The basic economic problem - What is it?

Scarcity, or limited resources, is one of the most basic economic problems we face.

The fundamental economic problem is the issue of scarcity and how best to produce and distribute these scare resources.

Scarcity means there is a finite supply of goods and raw materials.

Finite resources mean they are limited and can run out.

Unlimited wants mean that there is no end to the quantity of goods and services people would like to consume.

Because of unlimited wants - People would like to consume more than it is possible to produce (scarcity)