Forms of ownership and economic systems. Economic systems and ownership Forms of ownership in different economic systems

There are two sides to every property relationship: the subject (in this case, the owner) and the object (property). This relationship can be displayed in the formula:

“subject (owner) - property (a set of things and material values) - other entities (other owners or non-owners)"

Relations of appropriation extend mainly to such property, on which economic activity directly depends. It includes factors of production (both material goods and the fruits of intellectual labor).
A comprehensive study of property allows you to answer three main questions.

  1. Who (which business entities) has economic power - appropriates the factors and results of production?
  2. What economic ties contribute to better use of property?
  3. Who gets the income from economic activity?

According to this, the system economic relations property includes the following components:

  • a) assignment of factors and results of production
  • b) economic use of material and other means
  • c) receiving income from property

Rice. Structure of the ownership system

Consider each element of the system.

Appropriation is a connection between people that establishes their relationship to things as if they were their own. This connection forms the basis of the production process. After all, any material production means the appropriation of natural matter and energy by people in order to satisfy their needs. It always proceeds within a certain form of ownership.

The opposite of appropriation is the relation of alienation. It arises if some part of society seizes all the means of production, while the other part is left without any sources of subsistence. Or when products created by some people are appropriated by others without any compensation. Such were, say, the relationship between the feudal lords and serfs employed in corvee.

Owners of the means of production are not always involved in creative activities themselves. They give others the opportunity to use their property (eg land, house, equipment) for economic purposes under certain conditions. Then between the owner and the entrepreneur there are relations of economic use of property. The latter gets the opportunity to temporarily own and use the object of someone else's property. This may take, say, the form of a lease - the hiring by one person (or organization) from another person (organization) of property for temporary use for a certain period and for a fixed fee.

Property is economically justified if it brings income to its owner. Such income represents the entire newly created product or part of it, which is obtained through the use of labor and means of production. It could be, say, profit. When a person has rented someone else's property, he gives the owner a fixed part of his income.

This means that the system of property relations is the core of all economic ties production, distribution, exchange and consumption of goods and services.

It is quite obvious that property relations give rise to people economic interests. Chief among them is to multiply in every possible way the goods owned in order to better satisfy needs. Thus, through interests, property predetermines the direction and nature of people's economic behavior.

However, a person driven by proprietary interests may come into conflict with the interests of the whole society. Who and how, in this case, is able to prevent contradictions generated by property and regulate the behavior of the participants in the production? This social task is carried out by the state and law.

Property - economic basis systems of society, main element. She conditions economic way connection of the worker with the means of production, the purpose of the functioning and development of the economic system, the social structure of society, the nature of the incentives for labor activity, the method of distributing the results of labor.

Taking on the surface of phenomena the appearance of a person's relationship to a thing (the thing is mine or the thing is not mine), property is always the relation of the "owner" to the "non-owner". The reason is the division of labor, which encourages people to exchange activities and their results and enter into a relationship of appropriation and alienation. If appropriation means the possibility of owning, disposing and using an object of property at one's own discretion, then alienation is the deprivation of such an opportunity.

There are different approaches to property in Marxist and classical economic theory.

According to the Marxist approach, property occupies the main place in a particular mode of production, and their change is carried out in accordance with the change in the dominant forms of ownership. Marxism saw the main evil of capitalism in the existence of private property. Therefore, he associated the reformation of bourgeois society with the replacement of private property with public (public) property. The implementation of this approach in practice has led to the substitution of public ownership of the state, to the total nationalization of property and management. As a result, a super-monopolized economy appeared, the main features of which are hidden unemployment, suppressed inflation, the absence of economic motives for labor activity, a general shortage of goods and services, the dominance of social dependency, etc. Therefore, the transition to a more efficient, market type economy requires replacement of the monopoly state property its non-state types.

In Western economic theory, the concept of property is associated with the limited resources compared to the needs for them. This contradiction is resolved by excluding access to resources, which provides ownership. Ownership is the right to control the use of certain resources and share the resulting costs and benefits.

