Final answer:
In economics, society faces the problem of scarcity, where limited resources conflict with unlimited needs and wants. The production possibilities curve illustrates the choices involved in allocating resources. To address this problem, society must make choices and prioritize through economic systems and policies.
Step-by-step explanation:
In economics, every society faces the problem of scarcity, where limited resources conflict with unlimited needs and wants. This means that there are not enough resources available to satisfy all the desires and demands of individuals and the society as a whole. Limited resources include things like land, factories, oil, and people. On the other hand, wants are unlimited and humans always desire more and better of practically everything like housing, education, and various goods and services.
One way to understand this problem is through the concept of the production possibilities curve. This curve illustrates the choices that society has to make in allocating its limited resources to produce different combinations of goods and services. It shows the trade-offs involved. For example, if a society devotes more resources to producing one good, it will have to give up some production of another good.
In order to address society's problem of meeting needs within the context of limited resources and unlimited wants, it is necessary to make choices and prioritize. This is where economic systems and decision-making processes come into play. Different societies and countries adopt different economic systems, such as market economy, planned economy, or mixed economy, to allocate resources and distribute goods and services. Society also develops policies and strategies to manage scarce resources and ensure the basic needs of individuals are met.