The root cause of the economic crisis is excessive consumption accompanied by record low savings rates and huge budget and current account deficits.

The fundamental economic problem is the issue of scarcity and how best to produce and distribute these scare resources. Scarcity means there is a finite supply of goods and raw materials. Unlimited wants mean that there is no end to the quantity of goods and services people would like to consume.

The 3 Main Reasons for the Existence of Economic Problems

• (i) Scarcity of Resources:
• (ii) Unlimited Human Wants:
• (iii) Alternate Uses:

Low economic mobility, poverty and income inequality, poor health care and nutrition, and environmental degradation are some of the key challenges the Philippines is facing in its development trajectory.

Economics affects our daily lives in both obvious and subtle ways. From an individual perspective, economics frames many choices we have to make about work, leisure, consumption and how much to save. Our lives are also influenced by macro-economic trends, such as inflation, interest rates and economic growth.

Microeconomics is the study of how individuals and businesses make choices regarding the best use of limited resources. Its principles can be usefully applied to decision-making in everyday life—for example, when you rent an apartment. Similarly, a business also has limited time and money.

Economics – a window on the world Choice is at the heart of all decision-making. Individuals, businesses and governments are all faced with making choices in situations where resources are scarce. This is where a knowledge of Economics is vital. Economics applies to most aspects of everyday life.

Answer. Answer: Economics is the study of how people deploy resources to meet human needs. Economists are interested in incentives and prices, earnings and employment, investments and trade among many things.

What are some reasons for studying economics? – Economics has an impact on everyday life. – Economics helps people learn to manage resources. – Economics explains the roles of producers and consumers.

The following are the reasons that make the study of economics inevitable.

• To study the Theory of Consumption.
• To study the Theory of Production.
• To study the Theory of Distribution.
• To study the basic macroeconomic problems faced by an economy.

sufficient products to meet consumer wants. What is the fundamental problem producers and consumers face? goods.

How would a manufacturer benefit by using fewer scarce resources? The product would be less expensive to produce. The product would better satisfy consumer needs. The product would provide a more satisfactory profit.

Which activity would a consumer most likely perform? sufficient products to meet consumer wants.