1 A.What do you think of labours?

Answer :
Labours are people who work in a type of business or company to receive wages or other
forms of compensation. Wages or rewards can be given on a daily or wholesale basis in
accordance with the agreement with the company.
Labours are those who work in a company or business and get work benefits according
to the agreed work agreement.

What are their functions?

Answer:
The function of labours is to carry out assigned tasks in accordance with productivity
standards, and to contribute to the growth and success of the companies where they work.
In addition, workers are also entitled to protection and basic rights such as fair wages, social
security, and work safety. Trade unions/labor unions play an important role in fighting for
labor rights and resolving labor relations disputes.

B. Can you explain the Liquidity?

Answer :
Liquidity is a measure of how easy and possible it is for a company to meet its short-term
obligations. Including trade payables, dividends, taxes and others and are current assets.

Why is the liquidity conducted?

Answer:
Liquidity is used to measure the company’s ability to pay obligations that are due or when
billed. The higher the value of the liquidity ratio, the better a company’s ability to pay its
short-term debt, alias the debt is smooth.

2. a. What is the monopoly?

Answer :

Monopoly is a condition in which there is only one or a few sellers in the market so that no other
party can compete with them. This market is a form of interaction between demand and supply
where there is only one producer dealing with many consumers.

Do you agree with it? Why?

Answer :

I agree, but not for all sectors of the economic market, only for markets that are really needed by
many people. With the existence of a monopoly market, goods that concern the livelihoods of many
people will be controlled by the state so as not to cause inequality or exploitation by only one party.
Mastery by the state is aimed at ensuring that there is even distribution of the need for these goods.

Because if all sectors of the market economy are monopolized, it will cause a negative impact in the
form of a monopoly industry that can set a very large and high price only for a product or item that
leads to consumer exploitation because because of this they also have no other options, no only by
buying it from the seller because of the lack of competition in the market or its substitutes.

Not only that, the allocation of resources in a monopoly market often experiences problems, namely
being distorted. This is because in the creation of some of these goods, resources are one of the
causes that cannot be obtained by a small industry and sellers or at least by most of the industries in
the market, sharing profits for sellers to be able to control and hinder supply and competition in the
market.

b. What is Nationalization?

Answer :

Nationalization is the process of taking over the ownership of private companies, especially foreign
capital companies, to become state property. Which is usually followed by compensation or
compensation given by the Government to the owners of capital.

Why does the government conduct I?

Answer :

The government nationalizes for several reasons, depending on the case and context. Some possible
reasons include to facilitate government oversight of companies, to increase control over strategic
resources or sectors, or to reduce influence or dependence on foreign investors or companies. In
some cases, such as the nationalization of PT Inalum by the Government of Indonesia, the reasons
underlying the nationalization may be related to natural resource and environmental management
policies. It is also one of the government’s efforts to reduce people’s anger, and aims to minimize the
occurrence of people’s economic disparities.

Do you agree with it?

Answer :

I agree, because the existence of a nationalization policy carried out by the government can have an
impact in the form of being able to increase government control over companies or strategic sectors,
increase national independence, and facilitate supervision and regulation of related resources.

3. a. What is oligopoly?

Answer :

Oligopoly is a type of market that has an unequal number of producers and consumers. Generally,
the number of producers is less than the consumers. An oligopoly market is a market condition in
which a few companies control a commodity. This makes price competition in the market
unbalanced.
Oligopoly market is a type of market where there are only a few producers (sellers) to provide the
needs of the many buyers in the market. Under such conditions, the goods sold tend to be
homogeneous and difficult to distinguish.

When does it happen?

Answer :

An oligopoly market occurs when the number of producers is small because the economies of scale
that must be operated are generally very large and only a few companies are able to supply the
market. The need for investment is quite large, so that other companies do not dare to enter and be
involved in the related industry.

b. Please explain the term outsourcing.

Answer :

Outsourcing is the use of labor services recruited from third parties to fill certain positions in a
company.

Outsourcing means doing to create incentives for business and enable companies to allocate human
resources where it is most effective. An outsourcing company is an institution that provides services
and workers with certain expertise for companies that need it.

Do you agree with it? Why?

Answer :

Disagree, because outsourcing has many negative impacts in the form of:

1. It is difficult for outsourced employees to develop

Employees who work through an outsourcing system tend to find it difficult to develop, because
they only work for a certain period of time and are not included in the company’s long-term plans
and development.

2. Uncertainty of the Term of Work

Employees who work through an outsourced system often do not know the term of their work.
This can lead to feelings of insecurity and lack of certainty about the future of their work at the
company.

3. Employee Welfare is at Risk

Employees who work through an outsourced system do not have the same protection as
permanent employees, such as health insurance, retirement benefits and leave entitlements. This
can have a negative impact on employee well-being.

4. Potential Decrease in Company Performance

 The outsourcing system can reduce company performance, if the employees recruited through
outsourcing do not have sufficient skills, or there is a mismatch between outsourced employees and
the company culture.

5. Disturbing Work Relations in the Company

The application of sim outsourcing can have an unfavorable impact on the working relationship
between outsourced employees and permanent employees in the company. This can have a negative
impact on the work atmosphere in the company.

