The basic economic problem is a term used in economic theory. It asserts that there is scarcity, such that finite resources available are insufficient for satisfying all human wants. The problem then becomes determining what limited goods and services an economy is to produce, for example, more or less on public services, housing, agriculture, or manufacturing. It also may determine how the goods and services are to be produced, as capital or labour usage and the efficiency to produce as much as is consistent with limited resources. ‹ The template below is being considered for deletion. ... In economics, scarcity is defined as a condition of limited resources, where society does not have sufficient resources to produce enough to fulfill subjective wants. ... This article is about modern humans. ... Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. ... Houses in Fishpool Street, St Albans, England For other meanings of the word house, see House (disambiguation). ... Manufacturing (from Latin manu factura, making by hand) is the use of tools and labor to make things for use or sale. ... Capital has a number of related meanings in economics, finance and accounting. ... In classical economics and all micro-economics labour is a measure of the work done by human beings and is one of three factors of production, the others being land and capital. ...

There are four reasons why wants and needs may exceed production possibiliies:

1. Goods eventually wear out and need to be replaced.
2. New or improved products become available.
3. People get fed up with what they already own.
4. With an increase in salary the expectations of the consumer rise.

Limited resources

Commodities (goods and services) are created by utilisation of resources. The resources shown below are sometimes called factors of production. In economics, factors of production are resources used in the production of goods and services, including land, labor, and capital. ...

In types of commodity a free good is available without the use of resources. For example, there is zero opportunity cost for air above ground. An economic good is a commodity in limited supply. However the difference between a free good and an economic good alters with the opinion of the economist. For example within the Amazon Rainforest rainwater is not considered as scarce because it is in mass abundance, but 'fresh water' is considered as scarce because it is hard to come by. This article does not cite any references or sources. ... The free good is a term used in economics to describe a good that is not scarce. ... In economics, opportunity cost, or economic cost, is the cost of something in terms of an opportunity forgone (and the benefits which could be received from that opportunity), or the most valuable forgone alternative (or highest-valued option forgone), i. ... A good in economics is anything that increases utility. ...

Expenditure on producer or capital goods is called investment. This article or section does not cite any references or sources. ... In economics, capital goods refer to real products that are used in the production of other products but are not incorporated into the new product that is derived from the production of the older product. ... Invest redirects here. ...