The different economic problems faced by the society and the ways to solve them

Since earliest times, the primary function of organized society has been economic in nature. The other elements of civilized society -- architecture, literature, music, etc. Poor societies do not build great pyramids, erect magnificent cathedrals, or place men on the moon.

The different economic problems faced by the society and the ways to solve them

Read more The economic problem All societies face the economic problem, which is the problem of how to make the best use of limited, or scarce, resources. The economic problem exists because, although the needs and wants of people are endless, the resources available to satisfy needs and wants are limited.

Limited resources Resources are limited in two essential ways: Limited in physical quantity, as in the case of land, which has a finite quantity. Limited in use, as in the case of labour and machinery, which can only be used for one purpose at any one time. Choice and opportunity cost Choice and opportunity cost are two fundamental concepts in economics.

Given that resources are limited, producers and consumers have to make choices between competing alternatives. All economic decisions involve making choices.

Making an economic choice creates a sacrifice because alternatives must be given up, which results in the loss of benefit that the alternative would have provided. Similarly, land and other resources, which have been used to build a new school could have been used to build a new factory.

The different economic problems faced by the society and the ways to solve them

The loss of the next best option represents the real sacrifice and is referred to as opportunity cost. The opportunity cost of choosing the school is the loss of the factory, and what could have been produced.

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It is necessary to appreciate that opportunity cost relates to the loss of the next best alternative, and not just any alternative. The true cost of any decision is always the closest option not chosen. Societies have to decide the best combination of goods and services to meet their needs.

For example, how many resources should be allocated to consumer goods, and many resources to capital goods, or how many resources should go to schools, and how many to defence, and so on.

Societies also have to decide the best combination of factors to create the desired output of goods and services. For example, precisely how much land, labour, and capital should be used produce consumer goods such as computers and motor cars.

For whom to produce?

The different economic problems faced by the society and the ways to solve them

For example, who will get the computers and cars that have been produced? This is often called the problem of distribution.Avoiding the temptation to do nothing. By Chris Hill. There are, no doubt, problems and even crises in the world that go away on their own.

The North Korean nuclear issue is not one of them. This article examines some of the major reasons that people fail to solve problems in an effective manner. Knowing the reasons for failure is a good start to avoiding these reasons when trying to solve your own problems.

Nov 04,  · With as many problems as we are all faced with in our work and life, it seems as if there is never enough time to solve each one without dealing with some adversity along the way.

Future generations will be called to solve some of the most challenging problems ever created and faced by man.

What are the types of economic systems? | eNotes

Our children must master systems-thinking to envision multiple methods for. Published: Mon, 5 Dec ABSTRACT. A school is a social institution and is responsible for the growth. It is the development and progress of future citizen.

The Problems of the World Today

It is a basic and fundamental principle that no institution can work smoothly and properly without good and efficient leadership. The economic problem – sometimes called the basic or central economic problem – asserts that an economy's finite resources are insufficient to satisfy all human wants and needs.

It assumes that human wants are unlimited, but the means to satisfy human wants are limited.

The economic problem