PENGANTAR EKONOMI Screen graphics created by H. Mustika Lukman Arief, SE.,MBA.,MM.

I N TRODUCTION OF E CONOMICS NEED UNLIMITED RESOURCES LIMITED

WHAT IS ECONOMICS ? Economics is the study of the ways that individual and societies allocate their limited resources to try to satisfy their unlimited needs KEY WORD : –NEED UNLIMITED –RESOURCES LIMITED

Outline Introducing Mikro Ekonomi Permintaan & Penawaran Elastisitas Permintaan & Penawaran Teori Tingkah Laku Konsumen Teori Biaya Produksi Pasar Persaingan Sempurna Pasar Persaingan Tidak Sempurna

. Introducing Makro Ekonomi Pendapatan Nasional Keseimbangan Aggregate Dua Sektor Keseimbangan Aggregate Tiga Sektor Keseimbangan Aggregate Empat Sektor Teori Penawaran Uang, Kurs dan Moneter Neraca Pembayaran & Perdagangan Pertumbuhan & Pembangunan Ekonomi

Reference Economics ; Book 1 & 2; PA. Samuelson Mikro Ekonomi ; Teori Pengantar; Sadono Sukirno; Edisi ketiga; 2005 Makro Ekonomi ; Teori Pengantar; Sadono Sukirno; Edisi ketiga; 2005

ECONOMICS NEEDS: UNLIMITED RESOURCES: LIMITED GAP 1.INFLATION 2.UNEMPLOYMENT 3.UNEQUALITY - FUNCTIONAL & - REGIONAL - INDIVIDUAL 4.POVERTY 5.Balance of Payment 1.NR 2.HR 3.CR 4.E GOODS & SERVICES ECONOMICS PROBLEMS 1.WHAT’S 2.HOW 3.WHEN 4.FOR WHOM CHOICES OPPORTUNITY COST

GAP RESOURCES LIMITED : –NR, HR, CR & Entrepreneur –GOODS & SERVICES –CHOICES –OPPORTUNITY COST

ECONOMICS PROBLEM INFLATION UN-EMPLOYMENT UN-EQUALITY : functional & size, regional, individual POVERTY

TYPES OF ECONOMICS SYSTEM TRADITIONAL ECONOMIC SYSTEM A system in which the question what, how, for whom and when are answered in the same way from generation to generation

. COMMAND ECONOMIC SYSTEM A system in which the question what, how, for whom and when are answered by a central authority MARKET SYSTEM A system in which the question what, how, for whom and when are answered through independent decision of the people. This often used interchange able with capitalism

. MIXED ECONOMY An economics system in which there are elements of tradition, command and the market

ACTORS OF ECONOMY HOUSEHOLD –Suppliers of input factor –Demander of goods and services –Payer taxes

. FIRMS Suppliers of goods and services Demander of input factor Payer of Taxes

. GOVERNMENT To protect private property To regulate money To produce public goods and services To assess social cost To regulate and maintain competition To promote economic growth and stability To fight poverty To eliminate discrimination To receive of taxes To send of subsidy

MICRO VS MACRO MICROECONOMICS Efficiency of Resources Maximum Satisfaction MACROECONOMICS Government Regulation Demand and Supply Aggregate Activity

MACROECONOMICS ISSUES HIGH PERFORMANCE GROWTH AND STABILITY IMPROVEMENT ECONOMIC PRICE STABILITY UN-EMPLOYMENT / POVERTY REDUCTION

INFLUENCES OF MACRO ACTIVITY PRIVATE CONSUMPTION INVESTMENT GOVERNMENT EXPENDITURE NET EXPORT ( EXPORT – IMPORT )

MACROECONOMIC PROBLEM ECONOMIC GROWTH UNSTABLE OF ECO ACTIVITY UNEMPLOYMENT AND INFLATION TRADE AND BALANCE OF PAYMENT

MACROECONOMIC POLICY FISCAL POLICY –Government expenditures and Taxation MONETARY POLICY –Control of the money supply by the federal reserve system SUPPLY SIDE POLICY –Ad Hoc policies to address specific problems

GOAL OF MACROECONOMIC RAPID GROWTH PRICE STABILITY INCOME EQUALITY FULL EMPLOYMENT BALANCE OF PAYMENTS EQUILIBRIUM EQUITABLE DISTRIBUTION OF INCOME

RAPID GROWTH SHIFT PRODUCTION POSSIBILITIES CURVE AT RATE SUCH THAT JOBS ARE CREATED AT SAME RATE AS GROWTH IN LABOR FORCE

PRICE STABILITY SHIFT AGGREGATE SUPPLY (AS) AND AGGREGATE DEMAND (AD) CURVE AT SAME RATE

INCOME EQUALITY REDUCES PURCHASING POWER OF INCOME TRANSFER PURCHASING POWER FROM FIXED INCOME RECIPIENTS DISTORTS INCENTIVES AND DECISION MAKING

FULL EMPLOYMENT AUTOMATIC STABILIZATION EXPENDITURE THAT RISE WHEN UNEMPLOYMENT INCREASES AND FALL WHEN UNEMPLOYMENT FALLS UNEMPLOYMENT BENEFIT WELFARE PAYMENTS INCOME, SALES, AND EXCISE TAXES

BALANCE OF PAYMENT BUDGET ENFORCEMENT Caps discretionary spending Creates PAYGO system  PAYGO= applies only to NEW LEGISLATION and Amendments to former legislation Created Three Categories of Spending –Net Interest on Debt –Discreationary Spending –Mandatory or Direct Spending