Economic Actors: Definition, Economic Actors and Their Role
Economic Actors: Definition, Economic Actors and Their Roles – What is meant by Economic Actors? On this occasion About the knowledge.co.id will discuss whether it is an economic actor and the things that surround it. Let's look at the discussion together in the article below to better understand it.
Economic Actors: Definition, Economic Actors and Their Role
Economic Actors are all parties who carry out economic activities (production, distribution and consumption), both individuals and organizations (government or private).
The parties that act as economic actors are households, producer companies, governments, financial institutions, and foreign communities. All of these parties play their respective roles and influence each other in the economy of a country.
Economic Actors and Their Role
Human life cannot be separated from economic activities every day where all involved have their respective roles. Some of the economic actors are as follows:
Family Household (Consumer)
Family households are small economic actors, both individuals and groups consisting of fathers, mothers, children, uncles, aunts, grandparents, to household assistants.
All households definitely need goods and services to meet their life needs. To meet all the necessities of life, the family household spends its income to buy various goods or services needed.
To earn income, family households use their factor of production, namely labour, to be sold to corporate households. Some of the main activities of the household are as follows:
- Receive income from companies/producers in the form of salaries, wages, interest, profit, and rent.
- Earn income from financial institutions in the form of interest on their deposits.
- Spend their earnings on the goods market.
- Save part of their income in financial institutions.
- Pay taxes to the government.
- Make purchases on the money market because you need cash to shop for your daily needs.
Production Households (Producers)
The company is an organization developed by a person or group of people with the aim of producing various types of goods and services needed by society. In other words, a company is an economic unit established for the purpose of producing goods and services in an effort to meet the needs of society. To produce these goods and services inputs are needed in the form of labor (HR), basic materials and auxiliary materials (SDA), capital goods such as means of production combined with production technology under the leadership of a person businessman
Production companies or households are all forms of business that run a business that is permanent and continuously to gain economic advantage, and is established, operates, and is domiciled in the territory of the country Indonesia.
Some of the activities of the group of companies or producers are as follows:
- Producing products, both goods and services, as well as acting as a supplier in the market for goods/services.
- Utilizing various factors of production in consumption households to carry out the production process.
- Apply for working capital loans to financial institutions to build or expand their business.
- Determine purchases of various capital goods and other stock items.
- Pays taxes to the government on the sale of goods it produces.
Financial institutions
Financial institutions are all parties that carry out financial activities, both bank and non-bank, to help improve the economy of a country.
Some of the activities of the financial institution group are as follows:
- Collecting funds from various parties, both household consumers and companies.
- Providing business capital loans for companies/producers to improve their production performance.
- Provide demand deposits for financial transaction activities.
Government Household
The government is a party that plays an important role in the economy, namely in charge of regulating and controlling the economy of a country with various economic policies to prosper its citizens his country.
Several government policies in the economic field are as follows:
- Forming fiscal policy, namely policies relating to state revenues and expenditures.
- Making monetary policy, namely policies related to regulating the amount of money in circulation to control the inflation rate.
- Making international financial policies, namely all policies in the field of finance related to the international community. For example international trade, economic cooperation with other countries.
- Some of the government's activities in the economy are as follows:
- Withdraws direct and indirect taxes.
- Spend all government needs where the funds come from state revenue.
- Make loans from abroad to help finance domestic development.
- Hiring skilled workers to help with various government tasks and jobs.
- Providing the currency needs of the community.
Overseas Communities or Households
Every region of any country has different geographical conditions and people. This resulted in each country having different natural resources and human resources.
This difference in resources causes each country to be dependent on other countries because they cannot meet their own needs. That is why every country in the world conducts foreign trade.
Some of the economic activities carried out by foreign communities are as follows:
- Providing the needs of certain goods to be imported by other countries.
- Carry out export and import activities with other countries to mutually meet the needs of each country.
- Make investments by providing credit to finance development activities carried out by the government and the private sector in the country.
- Enter the Indonesian money market as money distributors from abroad, credit applicants, and rupiah currency for the needs of all their company branches in the country.
- To be a media liaison between the domestic money market and the foreign money market.
Thus the review from About the knowledge.co.id about Economic agents, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.
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