Economics is the study of resources, their scarcity and the unlimited wants of mankind. The economics can help the human to progress ways. Because the economics is branch of social science that studies the production, distribution, and consumption of goods and services. So the economics and the science have the relation in the world. So the Lionel Robbins has written a modern economics in the 1932 essay. The modern economics word is "the science which studies human behavior as a relationship between ends and scarce means which have alternative uses" The modern economics means is available resources are insufficient to satisfy all wants and needs. Human wants and needs are whereas the resources available to satisfy these needs are limited. So the resources are very important in the economics, and to make the products.
In the economy have the 4 important resources. The resources are the natural resources, manufactured resources, human resources and entrepreneurial ability resources. The natural resources are means the material lives in the natural environment and has the limited Examples, the fruit trees, animals, minerals etc. The manufactured resources are means what resources can to make the products. Examples, is the capital, sewing, machines etc. The human resources are means human skills. Example is the labour, doctor, teacher etc. The entrepreneurial ability is means managerial and organization skills. Examples, the company owners. The resources have the four types. The four types are land, capital, labour, and entrepreneur.
What is the land? The land means is general encompasses more than a country's soil or natural resources. Why the land is very important in the economy? Because the government or company want to do everything or make the products must to use land, or land resources. What resources have in the land? Many resources living in the land, example has the river, oil, and timber, etc. Example the oil can to be making the cooking oil or petrol.
What is the capital? The capital is means the cash, income, or the property. The capital is can help the people to study the products, buy the products, and make the products, or open the company. The capital also is the investment money. Examples, every company must have the capital, because the company not the capital cannot to do make the product. The capital also is means you own money to invest to the other product than the product to earn back the money .So the money called is capital.
What is the labour? The labour is means the employee, consists of the physical and mental abilities of employee, and help the company to work or make product people. Examples, secretaries help the company to do the work and help the company to make the accounting transaction that the secretaries is a labour of the company because the company to give the salary to the secretaries.
What is the entrepreneur? The entrepreneur is means who has the new company or venture or the new to make product idea people, or the business man. The entrepreneur is also means the company owners wants has to assume the duty. Example, a people want to build the new company that the people are an entrepreneur but the entrepreneur must has to assume the duty to the company when the company has the problem or lose the capital in the company.
In the economy to decisions about to make what product are the consumer decisions because the consumers are the buying products people. So when the company wants to making the products that want go to see the market and see the consumer want what demand the products. That the company also wants to see the market has other company to make the product or not company to make the products. Examples, the school bag, the school bag is the demand of the consumer products because the every family has the child want go to school that the parents want to buy the school bag to give the child to school. So the company can to making the products is school bag. Want to make the school bag the company wants to use the resources. The company wants to use the land resources, the resources is the rubber or the animal skin. The company also wants to know when the products can to sells to market. The company also wants to know the goods have the high quality. That the consumer will be to buy you products, because you product is the demand product.
When the company wants to start to make the products that the company want to know to make how many products to provide the market. The company also wants to known use how many capitals to make the product, and to earn back the capital. The company wants the how many labour to making the product. Example, we known the consumer want what demand products in market. The products are the school bag so the company wants to make the how many school bags to provide the market. First the company can make the 300 school bag to test the market and see the consumer reflect. The company can use the 200 employee to make the school bag, that the company can use the less capital because the company can use the cheaper way to make the school bags but must has the quality.. When the consumer reflect has very good that the company can to make the more school bags to sells to the market , that cannot need to waste the rescores. That the company can to earn back the capital and use the capital to investment the other products. When the investment products to sells in the market have the good result and to earn money so the capital is can earn the more capital to back for company or business man.
Who is the make the product person, the person is the owners of the company. The owners are the biggest incomes person and the biggest share the products. Who is buy recourse person to make the products? The person is the owners want the more capital to buy the resources to make the product. Who is earned biggest incomes person. The person is company owners. Examples, when the company wants to make the new products that employee want to report to the company owners when the company owners say can to make the product the product, that the employee to start makes the product. When the products to earn the money that the money is the company owners.
