MICRO ECONOMIC PRINCIPLETHE PATTERN OF AN ECONOMY ACTIVITY

Arranged by: - Derry Pramono

- Indri Aprilyani - Ruslan

Perdiansyah

AKT-A7

NUMBER 1WHAT DO YOU KNOW ABOUT DOUBLE COINCIDENCE OF WANTS? DOES IT INHIBITING OR ENCOURAGING TRADE? WHY?

DOUBLE COINCIDENCE OF WANTSDouble coincidence of wants is an indicator of subtitute trading.

Double coincidence of wants obstac the trading, because when subtitute trading is done, the people dont know the economic value of goods.

NUMBER 2EXPLAIN AND DESCRIBE IN THE CHART HOW THE MONEY ENCOURAGES SPECIALIZATION AND TRADE. EXPLAIN THE BENEFITS THAT CAN BE ENJOYED FROM SPECIALIZATION.

MONEY AND SPECIALIZATION

Rice

Money

Service

Service MoneyM

oney

NUMBER 3DESCRIBE THE CHARACTERISTIC OF ECONOMIC ACTORS IN ECONOMICS.

CHARACTERISTIC OF ECONOMIC ACTORS IN ECONOMICS

Household: Provider of production factors, consumer of

goods and services from company/firms.

Company: Producer of goods and services.

Government: Manage economic activity, producer of goods

and services.

NUMBER 4A. DESCRIBE THE PATTERN OF ECONOMIC ACTIVITIES WITH THE HELP OF MARKET CASH FLOWS STREAMS.

B. EXPLAIN THE DIFFERENCE BETWEEN THE MARKET DEFINITION IN DAILY ACTIVITY AND THE MARKET IN ECONOMIC THEORY. WHAT IS THE DIFFERENCE BETWEEN MARKET FACTORS AND MARKET GOODS?

THE PATTERN OF ECONOMIC ACTIVITIES

COMPANY HOUSEHOLD

Supply (1)

Supply (3) Demand (4)

Demand (2)

Market Goods

Market Factors

NUMBER 5MAKE A JUDGMENT ABOUT THE GOODNESS AND BADNESS OF MARKET MECHANISMS. WHAT KIND OF ROLE CAN RUN BY THE GOVERNMENT TO CORRECT SYSTEM WEAKNESSES OF MARKET MECHANISMS?

MARKET MECHANISMAdvantages

1. Give more accurate information2. Give opportunity to develop business activity3. Market leads goods and production factors used efficient4. Market give freedom for citizen to do economic activity

Weaknesses1. Freedom to repress2. Fluctuations stability conditions on economics activity3. Market system caused monopoly 4. Market can not be given several goods efficient5. Customer/producer’s activity caused “externality” which will injure activity

GOVERNMENT ACTION1. Make the rules

2. Fiscal policy and Monetary policy

3. Do directly economic activity