PROBLEMS IN ECONOMICS

GROUP :
ONES SANJERICO SITANGGANG
RAFI ILHAM MAHENDRA
RAKA REYHAN PENDRIAN
RALFI WIBOWO RACHMAD
DEFINITION OF ECONOMICS
Economics is a social science concerned with the production, distribution and
consumption of goods and services. It studies how individuals, businesses, governments
and nations make choices on allocating resources to satisfy their wants and needs, and
tries to determine how these groups should organize and coordinate efforts to achieve
maximum output
MAIN FACTORS

1. INFLATION
2. POOR QUALITY OF
HUMAN RESOURCES
3. UNEMPLOYMENT, ETC
 INFLATION
inflation is a sustained
increase in the price level
of goods and services in an
economy over a period of
time.
 CAUSES OF INFLATION
• THE MONEY SUPPLY
• THE NATIONAL DEBT
• DEMAND-PULL EFFECT
• COST-PUSH EFFECT
• EXCHANGE RATES
METHOD TO CONTROL INFLATION
MONETARY POLICY – SETTING INTEREST RATES. HIGHER INTEREST RATES
REDUCE DEMAND, LEADING TO LOWER ECONOMIC GROWTH AND LOWER
INFLATION
CONTROL OF MONEY SUPPLY – MONETARISTS ARGUE THERE IS A CLOSE
LINK BETWEEN THE MONEY SUPPLY AND INFLATION, THEREFORE
CONTROLLING MONEY SUPPLY CAN CONTROL INFLATION.
METHOD TO CONTROL INFLATION
SUPPLY-SIDE POLICIES – POLICIES TO INCREASE COMPETITIVENESS AND
EFFICIENCY OF THE ECONOMY, PUTTING DOWNWARD PRESSURE ON
LONG-TERM COSTS.
FISCAL POLICY – A HIGHER RATE OF INCOME TAX COULD REDUCE
SPENDING AND INFLATIONARY PRESSURES.
WAGE CONTROLS. TRYING TO CONTROL WAGES COULD, IN THEORY, HELP
TO REDUCE INFLATIONARY PRESSURES. HOWEVER, APART FROM THE
1970S, RARELY USED.
POOR QUALITY OF HUMAN RESOURCES
 POOR QUALITY OF HR
Makes us very far behind in
development and economics
system
Causative factor
• Lack of motivation
• undefined responsibilities
• Lack of training / information
• Lack of internal communication
• Non-cooperation
• Lack of coordination
• Conflicts of interest
• Poor health and nutrition
“

- IMPROVING the quality of education

”
- Leadership Development Programs
- Hiring Empolyees based on their educational background
- Giving employees access to free medicine and vitaamins
UNEMPLOYMENT
Unemployment or joblessness is the
situation of actively looking for
employment but not being currently
employed
CAUSES OF UNEMPLOYMENT
The large number of technological advancements

Jobs have become increasingly specialized

Companies prefer hiring few people on board

A higher literacy rate among men and women

SOLUTION OF UNEMPLOYMENT

• The Creation Of More Job Opportunities

• Individuals should be encouraged to enter diverse fields
• Increasing the quality of Human Resources
CONCLUSION
1. THERE ARE SEVERAL PROBLEMS IN
ECONOMICS, FOR EXAMPLE INFLATION ,
POOR QUALITY OF HR, AND UNEMPLOYMENT
2. ECONOMICS CANT BE SEPARATED WITH THE
PROBLEMS THAT MAY OCCUR BUT THERE IS
ALWAYS A SOLUTION TO FIX AND MINIMALIZE
THE PROBLEMS
Bibliography

HTTPS://WWW.INVESTOPEDIA.COM/TERMS/I/INFLATION.ASP
HTTPS://WWW.MONEYCRASHERS.COM/WHAT-IS-INFLATION-DEFINITION-
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https://www.investopedia.com/term/e/economy.asp
HTTPS://CONTENT.WISESTEP.COM/UNEMPLOYMENT-CAUSES-EFFECTS-
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HTTP://WWW.SBNONLINE.COM/ARTICLE/HOW-TO-DEVELOP-A-MORE-
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