Four Goals Of Economics
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In Economics there are four principle goals for economists. Full employment, economic growth, efficiency, and price stability. All of these goals are necessities for an economy to succeed.
Full employment is a very integral part of a successful economy because jobs are the main source of peoples incomes and it is needed to use the economys limited resources.
Economic growth is widely known as the economys most important goal because it is the actual production of as much goods as possible with the limited resources available.
Efficiency is an important goal because without it the economy would be wasting valuable resources. Another economic goal is price stability which is important because it keeps the economy from having inflation.
Full employment is the employment of nearly everyone who desires to work. Deciding nearly everyone who desires to work. Deciding factors of full employment are price stability and technology. Price stability is necessary to achieve full employment. Full employment is more likely to be reached when the government establishes stable interest rates and taxes. Furthermore, technology can increase the chances of reaching full employment. Technology creates new industries, therefore government should invest in technology to reach full employment.
Economic growth is an increase in the production capacity of the economy, and is the most important goal of the economy. One policy used to increase economic growth is to invest more money into producing capital goods. Investing in capital goods now will result in more consumer goods later. Furthermore, Full employment is necessary for economic growth. Full employment will result in incomes for most people to spend and invest therefore stimulate economic growth.
Trade-offs are present in every choice or investment. A Trade-off is the choice not taken between alternative opportunities for a given quantity