Central Economic Problem

This refers to the fact that individuals and society have unlimited needs and wants but resources to satisfy all those needs and wants are limited.

The central economic problem (or basic economic problem) reflects the economic need to balance the Scarcity of resources with the Benefits or Market Demand for products or services. It recognises that any given resource can be used in a variety of ways, with prioritisation of the relative costs and benefits.

Central Economic Problem is a term normally found in economics and financial management; explore our learning resources to discover more Explore our learning zone to discover more

This entry was posted in . Bookmark the permalink.