Answer to Question #81318 in Economics for Shaima

Question

All economic questions arise from scarcity. Explain this.

Answer 1

Scarcity of available resources and unlimited needs cause the importance of effective choice what to buy and what to produce. These are the main questions of economy from the point of view of consumers, who has to achieve the maximum possible utility using the limited amount of money, and producers, who has to get the maximum profit using the limited amount of production factors.