Economics SSS1 First Term

WEEK 12

Basic economic problems of society

Performance Objectives

Student should be able to:

1. State and explain the basic economic problems of society.
2. Suggest ways of efficient allocation/use of scarce societal resources.

Content

Meaning of basic economic problems

Basic economics problems refer to the problem individuals, firms and governments encounter in the society while attempting to satisfy their numerous wants with the limited resources available to them.

This problem arises because the resources of all types are limited and have alternative uses. If the resources were unlimited or if a resource only had one single-use, then the economic problem would probably not arise. However, be it natural productive resources or man-made capital/consumer goods or money or time, scarcity of resources is the central problem. This central problem gives rise to four basic problems of an economy.

These basic.... View More