In the UK, the coalition government is trying to use ideas drawn from behavioural economics to raise organ donation rates, discourage smoking, improve food hygiene and stimulate charitable giving. The United States and its citizens were greatly affected.
The central economic problem effects on command economy.
People have to weigh up the costs and benefits of the decision. There is a lot of problems which arise due to such a large population. The key economic problem being; what to produce?
What to produce? As consumers we have all made poor choices about which products to buy. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. Assuming rational behaviour on the part of decision-making units, this optimal choice must be the one that chooses the most desirable alternative among the possibilities that the available resources permit.
Economic choices are made at the margin. The Four Basic Problems of an Economy As discussed in the paragraph above, the central economic problem of scarcity of resources is broken down into four basic problems of an economy.
Who is to receive goods and services: Who will get expensive hospital treatment - and who not? My parents Mr. Economics is the about the allocation of limited resources in the best possible way in order to satisfy needs items essential for survival — food and shelter and wants not necessities, but provide satisfaction and assist achievement of higher standard of living.