Kamis, 02 Mei 2013

ABOUT ECONOMY, INCLUDING DEFINITIONS, ECONOMIC PROBLEMS AND ECONOMIC SYSTEMS



INTRODUCTION

Bismillahirrahmanirrahim
Alhamdulillhahirabil'alamin, praise and gratitude the presence of GOD Almighty. As the creator of all life that we see, we hear and we think that always gives grace, His guidance and inayah so I can finish the task this soft skill courses. Blessings and greetings may remain devoted to the great Prophet Muhammad and his family, friends, and followers remain unchanged until the end yaumil.

Thanks and deep gratitude, the author goes to dear old Dad and mom who has raised and taught me with patience, compassion, prayer and a stream of sweat that flows during this life. Really, Dad and Mom love is the most beautiful gift that can not be replaced by anything else.

On this occasion, the author would also like to thank with sincere heart to all those who have assisted in the completion of this paper may Allah always reciprocate with kindness doubled.

The author realizes that the preparation of this paper is far from perfect, therefore, the authors expect criticism and constructive suggestions for the improvement of all parties in the future. Finally, hopefully the good deeds that have been given by all parties to the author, gets just reward from Allah SWT. Authors hope this paper may be beneficial for all parties.



CHAPTER. I

INTRODUCTION


In general, subjects in the economy can be divided in several ways, most notably the microeconomics vs. macroeconomics. In addition, the economic subjects can also be divided into positive (descriptive) vs. normative, mainstream vs. heterodox, and others. Economics also functioned as a family of applied science in management, business, and government. Economic theory can also be used in areas other than monetary, such as the study of criminal behavior, scientific research, death, politics, health, education, family and others. This is possible because the economy is basically as mentioned above is the study of human choice.
This paper aims to fulfill one soft skill courses and learn the basics of economics and economic principal problems.
Hopefully, this paper can be useful as a literature review of information or materials to know the basics of economics in a nutshell. This paper can also be used to increase the repertoire of our knowledge in the basic knowledge of economics and the basis for the development of other economic matter.


 

CHAPTER. II

DISCUSSION

A. Definitions and Methodology of Economics
Indonesian From Wikipedia, the free encyclopedia Indonesia.
Economics is the science which studies human behavior in selecting and creating prosperity. Core economic problem is the imbalance between human needs are not limited to the means of satisfying the needs of a limited number. The problem then causing scarcity (scarcity).
The word "economy" itself comes from the Greek words (oikos) which means "family, household" and (nomos), or "rules, regulations, laws," and broadly defined as "home rule" or "household management . "While that is an economic expert or economist is a person using economic concepts and data in the work.
In general, subjects in the economy can be divided in several ways, most notably the microeconomics vs. macroeconomics. In addition, the economic subjects can also be divided into positive (descriptive) vs. normative, mainstream vs. heterodox, and others. Economics also functioned as a family of applied science in management, business, and government. Economic theory can also be used in areas other than monetary, such as the study of criminal behavior, scientific research, death, politics, health, education, family and others. This is possible because the dasarnyaekonomi as mentioned above is the study of human choice.
There is an increasing trend to apply the ideas and methods of economics in a broader context. The focus of the economic analysis are "decision-making" in a variety of areas where people faced choices. such as education, marriage, health, law, crime, war, and religion. Gary Beckerdari University of Chicago is a pioneer of this trend. In his articles he explained that the economy should not be confirmed by the subject matter, but should be defined as an approach to explain human behavior. This opinion is sometimes described as economic imperialism by some critics.
Many mainstream economists feel that the combination of theory with existing data is sufficient to make us understand phenomena in the world. Economics will undergo major changes in ideas, concepts, and methods; although in the opinion of critics, sometimes these changes actually damage true concept that does not correspond to the reality. This raises the question "what should be done the economists? "The traditional Chicago School, with its emphasis on economics being an empirical science Aimed at explaining real-world phenomena, has INSISTED on the powerfulness of price theory as the tool of analysis. On the other hand, some economic theorists have formed the view that a consistent economic theory may be useful even if at present no real world economy bears out its prediction.