Subjects and objects of property are distinguished.

The subjects of ownership are the bearer of properties, characteristic features and powers that determine the features of the use of the object. These include:

  • - individuals - individual individuals who own consumer goods, means of production, other property.
  • Collectives are an association of people who jointly own, manage and use this property.
  • - society (state) - the largest subject of ownership, it manages and disposes of property belonging to all citizens of a given country.

Objects of property - this is what the property relations are about (means of production, commodities, resources, labor). Thus, according to the Law on Property in the Republic of Belarus, the objects of property are land, its subsoil, water, airspace, buildings, structures, equipment, flora and fauna, the results of intellectual work, information, money, securities and other property.

The composition of property objects does not remain unchanged. It changes under the influence of scientific and technological revolution, development productive forces. Material goods are increasingly being replaced by objects intellectual property: discoveries, inventions, scientific knowledge, information. At the same time, no matter how the objects of property change, among them one can always single out the main, key ones, the possession of which gives real economic power. These include the means of production. Their owner is the real owner of production and its results.

There are two types of property: private and public.

Private property expresses the relations of appropriation of means and results of production by private individuals.

Types of private property:

  • 1. Labor: from entrepreneurial labor activity, from running one's own economy and other forms based on the work of this person.
  • 2. Unearned: from receiving property by inheritance, dividends from shares, bonds and other securities, income from funds invested in credit institutions, and other sources not related to labor activity.

Public ownership means the joint appropriation of the means and results of production.

Types of public property:

  • 1. collective (subject of ownership - a team of workers).
  • 2. state (subject of ownership - all citizens of the country).

Forms of collective ownership:

  • 1. Collective (people's) - the result of the transfer of all property of a state enterprise into the hands of the collective, the redemption of leased property.
  • 2. Cooperative - a kind of collective property, the common property of all members of the cooperative who have pooled their funds and labor to carry out joint production or other activities.
  • 3. Joint stock (the most common in market economy) is the result of capital pooling for joint ventures, sales of shares and bonds, and business activities.3,64

The subject of state property is all the people of a given country. Management and disposal of property here is carried out on behalf of the people by state authorities. The peculiarity of this type of property is the indivisibility of its objects between subjects - taxpayers. AT different countries state property occupies various specific gravity. In countries with a state economy, for example, in former USSR, it was up to 90% or more. In countries with market economies, its share is much smaller.

Economic systems subdivided into four main types: traditional, centralized (administrative-command), market and mixed. FROM traditional economy manufacturing industry began. Now it has been preserved in a number of economically weak developed countries. It is based on natural form of economy. Signs of natural production are: direct relations in production, distribution, exchange and consumption; products are produced for domestic consumption; It is based on communal (public) and private ownership of the means of production. The traditional type of economy prevailed at the pre-industrial stage of the development of society. Centralized (or administrative-command) economy based on a unified plan. It dominated the territory of the Soviet Union, in the countries of Eastern Europe, a number of Asian states. Currently preserved in North Korea and Cuba. Its main features are: state regulation national economy, the basis of which is state ownership of most economic resources; strong monopolization and bureaucratization of the economy; centralized economic planning all business activities. Under market refers to an economy based on commodity production. The most important mechanism for coordinating economic activity here is the market. For a market economy to exist, private property(that is, the exclusive right to own, use and dispose of goods belonging to a person); competition; free, market-determined prices. The economic systems mentioned above are almost never found in their pure form. In each country, elements of various economic systems are combined in their own way. Thus, in developed countries there is a combination of market and centralized economic systems, but the former plays a dominant role, although the role of the state in organizing the economic life of society is significant. This combination is called mixed economy. The main goal of such a system is to use the strengths and overcome the shortcomings of a market and centralized economy. Sweden and Denmark are classic examples of mixed economies. In connection with the transition of a number of former socialist countries from a centrally controlled economy to a market economy, they formed a special type of economic system called transition economy . Its main task is to build a market economic system in the future.

