Role of Production and Consumption Households in Economic Behavior

THE ROLE OF PRODUCTION HOUSEHOLDS AND CONSUMPTION HOUSEHOLDS IN ECONOMIC BEHAVIOR 1. Explain the role of Production Households in economic behavior The following are economic activities carried out by economic actors starting from RTK, RTP, Government and Overseas Communities: a. RTK economic activities are owners of production factors, receive payment for the sale of production factors, consume goods and services, pay for goods and services consumed, pay taxes, and obtain subsidies & public facilities. b. RTP's economic activities are using production factors, paying for the use of production factors, making goods and services, selling goods and services, getting payment for the sale of goods and services, paying taxes to the government, and getting public facilities & subsidies. c. The government's economic activities as an economic actor are making policies, using goods and services, receiving taxes, providing public facilities, providing subsidies, and distributing income. d. The economic activities of foreign communities as economic actors are exporting or importing goods and services, giving loans, earning foreign exchange, paying foreign exchange and making donations when natural disasters occur. Based on the explanation above regarding economic activities carried out by economic actors. The following is an analysis of what economic activities are carried out by RTP: a. Selling production factors in the production resources market is RTK's economic activity as the owner of production factors b. Producing goods and services is an RTP economic activity c. Buying consumer goods is an RTK economic activity to meet their living needs. d. Selling consumer goods is an RTP economic activity e. Increasing national production is an RTP economic activity Based on the explanation above, the role of RTP in economic activities is indicated by number (2) Producing goods and services; (4) Selling consumer goods is an RTP economic activity; and (5) Increasing national production is an RTP economic activity. 2. Explain the role of Consumer Households (RTK) in economic behavior The following are economic activities carried out by economic actors starting from RTK, RTP, Government and Overseas Communities. a. RTK economic activities are consuming goods and services, paying for the use of goods and services, owning production factors, receiving income from the sale of production factors, paying taxes to the government b. RTP's economic activities are producing goods and services, receiving income from the sale of goods and services, using production factors, paying for the use of production factors, parties who can increase gross domestic product, and paying taxes to the government. c. The government's economic activities as an economic actor are making policies, using goods and services, receiving taxes, providing public facilities, providing subsidies, and distributing income. d. Overseas community activities include exporting or importing goods and services, providing loans, and making donations when natural disasters occur. Based on the explanation above regarding economic activities carried out by economic actors. The following is an analysis of what economic activities are carried out by RTK: a. Receiving rent, salaries and interest are RTK economic activities after selling production factors to RTP b. Purchasing consumer goods is the main activity of RTK c. Producing goods and services is an RTP economic activity d. Increasing national production is an RTP economic activity e. Selling production factors is RTK's economic activity as the owner of production factors 3. Explain the characteristics of Production Households (RTP) in the behavior of economic activities The following is an explanation of the characteristics of each economic actor. a. RTK characteristics: • owner of production factors, all income comes from remuneration for production factors, the main activity is consumption • spend their income on purchasing goods and services • if RTK saves part of its income to financial institutions then these savings flow to RTP in the form of investments b. RTP characteristics: • does not have its own factors of production, • users of factors of production, the main activity of producing goods and services, • pay taxes on sales of goods and services, • have no savings c. Characteristics of government: • providers of public facilities, • consumption of labor from RTK and goods and services from RTP to carry out government and improve community welfare, • distribution of income through the tax system, • government income from taxes, • profits of state companies (BUMN), • foreign loans, • and other income. d. Characteristics of overseas communities: • as domestic RTP consumers will export goods/services to foreign countries, • as a producer domestic economic actors can import goods from abroad, • overseas communities can provide loans to the government or RTP, • Source of labor. Based on the explanation above, the following is an analysis of the statements included in the characteristics of RTP. • Not having production resources is a characteristic of RTP, RTP gets production resources from RTK • Paying taxes to the government is a characteristic of RTP • Having no savings is a characteristic of RTP. It is consumer households that have savings that are deposited in financial institutions and channeled to RTP in the form of investments • The main activity of consumption is characterized by RTK, not RTP • Purchasing goods and services is a characteristic of RTK not RTP. 4. Explain the basic assumptions of consumer preferences What is consumer preference? Preference comes from the English language preference which means "a greater liking for one alternative over another or others" (preference for one thing compared to another thing). Meanwhile, in the KBBI, preference is the right to take precedence and precedence over others; priority; choice; trend; or favorite. Consumer preference is a person's choice whether or not to own a product or service that is consumed. Consumer preferences show consumers' preferences from various existing product choices. From these preferences, producers can use them to analyze the level of consumer satisfaction. Basic assumptions of consumer preferences a. Completeness: consumers can compare and rank all possible combinations of consumption. For example, from a combination of goods A and B. consumers may prefer (prefer) goods A to goods B, or B to A or have the same preference for goods A and B. b. Transition (Transitivity): Transition emphasizes consumer consistency. For example, a consumer prefers A to B, and B to C, then he will prefer item A to C. c. More is better than less: goods are always assumed to be needed, so consumers prefer more goods than less. In other words, consumers feel unsatisfied, always wanting more. 5. Explain the theory of consumer behavior using cardinal and ordinal theories If the level of satisfaction obtained by consumers from consuming a good can be measured in money, quantity, or fruit using the concepts of total use value and marginal use value, then the theory of consumer behavior uses a cardinal approach. Meanwhile, consumer behavior theory uses an ordinal approach, the level of consumer satisfaction cannot be measured in units, to see the level of consumer satisfaction using an indifference curve. An indifference curve is a curve that shows various points of combination of two goods that provide the same satisfaction. In the ordinal approach consumer choices are determined by preferences, for example "I like item A more than item B". Based on the explanation above regarding the theory of consumer behavior, the following is an analysis of the sound of the law "consumers will consume in such a way that the marginal utility value of each good and service consumed will be the same". The law states marginal utility value. Which means that this law is included in the theory of consumer behavior with a cardinal approach. In the cardinal approach there are two laws, namely Gossen's law I and Gossen's law II. a. Gossen's Law I: if the fulfillment of the need for a type of good is carried out continuously, then the feeling of pleasure will initially be high, but over time the pleasure will decrease until it finally reaches the saturation limit. b. Gossen's Law II: consumers will consume in such a way that the marginal utility value of each good and service consumed will be the same