Sunday, February 7, 2010

ECONOMICS AND POLICY FOR COPING WITH ECONOMIC PROBLEMS

1. Definition of Micro and Macro Economics

Economics is the study of how people and societies make choices with or without money by using limited resources in various ways to produce various types of goods and services, then distribute them for consumption purposes in the present and future. Economics is divided into 2, namely: micro economics and macro economics.
Microeconomics is an area of science that analyzes small sections of the overall economic activity. The aspects covered are:
a. How and why economic agents make economic decisions?.
b. Behavior and interactions of producers and consumers.
c. The properties and character of producers and consumers.
d. Opportunity costs that arise as a consequence of choices made.
The assumptions used in micro-economics is as follows:
  1. Economic actors act to follow personal desires (self-interested behavior).
  2. Producers and consumers act rationally.
  3. Consumers try to maximize the satisfaction that may be acquired, are producers trying to maximize the  benefits gained.
  4. Kelangkaan faktor-factor.

Macroeconomics is the science that analyzes the problems of overall economic activity, such as national income, national production, national consumption, savings and national investment. The analysis attempts to give answers to the following questions:
a. The factors that determine whether an economy's level of activity?
b. Why economic growth is not always high?
c. Why not develop economic activity by stable?
d. Why is unemployment and rising prices continue to happen?

2. Differences Micro and Macro Economics

The difference between microeconomics and macroeconomics is as follows:
a. Micro Economics:
1) Discuss the behavior of individual households
2) Discuss the behavior of individual firms
3) Discuss the behavior of a (market) industries
4) Analyzing the problems:
a) The process of price level and quantity of goods bought and sold in the market in price theory.
b) How does the manufacturer determine the level of production and production factors that chose to provide benefits in the theory of production.
c) The factors that determine the income of each factor of production in the theory of distribution.
b. Macro Economy:
1) Discuss the behavior of households in a country's economy.
2) Discuss perilakku all firms listed in the State economy.
3) Discuss the behavior of the market (industry) in a country's economy.
4) Describe the problems:
a) The factors of production which can not be used fully in the economy governed by market mechanisms.
b) The steps the government to overcome the unemployment problem.
c) The factors that lead to higher prices (inflation) and what the policy is applied to resolve the issue.

3. National Economic Problems

a. Microeconomic issues
1) Issue price and the highest price basis, which aims to mellindungi producers.
2) Menigkatnya rice demand, to deal with the government to import rice.
3) Increase the price of Fuel (BBM), the government cope with the transport entrepreneurs to general tariff adjustment.
4) The problem of monopoly, the government adopted policies to make rules of Law No. 5 of 1999 concerning the prohibition of monopoly practices and unfair business competition.
5) The problem of distribution, government and private sector policy is to shorten the distribution channel.
b. Macroeconomic issues
    1) The problem of population
a) The number of very large population
b) The rate of rapid population growth
c) The composition of the population that are not profitable because the number of young age is very large
d) Population distribution is uneven
e) The current relatively high urbanization.
To overcome the above problems the government do the following policies:
  • • Controlling the birth rate with family planning programs.
  • • Reduce maternal mortality rate and child through the family nutrition program.
  • • Conduct local transmigration program and nasonal to distribute the population equally.
  • • Carrying out projects in the region as well as labor-intensive projects to improve the standard of living.
   2) The problem of poverty
Poverty is lack manifesti of state to meet their needs. To overcome the government do the following policies:
a) Policy Development Trilogy
b) Underdeveloped Village presidential Policy
c) Provision KMKP
d) Special Intensification Policy
e) Empowerment Cooperative
f) Provision of SEC
g) Integrated Business Development
h) Program Mr. Carrier for Small Business.
3) The problem of underdevelopment
Underdevelopment of the outstanding problems are: education, health, science and technology, economic mental attitude, and the economy of the population.
4) employment problems
The cause of unemployment is:
a) The low quality and good labor quality of education, skills and science and technology
b) Many middle-level education graduates and PT are not balanced with the number of jobs.
To overcome these problems the government meneluarkan following policy:
a) Improving the quality of education
b) Provision of skills courses
c) Equitable development
d) Project-intensive projects
e) Granting credits small and medium businesses.
5) distribution of development issues
Eight point policy of equitable distribution by the government as follows:
a) Equity subsistence masses, especially food, sandangdan board.
b) Equitable opportunities for education and health services
c) Equitable distribution of income
d) Equitable opportunities
e) Equitable opportunities to participate in development, especially the younger generation and women.
f) equitable distribution of development throughout the country.
g) equitable distribution of opportunity to get justice.


Evaluation

1. Microeconomics is ... ... ..
2. Macroeconomics is ... ... ... ... ....
3. Explain the difference between microeconomics and macroeconomics?
4. Which is more important micro-economic or micro economics?
5. Name the 5 issues facing the government of Indonesia!
6. What menyebkan monetary crisis in Indonesia?
7. Economic issues are a lot of macro informed the media lately?
8. What causes this poverty in Indonesia?
9. What causes the fuel price hike?
10. Mention some macro-economic problems that often arise!
11. Mention some macro-economic problems that often arise!
12. Why is the bulk (almost 70%) population of Indonesia was on the island of Java?
13. State the government's policies in order to overcome the population problem!
14. Do you think the development in the Indonesian economy has been successful? Explain and why!
15. Who is responsible for national economic problems? Explain!