A basic economic problem of any society is

The basic economic problem of any society is resource allocation. This is the problem of how to allocate scarce resources among competing wants and needs of individuals and society. Resources are limited, while human wants and needs are unlimited. Therefore, there is always a problem of choosing which goods and services to produce and how to distribute them among the members of society. The problem of resource allocation is at the heart of economics and it is the reason why choices have to be made on how to allocate resources.