SOFTSKILL UNDERSTANDING ECONOMICS

Understanding Economics

Economics is a science which studies how human-sufficient life such as production, distribution, and consumption of goods and services. The word comes from the Greek economy, which οἶκος (oikos) which means "family, household" and νόμος (nomos) which means "regulations, rules, laws". So basically the economic sense is the science that governs the household.
Of merging those two words, can also be interpreted indicate a condition that refers to the notion of human activity. Especially on the business to be able to process the resources in the surrounding environment.
Economics is also categorized as a Social Science. Because it is associated with human problems of the subject in the study of social sciences.

Economic sense according to some experts :

Adam Smith. Adam Smith was a Scottish philosopher nationality. Economic theory of laissez faire means, ie free market economic theory. And in his book Understanding Ekonomui is the investigation of the circumstances and because of the wealth of the country.

Abraham Maslow. Abraham Maslow was an American psychologist. In addition, he is also famous for its economic sense. Abraham Maslow created a hierarchy of needs theory. In the theory he concluded there were five basic human needs. namely:

1. Physiological needs
Examples are: Clothing / apparel, food / food, shelter / home, and biological needs such as defecation, urination, breathing, and so forth.

2. Safety and Security Needs
Examples such as: Free from occupation, free of intimidation, free from pain, free from terror, and so forth.

3. Social Needs
Example is: having friends, having a family, needs the love of the opposite sex, and others.

4. Needs Award

Example: praise, charter, decorations, gifts, and much more.

5. Self-actualization needs

Is the need and desire to go his own way according to their talents and interests.

Paul A. Samuelson. Paul A. Samuelson was an American economist who was awarded the Nobel Prize in economics in 1970. He also has won the John Bates Clark Award in 1947 for his brilliant work on the show usiany ayang less than 40 years. Inside his book Foundations of Economic Analysis, he argues is an economic sense in ways that humans do and utilize limited resources to acquire and distribute commodities to be consumed by the public.

John Stuart Mill. John Stuart Mill was an economist, philosopher and senior officials in an East-India company berkebangsaaan England. John Stuart Mill defines economic sense is the scientific practice of billing expenses and finances.

Hermawan Kartajaya. Hermawan Kartajaya a Marketing Expert who is known the world community. He argues that the economic sense where the platform is attached on top of industry sectors.

B. Types of Economy

Every human activities carried out in order to meet their needs, called the economic activity. How is consumer and producer behavior patterns in economic activity? To know the behavior patterns of consumers and producers we need to pay attention to all economic activities. Economic activities can be grouped into 3 (three), namely: production, distribution, and consumption.

a. Production

Production is any activity aimed at producing goods and services. In a broader sense, the production is defined as any action that is intended to create or add value 'to the goods and services to meet human needs. Thus, not all activities / production process is a change in the form of an item.

b. Distribution

Basically because trading is an activity distribution is a distribution main activity dala a trading system. In execution of distribution, there are several agencies that deal directly. Starting from agents, brokers, commissioners, importers, exporters, wholesalers (wholesalers), to retailers. While the methods used to distribute goods and services are divided into direct distrbusi system, distribution sitem pseudo direct, and indirect distribution system.

c. Consumption

Consumption is an activity aimed at reducing or spend avail of an object (goods and services) in order to meet the needs. Nevertheless, we must be careful in determining whether an activity in the use of an object is included into the scope of consumption or not.

C. The basic principles of economics

The definition of the basic principles of economics is a standard behavior of economic agents in the economy that lead to action and corresponds to what is expected by the economic actors in making decisions.

During this economic principle known widely taught and is "trying with as little effort as possible (given) to get maximum results". perinsip This will certainly lead to the actions of economic agents which allow all means unntuk meet their needs, but to meet the economic needs of economic actors should be subject to ethics in the economy (only accepted if agreed) to pay

 

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