Now in the economy we has the more product can to use and to buy, but our think the products is not to enough to satisfy our. So our want the more products to satisfy our but our resources is the limited. The scarcity is mean limited. That our how to choice our want thing in the market? When our choice must has the opportunity cost. The opportunity cost is means the give up the one things or you must has to lose the one things when you to choice. Examples, in the new country have a one land that the people want to choice how to use the land in the country. That the some people want to make the food, some want to build the factory. They must to choice to plant the food, because when the not food the people eat what, and they will be died .So they lost the chance to build the factory. So they want to serious to choice, because the land resources are the limited in the economy. They want to choice the good things for them in the life because the choice is very serious and have the affect the opportunity cost in the capital.
In the one economy must have the consumer that the consumer has to think want more the products in the market because consumers don't satisfy the products in the markets? But the economy resources are has the limited to make the product so the consumer how to choice the satisfy product between the resources. When our want to make the products we want the four resources. If when our to choice want to satisfy the product that we will to be lose the resources in the economy that can give the prices will be to not rules. So we want to balance to use the resources to make the product because the science, technology and the resources has the relation in the economy. That we also can to content the product for the consumer in the market one ways also can to save the resources in the economy. That the economy market will to be good. So the resources and the science cannot to separate.
Malaysia is a mixed economy attempts to combine the advantages of Free Enterprise System and the Central Command System. The mixed economy is means includes a variety of private and government control. The free enterprise system is meaning" Laissez-faire", capitalistic economy. The central command system is mean government owns, decides, intervenes and provides everything or decides what, how much, for whom to produce. The mixed economy is combining the free market and central command economy. So the Malaysia goods price mechanism is allowed to operate. The price mechanism is means to equilibrium. When the free enterprise system and the central command system cause the problem give the goods prices instability, the price mechanism fails in the market or the work against to public interest. Example the apple is 1kg RM3.00 but when the price mechanism fails the prices is 1kg RM10.00.This is can to impair the public interest. So the Malaysia government is can to interference the price mechanism in the economy. Don't give the prices is not rude to up or down. That can to the harm of public interest in the market.
2.0 What is the price mechanism?
The price mechanism is means the governments control the price system in the market. The price mechanisms are also to show the demand and the supply in the market. In the graph have the supply, shortage and the equilibrium. The blue line is the excess supply the means is a situation in which quantity supplied is greater than quantity demanded. That the prices are above to the equilibrium prices. The shortage is means quantity demanded, the quantity demanded is greater than the quantity supply. That the prices are below to the equilibrium prices. The equilibrium is means balance. When the one normal price mechanism the equilibrium price must in the supply between to demanded. When the price supply above to the equilibrium price that the demand will be less. Or the price demand below to the equilibrium that the prices supply will be higher than can cause the price mechanism to be fail that the government must to interference the price mechanism in the market.
2.1 How the government interference to price mechanism?
Why the government wants to interference the price mechanism in the economy. Because the government wants control the market act up, don't to give the economy to down, and give the fair income and wealth to the public and the government. So the government can use the many ways interference the price in the economy. First ways, the government can interference is the fiscal policy in the economy and price mechanism. The fiscal policy can to be used to the demand level in the different product, the fiscal policy is also is demand pattern in the economy. The government also can to control the price floor and price ceiling. The price floor means the prices above to the equilibrium prices. Examples, the equilibrium prices is the PM5.00 in the market, that the price floor is RM2.50 that when the prices floor to down the RM 1.00 than the government want to correct the prices to back the RM5.00. The prices ceiling means the prices above to the equilibrium. Examples, the equilibrium prices is RM5.00 that the prices ceiling is RM110.00 when the price ceiling to be the RM 12.00 so the government must to correct the prices to back the equilibrium. Because that can cause the price mechanism to fails and hurt public invest.
