IGCSE ECONOMICS The Basic Economic Problem. The Nature of the Economic Problem

Resources: are the inputs required for the production of goods and services.

Scarcity: a lack of something (in this context, resources).

The fundamental economic problem is that there is a scarcity of resources to satisfy all

human wants and needs. There are finite resources and unlimited wants. This is

applicable to consumers, producers, workers and the government, in how they manage

their resources.

Economic ...