NAME : CINDY MEILIZA

NIM : 2312111041
CLASS :B

THE MEANING OF ECONOMICS

The dream world that the author discusses is a world in which no one has to work, in which
all time is leisure time, in which scarcity is unknown and nature freely gives to man all the goods
and services that he would like to have. Nature provides various resources for humans, such as
soil, minerals, water, air, sunlight, wild animals, and plants. Things that humans must do to
utilize natural resources are humans must have food, clothing, living quarters, house furnishings,
medicine, and many other things that can make life more enjoyable. Our production is not
enough to meet all because millions of people have not enough food, clothing, and shelter. They
are in bad health and are always suffering from hunger. Other million have just enough to
maintain their health and strength. Even those people who have a very high standard of living
have many unsatisfied desires: they want more leisure, better clothes, bigger house, more cars,
more travel, more books, more music, more plays, and many other things. There are three
economic classes :
1. Namely high social class, for example : officials, rulers and entrepreneurs.
2. Middle social class, for example : lecturers, civil servants, small and medium
entrepreneurs.
3. Low social class, for example : workers, farmers and small traders.
The cause of the scarcity of production to meet all needs is we live in a world of scarcity. It is not
only in our present society however, that there is scarcity; scarcity has always existed, and there
is no reason to believe that it will disappear in the future. The productivity of economic system is
increasing more and more, but people’s desire will probably rise still faster, so that scarcity will
persist.