2.2 Interference subsidy
The government is can use the benefits to help the consumer reduce the prices. Because the suppliers can freedom to increase the price and give the price mechanism and the economy decrease. That government use the benefits can give the market supply to increase, and give the lower prices in to the market. That the consumer can in the market to buy more demand products and save the more money. Example, the cooking oil, before when the government not give anything benefits to give the cooking oil, price of cooking oil is Rm10.00.But the supplier see the consumer must to buy the cooking oil, that they can freedom to increase the price to the Rm20.00 or other price. Because not the government to interference the price. That the consumers don't to buy the cooking oil because the price is very high price. So the governments can give benefits to the cooking oil, let the cooking oil prices decrease to Rm15.00 or other price. So the consumer can in to the market buy the demand cooking oil, because has the government to benefits give the product. That the consumer can to buy the more products in the market that can increase supply in the market. The governments also can to interference the price in the economy.
2.2.1 Tax reduce
The government interference the economy ways is to reduce the tax from the company or organization. Because the governments reduce the tax, that can help company to invent the new products and development. Because the company can don't need pay more tax to government. That can help the company save the money and has the more jobs to give the public. When the new products is come outs to the market to sells, the prices is lower is not to higher. That the customer can to buy the more products to the company. Because has the government to reduce the company tax. So the companies don't need use the more money to make the new products that the prices must to lower. That the company can use the surplus capital invest the other new products or other investment. That can help the economy to increase.
2.2.2 Collect the more tax
The government also can to collect more the tax form the public that can give the fair income and wealth in the economy. Because that can give the price has rules. Example the rich man has the more money in the hand they can to buy everything. That can to cause demand product to be more and the price are very higher. That the government can to collect the more tax. Example, the rich man, working one year is RM3000, 000 that the government can direct revenue30, 0000 or more revenue. That they cannot to buy the more products because they don has the more money so the demand well be to reply and the prices will to be back.
2.2.3 Reduce the rental land
Why the governments want interference the economy for reduce rental land. Because the peasantry buys the seed and fertilize is very high price. Example the peasantry to buys the 2 pack cabbage seed is RM 8.00 than they want to plant the cabbage in the land. The peasantry also want to give fertilize to the cabbage to grow that the cabbage capital is very higher prices So the peasantry to buy the less seed because the seed is very higher, that the market has cabbage to sells but the prices is very higher. That the market to import the other country cabbage to sells. That the consumer to buy the other country cabbage, because the other cabbage is very cheaper. So our cabbage is not consumer to buy that our market will be fail. That government wants to protect our market that government can to reduce the rental land. So the peasantry don't needs pay the more rental land, that peasantry can to buy the more seed planting. That the crop has the enough and can sells to the market. That in the market crop prices not to starting price. That won't cause the price mechanism to fail and to harm the public interest. Because has the enough goods can to supply in the market. That can increase supply and performance to the economy.
2.2.4 Interference the monopolize in the economy
The government can interference monopolize in the economy. When the governments don't to interference monopolize in the economy that can cause the public benefits to be lose and cause the price mechanism to be fails. That monopolize also can to cause the resource to be waste or resource allocation not the efficiency in the economy. Example, the TNB companies is Malaysia only one company to supply the electric powder to give our. That the TNB companies can freedom to turn up the prices because not have other company can to supply electric to our. That can cause price mechanism not have rules, and cause to harm public interest. So the government must to interference monopolize to the economy. The government can want the TBN Company to follow the government electric prices to sells the electric to give the consumer. That can give the price mechanism have the rules in economy. The public interest has not to be harm. This is the why the government must to interference monopolize reason in the economy. Because can to protect the economy.
3.0 Conclusion
The price mechanism fail and the harm the public interest in economy is the government not to interference the economy. Malaysia is mixed market in the economy. When the economy has the serious problem or give the price mechanism fail, harm the public interest that the government must to interference the economy .Because the government want to control the economy cannot to let the economy to fail and harm the public interest. So the government has the many ways canned to interference economy. That government interference the economy has many good things. That good thing is the poor people to have the benefits. The consumer can to buy the more demand products in the market, and the prices not higher. The company also has can save the more money to make the products and give the more jobs to give the public. The company can to development to other market. So the more other country company can to investment the business in our country that our can increase more supply in economy. The consumer also has the more choice to the products in the market. The economies also don't have the not fair income and the wealth of the public interest or price mechanism. So in the up side is some government can use the ways to interference economy.
