- BUSINESS ECONOMICS MATERIAL
Evaluate economic problems
Classical Economic Problems
Human needs are something that needs to be met so that humans can live properly. The
core of the classical economic problem is the gap between unlimited human needs faced with
limited means of satisfaction. We as humans cannot be separated from the needs of life, the
needs of life are met in order to maintain survival. To meet these needs humans must work to
earn income. This is all done in order to fulfill all needs. So human needs can be defined as
everything we need to maintain survival and achieve prosperity.
If a person can fulfill all their needs then that person has achieved prosperity. Prosperity is a
balance between the number of needs and the means of satisfying needs.
Below are several factors that can affect the number of needs and people, namely external
and internal factors.
Internal Factors
Internal factors are factors that arise from humans themselves, including:
1. Profession or job
2. Gender
3. Age
4. Education level
5. Feeling of dissatisfaction
External Factors
External factors are those that arise from outside humans, for example:
1. The state of nature
2. Religion/belief
3. Customs
4. Living environment
5. Age and technological developments
Classification of Human Needs
Human needs are classified into several types, namely:
,According to the level of importance or intensity Consists of:
1. Primary / basic needs
Primary needs are human needs that absolutely must be met to maintain survival. For
example, the need for drink and housing (house).
These needs are the most basic needs of every human being, so they are often called natural
needs.
2. Secondary / complementary needs are needs that are met to complement primary
needs. Because this need is complementary to human needs. For example, the need for
household tools, school tools, vehicles, and so on.
3. Tertiary needs are additional needs in the form of luxury goods. For example jewelry
items (gold, diamonds), luxury cars, villas, and so on.
According to the time
According to the time of need can be divided into :
1. Current needs, namely human needs that must be met immediately at that time. For
example, a person who is just hungry. The needs that must be met are food and drink.
2. Future needs, namely needs that are met for future needs. For example, we start
saving now, this is used to meet future needs.
According to subjects who use
1. Individual needs, namely needs that are used to meet individual needs. For example,
we are students needing books or learning tools.
2. Collective or joint needs, namely the need to fulfill joint / group needs. For example,
security activities, scout activities, sports activities and so on.
Need-Satisfying Tools
If you have many needs then there must be a need-satisfying tool. These various means of
satisfying needs can be divided into two types, namely goods and services.
Goods are everything that is visible and can be used to fulfill needs. For example: food,
books, clothes, and others.
Service is something that is not visible but is needed to fulfill needs, for example: science,
worship, entertainment / recreation and others.
Types of goods can be distinguished as follows:
, According to rarity
1. Economic goods
Economic goods are goods that are limited in number so that to obtain them it is necessary to
make sacrifices. Examples: food, clothing, school supplies, and others.
2. Free goods
Free goods mean goods that are available in sufficient quantities so that humans do not need
to make sacrifices to obtain them. For example: sunlight, air.
According to how it is used
1. Substitution / replacement goods
Substitution goods are goods that can be used to replace other goods for the same purpose.
For example: kerosene replaced firewood for cooking, coconut sugar replaced granulated
sugar.
2. Complementary goods
Complementary goods are goods that are used together with other goods. For example: chalk
with a blackboard, notebook with pen, motorcycle with gasoline.
According to the purpose of its use
1. Consumption goods
Consumption goods mean goods that can be directly used to meet needs. Examples: rice,
food, clothes, shoes, and others.
2. Capital goods
Capital goods are goods that are used to produce other goods, for example: wood / boards are
used to make tables, cloth to make clothes, and others.
Usefulness (Utility) Object
Various uses of goods as follows:
1. Use of time (time utility)
Goods are used when used at the right time. Example: umbrellas are used when it rains,
medicine is used when sick and others.
2. Place utility
Goods are useful when placed in the right place. For example: stones in the mountains or
upstream, will be useful when moved to the city for building materials or for road repairs.
3. Use form (form utility)
Goods are useful when changed in shape according to human needs, for example: wood /
boards are converted into tables, chairs, and so on.
