Economic Problems

Multiple Choice 

1. A. Scarce or limited compare to the needs
2. C. Primary, Secondary, Tertiery
3. E. Primary needs
4. E. Physical needs
5. D. What to wear
6. C. Counsumerism
7. D. Traditinal system
8. A. Science, knowledge, and production technique
9. D. Production possibility curve
10. A. He/she cannot in other industry

Essay
The questions!

1. State and explain the reeasons behind the scarcity of recources and goods/services !
2. In your own words, explain what the scarcity is.
3. Explain resource allocation using the PPF curve
4. Explain how to make choice rationally
5. What are the different kind of human needs ? Please explain !
6. Explain about the fundamental economic problem are.
7. Compare between mixed economic system and centralized economic system
8. What are the advantageous and disadvantageous of centralized economic system? Please explain.
9. In your opinion, does traditional economic system still exist in this world? Elaborate.
10. In your opinion, what economic system is adopted in Indonesia? Elaborate.

The Answer

1. Natural Disasters, like tsunami, earthquake, and flood, destroy the resources, so that they cannot be utilized. Wars also one of the main reasons behind scarcity. Civil War in Sudan for instance, has caused famine and starvation. Human behaviour toward natural resource also has impact on resource scarceness, which in turn cn cause scarcity of goods and services. Illegal logging is one of the exampels. The various arrays of needs. Human needs are continously developed. It is a human nature, that we, humans, always feel insufficient.
2. It is the condition that explains the limitation of resources in producing the human need.
3. This curve depicts every possible output combinations that can be produced by an economy with its own production factors (resource).
4. Distinguish between needs and wants. Identify the reason of the need fulfillment. Do the cost and benefit analysis in fulfilling the needs. Realisasing the opportunity cost is the other need that cannot be fulfilled because of it.
5. Intensity : Prime, Secondary, Tertiery. Nature : Physical, Spiritual. Time : Current, Future, Unexpected. Subject who needs it : Individual, Public.
6. What to be produced ? How to produce ? For whom the goods/services are produced ?
7. If the mixed economic system combines the strenghs of socialism, and capitalism and eliminates the weakness, and if centralized economic system is opposed to market mekanism as aplied by capitalist.
8. Goodness of centralized economic system are: The government is easier to control inflation, unemployment and other economic issues, Domestic goods market running smoothly, Government may intervene in the case of price formation, Relatively easy to make income distribution, Rarely economic crisis. The weakness of the centralized economic system are : Turning off individual initiative to advance, It often happens that harm the public monopoly, Communities do not have freedom in choosing resources.
9. Yes, someplace still exist in this world, because there are tribe living in hiterland usually adopts the traditional economic syste. 
10. Basically the mixed economic system or economic system of democracy with competition control, seems an economic system is best suited to manage the economy in Indonesia, however the recent Indonesian economic system increasingly skewed to the liberal and capitalist economy that is characterized by rapid foreign capital Mauk to Indonesia and BUMN and BUMD that have been privatized. The trend is driven the swift currents of globalization and the demise of communism in Eastern European countries applying economic socialism-komunistik.