The Economic Problem
People have unlimited wants creating the economic problem of scarcity
What to produce?
Demand tells businesses what goods and services to produce / provide
How to produce it?
Land
Labour
Capital
Enterprise / Entrepeneurship
Who to produce it for?
What demand is there
Price Mechanism (SIR)
Signal
Incentive
Ration
How to ration scarce resources
Market price
Consumer income
Assessment of need
Household postcode
Education level
Age
Gender
Nationality
Opportunity Cost
The next best alternative foregone
Last changed8 months ago