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Meaning and Importance of Economics
Meaning and Importance of Economics
Economics is the study of how to allocate finite resources. To be most effective to meet the needs of human beings, which are unlimited. Human beings naturally have needed all the time. and there is no end to which the number of products and services that are available is limited will cause an imbalance between goods and services with human needs.
Therefore, the selection must not be able to respond to all needs completely. In which the choice to do one thing implicitly eliminates the opportunity to do something else is called a loss of opportunity. so it can be said that When making a choice, there is a concurrent cost, we call it opportunity cost. Therefore, economics is to choose for maximum benefit. with the lowest cost
Goods and Services
It is a useful thing that is able to meet the needs of consumers. The satisfaction of consumers can be divided into two types as follows:
1. Priceless goods or free assets is a natural products beyond human needs Use free of charge such as water, air, and sunlight.
2. Economic goods or wealth are goods that have production costs. Limited compared to demand without having to purchase or pay compensation in order to obtain that product
Study and understand the behavior of various economic units. must understand the behavior of each economic unit in a way that is a subset and a collective of the economic system in order to better understand the work and problems that occur in the whole economy
Importance of Economics
It is a course that studies the use of limited resources to produce and sell products. distributed to meet human needs. It is the knowledge that is inserted into everyone’s daily life. Therefore, basic economic needs that people can apply in their daily life. are important as follows:
1. As a consumer Help as a guide in earning money. worth spending investing for profitable growth
2. As the owner of the production factors Help as a guideline for using the production factors that they have limited. for maximum benefit
3. As a population in the country helps to understand the economic problems that occur in the country and understand the role and economic operations of the government
