Social

THE CONCERNS OF ECONOMICS

The concerns of economics that were discussed a few days ago consisted of five (5) economic
questions which were used to represent these concerns: What to produce, How to produce, How
much to produce, For whom to produce, and How to produce more over time.
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Economics applies to all human activities as decision-making is a staple in our everyday life. The
goal is to supply the needs of the people with sustenance over time, while the concern of
economics is what deals with the efficient and adequate production, distribution, and consumption
of goods and services.

: Without waiting any longer, let’s now move on to the five (5) economic questions and what
concerns they represent.

: The first one is, What to produce?

WHAT TO PRODUCE?

Since every person has various needs, producers must know what the consumers need before
determining the types of resources and which goods and services to produce. Making wise choices
will enable you to use resources efficiently for production and consumption.

: This question represents the concern of understanding the needs of the people.

HOW TO PRODUCE?

: Moving on to the second question, “How to produce?”

This relates to various production-related issues, such as deciding which raw materials to utilize,
what production method must be employed, and where the products are manufactured. The
unemployed will have access to employment possibilities –if the producers are going labor-
intensive– however, if they are capital-intensive, the output of goods and services will be efficiently
increased.

: Choosing a production method while keeping in mind the impact on society is the issue or concern
represented by this question.
HOW MUCH TO PRODUCE?

: When deciding "What to produce” you should also think about how much you should produce. The
issue of scarcity is represented by this question.

The resources needed by society are insufficient. Producers should be aware of the required
quantity for each product. Resource waste and market instability are avoided by doing this. Surplus
production could slow operations to the point where a company goes out of business. Conversely, a
shortage in supply typically leads to high costs. Both can damage the economy by causing market
volatility.

: Next is “For whom to produce?”

FOR WHOM TO PRODUCE?

Businesses must produce goods that customers can and will buy if they want to continue for a long
time in this industry. Finding a market for goods is one of the economy's concerns–the market being
the consumers–.

: Choosing the population group that needs these items that both the wealthy and the poor can
obtain is the key consideration in this dilemma.

HOW TO PRODUCE MORE OVER TIME?

: Lastly, we have the “How to produce more over time?”

Every society wants to experience economic growth. A nation can consistently produce a sufficient
volume of goods and services to meet its present and future citizens' needs and desires. Societies
must keep looking for ways to maintain economic growth.

: The question illustrates the challenge of creating a product that meets the needs and desires of
everyone.

SUMMARY:

In summary, economic concerns cover the issue of scarcity in an economy, including the search for
an efficient way to produce goods and services to meet people's needs and desires.