Production

Production, which is the basis of the economy, always stands on "three whales": human labor force, objects of labor and means of labor. Work force These are people with skills and abilities. Everything that human labor is aimed at is called in economic science objects of labor, i.e., this is what material goods are made from (wood, stone, clay, iron ore, etc.). With the development of technology, as well as knowledge of nature, man has learned to create such objects of labor that do not exist in nature, such as plastics, synthetic fibers, etc. Means of labor is that by which or with the help of which material goods are produced. And together the objects of labor and the means of labor are means of production. Labor production activity man is inseparable from technology. Under technique it is customary to understand the tools of labor created by people, the means by which the process is carried out material production. Technology has gone through a number of different stages in its development. Let us recall from history: a leap in the development of technology in the Neolithic period, the emergence of new tools of labor led to a transition from an economy that appropriated to a productive one and to a settled way of life. The second significant leap in the development of technology falls on the 18th-19th centuries. This period is also called industrial revolution when machine labor replaced manual labor. And, finally, in the 40-50s of the twentieth century, the scientific and technological revolution begins, the result of which is the exploration of outer space, the emergence of diverse synthetic materials, the introduction of the achievements of informatics and computer technology in all sectors of the economy and everyday life of people. The twentieth century was the century of transition to automatic technology, but this does not mean that a person stops working; only the content and nature of labor change, it ceases to be difficult, physically tiring. Labor for the production of material goods is the basis of the life of human society. It must be continuous, because it is not difficult to imagine what will happen, even if short term the production of electricity, coal, bread, textiles, etc., will cease. “Labor is the father of wealth” (W. Petty, English economist of the 17th century).

Exchange and trade

Exchange- an action in which we receive or give one thing in exchange for another. The exchange arose when surpluses of products began to appear. Farming tribes exchanged agricultural products for livestock products produced by pastoralists. Then, instead of exchanging surpluses, there appeared direct exchange of goods- the goods were produced not for their own consumption, but to replace them with other necessary products. Manufacturers specialized in the production of one type of product and exchanged it for another product they needed. Production was based on subsistence farming, the signs of which were: the closed nature of the economy; production of a simple product: getting the product to the consumer, bypassing intermediaries; performance by the manufacturer of all types of work (his labor is universal). natural exchange- everything that was produced by farms, consumed by them or exchanged for other products or goods. AT modern economy exchange of goods is called barter. Barter exchange was widespread as long as it involved a small number of participants and a few goods. With the expansion of exchange, it became more convenient to use such a product that did not deteriorate for a long time, retained its properties and was quite valuable. This commodity became the universal equivalent, replacing money. First, spices, salt, furs, cattle, and then precious metals (gold and silver) were used as a universal equivalent. Gradually, precious metals replaced other natural equivalents of money, as they were of great value, did not lose their qualities (did not deteriorate), were convenient for storage and division into parts. Later, paper money appeared, which was more convenient in trade: they did not weigh so much, it was easier to carry large amounts. Trade- exchange of money for the right of ownership of a product (thing or service). For trade to take place, things must be equally valued by the participants. Trade provides wealth, the creation of wealth is helped by the market and money. Trade requires time, money (renting shops, transport for delivery), effort (negotiating). These functions are implemented salesman- an intermediary between the manufacturer and the buyer. One of the drivers of trade is advertising- information about the product that makes it popular. Types of trade:

a) domestic trade- wholesale and retail trade within the country. Wholesale- buying and selling goods in large quantities or in large quantities for resale or commercial use. Most often, with large bulk purchases, the seller makes the buyer a discount from the initially established one. Retail- purchase and sale of goods or services by the piece or in bulk in large numbers for personal consumption; b) international trade- trade between states. Import of goods - export, export - import.

