ECONOMICS-CHAPTER N 1

A. Multiple Choice

1.A

2.C

3.E

4.C

5.D

6.C

7.D

8.A

9.B

10.A

B.Essays

1.State and explain the reasons behind the scarcity of resources and good/services.

   a.Natural disasters, like tsunami, earthquake, and flood, destroy the resources, so that they  cannot be utilized.

  b.Wars also one of the main reasons behind scarcity.Civil War Sudan, for instance, has caused famine and starvation.

  c.Human behaviour toward natural resources also has impact on resources scarceness, which in turn can cause scarcity of good and services.illegal logging is one of the examples.

  d.The various arrays of neeeds.Human needs are contiously developed.it is a human nature, that we, humans, always feel insufficient.

2.In your own words, explain what scarcity is.

   -It is the condition that explains the limitation of resources in producing the human need.

3.Explain resource allocation using the PPF curve.

   -In economics, resource allocation can be explained with the Production Possibility Curve. This curve depicts every possible output combinations that can be produced by an economy with its own production factors(resources).

4.Explain how to make choices rationally.

   a.Distinguish between needs and wants.

   b.Identify the reason of the need fulfillment.

   c.Do the cost and benefit analysis in fulfilling the needs.

   d.Realising the opportunity cost .If one need is fulfilled, then its opportunity cost is the other need that cannot be fulfilled because of it.

5.What are the different kinds of human needs?Please explain.

   -Based on the Intensities:Prime, secondary, tertiery

   -Based on the Nature:Physical and spiritual
   -Based on the Time:Current and future
   -Based on the Subject who need it: individual and public

6.Explain about the fundamental economic problem are.

   a.What to be produced?

     Remembering to the limited production resources and its alternative usage, thus the society must determine the kinds and numbers of goods and services that will be produceed.

   b.How to produce?

    This is about production technique employed and the ability to combine various factors or resources in a production process.

   c.For whom the goods/ services are produced?

    This is about who or which social class in the society will consume the goods/ services produced.

7.Compare between mixed economic system and centralized economic system.

  -Mixed Economic System : This system combines the strengths of socialism and capitalism and eliminates the weaknesses.

  -Centralized Economic System : This economic system is based on the direction from central authority or central government. All important economic activities are regulated and carried out by central government. And there is no individual ownership.Everything is owned by government.

8.What are the advantageous and disadvantageous of centralized economic system?Please explain.
  -advantageous:
         -This economic system depends on centralized planning of the government.
         -All economic activities have been planned and controlled by the government.
  -disadvantageous:
         -In this system,there is no individual ownership.

         -The people are usually passive and do not have the freedom to expressthemselves.
9.In your opinion, does traditional economic system still exist in this world?Elaborate.
   -Still..because traditional economic system is the first ever applied by humankind before other more modern economic system are discovered.

10.In your opinion, what economic system is adopted in Indonesia?Elaborate.

   -For a long time,Indonesia has been applying the Mixed economic system in its economic development practices.This system presents a limitied freedom to its society to posses means of production.It also shows in the 1945 Constitution (UUD 1945) article 33 .