I
assume that you, as a student, have a well-defined objective regarding your
participation in college and, more specifically, in this particular
course. Are you enrolled to learn economics? Satisfy a program
requirement? Meet a significant other? A well-defined objective function
will allow you to allocate your resources to maximize the probability of
achieving your goal.
The same idea holds for society as a whole. If we, as a society, have well-defined objective functions, we can allocate our resources more efficiently, that is, maximize the probability of achieving our goals using the least resources. It might be useful then to give some thought to the economic goals of a given country. The most frequently mentioned goals are (1) full-employment (2) stable prices, that is, minimize inflation (3) an equitable distribution of income and (4) economic growth. Give some thought to these goals. Can you add any? Many sociologists mention "equality " as a goal! What does that mean to you? What are the implications of equality?