Allocating courses at a college usually is not done by the use of markets. it follows that allocating courses is nevertheless an economic problem.
What is an economic problem?
- The three basic economic questions that must be addressed and resolved by economic systems as a sort of social system are:
- "How much and which of alternative commodities and services shall be created?"
- and "What kinds and amounts of goods shall be produced." How should products be made? Who is doing this and with what funds?
- Scarcity results from a lack of resources and an abundance of human desires. The cause of all economic problem is this.
- Examples include, How to deal with external costs/pollution, e.g. pollution from production.
- How to redistribute income in order to fight poverty without destroying economic incentives, how to supply public commodities that are typically not provided in a free market, such as street lighting.
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