Definition of Economic Actors
Do you know what is the meaning of economic actors? The understanding of economic actors is that all parties have carried out economic activities. This can be in the form of distribution, production or consumption, and can be done by individuals or organizations (private and government).
Parties that have the role of being economic actors are producer companies, financial institutions, households, governments and also the outside community country. All parties have their respective roles and also influence each other in economic life in a country .
Types of Economic Actors
After knowing clearly about the understanding of economic agents, now we will discuss about various kinds.
In human life will never be separated from the name of economic activity on a daily basis. Which all humans involved in it have their respective roles. There are a number of economic actors, for example, as follows:
1. Households as Consumers
Family households are economic actors that have a small scope, both groups and individuals. And in it consists of several people, for example, mother, father, son, aunt, uncle, grandmother, grandfather, until the household assistant.
All households will also definitely need services and goods that can meet the needs in their lives. To be able to fulfill his entire life, a household in the family will spend a certain amount of income to be able to buy various services and goods that can be needed.
To get income, a group of household members in the family must utilize the factors of their production, that is, like labor, these workers can be sold to households in the company. There are several main activities of a household, as described below:
- Getting income from producers or companies that can be in the form of interest, rent, wages, salaries, and profits.
- Getting income from a financial institution in the form of interest for their savings.
- Can spend their income in the goods market.
- Can save a portion of their income to a financial institution .
- Must pay their taxes to the government.
- Able to make a purchase transaction on the money market because it requires cash to be able to spend their daily needs.
2. Companies as Producers
Companies as well as households in companies that are all forms of businesses that can run businesses that have the nature and continuously to be able to benefit in economy and also established, operating and domiciled in the territory of the Indonesian nation.
There are several activities of producer groups and companies, such as the following:
- Can produce a product, the product can be in the form of services or goods, and also has a role of being a supplier in the service and goods markets.
- Can utilize a variety of factors of production available in consumption households to be able to carry out a production process.
- Can request to obtain working capital loans to a financial institution to be able to develop or build their business.
- Can determine the purchase of all items g modan and million other stock items.
- Can pay taxes to the government from the sale of the goods they have produced.
3. Financial Institutions
Financial institutions are all parties that can carry out financial activities, this can mean banks or non-banks. Financial institutions can also help to improve the economy of a country.
There are several group activities of financial institutions, namely as explained below:
- Can collect a sum of money from all parties, can be in a company or in a consumer household
- Can provide a business capital credit to producers or companies to be able to improve the performance of their production.
- Can provide demand deposits to be able to carry out activities in financial transactions.
The government is a party that has a very important role in the economy. Which is the task is to be able to control and also regulate the economy in a country with all economic policies in order to prosper society within a country.
5. Foreign Communities
Every country has different geographical and community conditions. This can result in each country having different natural resources and human resources.
Differences from these resources can also cause each country to have dependency on other countries because they cannot fulfill their lives. And that is the reason for every country in the world to be able to trade abroad.
Examples of Economic Actors
Examples of economic actors are related to various types economic actors as explained above. And the following are examples of activities of economic actors:
- Household as consumer : A mother buys vegetables at the morning market to make food for herself and her family.
- Company as Manufacturer : A detergent-producing company manufactures detergent products to be sold to the Indonesian people and used for washing clothes.
- Government : Governments in a country collect taxes from their citizens, because paying taxes by each community is mandatory.
- Foreign Communities : Communities can distribute imported products that are sold abroad.
Interaction Diagram of Economic Performers
On the interaction diagram From economic actors there are 2 economic diagram models, for example in open economy and closed economy. Following is an explanation of the interaction diagram between economic actors.
1. Diagram of Interaction Between Economic Actors in Open Economy
As you can see in the picture above, the diagram of an open economy has four economic actors, namely household companies, foreign society and government . In this economy, the four actors have interaction which has the goal of being able to meet their individual needs.
2. Diagram of Interaction between Economic Actors in Closed Economy
You can see in the flow (1) contained in the diagram above, that households are the owners of the factors of production. Therefore, households can offer several factors of production, for example, such as land, labor, capital, etc. to the company which becomes the company's capital to be able to carry out production activities.
And in the current (2), the company can flows money that can be in the form of rent, interest, salaries, profits, etc. to the household into retribution for the use of factors of production in the household by the company.
Then in current (3), the income previously owned by the household will flow and then return to the company. This will continue as long as the household has income and the company is also still producing.
And in stream (4), the company will distribute their goods or services to the household to fulfill their needs. The flow of goods can be channeled through an intermediary, for example a trader or can be channeled directly by a company.
Thus an explanation of the understanding of economic actors, economic examples, various economic actors and interaction diagrams between economic agents. Hopefully this article can be useful for you.