The Economic Problem arises due to the interplay of two fundamental factors: unlimited wants and limited resources. This problem is faced by individuals, organizations, and countries alike.

Unlimited Wants
Human wants are endless. People always desire more goods and services than they can afford to acquire. Wants are not limited to basic necessities like food, clothing, and shelter. They also extend to luxury goods like expensive cars, houses, and vacations. Moreover, wants keep changing and evolving over time due to factors like changing lifestyles, peer pressure, and advertising.

Limited Resources
Resources are the means to satisfy human wants. They include land, labor, capital, and entrepreneurship. However, these resources are not unlimited. For instance, land is a finite resource, and its supply cannot be increased. Similarly, labor is limited by the size of the population, and capital is constrained by the amount of savings and investment.

Alternative Uses of Resources
Resources can be used in different ways to produce different goods and services. For example, a farmer can use his land to grow wheat, cotton, or sugarcane. Similarly, a factory can use its labor and capital to produce cars, computers, or smartphones. The problem arises when resources have to be allocated among alternative uses. Every choice involves an opportunity cost, which is the value of the next-best alternative forgone.

All of the Above
The Economic Problem arises due to the interaction of unlimited wants, limited resources, and alternative uses of resources. No society can satisfy all the wants of all its members with the limited resources at its disposal. Hence, choices have to be made about what to produce, how to produce, and for whom to produce. These choices are guided by the principles of efficiency, equity, and sustainability.

Economic problem arises mainly due to two reasons- (i) human wants are unlimited (ii) means to satisfy human wants are scarce.(iii) Alternative uses of resources The problem of scarcity is faced by an individual and the society.