what is the economic problem

The economic problem refers to the fundamental challenge facing all societies, which is how to satisfy unlimited wants and needs with limited resources. This problem arises from the mismatch between the endless needs and wants of people and the limited resources available to satisfy them. It encompasses the questions of what to produce, how to produce, and for whom to produce. In other words, it involves making choices about the allocation of scarce resources to competing uses. This problem is also known as scarcity, and it is a central concept in the field of economics