Business

Start Your Free Trial

Apart from scarcity, are there other principal issues in economics that remain the same. Kindly Explain?

Expert Answers info

pohnpei397 eNotes educator | Certified Educator

calendarEducator since 2009

write35,413 answers

starTop subjects are History, Literature, and Social Sciences

Economists say that every economy must answer three basic and fundamental questions.  (The Drexel.edu link below has 4.  Textbooks I've taught from have 3.  The second and third questions in the Drexel link are lumped together in the second question in this answer.) The questions are

  • What to produce.  The economy must decide what goods and services it will produce.
  • How to produce.  It must decide whether it will use machines or manual labor.  It must decide if it will produce using slavery or paid labor.  If it pays workers, it must decide if there will be a minimum wage.  All of these, and millions more, are questions that must be answered by every economy.
  • For whom to produce.  Who will get the goods and services produced?  How will it all be distributed.

These are questions that always remain the same.  Different countries come up with different ways of answering them, but the questions remain the same.

check Approved by eNotes Editorial

Related Questions

More »

Unlock This Answer Now

Start 48-Hour Free Trial to Unlock

Ask a Question

Popular Questions

More »