Economic Goals
ECONOMIC GOALS
INTRODUCTION
What are economic goals? How do economic goals affect our lives and what are its implications to sustain stability? These questions will be answered based on the materials gathered, learned insights from Miss Nur Shalihah Muhdi, my lecturer for this subject, and using some issues particularly in the country Malaysia.
It is a common knowledge that each country is centered by its government who paved way the economic system. Economy as to be the basis of the topic is defined as a study of how people and society end up choosing, with or without the use of money, that could have alternative uses to produce commodities and to distribute them for consumption now or in the future among various group in the society (by our class batch 2000 at Miriam College, Phil., for economic subject). It could also be defined as a study of choices according to Paul Samuelson.
With the better understanding of economy we can now bring to light why there are economic goals and why it is very important that each country must posses such goals. These goals are to attain price stability; make economic growth become faster than population growth; to have low unemployment of resources; and to achieve an equitable distribution of income and wealth.
Price Stability
One of the most important factors to achieve economic growth is to have price stability. It is the ability of the government to control price and minimize fluctuation for the benefit of the public. Price stability shows a situation where the price of goods and services don’t change much over the time. How could it be if a country doesn’t get hold of this influence? Could you imagine how it will create uncertainty to the consumers and firms?
Consumers are those who buy products. Now, their consumption will depend on their ability to afford buying a certain product. If a country has price stability, then, the consumers can avoid a “wait and see” attitude which is to wait until the price
INTRODUCTION
What are economic goals? How do economic goals affect our lives and what are its implications to sustain stability? These questions will be answered based on the materials gathered, learned insights from Miss Nur Shalihah Muhdi, my lecturer for this subject, and using some issues particularly in the country Malaysia.
It is a common knowledge that each country is centered by its government who paved way the economic system. Economy as to be the basis of the topic is defined as a study of how people and society end up choosing, with or without the use of money, that could have alternative uses to produce commodities and to distribute them for consumption now or in the future among various group in the society (by our class batch 2000 at Miriam College, Phil., for economic subject). It could also be defined as a study of choices according to Paul Samuelson.
With the better understanding of economy we can now bring to light why there are economic goals and why it is very important that each country must posses such goals. These goals are to attain price stability; make economic growth become faster than population growth; to have low unemployment of resources; and to achieve an equitable distribution of income and wealth.
Price Stability
One of the most important factors to achieve economic growth is to have price stability. It is the ability of the government to control price and minimize fluctuation for the benefit of the public. Price stability shows a situation where the price of goods and services don’t change much over the time. How could it be if a country doesn’t get hold of this influence? Could you imagine how it will create uncertainty to the consumers and firms?
Consumers are those who buy products. Now, their consumption will depend on their ability to afford buying a certain product. If a country has price stability, then, the consumers can avoid a “wait and see” attitude which is to wait until the price