Human wants are unlimited and productive resources such as land and other natural resources, raw materials, capital, equipments, etc. by which goods and services are produced to satisfy those wants, are scarce. The problem of scarcity of resources is felt not only by individuals, but also by the society as a whole. This gives rise to the problem of how to use scarce resources to attain maximum satisfaction. This is generally called ‘Economic Problems’. Every economic system, be it capitalist, socialist or mixed, has to deal with this central problem of scarcity of resources relative to their wants.
