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

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Ditulis oleh: Fedrick Theo - Monday, 3 June 2013