The fundamental or basic economic problem plagues all economies. It has somehow intertwined itself within our daily lives and hence, forces individuals, governments and society at whole- economic agents, to make a choice and incur opportunity costs while doing so.
But to get back to the definition, the fundamental economic problem is connected to scarcity. Wherein, there exists insufficient limited resources to satisfy the infinite unlimited wants and needs of the people. It is this excess of human wants that results in a shortage.
Different economy structures offer different answers to the problem in the way the scarce resources are allocated between competing uses and this will be debated on in the following posts.