Evaluate economic problems
Classical Economic Problems
Human needs are something that needs to be met so that humans can live properly. The
core of the classical economic problem is the gap between unlimited human needs faced with
limited means of satisfaction. We as humans cannot be separated from the needs of life, the
needs of life are met in order to maintain survival. To meet these needs humans must work to
earn income. This is all done in order to fulfill all needs. So human needs can be defined as
everything we need to maintain survival and achieve prosperity.
If a person can fulfill all their needs then that person has achieved prosperity. Prosperity is a
balance between the number of needs and the means of satisfying needs.
Below are several factors that can affect the number of needs and people, namely external
and internal factors.
Internal Factors
Internal factors are factors that arise from humans themselves, including:
1. Profession or job
2. Gender
3. Age
4. Education level
5. Feeling of dissatisfaction
External Factors
External factors are those that arise from outside humans, for example:
1. The state of nature
2. Religion/belief
3. Customs
4. Living environment
5. Age and technological developments
Classification of Human Needs
Human needs are classified into several types, namely:
,According to the level of importance or intensity Consists of:
1. Primary / basic needs
Primary needs are human needs that absolutely must be met to maintain survival. For
example, the need for drink and housing (house).
These needs are the most basic needs of every human being, so they are often called natural
needs.
2. Secondary / complementary needs are needs that are met to complement primary
needs. Because this need is complementary to human needs. For example, the need for
household tools, school tools, vehicles, and so on.
3. Tertiary needs are additional needs in the form of luxury goods. For example jewelry
items (gold, diamonds), luxury cars, villas, and so on.
According to the time
According to the time of need can be divided into :
1. Current needs, namely human needs that must be met immediately at that time. For
example, a person who is just hungry. The needs that must be met are food and drink.
2. Future needs, namely needs that are met for future needs. For example, we start
saving now, this is used to meet future needs.
According to subjects who use
1. Individual needs, namely needs that are used to meet individual needs. For example,
we are students needing books or learning tools.
2. Collective or joint needs, namely the need to fulfill joint / group needs. For example,
security activities, scout activities, sports activities and so on.
Need-Satisfying Tools
If you have many needs then there must be a need-satisfying tool. These various means of
satisfying needs can be divided into two types, namely goods and services.
Goods are everything that is visible and can be used to fulfill needs. For example: food,
books, clothes, and others.
Service is something that is not visible but is needed to fulfill needs, for example: science,
worship, entertainment / recreation and others.
Types of goods can be distinguished as follows:
, According to rarity
1. Economic goods
Economic goods are goods that are limited in number so that to obtain them it is necessary to
make sacrifices. Examples: food, clothing, school supplies, and others.
2. Free goods
Free goods mean goods that are available in sufficient quantities so that humans do not need
to make sacrifices to obtain them. For example: sunlight, air.
According to how it is used
1. Substitution / replacement goods
Substitution goods are goods that can be used to replace other goods for the same purpose.
For example: kerosene replaced firewood for cooking, coconut sugar replaced granulated
sugar.
2. Complementary goods
Complementary goods are goods that are used together with other goods. For example: chalk
with a blackboard, notebook with pen, motorcycle with gasoline.
According to the purpose of its use
1. Consumption goods
Consumption goods mean goods that can be directly used to meet needs. Examples: rice,
food, clothes, shoes, and others.
2. Capital goods
Capital goods are goods that are used to produce other goods, for example: wood / boards are
used to make tables, cloth to make clothes, and others.
Usefulness (Utility) Object
Various uses of goods as follows:
1. Use of time (time utility)
Goods are used when used at the right time. Example: umbrellas are used when it rains,
medicine is used when sick and others.
2. Place utility
Goods are useful when placed in the right place. For example: stones in the mountains or
upstream, will be useful when moved to the city for building materials or for road repairs.
3. Use form (form utility)
Goods are useful when changed in shape according to human needs, for example: wood /
boards are converted into tables, chairs, and so on.
