1 | Economics

INTRODUCTION
Scarcity and choice are the basic problems in any economy. This concept was introduced by Prof. Lionel
Robbins in 1932. Human wants are unlimited but resources to meet these wants are limited and scarce.
The need to satisfy of unlimited wants with limited means creates problem of choice making. The basic
economic problem arises mainly due to the two reasons:
Human wants are unlimited
Resources to satisfy human wants are scarce.
The nature of human wants is such that they never come to an end. As long as man is alive, his wants
go on increasing. All wants which cannot be fulfilled by the limited resources lead to the origin of basic
economic problem in all types of economies.