Posts Tagged ‘classical economics’

Basic Economic Problem

September 17th, 2011

The core economic problem of scarcity of resources compared to human needs vary and are not controlled. Economic problems according to the flow of classical economics is the production, consumption and distribution to emcapai prosperity. According to modern economic flows, economic problems are: what and how much is produced; how to produce, and to whom goods are produced proficiency level?

1. What and how much is produced? We can not possibly produce all the required items for kelangklaan human resources and materials used as the limited ability we have, both in terms of capital and expertise. To resolve it, we must be smart in making what kind of priority that will be produced and how much is appropriate and most profitable.

2. How do I produce? Selection of methods and technologies used to produce very important. Consideration of modern technology or capital-intensive and technology-intensive manual or having to go through a detailed calculation for the future are not found many weaknesses, such as the ineffectiveness and waste. » Read more: Basic Economic Problem