Archive for December, 2011

Economic System

December 8th, 2011

To deal with problems in the economy, every country has different ways depending on the economic system which they profess. Economic system is the way a nation (public and government) regulate economic life. In other words, the economic system is a network of organizations and policies that set a state government in addressing economic problems.

1. Traditional economic system

Is the basic economic system and still use a patterned social custom of cultural values. Usually this system is adopted by the tribes in the interior and underdeveloped countries.

Characteristics, among others:

· The absence of a clear division of labor

· Lack of community’s role in trying

· Production is limited and determined as needed

· The exchange still using the barter system even though the currency has been used

· The main income of the agrarian sector » Read more: Economic System

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Prediction Year 2012 State of the World Economic

December 5th, 2011

After passing through the Christmas and New Year festivities, preparations for war in both the forex market or commodity trading has begun. Judging from what had happened in the year 2011, there are some predictions about what is happening in the online trading market in 2012. Although these predictions are based on all information available but of course this prediction is not absolute, so it does not cover all possibilities required re-adaptation according to the developments taking place in the online trading market.

1. State of the European Economic
The first half year 2012, the state of the economy experiencing a phase of Europe will be very heavy. Greece will again be the focus of the news after the Greek government still fails to achieve the target of fiscal policy in the current recessionary conditions. Estimates bankruptcy threat for Greece and Portugal are still large enough will probably be the next victim after Greece.

After Greece and Portugal, the next weak point that will burden the state of European economies in 2012 are Italy and Spain. I think the ECB will re-poured funds if the crisis worsened Europe that occurred. Self-esteem as the Central Bank ECB in the European region will be at stake for a possible outbreak of the euro zone. » Read more: Prediction Year 2012 State of the World Economic

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Scope of Micro Economic Theory

December 2nd, 2011

Micro economics is a branch of economics that studies the economic activities of individual (units) or small parts of the economic problems or disagregat. Such as life / activities of a firm, level of prices and wages, allocation of production factors, and so on.So studying microeconomics more specifically against the units of economic activity and what happens to an economy that lasts. Microeconomic theory approach using abstract models in seeing how the price formation of an object and how available resources are allocated to the various kinds of production for public use.

Function of microeconomic theory is merely explains and can be used as a basis for forecasting, where we are forecasting is possible to membut a conditional or predictions besyarat, where the condition is the existence of an ASSUMPTION.

One of the most perfect models in microeconomic theory is a model of supply and demand model, where through the use of this model the conditional forecasts can be made. For example, it can be said that if the curve is negatively sloped demand and supply curve is positively sloped, then the price rises above the equilibrium price would create a surplus of goods in the market, and vice versa. Microeconomic theory can also be applied at the discretion of the economy, namely by using price theory to analyze the actions taken to affect the economy. » Read more: Scope of Micro Economic Theory

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