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.
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