What is the essence of the problem of choice in economics?

The emergence of the problem of choice in the economy is due to the fact that the needs of people are unlimited, but it is impossible to satisfy them all at the same time due to the limited resources. Therefore, it is necessary to decide which of the needs are the most significant in specific conditions and to satisfy only them. In the conditions of a market economy that exists in most countries of the world today, when choosing, you have to focus on the principle of production capabilities. This means that one product is produced so much so as not to interfere with the production of others.



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