unit-1-central-problems

Unit-1 Central Problems

The purpose of this unit is to define the subject matter of economics, highlighting what constitute the central (essential) problems of an economy.

If you can achieve whatever you wanted to achieve, does a meaningful choice exist?

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Learning Pundits Content Team

Written on Jun 26, 2019 5:28:11 PM

Since wants are unlimited and means are limited, all our wants cannot be satisfied simultaneously at any time. Hence you are required to establish priorities as to which wants are to be satisfied with your limited means, given that means have alternative uses. For instance, on a given piece of land you can grow Rice or Vegetables or grow some cash crops. If means are specific to a particular use then no meaningful choice exists.