Why is an economy unable to produce everything it needs?
People work to earn
an income by which they can satisfy their wants.
Wants are unlimited
and income as the means is only limited.
An economy has only
limited resources, so limited quantity of goods and services can only
These questions and answers
reveal that a choice has to be made between various patterns of
satisfying wants. Economics helps us as households, entrepreneurs,
businessmen and government, in finding out the principles that should
govern our choice among all possible alternatives.....
The Sveriges Riksbank
Prize in Economic Sciences in Memory of Alfred Nobel