Basic Economic Problem in The Society

BASIC ECONOMY PROBLEM IN THE SOCIETY

Economics problem can be defined as the problem people encounter in attempt to stability the numerous want with the limited resources at their disposal. The problem consist

   WHAT TO PRODUCE

   HOW TO PRODUCE

   FOR WHOM TO PRODUCE

  EFFICIENCY OFF RESOURCES USE

WHAT TO PRODUCE: - This economic seek to find out the basic nature and type of goods and services and in what quality should be chosen goods to be produce.

                This arise a result of the fact that human want are unlimited relative to the unlimited available resources and hence, every society must decide the nature of goods and services to produce. For instance in a capital economic system, the problem of what to produce that is the type and quality of goods and service or mechanism while in an economy system state controls and direct  the allocation of resources and decide what to produce.

HOW TO PRODUCE: -The economy problem, seek to find out the best Technic in producing goods and services to find out the best Technic in producing and services and deciding whether to use labor or intense method of production. It should be noted in any society depend largest, on the nature of the product and level of technology for instance, the labor intensive  method is adopted  by a nation that is over populated at one larger part of her population be gainful employed is optimum and have the technology  facilities to promote large scale production.

                The labor intensive method employs more of labor and less capital equipment or machine while the capital intensive employs more of capital equipment  and machines is less labor.

FOR WHOM TO PRODUCE: - This economy Problem bothers on, who enjoys and get the benefit of goods and services it should be noted that this problem boards on the level of the income of the consumers that is adopted by the economy system of the nation for instance the highest of the level of the consumer’s the more they are able to buy goods  and services in the capitalist and mixed economy system who gets what is produced depends on “Price System” but  in a socialist economy the “Quetta System” in the distribution of goods and services among the citizens.

EFFICIENCY OF RESOURCES USE: - This economy problem is optimum use in factor of production in order to archive higher and better output at a reasonable cost it refer to the efficient utilization to ensure that waste is reduce in other to archive optimum output since resources available it limited relative to demand it becomes necessary to enable society to make decision to ensure that scarce resources are efficiency use to produce require goods and service.

also see the Definition of economy

OPEC Organization petroleum Exporting Countries

OPEC Organization petroleum Exporting Countries

OPEC is an organization made up with 13^th members state and was founded in Baghdad, Iraq and was formed in September 1960 by Iran, Saudi Arabia, Iraq, Venezuela,

Later the five forming members of OPEC where later joined with Nigeria (1971), Kuwait, Libya(1962), Qatar(1961), Gabon, Ecuador(1973), Algeria(1969), United state of Emirate(1967) and Indonesia.

Mainly OPEC was formed to prevent some essential activities to the exploitative of multinational oil companies to export oil from the producing nation and gave them nothing in return now there headquarters is at Geneva Switzerland and later in five years it was moved to Vienna Austria on  1^st September 1965.

AIMS OF OPEC (ORGANIZATION PETROLEUM EXPORTING COUNTRIES)

   To ensure steady supply of oil consuming nations

    Protection of membership

   Stability of oil income

    Policy of members states

    To fix and allocate production quarters to members nations.

    Steady income to oil producing countries

ORGANS OF OPEC (ORGANIZATION PETROLEUM EXPORTING COUNTRIES)

   
BOARDS OF GOVERNORS: - This is the Representative who makes up the body, it’s also refers to as governors and would be voted for and will have to stay for a term or two years.  

   
SECRETARIAT: - The secretarial involve the executive and administer issues of the organization and it is in Vienna, Austria, where the headquarter is located.

CONFERENCE: - is the powerful and highest of all the organs.

What Is Economic

     The subject economic has its own origin from the Greek word "OILKLNOMIESS" meaning household management. Economic has been define by various economist

ADAMS SMITH (1776): - he define economist as an esquire into the nature and causes of wealth into the nation. In the same year he propounded the theory of division of labor.

JEAN BAPTIST SAY (J.B.SAY 1830): - He define economic as a law which governs wealth

JOHN STUART MILL (J.S.MILL 1884): - He defines economic as a practical science of production and the distribution of wealth.

ALFRED MARSHALL (1890): - he defines economic as the study of mankind in the ordinary business of life.

AC PIGOU-PARETO (1920): - He defines economics as the component of social welfare which can be measured with the provision of money.

PROF LIONEL ROBBINS (1932): - He defines economic as a social science which studied human behavior a relationship between ends and scarce means which have alternative uses.

Therefore Prof Lionel Robbins needs further explanation as it covers major aspect of economy such as science, ends, scarce means, and alternative uses

HIGHLIGHT OF PROF LIONEL ROBBINS DEFINITIONS

  SCIENCE: - Economics is a science which study human behavior and makes it a social science because it deals with the activities of man. It is described as a science because it uses scientific method to describe, explain, and observe phenomenon and to predict future event.

  ENDS: - This refer to desire or need it refer to human want which are unlimited

  SCARCE: - This refer to the limited available resource used to certify numerous want, it can also be refer to the limited in relative demand.

  MEANS: - This refers to the resources used to certify human want.

  ALTERNATIVE: -this means that the scarcity can be used in different purpose.

H. J. Davenport (1960): - He defines economic as a science that treat phenomenon from the stamp point of price.

PROF RICHARD LIPSERY (1989): - He defined economic as the allocation if study resources among alternative uses and the distribution of society among alternative uses and the distribution of society output among individual and at a point of time.

M.L. JHINGAN: - As a social science consider with a proper use and allocation of scarce resources for their achievement and maintenance of growth and stability.