The Role of Economics in the Welfare of the Community 2

The Role of Economics in the Welfare of the Community 2

Effect of Economic Activity on Community Welfare

By van christian

By van christian

The process from “rice plant” become “rice” shows examples of economic activities which include production, distribution, and consumption activities

1. Production

• Production is carried out by producers. Production is the processing of raw materials into semi-finished or finished goods.

• Production encourages the creation of jobs for the community​

2. Distribution

• Distribution is the distribution of goods and services from production sites (producers) to people who need manufactured goods (consumers).

• People who carry out distribution are called distributors​

• Equitable distribution also helps the welfare of the community in the area. They become easier to get the necessities of daily life.​

3. Consumption

• Consumption is using or utilizing of goods and services to make ends meet.

• People who carry out consumption activities are called consumers.

• Consumers must spend money to get the goods or services needed

Types of Businesses Based on the Management Method

Types of Businesses Based on the Management Method

​Business activities in the community are managed by individuals or groups

1. Individual business

• Owned by one person.  The business owner is also a business manager

• Small scale businesses

• ​Example : small workshops, laundry, beauty salon, restaurant, grocery store.

  The advantages of individual business

  • ·  The owner can develop the business according to his own wishes. 

    ·  Benefits obtained can be enjoyed

    ·  Decision making can be done quickly

​

• The weakness of individual business

  • Limited capital and abilities. 

  • Limited business creativity. 

  • Business risks and losses are own self responsibility.

​

2. Group business

• A business that is managed and owned by more than one person

• ​The advantages of a group business

  • The capital group has more advantages because it comes from several

    The risks and losses of the business are shared. 

    More business ideas and abilities

​

• Lack of group business

  • Decision making must be in accordance with mutual agreement. 

  • Profits are shared with other owners of capital.

  • Business continuity is uncertain because it is prone to disagreements between capital owners. 

​

• Examples of group business

  • (Commanditaire Vennootschaap / CV)

    Firma (Fa)

    Perseroan Terbatas (PT)

    Koperasi

​

Multiple Choice

The processing of raw materials into semi-finished or finished goods

• Consumption

• Distribution

• Production

• Invitation

Multiple Choice

Using or utilizing of goods and services to make ends meet

• Consumption

• Distribution

• Production

• Invitation

Multiple Choice

The distribution of goods and services from production sites (producers) to people who need manufactured goods (consumers)

• Consumption

• Distribution

• Production

• Invitation

Multiple Choice

People who carry out consumption activities are called ...........

• Conqueror

• Distributor

• Producer

• Consumers

Multiple Choice

People who carry out distribution are called ...........

• Conqueror

• Distributors

• Producer

• Consumers

Multiple Choice

Production encourages the creation of ........................... for the community

• materials

• jobs

• plants

• money

Multiple Choice

..................................... distribution also helps the welfare of the community in the area

• Emulator

• Elevator

• Equator

• Equitable

Multiple Choice

Consumers must spend ....................................... to get the goods or services needed

• Emulator

• Effort

• Money

• Equitable

Multiple Choice

Business activities in the community are managed by .................................

• Manuals or groups

• individuals or Social

• individuals or groups

• individuals or personals

Multiple Choice

An individual business is owned by .....................

• one group

• one country

• one factory

• one person

Multiple Choice

Individual businesses are usually ................................. scale businesses

• group

• small

• big

• factory

Multiple Choice

The business owner is also a business .........................

• consumer

• producer

• manager

• marketer

Multiple Choice

Limited capital and abilities is one of the weakness of .......

• Country business

• Individual business

• Group business

• Initial business

Multiple Choice

A business that is managed and owned by more than one person

• Country business

• Individual business

• Group business

• Initial business

Multiple Choice

Decision making must be in accordance with mutual agreement is one of the weakness of .......

• Country business

• Individual business

• Group business

• Initial business

Multiple Choice

More business ideas and abilities is one of the advantage of .......

• Country business

• Individual business

• Group business

• Initial business

Multiple Choice

The owner can develop the business according to his own wishes is one of the advantage of .......

• Country business

• Individual business

• Group business

• Initial business

Multiple Choice

a. (Commanditaire Vennootschaap / CV)

b. Firma (Fa)

c. Perseroan Terbatas (PT)

d. Koperasi

are examples of .......

• Country business

• Individual business

• Group business

• Initial business