Answer to Question #205824 in Economics of Enterprise for Ayabulela

Question

What is the fundamental problem in economics

Answer 1

The underlying economic problem is that there is a scarcity of resources but an endless need for them. Scarcity denotes a restricted supply of resources, such as scarce fossil fuels. Due to scarcity, there is always an opportunity cost: if you utilize resources to consume one thing, you won't be able to eat another.