Of limited resources and unlimited desires comes the Fundamental Economic problems.
Principal Economic problem has always existed and still exists today. Here we will discuss the basic economic problem that has arisen since humans live in groups or community based on a review of "Classical Economists" and "Modern Economists".
Classical Economics is represented by "Adam Smith". According to Adam smith wealth lies not in gold, but on welfare goods mnunjukkan a state of balance between the needs of the object with the object of satisfying the needs of satisfying the needs. Process to achieve the prosperity of a society is not easy. This is the main economic problems in society.
According to the theory of Classical Economics, Public Economics subject matter can be classified to three important issues, namely:
- Production Problem - To achieve prosperity, consumer goods should be available in the community. Because the community is very heterogeneous, then the items available are various kinds so that it appears the problem for manufacturers, which is what items should be produced. The emergence of the above questions is because heterogeneous society. Thus, certainly cause problems for producers and raises concerns when producing a particular item, but not consumed by the public.
- Distribution Problems - In order for the goods / services that have been produced can be up to the right people, facilities and infrastructure needed a good distribution. Example, from garden crops to a conveyance which supported a good road infrastructure to harvest quickly to the hands of consumers and does not accumulate on the manufacturer.
- Consumption Problem - The production has didstribusikan to society can ideally be used or consumed by the right people and used to meet the exact needs are. Problems that arise if the item will be taken exactly by the people who really need it or be in vain because it is not affordable by the community sehigga consumption process is not running as an economic subject.
Modern Economists agree that the resources available, there are at least three main problems facing any economy and should be solved by the people as economic subjects.
- Product and what services will be produced and how much? (What and how much) - Given the limited resources available production and its use is alternative, then the community should determine the type and quantity of goods and services to be produced. Communities can choose one or several types of goods and services to be produced with a certain ratio. Choices made by people who viewed the most favorable course and provide the greatest benefit for the community to meet the needs.
- Which way as to produce? (How?) - This question is related to the applied production techniques and the ability to combine the factors of production or resource that is in the process of production. With limited economic resources available the producers must be able to create an efficient production techniques. To that end, advances in science and technology production should be increased
- For Whom the Goods and Services Produced? (For whom?) - This question is a matter for whom or which the society is to enjoy the goods and services produced. Does every citizen have the same or different?
Are the goods / services only for the rich only? Is the national income has been distributed fairly? Should the salaries of the manager ten times the salary of workers? Is cheap car project to be implemented for low-income people can consume it?
All questions regarding to whom the goods / Services Produced.
The third issue on the what, how and for whom are fundamental and are inter-linked with each other and are always faced by every country, both developing countries and countries that have been developed. However, not all the economy can solve the third problem the same way.