Most of the problems of economics arises as a result of
Answer Details
Most of the problems of economics arise as a result of "competing demand for scarce resources". Scarce resources are resources that are limited in quantity and cannot be easily replaced or replenished, such as land, labor, and capital.
In an economy, there are many different groups, such as individuals, businesses, and governments, all competing for access to these scarce resources in order to produce goods and services. This creates a problem because there is only a limited amount of resources available, which means that some groups will inevitably have to go without.
For example, if there is a limited amount of land available for farming, farmers and other groups, such as real estate developers, will have to compete for access to that land. The more demand there is for the land, the higher the price will be, which can make it difficult or impossible for some groups to access it.
This problem of competing demand for scarce resources is at the heart of many economic issues, such as inflation, income inequality, and unemployment. Economists study these problems in order to understand how they arise and how they can be addressed through policies and other interventions.