Problems Of Choice

In General language, choice means selection of goods but in real economics choices is the range of options available to the individual household, firm or government when making a decision. Human wants are unlimited and resources are limited, so consumers have to choose in fixed quantity of goods which are payable for consumer. Consumer fulfills basic or important needs at first and then other. If a consumer fells that the selected goods provides him higher utility than leaved goods, that choice is called the best. There are many causes to selected limited goods in quantity out of more and more goods.

They are :

(1 ) Human Wants are unlimited.
(2) Resources are Limited.
(3) There is different in intensity or importance of needs.
(4) Scarce resources can used alternatively.

Unlimited all human wants cannot be fulfilled at a time, but anyone of wants can be fulfilled at that time. If one want is fulfilled then immediately next want arises but in the case of resources it does not happen. Therefore, imbalance between unlimited wants and limited resources creates the problem of choice in the economy. This problem exits in every goods and every time for the consumers also.

On the basis of the above explanation, we can say that problem of scarcity and choice exists everywhere. The resources of the different people in the economy are limited. The wants of the people are unlimited. Wherever scarcity exists, choice is inevitable.