Generally, there are goals of economics such: economic growth; full employment; price stability; economic freedom; equitable distribution of wealth and income; and economic security. Economic development of the country will be attained when these are realized. Poverty as well might be eradicated and financial crisis may be lessened.
To understand further, goals of economics are explain as follows:
(1) Economic growth. It may be defined as the “rate of increase” in the Gross National Product (GNP), which is the increase in the economy’s productive capacity. Gross National Product is an indicator of overall economic welfare and performance. This refers to the market value of the total output of goods and services produced by the nation within a given period of time usually a year. Overseas earnings plus the Gross Domestic Product (taken from local taxes and local industries) constitute GNP. Economic growth can be seen in the society, when it acquires greater productive capacity that can be used for consumption or investment. Consumption may be private consumption or government. Private consumption refers to the spending for almost all types of personal consumption like clothing, footwear, etc., while government consumption refers to investment of the government using budgetary allocation for durable equipment. Here are some of the sources of economic growth: agricultural; fishery; forestry; services sector like transportation, communication or trade; industry sector like electricity, gas, manufacturing of paper, paper products, transportation equipment, electrical machinery, non-electrical machinery, tobacco, petroleum products; exports (major contributor to growth).(2) Full employment. This means that qualified people who seek jobs at prevailing rates can find them in productive activities without considerable delay. (3) Price stability. It refers to the absence of any marked trend or sharp, short-term movements in the general level of prices. (4) Economic freedom. This means the freedom of people to use or invest their money in productive activities subject to some moral limitations, and it should not be contrary to law. (5)Equitable distribution of wealth and income. Needlessness to state, people in Asia like their ancestors are serfs in a feudal system. Most land is owned by a few. The great masses of peasants are tenants, receiving meager shares of the crops they raise and they are eternally in debt to landlords on loans at exorbitant interest. In the Philippines, legislators created some measures, enacted laws and implement the same to attain a society where equality of opportunity is more than a slogan. As citizens and human beings, we need to understand the social mechanism underlying the distribution of income and how reasonable and just they are. (6) Economic security. Financial crisis has become increasingly common with the spread and growth of global capital flows. Economic security may become evident when output growth, payment balances, interest rates and inflation are returning to normal.
More summaries about the The Goals of Economics