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Essay: Discuss whether the Basic Economic Problem will ever be solved

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Introduction

22/09/09 'Discuss whether the Basic Economic Problem will ever be solved ' The Basic Economic Problem is that the resources we use on a day to day basis are scarce. These resources are called 'economic goods', such as oil, land, steel and coal. There are also resources which are not scarce; as they are plenty of them and we call these 'free goods', such as food, water, air, and clothes. Due to the problem of scarcity of economic goods, choices have to have made every day everywhere, at all levels of society and business, this is what we call opportunity cost. Regarding the basic economic problem, we are left to discuss whether it will ever be solved, and we will no longer have scarcity and the need to make choices or if resources will eventually run out and we will have to do without or find and produce alternatives. There are both arguments for and against the issue, I will discuss both and come to my own conclusion. The main argument for, the basic economic problem will be solved is that we are currently, as always looking for alternatives for scarce resources, for example we ...read more.

Middle

In conclusion, the argument that the Basic Economic Problem will be someday solved is that we are currently researching alternatives for our scarce resources and governments around the world are encouraging people to save on energy so to not use it up at the staggering rate we are currently doing. Also, advancements in technology will help us in producing alternatives to scarce economic goods. There is always an argument against, and that the economic problem will never be solved and therefore we will eventually run out of our current economic goods and will have to make do without. The problem is that we, as humans have unlimited wants, but don't have the resources to match them. This happens at all levels, for example; on a global scale the British Government may want to import 500 gallons of oil, but will not have the resources to do so, so they will have to go without or find an alternative. This can also happen on a personal level, as someone may see two things they like in a shop but only have enough money - which is a resource to buy one. We generally call this opportunity cost. ...read more.

Conclusion

The fact is we do not have unlimited resources, however we do have unlimited wants, that will never be attained. In conclusion, the argument against the idea that the Basic Economic Problem hangs on one key fact; we have unlimited wants but do not have unlimited resources to reach and achieve these wants. Tangible materials such as land, oil and steel are also becoming very scarce, therefore very expensive and less easy to obtain. These materials will eventually run out unless alternatives are found. In general conclusion, I believe that the Basic Economic Problem can never be solved. There are a few key reasons why I believe this. The main one is yet again we have unlimited wants but finite resources to fulfil these, and human nature will continue to think and behave in this way. Another reason is that economic goods are eventually going to run out unless we find reasonable and affordable alternatives. Funding alternatives is a separate problem also, as many governments aren't thinking about doing this, having other priorities and agendas. That is why I believe we will never solve the Basic Economic Problem and in the future we will have to find alternatives or go without. ...read more.

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The writer concentrates on looking at whether we can have unlimited resources. This is one of a number of possible approaches. They could consider other alternative economic systems that have been tried eg feudal, communism as means of addressing the 3 economic questions: what to produce, how to produce it and for whom. They have misunderstood the role of government in modern society.

Marked by teacher Dennis Salter 04/10/2013

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