Historical development economics
Adam Smith is often referred to as the first developing economics in the 18th century as a separate branch in science. Through the great work Wealth of Nations, Smith tried to find out the history of the development of the countries in Europe. As an economist, Smith does not forget the roots of morality, especially that contained in The Theory of Moral Sentiments. Historical development of economic thought and then continues with generating figures such as Alfred Marshall, JM Keynes, Karl Marx, to the winner of the Nobel Prize for Economics in 2006, Edmund Phelps.
Broadly speaking, the development of schools of thought in economics preceded by what is known as the classical flow. Flow is primarily spearheaded by Adam Smith's invisible hand to emphasize the existence of the division of resources, and therefore the role of government to be very limited because it would disrupt this process. Concept invisble hand is then represented as a market mechanism through rates as the main instrument.
Classical flow experienced failure after the Great Depression of the 1930s which showed that the market was not able to react to the turmoil in the stock market. As penanding classical flow, Keynes proposed the theory in his book General Theory of Employment, Interest, and Moneyyang stated that the market is not always able to create a balance, and therefore government intervention should be done so that the distribution of resources to meet their goal. The two streams are then each "fight" in the world ilmuekonomi and generate many variants of both such as: new classical, neo-classical, new Keynesian, monetarist, and so forth.
However, developments in this thinking is also growing in the other direction, such as the theory of class conflict of Karl Marx and Friedrich Engels, as well as institutional flow that first developed by Thorstein Veblen et al and then by Nobel laureate Douglass C. North.

Methodology
Often referred to as the queen of the social sciences, economics has developed a series of quantitative methods to analyze economic phenomena. January Tinbergen in the aftermath of World War II is one of the main pioneers of the science of econometrics, which combines mathematics, statistics, and economic theory. Another stronghold of quantitative methods in economics is a General Equilibrium Model (general equilibrium), which uses the concept of the flow of money in society, from one economic agent to another agent. Two quantitative methods are then developed rapidly until almost all economic papers are now using one of them in his analysis. On the other hand, qualitative methods are also similar development was primarily driven by the limitations of quantitative methods in explaining behavior change agents.

B. Key Issues Economic Price Mechanism and Influence
Basic economic problems faced by every society, namely the problem of scarcity or lack. Based on the description of the basic economic problem will be formulated definition of economics.
1 Economic Issues and Needs to Make a Choice
In the daily life of individuals, companies and society as a whole will always face the problems of economic nature ... "What is meant by economic activity?"
Economic activity can be defined as a person's activities or a company or a society to produce goods and services and consume (use) of goods and services.
The scarcity or lack of effect as a result of the imbalance between the needs of the community with the factors of production are available in the community. Factors of production that can be used to produce such goods is relatively limited. Therefore people can not obtain and enjoy all the possessions they need or want. They need to make and make a selection.
Intended to community needs is people's desire to consume goods and services. Some goods and services are diimportdari abroad. But mostly produced domestically. The desire to acquire goods and services to the two forms can be distinguished:
1)                  The desire is accompanied by the ability to buy.
Desire accompanied by the ability to buy the so-called effective demand. Based on the item of interest in human life. The goods are differentiated to inferior goods (eg salted fish and cassava), essential goods (eg rice, sugar and coffee), normal goods (eg clothes and books) and luxury goods (eg, cars and gold). Based on how the use of the goods by the public. These goods are divided into private goods (eg food, clothing and cars) and public goods (eg roads, traffic lights and beacons).
2)                  The desire that is not accompanied by the ability to buy.

Factors of production
The second economic issue is what is consumed and by whom. What is consumed by the distinguished in-faltor factors of production. What is meant by the factors of production are the objects that are provided by nature or created by man which can be used to produce goods and services. The factors of production are available in the economy distinguished the four types, namely:
1)                  Land and natural resources, produsi factor is provided by nature. The factors of production include land, minerals, forest products and natural resources such as water can be used as capital is dammed for irrigation or for power generation.

