Scare Resources

Scare Resources There are only a limited number of resources such as workers, machines, factories, raw materials etc. Yet there are a number of different ways in which they could be used.
Basic government spend




Basic money
Similarly people only have a limited amount of money. Yet they have lots of needs and wants to satisfy.




Basic water
Also the Government has a limited amount of money £440 billion !!!!. However, it is unable to satisfy all its wants.











THE BASIC ECONOMIC PROBLEM – the problem arises because resources are scarce, but human wants are unlimited.
What is the difference between needs and wants?