Explain the economic problem and how different groups attempt to solve it.

The economic problem can be described as attempting to satisfy the unlimited and ever changing wants of the consumer with limited resources. As these wants can never be satisfied, all individuals, businesses and governments are faced with the choice of what to obtain with those resources. As each consumer group's wants and resources varies greatly, each deals with trying to solve the economic problem in a different way. The choices made by each individual are …

…This is often organised as a budget, whether within a household or the Government's National Budget for the year. However this is only a way of dealing with the problem, it does not solve it. As the wants of consumers are unlimited and ever changing, they can never be satisfied with the limited resources of the consumer or group. A budget simply aims to make the best choices, taking the wants and resources into account.