In the business world, there are many questions that need to be answered by those who are active in this area of life. But what are the main issues of the economy? Among the many questions and problems we will try to single out the main ones, which can include such as: what needs to be produced and in what quantity, how to produce, how to distribute manufactured goods and services. These will be the main issues of the economy.
The main economic issues are interconnected by one common problem - limited resources. To fully satisfy ever-growing and unlimited human needs, the economy has never had sufficient resources. Therefore, society always has an objective problem: how to manage the limited resources that are available in order to more fully satisfy the needs of all economic entities. In other words, society should seek to optimize the production of goods and services.
Similar main economic issues are faced by economically developed countries (USA, Germany, Japan and others), and by the underdeveloped (African countries) and developing countries (Brazil, India, Russia, China).
In all cases, the limited resources poses to society the main questions of the economy about WHAT, HOW and FOR WHOM to produce? Let's try to consider them in more detail.
The question of WHAT to produce can be decided as follows. Since it is impossible to produce everything that would completely satisfy the needs of all members of society, it is necessary to decide which types of services and goods should be preferred.
It is clear that this problem cannot be solved if only means of production are issued , and the production of consumer goods and services is reduced to zero. In this case, people will not have food, clothing or other vital means of subsistence. It is also clear that this problem will not be solved if the country produces only goods and services, but does not release means of production. Then society will simply be left without sources of energy, equipment, raw materials and other. But in this case, the release of goods and services becomes impossible.
Thus, the answer to the question of what to produce can be this: it is necessary to produce both. However, it should be noted that there are a fairly large number of options for such ratios in which the production of these two groups of goods can be located. In this regard, such an answer will be too general, and it must be solved in each case in different ways, taking into account many factors.
Considering the fundamental questions of economics, it is necessary to answer the second question about HOW to produce?
The production of a certain range and volume of products can be done in different ways. For the manager of any enterprise, the question arises as to what technology should be used to produce products. Efficiency of production, volume of output products and, what is very important, its quality depend on this choice.
Us it remains to answer the third main question of the economy about WHOM to produce?
The answer to it is determined by the decision of who will pay for the goods and buy services.
What services and goods do certain individuals and legal entities want to purchase for their income? What products do the state need? In many respects, these answers depend on what kind of income the economic entities have, that is, how the income will be distributed in society, what price will be formed for goods and services, what will be the behavior of buyers, due to their needs, incomes, price level and many other circumstances .
Thus, we briefly examined the basic fundamental problems of the economy.