Market and market mechanism

Market economy- this is a way of organizing economic life, based on a variety of forms of ownership, entrepreneurship and competition, free pricing. The most important mechanism for coordinating economic activity is the market. Under market is understood as a certain way organized activity for the exchange of goods and services, in which numerous purchase and sale transactions are made between sellers and buyers. The market economy has the following signs:

  • dominated by private property, that is, property owned by private and legal persons who, on its basis, carry out production. At the same time, the existence of state property is allowed, but only in those areas where private property is not very effective;
  • decision-making about in which area the available resources should be applied takes place in a decentralized manner, that is, by the private owners themselves; the entrepreneur is guaranteed freedom in his activities; and the state intervenes in the economy to a minimal extent and only with the help of legal norms;
  • the main mechanisms of a market economy are free competition, supply and demand, price.

Under competition the rivalry between sellers and buyers for the right of the best use of the economic resources available to them is implied. Competition contributes to the establishment of a certain order in the market, which guarantees the production of a sufficient number of quality goods. The material basis of market relations is the movement of goods and money. Product is a product of labor capable of satisfying any human need and intended for exchange. The goods by which the value of other goods is measured are money. Goods and services are sold as a result of a transaction between the seller and the buyer. At the same time, the totality of all necessary in the market at a certain point in time economic conditions called market conditions. An extremely important role in the process of selling goods and services is played by the ratio of supply and demand. Demand- is the desire and ability of the consumer to purchase a product or service at a certain price and at a certain time. The law of demand states that the lower the price of a good, the more buyers are willing and able to purchase, other things being equal, and vice versa. Thus, demand is inversely related to the price of a good. The formation of demand, in addition to price, is influenced by non-price factors: the value of consumer income; their tastes and preferences; number of buyers; prices for substitute goods; expected price changes in the future. Sentence- this is the desire and ability of sellers to sell a product or service at a certain time and at a certain price. The law of supply states that, other things being equal, the higher the price of a good, the greater the seller's desire to offer that good on the market. Thus, the offer directly depends on the price. The value of supply, in addition to the price of goods, is influenced by a number of factors. Among them: prices for various economic resources; the number of commodity producers; production technology; tax policy conducted by the state. Supply and demand have the quality elasticity.

Demand called elastic if, with a slight decrease in price, the volume of sales increases significantly. A similar picture is observed during all kinds of pre-holiday sales. At inelastic demand as a result of a significant change in price, the volume of sales practically does not change. Supply elasticity an indicator of the relative change in the quantity of goods offered on the market as a result of changes in the competitive price is recognized. There are three situations in the market. Firstly, demand exceeds supply(as a result of this, the price increases) - this situation is called deficit and was characteristic of the Soviet economy of the 70-80s of the last century. In the second case demand is less than supply(price falls) - there is an excess of goods (overproduction). A similar situation arose during the so-called Great Depression of the 1930s. in the United States of America. In the third situation, demand equals supply. Such a situation is called market equilibrium. The price at which the transaction is made in this case is recognized as the equilibrium price. This state is optimal. The main incentive for the development of a market economy is to maximize profits. profit is called income from the sale of goods, minus production costs. Under costs understand the cost of all types of resources spent on the production of products. Thus, the principle prevails in a market economy: the transaction must be beneficial to both the seller and the buyer.

Entrepreneurship

According to Article 34 of the Constitution Russian Federation Every citizen of Russia has the right to freely use his abilities and property for entrepreneurial and other purposes not prohibited by law. economic activity.

The concept of business differs from the concept of entrepreneurship precisely in that the commission of any single one-time commercial transactions in any field of activity refers to business. Not every economic activity can be considered entrepreneurship, but one that is associated with risk, initiative, enterprise, independence, responsibility, active search.

In entrepreneurship, subjects and objects are distinguished.

  • business entities- individuals, various associations (joint stock companies, rental collectives, cooperatives), the state;
  • business objects- any types of economic activity, commercial mediation, trade and procurement, innovation, consulting activities, operations with securities.

Business entities: Entity- an organization, institution, firm, acting as a single, independent bearer of rights and obligations. Signs of a legal entity:

  • independence of its existence from its members individuals;
  • the presence of property;
  • the right to acquire, use and dispose of property;
  • the right to carry out economic operations on its own behalf;
  • independent property liability;
  • the right to speak on their own behalf in court.

