Page 2 - FLIP BOOK ECONOMIC PROBLEMS AND HOW TO SOLVE THEM BY SELA PUTRI AGUSTIANI

ECONOMIC PROBLEMS AND HOW TO SOLVE THEM

A. Basic Economic Problems

Basic economic problems arise because of the agreement reached between unlimited human
needs and limited resources. Human needs to fulfill their needs are diverse. On the other hand,
the available resources do not necessarily fulfill these requirements. The existence of limited
resources can lead to problems. What are the main economic problems faced by mankind? One
example of an economic problem faced by humans in life is the fulfillment of food, clothing and
other necessities of life.How to meet food needs with rice production that cannot be completed in
a day? How to fulfill the need for daily clothing? Such ideas form the basis of basic economic
problems.

1.Definition of basic economic problems

Basic economic problems are problems that arise when limited resources are used to meet
demand. This economic problem will always arise in everyday life. The point is that human
needs are numerous and unlimited. At the same time, the availability of necessary resources
cannot meet this demand. The emergence of problems due to infinite demands for satisfaction is
one of the main problems in economics. According to his theory, problems in economics are
actually divided into two categories, namely the main problems in classical economics and the
problems of modern economics. According to his theory, problems in economics are actually
divided into two categories, namely the main problems in classical economics and the problems
of modern economics.

2.The main problems of classical economics

The main problems of Classical Economics that exist in this economic theory, the main problems
of classical economics are divided into three parts, namely production, distribution and
consumption. The explanation is as follows:

 Production problems. To meet human needs, goods and services must be provided.
To achieve this goal, producers must know what goods and services people need. As
a result, to meet such a large demand, producers must know the types of goods and
services that their consumers need.
 Distribution problem. Another problem is how to properly distribute products to
consumers. Distribution is the distribution of goods or services from producers to
consumers, so that the product is widespread. In essence, the purpose of distribution
is to make the producer's products spread more widely and reach consumers. Once
the product is marketed, it can be consumed.