8 Economic Goals.docx

NIKKI MAE O. BANGA

BBF 3-4

ECON 2013

8 ECONOMIC GOALS

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Full Employment : Full employment is achieved when all available resources (labor, capital, land, and entrepreneurship) are used to produce goods and services. This goal is commonly indicated by the employment of labor resources (measured by the unemployment rate). However, all resources in the economy--labor, capital, land, and entrepreneurship--are important to this goal. The economy benefits from full employment because resources produce the goods that satisfy the wants and needs that lessen the scarcity problem. f the resources are not employed, then they are not producing and satisfaction is not achieved. Price Stability " #rice $tability is achieved by avoiding or limiting fluctuations in production, employment, and prices. $tability see%s to avoid the recessionary declines and inflationary e&pansions of business cycles. This goal is indicated by month-to-month and year-to-year changes in various economic measures, such as the inflation rate, the unemployment rate, and the growth rate of production. f these remain unchanged, then stability is at hand. 'aintaining stability is beneficial because it means uncertainty and disruptions in the economy are avoided. t means consumers and businesses can safely pursue long-term consumption and production plans. #olicy ma%ers are usually most concerned with price stability and the inflation rate. Economic Freedom: $ynonymous Freedom:  $ynonymous with human rights wsimply means that whatever status an individual belong in the society, he should en*oy e+ual economic rights. Economic Security " #rovisions should be made by the government to provide proper rights institutions to ta%e care those who are chronicle ill, disabled, handicapped, deaf  blind. Equal distribution of Income" Income " /istribution of ncome should be e+ual among members of the society. 0o group of citiens in the society can en*oy e&treme lu&uries while the other groups suffer to e&treme puberty. Balance of Trade" Trade " 3&port should be e+ual to import. 45 e&port m5 import 67T5&5m Favorable 67T" &8m 9nfavorable 67T" m8& Economic Growth: 3conomic Growth:  3conomic growth is achieved by increasing the economy;s ability to produce goods and services. This goal is best indicated by measuring the growth rate of production. f the economy produces more goods this year than last, then it is growing. 3conomic growth is also indicated by increases in the +uantities of the resources--labor, capital, land, and entrepreneurship--used to produce goods.
the way resources are used in any way that would increase the total amount of satisfaction obtained by society. The pervasive scarcity problem is best addressed when limited resources are used to satisfy as many wants and needs as possible.