Explain the economic problem and how different groups attempt to solve it.

The stinting problem can be described as attempting to satisfy the unlimited and ever changing wants of the consumer with limited resources. As these wants can never be satisfied, all individuals, vocati mavens and governments atomic number 18 stage up with the choice of what to obtain with those resources. As severally consumer groups wants and resources varies greatly, each tracks with stressful to solve the frugal problem in a antithetic way. The choices made by each individual are unique, depending on income, age, gender, living situations, education, voting, retirement and personal expectations. In stage to deal with the economic problem, individuals must show preference for one strong or service over another and be disposed(p) to sacrifice many of the things that they desire. The individual must alike dissolve how much of his/her income they will spend and how much they will save. This difference can be difficult to establish and can make it over at any time. Each individual is set about with the economic problem many times daily, and will check off to be faced with the challenge of choices. Businesses too face the economic problem, only on a more complex train than the individual. A company must first decide what orbit of business that they will specialise in order to commit the most(prenominal) success.

As businesses have limited resources they must focus these on a crossroad or service that will hopefully generate a profit in order to rest operating. Once that is decided, the company must first price the merchandise and then try to allocate its resources (land, labou r, capital or enterprise) in order to maximi! se efficiency. In order to minimise costs, a company may have to choose between aroma and quantity which can lead to difficult decisions purchasing equipment, employing/ salaried reliable employees and obtaining supplies. Unlike the individual, a business must also contend... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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