What is the Key Element for an Efficient Economic Mechanism?

Citation: Prof. Alexandru Trifu, "What is the Key Element for an Efficient Economic Mechanism?", Universal Library of Business and Economics, Volume 01, Issue 02.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

In our days, with these tensions in different fields of social-economic activities, it is very import that the economy and society to go forward, in the benefit for the people themselves and for the entities as well. We deal with the necessity of renewal the Theory of the Firm, with elements and aspects adaptable to the new challenging realities. The firm is the basic unit of the functioning of the economy, merely on short and medium-run. The focus is on the Human resource, such as staff, managers, CEOs, even entrepreneurs. We used information from important international; consulting companies in the field and, also, my own expertise, because teaching Economics in higher education is a pre-work within firms and a good situation for simulation of the real situations. We presented the challenge of the Artificial Intelligence (AI) to the human factor of production and, as a conclusion, or synthesis of the problem is that the Human factor is still decisive in businesses and social economy. The labor market is in straight correlation with the other economic variables and sensitive to the movements, or even declarations about possible Recession, falling-down in economy and a greater uncertainty about the economic future. But, for a quite long time, we consider that the Human factor is the key one within firms/companies/organizations.

Keywords: Firm, Factors of Production, Human Resource, Artificial Intelligence, Economic Propeller.

https://doi.org/10.70315/uloap.ulbec.2024.0102004