The document discusses the economic problem of satisfying unlimited wants with scarce resources that have alternative uses. It outlines characteristics of the economic problem, solutions for both personal and societal economic issues, and fundamental questions concerning resource utilization and production. Additionally, it presents basic postulates of economics, including the principles of maximization and rational behavior.

1. Dr. B. H. DAMJI
Associate Professor & Head,
Department of Economics,
D.B.F. Dayanand College
of Arts & Science,
Solapur

2. ECONOMIC PROBLEM

3. •What is Economic Problem?
• How to satisfy infinite wants with the help of
scarce resources which are of alternative uses.
• Characteristics of Economic
Problem
• 1. Unlimited wants
• 2 Scarce means
• 3 Alternative uses of means
• 4 Selection of competitive wants

4. Solution to Economic Problems
• (A) Solution to personal economic problems.
• 1. Selection of needs
• 2. Increasing income
• (B) Solution to economic problems of society.
• 1. Optimum utilization of resources
• 2. Ordering of wants
• 3. Selection of appropriate technique of
production

5. Basic Problems of an Economy
1. Are all resources in the economy being
utlized fully ?
2. What to produce and in what quantity ?
3. How to produce ?
4. For whom to produce ?
5. How efficiently the resources are being
utilized ?
6. Is the economy growing or stagnant ?

6. Basic Postulates of Economics
• 1. Principle of Maximization
• 2. Rational behaviour
• 3. Full knowledge of market
• 4. Study of common man
• 5. Other things being equal

7. Contd.
• 6. Psychological condition
• 7. Assumption of Equilibrium
• 8. Institutional assumption
• 9. Scarcity
• 10. Sovereign consumers

8. Thank You