1.

There is no unique way of allocating scarce or choosing how resources should be utilized to
meet human needs. Societies have devised various mechanisms for distributing goods, services,
and resources to the members of society. Some societies have used customs and traditional beliefs
as a basis for allocating the society's wealth and the fruits of its resources. In many societies today,
the price or market mechanism is used as a basis for allocation.
2.Shortage is a market phenomenon in which there is more demand than supply. While scarcity is
a natural situation that arises because of unlimited human wants. If there is appropriate measures
we can overcome shortage it can be temporary but scarcity always exist since human wants is
unlimited.
3. The common economic problem that our country is facing today is poverty. Increase of
population, unemployment and increase in cost of living are some the reasons why there is
poverty. The second economic problem in our country is unemployment. The main cause of
unemployment is there are more people who want to enter job buy there's small number of jobs
created.