4. a. What is the term Positional Goods? Please explain it clearly.

Answer :

Positional goods are a type of goods that are used to project the exclusivity of the owner and
differentiate them from other people, by placing them into a category that is considered higher or
more special. Examples of positional goods include luxury clothing or accessories, supercars, elite
properties, and rare collectibles. This is obtained because of aspects of status, membership in certain
groups, or high aesthetic value. Positional goods are often priced higher in the market due to an
element of status or exclusivity, and this is what makes them attractive to consumers who are
attracted by exclusive and prestigious goods.

b. Can you explain the term Price Elasticity?

Answer :

Price elasticity is a term used to describe how sensitive the demand or supply of a good or service is
to changes in price. Price elasticity can be used to calculate the response to changes in the amount of
a product or service if the price demanded or offered changes. This allows businesses to understand
how much influence price changes have on their market supply and demand, so that it can assist in
determining pricing strategies and planning appropriate marketing policies.

Mention some factors that can cause it.

Answer :

There are several factors that can affect the size of the price elasticity of a product or service,
including:

1. The level of availability of substitutes

The more substitute products available, the more elastic the demand for that product.
 2. Income level

The higher the consumer’s income, the less elastic their demand.

3. Level of need

The more needed a product, the less elastic their demand.

4. The size of the price percentage The greater the percentage change in price, the more elastic
the demand or supply for the product.

5. Product characteristics

Products that are luxurious or not essential for everyday life tend to be more elastic to price changes.
Meanwhile, products that are needed daily tend to be less elastic.

6. Request Time
Or the supply of a product or service may be more inelastic in the short run, but more elastic
in the long run because consumers can adjust their habits.

5.a. Explain the Quantity theory of money?

Answer :

The quantity theory of money is a theory in economics that explains the relationship between the
quantity of money in circulation and the inflation rate in an economy. This theory suggests that there
is a positive and unidirectional relationship between the amount of money in circulation and the
prices of goods and services on the market. In the quantity theory of money, if the money supply
increases without a disproportionate change in economic output, inflation will occur. This theory was
first proposed by an economist from the United States, Irving Fisher in 1911 and has been widely
applied to various studies of inflation and monetary policy around the world. The quantity theory of
money is used to understand how inflation can occur and how inflation can be controlled through
monetary policy.

b. What is the term Recession?

Answer :

Recession is an economic condition in which there is a significant decline in general economic activity
in a region or country. This can be seen from the decline in real economic growth or the decline in
Gross Domestic Product (GDP) for several consecutive quarters. Inflationary pressures and high
unemployment often accompany periods of recession. Recessions usually occur due to external
factors such as global conditions, poor country monetary and fiscal policies, or financial crises.
Periods of recession can have a negative impact on economic actors, be it the public, investors or
companies, because it is contrary to the goal of stable economic growth.

Mention some factors that can cause it.

Answer :

Some of the factors that can lead to a recession include:

1. Global financial market turmoil

A financial market collapse in one country can spread and affect global markets, which can cause
financial crises and recessions in various countries.

2. Slowing global economic growth

If global economic growth slows down, there will be reduced demand for goods and services, which
can trigger a recession in most countries.

3. Poor fiscal and monetary policies

Inappropriate and ineffective fiscal and monetary policies can negatively affect the economy and
exacerbate recessionary conditions.

4. There was political and social upheaval

Political uncertainty or social unrest can cause disruptions in economic activity, which can
exacerbate recession conditions.

5. Excessive market tendency (overcapacity)

If there are too many goods available on the market, there will be price competition that is
detrimental to producers and has an impact on the economy as a whole.

6. Disruption of trade relations

The condition of unstable trade relations between countries can exacerbate global economic
conditions and trigger a recession.

7. Deflation
In addition to inflation, deflation can actually cause an economic downturn. Deflation is when prices
decrease over a period of time, thereby depressing the price of goods. When deflation gets out of
control, business can stop because no one has purchasing power, even though the price has been
reduced. If this is allowed, then the economic downturn can occur at any time.

8. Inflation

Inflation is a process of increasing prices continuously. Inflation is actually not a bad thing, but
excessive inflation is in the dangerous category because it will bring about a recession.

9. Asset Bubble

Is one of the factors causing the recession. Many panicked investors will usually sell their shares
immediately which then triggers a recession. This is also known as “irrational joy”.

This excitement inflated the stock and real estate markets. Until finally the bubble burst and there
was panic selling that could destroy the market which then became the cause of a recession.

10. Science and Technology (IPTEK)

Technological developments also contributed to the recession. For example, in the 19th century,
there was a wave of increasing labor-saving technologies.

This revolution, which is also called the Industrial Revolution, then made the entire profession
obsolete, and triggered a recession. Currently some economists are worried that Artificial
Intelligence (AI) and robots will cause a recession as many workers lose their livelihoods.

11. Sudden Economic Shock

A sudden economic shock can trigger a recession as well as serious economic problems. Starting
from the pile of debt individually and corporately.

Many debts that are owned then automatically make the repayment costs also increase. The cost of
paying off the debt will eventually increase to the point where they can no longer pay it off.