The problem of limited resources is one of the key problems in economic theory. Despite the fact that there are a large number of methods for its solution, in practice it is rather difficult to implement them.
Instructions
Step 1
The division of labor is one of the oldest methods of dealing with resource constraints. It is much more profitable for individual subjects of the economy to focus on the production process that allows them to fully reveal their potential. Thus, unnecessary costs can be significantly reduced and the quality of the final product can be increased.
Step 2
The modern economy is at the level where the division of labor has become international. Climate, physical location and other factors are decisive in the production of a particular product. Thus, it is easier to focus on producing optimal goods and then exchange them for the goods you need.
Step 3
Another important method is saving and improving the efficiency of resource use. Unlike the first method, this is not about production, but about distribution and consumption. Savings save more resources so you don't waste them. This allows you to consume more goods, the quality of which is also noticeably higher.
Step 4
Efficiency in use means that by using fewer materials, a person can get more results. Accordingly, the consumption of important resources will be reduced, and the problem of their limitedness will noticeably weaken. There are many ways to improve efficiency, but, as a rule, they are divided into material (mainly related to technology) and moral (working with people).
Step 5
A relatively modern way of solving the problem of limited resources is the development of entrepreneurship and competition. The more enterprises will be involved in the country, the more resources will flow into the country's economy, and, consequently, the additional costs for maintaining the welfare of citizens will decrease.
Step 6
Competition drives productivity gains, product quality, and sales speed. The more firms there are in the market, the more difficult it will be for them to make a profit. Accordingly, in order not to get out of the game, companies will develop various methods to improve efficiency and quality. This is what allows the methods described above to be carried out.
Step 7
The limited resources can also weaken the state, banks and other financial institutions for a short time. Loans and transfers help a person to temporarily remove monetary restrictions.
