The five major economic goals are full employment, economic growth, efficiency, stability and equity, and they are divided into both macroeconomic and microeconomic goals. On the macroeconomics spectrum, policies are made to reach economic growth, stability and full employment. For microeconomics, decisions and policies are driven towards reaching efficiency and equity. As a whole, society's behavior aims to reach the five economic goals.Know More
At the local market and industries level, the two microeconomic goals drive business decisions and market policies. The goal of efficiency is explained by a situation where society is able to utilize available resources to achieve the maximum level of satisfaction. At maximum efficiency, no change in resource allocation would further increase societal satisfaction. Equity, on the other hand, indicates a state where wealth and income are fairly distributed. The exact definition of equity may differ somewhat depending on the political ideology of the individual.
At the macroeconomic level, the goal of full employment is achieved when available resources are used to produce services and goods. At full employment, scarcity is avoided as all production is geared towards the maximum fulfillment of needs. As an economic goal, stability is attained when there are minimal fluctuations in all market variables, such as production, prices and employment, to avoid recession or inflation. Finally, economic growth refers to an increase in the economy's ability as a whole to produce services and goods, thereby increasing satisfaction levels in society.Learn more about Economics
Economic feasibility is the cost and logistical outlook for a business project or endeavor. Prior to embarking on a new venture, most businesses conduct an economic feasibility study, which is a study that analyzes data to determine whether the cost of the prospective new venture will ultimately be profitable to the company. Economic feasibility is sometimes determined within an organization, while other times companies hire an external company that specializes in conducting economic feasibility studies for them.Full Answer >
An economic region is an area in which particular types of commerce take place based on administrative or geographical boundaries. These boundaries come in the form of state lines, international borders or natural geographic landmarks. Other factors, including the migration of labor, the consumer’s market and laws regarding trade, shape economic regions. There are several different types of economic regions, most notably large, small, urban and international.Full Answer >
Economic viability is when a project proves to be economically feasible, innovative and sustainable in terms of investing financial resources into the project. Funding for the project must be compatible with the demands and constraints that occur during the project's life span.Full Answer >
The economic perspective focuses on how resources are distributed in an organizational setting. Philosophies that stem from the economic perspective concentrate on leveraging or manipulating those resources.Full Answer >