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Solving Basic Economic Problems

Applied economics can help solve economic issues and problems by addressing the basic economic problems of scarcity. The four basic economic problems are: (1) what to produce based on people's needs and available resources; (2) how to produce by determining the necessary resources and labor; (3) for whom goods and services should be produced by considering distribution to meet basic needs and wants; and (4) what provisions should be made for economic growth by allocating resources to investments as well as current consumption.

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marilyn c. papina
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98 views11 pages

Solving Basic Economic Problems

Applied economics can help solve economic issues and problems by addressing the basic economic problems of scarcity. The four basic economic problems are: (1) what to produce based on people's needs and available resources; (2) how to produce by determining the necessary resources and labor; (3) for whom goods and services should be produced by considering distribution to meet basic needs and wants; and (4) what provisions should be made for economic growth by allocating resources to investments as well as current consumption.

Uploaded by

marilyn c. papina
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
  • Utility and Application of Applied Economics
  • Activity
  • Guide Questions
  • Think About It!
  • Basic Economic Problems
  • The Four Basic Economic Problems
  • Scarcity and Economic Choices
  • Conclusion

Utility and Application of Applied MARILYN

Economics to Solve Economic C.


PAPINA
Issues and Problems
`
ACTIVITY
GUIDE QUESTIONS

Direction: Please read and analyze the questions


carefully:
[Link] do you think are the resources used to produce
the dresses?
2. What were the issues and problems in producing the
dresses?
THINK ABOUT IT!

Given the issues/problems the


abovementioned business is facing,
how do you propose to solve their
problem?
• What is the basic economic problem?
Scarcity. Because of this people and nation
• must choose how to use their available
resources efficiently. Every economic system
• is faced with the following problems:
THE FOUR BASIC ECONOMIC PROBLEMS

[Link] to produce?
What is the desire of the people? Goods and services to be
produced should be based on the needs of the people.
However, a very important factor like availability of
resources should be considered. A good example of this is
the production of rice since the Philippines is known to be
an agricultural country because of its extensive rice fields.
THE FOUR BASIC ECONOMIC PROBLEMS

2. How to produce?
What are the resources to be used? How much labor is
needed to produce the needed quantity? Quality should
come first before quantity. Rice planting requires a lot of
labor (workers) to plant rice
THE FOUR BASIC ECONOMIC PROBLEMS

3. For whom shall goods and services be


produced?
How are the goods distributed among consumers?
Goods are produced to meet the urgent needs of the
people. How much goods are produced for the basic
needs and how much goods are produced for our wants.
THE FOUR BASIC ECONOMIC PROBLEMS

4. What provisions/laws should be made


for economic growth?
Both an individual and a society would not like to use all
its scarce resources for current consumption only. This is
because if all resources are used for producing consumer
goods only and no provisions in terms of allocating some
resources for investments, the future resources or
productive capacity would not increase.

Utility and Application of Applied Economics to Solve Economic Issues and Problems ` MARILYN C. PAPINA
ACTIVITY
GUIDE QUESTIONS Direction: Please read and analyze the questions carefully:   1.What do you think are the resources used to
THINK ABOUT IT! Given the issues/problems the abovementioned business is facing, how do you propose to solve their problem
•What is the basic economic problem? Scarcity. Because of this people and nation •must choose how to use their available r
THE FOUR BASIC ECONOMIC PROBLEMS 1.What to produce? What is the desire of the people? Goods and services to be produced sho
THE FOUR BASIC ECONOMIC PROBLEMS 2. How to produce? What are the resources to be used? How much labor is needed to produce
THE FOUR BASIC ECONOMIC PROBLEMS 3. For whom shall goods and services be produced? How are the goods distributed among cons
THE FOUR BASIC ECONOMIC PROBLEMS 4. What provisions/laws should be made for economic growth? Both an individual and a socie

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