KNOWING ECONOMIC PRINCIPLES, DEFINITIONS, BENEFITS, TO ITS CHARACTERISTICS – The principle of economics is a term inherent in economics. Fundamentally, economics and economic principles are about satisfying unlimited consumer wants with limited resources.
Understanding economic principles. Quoted from study.com, in general, economic principles are things that cover various kinds of economic laws and theories. Specifically, it describes how an economy seeks to satisfy unlimited demand in a market with a limited supply of resources. In another sense, the principle of economics is the study of the choices consumers make and the factors and behaviors that influence those choices. Meanwhile, quoted from the Ministry of Finance website, economic principles are guidelines in economic activities to achieve a rational comparison between the sacrifices incurred and the results obtained.
It can be said that economic principles are a guide in minimizing the risk of loss and achieving rational comparisons. The main objective of the principle of economics is to get the maximum profit and minimum loss. The application of economic principles is to three different activities, namely production, distribution and consumption. In other words, economic principles guide economic actors in the three activities mentioned above. In simple terms, the relationship of the three basic principles or economic principles is a series of processes from producing goods (production), marketing (distribution), and using these goods (consumption). Although economic activity has undergone many developments, it still involves the three basic principles of production, distribution, and consumption. While the purpose of humans doing economic activities is to meet the needs of life and survive.
Benefits of economic principles.
Quoted from the Gramedia.com page, the benefit of the economic principle is optimizing existing resources to obtain maximum profit. In addition, another benefit of economic principles is to minimize the risk of loss or damage. Then achieve the desired level of prosperity, and achieve quality guaranteed work to meet the level of satisfaction of economic actors. Furthermore, the benefits of economic principles are to achieve goals on time and live more advanced in healthy competition.