The main issues of economics

In the business world, there are many questions that must be answered by those who are active in this field of life. But what are the main issues of the economy? Among a variety of issues and problems, we will try to identify the main ones, which include such things as: what should be produced and how much, how to produce, how to distribute manufactured goods and services. This will be the main issues of the economy.

The main economic issues are related to one common problem - limited resources. To fully satisfy the ever-growing and unlimited human needs, the economy has never had sufficient resources. Therefore, before society, there is an objective problem: how to dispose of those limited resources that are available, in order to better meet the needs of all subjects of the economy. In other words, the society must strive to optimize the production of goods and services.

Similar economic issues are facing the economically developed countries (the United States, Germany, Japan and others), and the underdeveloped (the countries of Africa) and the developing countries (Brazil, India, Russia, China).

In all cases, the limited resources put before society the main issues of the economy about what, how and for whom to produce? We will try to consider them in more detail.

The question of what to produce can be solved as follows. Since it is impossible to produce everything that completely satisfies the needs of all members of society, it is necessary to decide which types of services and goods should be given preference.

It is clear that this problem can not be solved if only the means of production are produced, and the manufacture of consumer goods and services will be reduced to zero. In this case, people will not have food, clothing and other vital means of subsistence. It is also clear that this problem will not be solved even if the country produces only goods and services, and there will be no production of means of production. Then the society will simply remain without sources of energy, equipment, raw materials and other. But in this case, the release of goods and services becomes impossible.

Thus, the answer to the question of what to produce can be this: it is necessary to produce both. However, it should be noted that there is a sufficiently large number of variants of such ratios in which the production of these two groups of goods can be located. In this regard, such an answer will be too general, and it should be solved in each specific case in different ways, taking into account many factors.

Considering the fundamental questions of the economy, it is necessary to give an answer to the second question about HOW to produce?

The production of a certain range and volume of products can be carried out in different ways. For the manager of any enterprise, the question arises as to which technology should be used for production. From this choice depends the efficiency of production, the volume of output and, what is very important, its quality.

Us It remains to answer the third basic question of the economy about WHY TO DO?

The answer to it is determined by the decision of who will pay for the goods and buy services.

What services and goods do these or other physical and legal persons wish to purchase for their income? What products are needed by the state? In many respects, these answers depend on what kind of income the subjects of the economy have, that is, how the income will be distributed in the society, what price will be formed for goods and services, what will be the behavior of buyers due to their needs, income, price level and many other circumstances .

Thus, we briefly reviewed the fundamental fundamental problems of the economy.