Economics Tasks

It doesn’t really matter what proportion of economic systems are used in a certain country as long as it efficiently brings the goods and services needed. However, the important factor is determined by the attainment of such goals. They are called Economic Tasks and they act as the checklist for any given system to follow.

• Determine
  An economy must identify the resources available for their use. This is to estimate the goods that can be readily made. (Refer to the 4 basic choices.)
• Allocate
  In connection, after the goods have been manufactured and services rendered, the economy must be able to allocate them evenly among the people. The same goes for incoming investments in replacing capital goods and reproduction of fresh ones.
• Distribute
  Aside from the goods and services, wealth must also equally compensate the masses. They are given through four basic forms: wages – employment, profit – businesses, interest – banking and finance and rent – services and land.
• Define
  The people who hold economic power often direct the flow of industry and commerce. Because their decisions can either make or break the country, it’s very important to know who’s in the driver’s seat. In relation, this task can develop into an open question. "Are their decisions taking into consideration the welfare of the entire nation or for their own personal interests?"
• Acquire
  As they say, "No man is an island." The same ideology applies for countries as well. Hence, interdependence between countries must be established for an international economic order to take place. The distribution of goods and commodities must therefore be just among nations and controlled by a central agreement. Such examples of trade agreements are the GATT (General Agreement of Tariffs and Trade) and UNCTAD (UN Conference on Trade and Development).

Political Economics

Political economics is an extension of simple economics. It is the study of social and institutional processes in which groups belonging in the economic and social elite decide the allocation of scarce resources either for personal interests or for the masses.

Third World Economics

Taking economics in a traditional sense, it’s all about the efficient utilization and distribution of scarce resources to produce goods and services. Third World Economics goes beyond the scope. Aside from the basic fundamentals of economics, it also tackles the economic, social and political mechanisms in public and private sectors to bring rapid improvements in the poverty-stricken masses of developing countries. There is a drastic need to bring the fruits of economic progress to the lower classes in order to bridge the gap between affluence and poverty.

In such a situation, a lot of attention is paid to the elite class of society, a class that holds much influence over trade and industry. Since they hold most of the economic power, their decisions determine the distribution of goods and services to the lower classes. Aside from that, the government and perhaps a centralized economic system are vital to make such radical changes in the populace. In addition, since resources are even scarcer, minimizing costs and maximizing output, along with efficient distribution, are imperative factors in third world economics.

[ Page 1 ] [ Page 2 ] [ Page 3 ] [ Page 4 ] [ Page 5 ]