Economic Definitions: Objectives, Principles, and Examples


A. Economic Definition

Economics by fundamental evidence is one aspect that occurs in everyday life. In which this aspect results in the transaction between one individual and another, the goal is to meet the daily needs of life.
One can fulfil his needs through economic aspects. Like to fulfil food needs, one is exchanging some money with rice (trading activity).

Literally, the economy is all human power and effort in fulfilling the necessities of life to achieve a level of prosperity.
According to Samuelson, it is explained that "the way to meet that need can be done by utilizing certain resources. Human resources are processed to become goods and distributed to the multitude ".

B. Economic objectives

If the economic policy in a country is not executed then it will be the economic instability in the country. The most important objective in the economy is:

1. Economic growth

One's needs will increase and will not be endless, it leads to growth in the production sector which of course can be solved by increasing the production that ultimately impacts on the economy.

2. Economic equality

For some outside countries, there are those who consider Indonesia to be advanced in the economic sector, but others are the opposite.
Jakarta, Bandung, Makasar and so on only this city is growing in Indonesia, while Indonesia has so many cities. Therefore, economic equality is required.

3. Economic stability

Many factors can affect the economic stability which if one of them rises then the impact affects the entire sector. For example FUEL price hike.

C. Economic principles

In general, there are several economic principles, namely the following:

1. Production Principles

The economy is instrumental in the process of earning a product both in the form of goods and services. This process costs both in terms of Moryl and also material.
For example, create a job field that produces certain items.

2. Distribution Principles

Distribution aspects that include the activity of distributing a product to consumers. This activity is done with a good time calculation so that the goods arrive at the place of sale in a timely manner.
For example, the distribution of vegetables and fruits from farmers to markets done in the early morning to be sold to consumers by the market.

3. Principle of consumption

The consumption principle is the activity of the use of a product to meet the needs.
For example, someone buys instant noodles to be cooked, this is done to meet the needs of his lap.

D. Examples of Economic Action

In everyday life, there are several kinds of economic activities that are done every day. Here are some of them:

1. Economic activity in the family

In order to keep the family alive, economic action is required such as:
Father serves as the head of the family should work to get income. The father worked for a company and gave resources as a dedication to the company. Therefore, the company gives rewards in the form of wage wages. The income is used to meet the needs of daily families. This action is the daily economic activity that occurs in the family.
Housewife shopping routine every day to meet daily needs. Motherhood to meet the needs of the family requires economic action. When getting monthly money from a husband, the mother will divide a variety of family needs for the next month. Grocery shopping for the family to eat. This action is the daily economic activity that occurs in the family.

2. Individual economic measures

Each individual must have their own economic needs and the economic process that occurs in one's self can be influenced by internal and external factors.
Internal factors occur due to personal needs, while external factors occur because humans are social creatures. Examples:
Someone needs something either food or stuff. When someone comes home after work, then he feels hungry then he will go to a restaurant to buy a meal.
When a student needs a laptop then he/she will try to have it, either by asking the parents for money or looking for part-time work, then the wages he can be saved until finally able to buy the laptop.

3. Economic Action Trading

Trading is an activity of buying and selling between producers to consumers, trading economic activities namely producers provide and distribute various types of goods needed by the community.

4. Economic Action Services

Economic activities in the field of services are activities conducted as a service provider of services. For example, transportation services are land, sea, and air transportation. There is also a moving and tourism that is to fulfil the needs of the outside tourists who visit Indonesia.

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