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 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 >
Economic disequilibrium is a state where market equilibrium is unreachable due to internal or external variables. Disequilibrium can also occur when internal or external variables result in a disruption to the balance in the market. It is also a result of long-term structural imbalances or short-term changes in market variables.Full Answer >
Economic liberalization refers to those government policies which promote economic growth by opening up trade to international markets, extending the use of markets and lessening the restrictions and regulations placed on business. China, Brazil and India, three of the fastest growing transitioning economies, achieved their economic growth after their governments liberalized their approach to business. This has led some economists to believe that economic reform is of greater importance than political reform in developing economies.Full Answer >