2).        Labor, factors of production is not only the number of workers who are in the economy. Understanding labor and skills include expertise. In terms of labor skills and education can be divided into three categories, namely: unskilled workers, skilled and educated workforce.
3).        Capital, the factors of production is created by the human body and is used to produce the goods and services required.
4).        Expertise keusahawanan, the form factor of production expertise and capacity of the employer to establish and develop a range of business activities. Kealian keusahawanan includes three proficiency organize the resources or factors of production effectively and efficiently so that their business can succeed and thrive and provide goods and services to the public.

Unemployment Rate and Inflation

In his book, Samuelson Nordhaus wrote the main fundamentals of an economy. According to Samuelson, Economics is the study of how groups of people choose to use limited production resources that have alternative uses, to produce various commodities and distribute them to other groups.

Supplies are limited because people have the desire (desire) that is greater than what can be produced by an economic process. Economic objects is limited, so people have to use and choose among the items that the limited number that can be produced with existing resources.

Production efficiency occurs when all available resources is done so that the maximum rank on production can not be increased further without compromising / reduce the production of other goods. If too much unemployment, then the inefficiency of human resources so that the economy was on the charts PPF (production-possibility frontier).


C. Economic system
1. Traditional Systems
            Traditional economic system is a system in which the behavior is based primarily on traditions, customs, and habits. There is little change in the pattern of goods produced from year to year, other than those caused by natural odd levels. Production technique also follows the traditional pattern except when there are new discoveries effects that occur once in a while. Akhirmya production is allocated among the members according to the long-standing tradition.
            Economic system such as this are best in an environment that does not change. In the static condition of a system that does not require people to continually make the choice can be shown to be effective in meeting economic and social needs.
2. Guided System
            In guided systems, economic behavior is determined by the kind of central authority that took most of the necessary decisions about what to produce, how to produce it, and who gets it. This economy is characterized by centralized decision-making. To protect the economic actors of this system can be used to determine economic policy. An example is in determining the price increase power and fuel oil and gas. The government must determine how much the price kanaikan that demands on natural resources and the production can still be met.
3. Market System
            In this economic system of resource allocation decisions are made without any direction on the allocation of the center. The decision is the result of independent decisions made by producers and individual consumers. Such systems are known as free market economic system, or simply known as the market economy. In the current economic decision berhubngan basic premises of economic issues but nonetheless coordinated decentralized. The main coordination tool is the market price set by the market. That's why the free market system is often called the price system, which is an increase or decrease in the price is determined by the balance between supply and demand in the market.
4. Mixed Systems
            Traditional economic system wholly or fully controlled by central or completely free market is pure types are useful for studying the basic principles. But when we look in detail sitem real economy anywhere. We mendaparkan that economic behavior is the result of a sort of mix of central control and determination of the market with a certain amount of traditional behavior anyway. In practice all the economic system is a mixed economy, in this system combines three previous systems in determining economic behavior.

 
 



CHAPTER. III

CONCLUSION


Economy comes from the Greek words (oikos) which means "family, household" and (nomos), or "rules, regulations, laws," and broadly defined as "home rule" or "household management." While is an economic expert or economist is a person using economic concepts and data in the work.

According to Samuelson, Economics is the study of how groups of people choose to use limited production resources that have alternative uses, to produce various commodities and distribute them to other groups.

Supplies are limited because people have the desire (desire) that is greater than what can be produced by an economic process. Economic objects is limited, so people have to use and choose among the items that the limited number that can be produced with existing resources.

Production efficiency occurs when all available resources is done so that the maximum rank on production can not be increased further without compromising / reduce the production of other goods. If too much unemployment, then the inefficiency of human resources so that the economy was on the charts PPF (production-possibility frontier).

There are 4 economic systems, traditional economy, led, market, and mixed economies. To date most countries adopt a mixed system in which there is a combination of three existing systems.


REFERENCES
Rides, Jaka and Kirbrandoko, 1995, Introduction to Micro Economics Volume I, First printing Translation, Binarupa script, Jakarta





Disusun Oleh
Nama                               : SYAHRU RAMADHAN
Npm                                 : 12209023
Kelas                                : 4 EA 07

UNIVERSITAS GUNADARMA

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