UNDERSTANDING ECONOMIC

UNDERSTANDING ECONOMIC

ECONOMICS is a field of study on the management of material resources of individuals, communities, and countries to increase human welfare. Since economics is a science of human behavior and actions to meet their needs are varied and expanding existing resources through the choices of production, consumption and or distribution.

The following are terms and definitions of the economy, according to some experts:

# ADAM SMITH

 Economics is the investigation of the circumstances and because the wealth of the country

# MILL J. S

 Economics is the science of practical about spending and billing

# ABRAHAM MASLOW

 Economics is one of the areas of study that tried to solve fundamental purpose of human life through the forging of all economic resources available to the ° Based certain principles and theory in an economic system that is effective and efficient

# HERMAWAN Kartajaya

 Economics is a platform where the industry is attached on top

# PAUL A. Samuelson

The economy is a means by which man and his group to utilize limited resources to obtain various commodities and distribute them for consumption by the public

  When talking about the economy, automatically we will also talk about economics in which economics is a science and study the membahsa study of economics itself. In general, economics is divided into two. namely macroeconomics and microeconomics.

Macroeconomics study the behavior of the economy as a whole about the economic and micro economics focuses more on the individual decisions of both the household and corporate sectors in mengalokasina resources to meet their needs.

The economic system is a fusion of the rules or ways of being a single entity and are used to achieve the objectives in the economy. A system can be likened to tiny circles interconnected with each other. Small circles is a complete subsystem. Subsystems interact with each other and eventually form a unified system in a big circle that moves according to the rules. Various economic problems faced by all countries in the world, can only be solved by an economic system adopted by each country. The difference in the application of the economic system may occur due to differences in governance systems and the differences in ownership of a country's resources.

The economic system can function as:

• Means incentive for production

• The way or method to organize individual activities

• Create a specific mechanism that distribution of goods and services carried out well.

Kinds of Economic System

1.Socialist Economic System-communistic

In-communistic socialist economic system is the opposite, where the economic resources or factors of production controlled by the state. A country with a socialist-communist economic system, emphasis on community togetherness in running and promoting the economy.

In this system stand out is the unity, in which all means of production belong together (country) and distributed to the common good according to their individual needs.

2. Liberal-Capitalist Economic Sistem

Liberal-capitalist economic system is a system that gives great freedom for economic actors to conduct the best interests of the individual or resource-economic resources or factors of production. Broadly speaking, the characteristics of liberal capitalist economy is as follows:

1. There is widespread recognition of the right to privacy

2. Practice atus economy by market mechanisms

3. Practice economy driven by the profit motive (profile motife)

3. Economic Sistem Mixed (mixed economy)

In addition to the two extremes of the economic system, there is a different system that is "a mixture: of the two, with various levels of donations fariasi, with fariasi name and by its terms. Mixed economic system generally adopted by developing countries or countries of the third world. Some countries are quite consistent in concocting a mixed economy, in the sense that capitalists always higher levels (eg the Philippines) or greater weight socialism (eg India). But many who waver in concocting a mixture of the two systems, sometimes leaning capitalist.

Basically a mixed economic system or economic system with a competitive democratic control, an economic system that is best suited to manage the economy in Indonesia, however, lately Indonesia's economic system increasingly skewed to the liberal and capitalist economy it is characterized by the rapid entry of foreign capital to Indonesia and a number of state-owned enterprises and enterprises that have been privatized. The trend is spurred the swift currents of globalization and the demise of a number of communist countries in Eastern Europe are applying economic-communistic socialism.

In relation to the economic system, there are three known forms of economic systems in the world, namely:

1. Centralized economic system (socialist economic system) or called a Command Economy, which is an economic system in which the government makes all the policies regarding the production, distribution, and consumption. In other words, in a purely social economic system, the government regulate all aspects of economic activity.

2. Market economic system (Laissez-Faire Economy), an economic system based on individual freedom and enterprise in determining the range of economic activities, such as consumption and production. The economy will determine the balance point with the ability to rely on the price system, the attraction between demand and supply. Equilibrium price and quantity of goods and services in the economy are guided by something invisible (invisible hand).

3. Mixed economic system which is a combination of the market economy and a centrally-planned. Da lam mixed economy, individual liberty and enterprise in determining economic activity is recognized, but the government intervened in the economy as an economic stabilizer by imposing a variety of fiscal and monetary policies.

sumber:
> http://thedarkancokullujaba.blogspot.com/2012/09/macam-dan-pengertian-sistem-ekonomi.html
> http://carapedia.com/pengertian_definisi_ekonomi_menurut_para_ahli_info501.html

NAME: SRI NURJANAH APRIANI
CLASS : 1EA09 (2EA01)
NPM : 16211875