Economic Problems in Indonesia – In every country must have problems that usually occur are economic problems or financial problems. In addition to the current pandemic, the situation is getting worse. When asked to explain what the core economic problem is, perhaps everyone has a different interpretation. No need to discuss theory or complex economics, some simple buying and selling activities that you usually do can already be said to be part of the economy.
Basically, the essence of economics is the study of human behavior in choosing and creating prosperity for themselves. Then, what further explanation of the core economic problems?
Principal Problems of Classical Economics
According to classical economic theory, the main problems of economics can be classified into three main problems:
a. Production Problem
In order to meet human needs, goods and services must be available. In order to fulfill this, producers must know what goods and services society needs.
b. Distribution Problem
Another problem is how the product can be distributed properly until it reaches consumers.
c. Economy problem
After the goods and services arrive at the consumer, the next problem is; whether the goods will be consumed or even wasted because the price is not affordable. This is also another problem that must be answered by manufacturers as product makers. On the other hand, as consumers, we must be able to increase our income in order to reach the products we want.
Also Read :The World’s Economy Has Begun to Recover
The Fundamental Problems of Modern Economics
There are three main problems in modern economics. The problems are as follows:
a. What Goods and Services Are Produced and How Much (what?)
The first major problem in economics is how producers can determine what goods and services are produced. In addition, the large number of products must also be taken into account. Why? This is of course because if there is a miscalculation, producers will suffer losses, and even go bankrupt because their goods are piling up in vain.
b. How to Produce The Goods (how?)
After the type and quantity of goods and services have been determined, the next problem is the production technique. With the available resources, producers must be able to determine the most efficient production technique for them. How many employees. What technique is used. In addition, manufacturers must also be able to determine whether to produce with human power, or with the help of machines.…