Basic Concepts of Economic Science

BASIC CONCEPTS OF ECONOMIC SCIENCE 1. Explain the eight sciences of applied economics 1) Industrial Economics is a branch of economics that focuses on discussing the interactions of various companies in an industry. 2) Public Economics is a branch of economics that studies various kinds of economic problems that exist in society and is used as a reference for policy making. 3) Monetary Economics is a branch of economics that discusses the function and influence of money at one level of the existing economy. 4) Regional Economics is a branch of economics that focuses on studying the economy in a region and its development, as well as studying the economic industry that occurs between one region and another region, and the development process of a region/region. 5) International Economics is a branch of economics that discusses economic activities in a country. 6) Sharia Economics is a branch of economics to apply economics in accordance with Islamic law. 7) Natural Resource Economics is a branch of economics that analyzes the better use of natural resources. 8) Human Resource Economics is a branch of economics that discusses human resource factors and also the quality of existing work. 2. Explain several definitions of economics according to experts Economics has several definitions, especially by economic figures, including the following: a. According to Adam Smith, economics is a systematic science that is useful for studying human behavior in its efforts to allocate limited resources to achieve certain goals. b. According to Richard G. Lipsey, economics is a science that studies the use of scarce resources for unlimited media. c. According to John Stuart Mill. a famous philosopher in England believes that economics is a branch of practical science and practical science which is carried out to study the ins and outs of billing and spending. Also about production activities and distribution of wealth. d. According to Gregori Mankiw, economics is a branch of science that studies how society manages scarce resources. e. According to Paul Samuelson, who won the Nobel Prize, economics is the study of making choices, with or without using money, in using limited production resources. f. According to Robert B. Ekelund Economics is the science that studies how individuals and societies have unlimited desires and choose to allocate limited resources to satisfy their desires. 3. Explain the economic problems that may occur Economic problems are problems that arise when unlimited needs and desires meet limited resources. This condition is called scarcity. This happens because the number of people or communities living in an area or city continues to increase while the rate of reduction, whether death or movement to other areas, is very small. Based on his theory, problems in economics are actually divided into two, namely the main problems of classical economics and the problems that exist in modern economics. According to classical economic theory, basic economic problems can be classified into three main problems: a) Production Problems: In order to meet human needs, goods and services must be available. In order to fulfill this, producers must know what goods and services the community needs. b) Distribution Problem: Another problem is how the product can be distributed properly until it reaches the hands of consumers. c) Consumption Problems: After the goods and services reach the consumer, the next problem is; whether the item will be consumed or even wasted. Meanwhile, the main problems in modern economics are as follows: • What goods and services are produced and how much (what?) • How to produce these goods (how?) • For whom are the goods produced (for whom?) 4. Explain the division of economics Economics is divided into 3, namely: 1) Descriptive Economics The descriptive branch of economics focuses on describing data that explains various facts and phenomena of economic activity that apply in society. 2) Economic Theory Theoretical economics is an economic science that examines the symptoms that arise as a result of human actions in order to improve welfare. Economic theory is divided into two, namely, macro and micro economics. a. Macroeconomics Macroeconomics is a branch of economics that discusses the economy as a whole (aggregate). for example economic growth, unemployment, inflation, etc. b. Microeconomics Microeconomics is a branch of economics that studies consumer behavior, companies and market price determination. 3) Applied Economics Applied economics is a branch of economics that uses the results of economic theory studies to explain the facts carried out by descriptive economics. The branches of applied economics are as follows: a) Industrial Economics is a branch of economics that focuses on discussing the interactions of various companies in an industry. b) Public Economics is a branch of economics that studies various kinds of economic problems in society and is used as a reference for policy making. c) Monetary Economics is a branch of economics that discusses the function and influence of money at one level of the existing economy. d) Regional Economics is a branch of economics which focuses on studying the economy in a region and its development and studying the economic industry that occurs between one region and another and the development process of a region/region. e) International Economics is a branch of economics that discusses economic activities in a country. f) Sharia Economics is a branch of economics which applies economics in accordance with Islamic law. g) Natural Resource Economics is a branch of economics that discusses the analysis and proper use of natural resources. h) Human Resource Economics is a branch of economics that discusses human resource factors and also the quality of existing work. 5. Explain the division of the economic system in Indonesia An economic system is a system used by a country to organize and allocate its resources, services and goods to both individuals and organizations in that country. The economic system is divided as follows: 1. Market/Liberal/Capitalist Economic System The market economic system prioritizes the amount of demand and supply in the market. This system is also known as a liberal economic system because there is freedom for people to carry out economic activities. 2. Centralized/Socialist Economic System According to Karl Max, this economic system is run by the government as the control holder in determining production factors. So the type and quantity of goods produced as well as the means of production are controlled by the state as well as their distribution and types. 3. Mixed economic system This system is a mixture of market and centralized economic systems, namely the government and the private sector have the same role and proportions in developing the country. 4. Sharia economic system The sharia economic system is a social science that studies people's economic problems based on Islamic law and values. The sharia economic system is a system based on Islamic law in carrying out human economic activities. in it refers to the emphasis in this economic system is the principle of profit sharing, eliminating usury in the economy, and enforcing zakat.