Answer to Question #263271 in Economics for Nalyn

Question

Why are economic goals important to the economy?

Answer 1

Many earthly resources are inherently limited. Freshwater, food, livestock, textiles are earth resources that can be lost. Unlike resources, human needs are unlimited. The goal of the economy is to keep in balance limited resources and unlimited human needs.

The famous American scientist, psychologist Maslow Abraham Harold believed that all basic human needs can be expressed in a pyramid. The basis of the geometric figure is physiological needs, that is, the human need for food, water, clothing, shelter, as well as procreation. Topical economic issues are based on this pyramid. The pinnacle of the figure is the person's need for self-expression.