The main reasons behind uncertainty and risks are uncertain behavior of the market forces which are as follows:
- The demand and supply
- Changing business environment
- Government policies
- External influence on the domestic market
- Social and political changes
Economic problem:
Meaning of Economic problem:
To know the meaning of the term economic problem we have to put together the four characteristics i.e.
Human wants are unlimited.
Human wants vary in their intensity.
The means or resources are relatively limited.
There are alternative uses of the limited resources.
Therefore economic problem can be called as the problem related to the unlimited wants with limited resources. Problem arises due to this unlimited wants only. Resources used to satisfy one want cannot be used to satisfy the other want – it means that every man begins to face the problem of economizing his
means.
The problem of economy is how to use the relatively limited resources with alternative uses in the face of unlimited wants.
