THE BIGGEST ECONOMIC PROBLEM

MAIN ECONOMIC PROBLEM

Each economic organization will always plan the activities which will be done. In production planning, each economic organization will encounter three main problem such as.

1.       What and how many the commodities which must be produced? In other words, how many goods and merit which must be produced? What kinds of goods and merit which will be produced? When are the goods and merit made?

Therefore, the problems are in the form of numbers and kinds of goods and merit which must be produced by the economics. In order to be able to solve those problems, private producers or goverment must do market analyses for determining the goods and merit which are needed by a society. This is done for getting the certainty that those goods and merit are really needed.

2.       How must the commodities be produced? In other words, who do the production process, what kinds of combinations of production factors, and what kinds of techniques?

In order to be able to solve the problems, private producers or goverment must determine the production tecniques which are effective and efficient. Besides, there are clear divisions of the persons who will do the production. Production input, whether the way to gain or the way to use must be planned accurately.

3.       For whom must the comodities be produced? Who will get benefits from the existence of goods and merits in countrywide? Or in other words, how the national products are distributed to each person?

To answer this questions, private producers or goverment must do market anlyses for determining the consumers who will use goods and merit. Production planning in an organization must be determined accurately, especially in determining the persons who will use the production results of goods and merits.

Although those three problems are very fundamental and common happened in all economic motifs always try to solve them with different ways. For example, in a society with a plain culture, norms or cultural determination and tradition will give many colors in life and the economic behaviors of a certain society. Thus, in this kind of society, those three fundamental problems will be solved based on the habits and the norms which have prevailed hereditary.

                However, it will give different effects in a society which have had high education levels and technology. They produce goods and merit which are needed with the calculation of numbers and kinds of goods which are produced based on the plan. These are based on the numbers, qualities, and the kinds of goods and merit which have counted before. Besides, the level of provided technology also becomes the main consideration. If there are sophisticated machines for producing the goods which are needed, it will be easier to answer those three problems.