The Economic Problem and how it Affects Society
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Define the economic problem. Explain how individual consumers, business firms and the government are all faced with the economic problem. Identify the different economic factors that influence how each group seeks to address this problem.
The economic problem occurs because of the fact that the supply of resources used to produce goods and services are limited or finite but there is an infinite amount of demands and wants of individuals. In other words, the economic problem is consequence of limited resources, but unlimited wants.
Individuals must decide what is the best ite…
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