Nature of Economics:
✘The economic problem: UNLIMITED WANTS, LIMITED RECOURCES.
The economic problem emerges because our desire to consume goods and services is greater than our ability to produce.
The demand for goods and services arises from human wants. * Biological wants are for the goods and services needed to sustain human life. These are food, shelter, and clothing. These goods are often called "necessities". * Cultural wants for are for goods and services beyond necessities in order to maintain the socially accepted standard of living. The idea of a standard of living will vary with time and place. These goods and services are called "conveniences". * Demonstration wants are for goods and services beyond conveniences. Thanks to modern telecommunications, we all know about the…