This involvement of this problems made the selection of products and services to be produced and also the production of every selected commodity. Every economy has limited resources and thus, cannot produce all the products. More than one good or service usually means less of others.
For example,
- Production of more sugar is feasible only by reducing the assembly of other goods.
- Production of more war goods is feasible only by reducing the assembly of civil goods.
- On the idea of the importance of varied goods, an economy should decide which goods should be produced and in what quantities. This can be a controversy of allocation of resources among different goods.
