Learning Contents:                                                              ·             Understanding Economy ·            Economic Problems and its causes. ·           Central Problems or Economic Problems of an Economy Economy An economy is a system that provides living to the people. For this objective to be fulfilled it is necessary that every economy should undertake certain economic activities. These economic activities are known as essentials or vital processes of an economy. In other words, “ Economy is the total of all economic activities that enable people to earn their livelihood”. Economic Problem As we have discussed in previous topics the economic problem is a problem of choice. Human wants are unlimited. They are never-ending. They multiply at a very fast rate but the resources to fulfill them are limited. In other words, resources or factors of production (they are defined as goods and services needed to carry out production i.e., land, labor,