, firms, and governments to make choices about how best to allocate resources.

[shamaim shakeel]

KN] The economic problem is when there are limited resources but unlimited wants of people.
[AAP] For example, a government may want to build both roads and hospitals, but due to a limited budget, it can only build one at a time.
[AN+] This creates scarcity, forces the government to make choices, and leads to opportunity costs, meaning some wants will always remain unsatisfied.

[Aarib Saad]

(KN)The economic problem refers to scarcity, which is the lack of efficient resources available to satisfy everyone's needs and wants.
(APP)For instance, a car manufacturer needs to decide between releasing an SUV or a Hatchback, both of which will satisfy a niche group of the business' consumer base, however due to lack of efficient funds and raw materials such as Iron, it can only release one. Thus creating an opportunity cost, leading to some of the business' customers being unsatisfied, leading to a worsened brand image, decreasing consumer base, leading to a decline in sales revenue.
(AN+)This in the long run will make it so the business will suffer from cashflow and liquidity issues.

[Muaz Aamir]

KN: The economic problem is about unlimited wants but limited resources.

AP: For example, people may want new clothes, but factories have limited labour and materials.

AN: This means choices must be made on how to use scarce resources.

AN+: As a result, some wants will go unsatisfied, businesses must prioritise production, and opportunity cost will always exist.

[Subhan Zafar]

{KN}economic problem is that people have unlimited wants but resources are limited.
{APP}For example, government has a limited budget to built both school and hospital but he people ,living there wants both.This creates problem for govt to spend and this creates opportunity cost.
{AN}this leads to government to make a choice what to produce which fulfills most peoples demand

[Mahnoor satti]

[KN] The economic problem is when resources are limited but peoples wants are unlimited
[APP] For instance government has to chose between building a hospital and school, as the government do not have all the resources to build both, it has to chose one, hence, if it builds hospital the school has been given up as opporunity cost, leading to low education level in long run.
[AN]Thus this is scarcity which forces to make choices due to economic problem

[Abdul Hadi]

KN: Economic problem means having unlimited wants but limited resources.
APP: A clothing brand may want to buy more machinery for faster production and open a new outlet at the same time.
AN: this means a choice has to be taken and the other option has to be compromised, As a result of the economic problem some wants may not be fulfilled, and may result as the opportunity costs of the better option. As companies will priorities the more important want.

[Abdullah Mohsin]

[KN] The economic problem is that peoples wants are unlimited while resources are limited (finance)
[APP] For instance, a coffee shop wants to purchase a new espresso machine and wants to expand their business and open up a new branch, Limited funds forces them to choose one option
[AN] This makes them either loose a new machine that could make more variety of coffee but expand their business to a new area with a wider consumer base which could potentially increase sales or vice versa.

[Mustafa Khan]

KN] Economic problem is having unlimited wants but scarce resources.
APP]For instance, govt wants to open a school and a hospital in a city but it doesnt have enough resources to open both.
AN]This will will create scarcity and force the govt to make a choice. if govt chooses to open a school, the hospital will become the opportunity cost for the business and vice versa.

[Abdullah Altaf]

[KN] The basic economic problem is scarcity, meaning a lack of resources.
[APP] For instance, a perfume business wants to launch new products and improve packaging. However, due to limited resources, specifically finance, the business can only choose one. If it chooses to improve packaging and a competitor launches a new perfume, the business will lose sales.
[AN] This would lead to lower profits and a reduction in market share, resulting in the loss of customers.

[Uqbah hadeed kayani]

[kn] the economic problem is essentially unlimited wants but limited resources [app] this issue does not allow the government to produce all the wants of its people [an] this further creates scarcity which leads to the government having to forcefully choose what wants to fulfil which dissatisfies the governments people as everyone wants there wants to be fulfilled

[abdurrehman waseem]

KN: Economic problem means unlimited wants but limited resources
App: A government cannot build all schools,hospitals and roads
AN:The scarcity forces choices and trade offs

[Abdur Rehman khan]

[KN] The economic problem refers to unlimited wants but limited resources.
[APP] For example, a government may not be able to build both schools and hospitals at the same time due to scarce resources.
[AN] So the scarcity forces us to make choices which will increase the opportunity cost in different sectors which would mean that not all the wants of all the consumers is fulfilled.

[Shaliza khawaja]

(KN) The economic problem is the basic issue that resources are scarce while people’s wants are unlimited.
(APP) For example,governemnt might have to decide to either build a school or hospital
(AN) In this case government would need to make a choice on which sector to give the money too, as they have a scarcity for money, also showing us the idea of opportunity cost as decisions have to made .