Kinds legal entities :

  • commercial- have as the main goal of their activity the extraction of profit (communication and transport enterprises, industrial and agricultural enterprises, consumer service organizations);
  • non-commercial- do not set as the main goal the extraction of profit (institutions financed from various budgets (hospitals, schools, institutes), consumer cooperatives, charitable foundations).

Legal entities are entitled to engage in certain types of activities (banking, insurance) only on the basis of a special permit - licenses. Individual - a person participating in economic activity as its full-fledged subject. Acts on its own behalf, can engage in entrepreneurship from the moment state registration as individual entrepreneur. Those rules that govern the activities of commercial organizations apply.

Types of business:

  • manufacturing business- production of goods, services, information, spiritual values ​​is carried out;
  • commercial enterprise- consists in operations and transactions for the resale of goods, services and is not related to the production of products;
  • financial entrepreneurship- is a type of commercial enterprise. The object of sale and purchase here is money, currency, securities;
  • intermediary business- is manifested in activities that connect the parties interested in a mutual transaction;
  • insurance business- a special form of financial entrepreneurship, which consists in the fact that the entrepreneur receives an insurance premium, which is returned only upon the occurrence of an insured event.

Forms of entrepreneurship.

On the basis of business objects:

  • Small business (up to 50 people):
    • Franchising (from French franchise - benefit) is a system of small private firms that enter into a contract for the right to use the brand name of a large firm and their activities in a certain territory and in a certain form.
    • Venture (from the English venture - a risky undertaking) a company is commercial organization engaged in the development of scientific research for their further development and completion. Venture capitalists do business on innovation. They run the risk of "burning out" if the new product does not meet the requirements of the market.
  • Medium business (up to 500 people) - it is fragile, as it has to compete with both large and small businesses, as a result of which it either develops into a large one, or ceases to exist altogether. The only exceptions are firms that are monopolists in the production of any specific product that has its own permanent consumer.
  • A large business (up to several thousand people) is more durable than a medium or small one. Its monopoly position on the market gives it the ability to produce cheap and mass products.

By company type:

  • Sole proprietorship or private enterprise A business owned by one person. He has unlimited property liability, and he has little capital.
  • Partnership or partnership A business owned by two or more people. They make joint decisions and bear personal financial responsibility for the conduct of the case.
  • cooperative- similar to a partnership, but with a larger number of shareholders.
  • Corporation- a set of persons united for a joint entrepreneurial activity. The right to property of a corporation is divided into parts by shares, so the owners of corporations are called shareholders, and the corporation itself is called joint stock company(AO).

Basic principles governing entrepreneurial activity:

  • freedom of entrepreneurial activity;
  • initiative and independent activity;
  • profit as the main goal of entrepreneurial activity;
  • legal equality of various forms of ownership;
  • legality in entrepreneurial activity;
  • freedom of competition and restriction of monopolistic activity;
  • government regulation:
    • direct (registration and licensing of enterprises, product certification);
    • indirect ( soft loans, tax breaks).

Entrepreneurship Functions:

  • resource - a combination of natural, investment, labor resources into a whole;
  • organizational - the use by entrepreneurs of their abilities to obtain high income;
  • creative - the use of innovation in activities.

Money

Money- a special product that performs the role of a universal equivalent (measurement of all goods). Money expresses the value of all goods and services and is used for an equal exchange of goods and services among themselves. Money originated several thousand years ago (in the 2nd century BC in Egypt). In ancient times, coins made of valuable metals: gold and silver were most popular. National currency - this is the monetary unit of a country, used in itself and for international payments. In Russia, these are rubles, in England - pounds, in the USA - dollars, etc. In many states, for a reserve financial resources and appreciation of their own currency use the gold standard. gold standard- a monetary system in which gold is the universal equivalent, it is partially used in circulation and exchanged for it banknotes. Functions of money: money is a means of trade and circulation, a measure of value, a unit of account, a means of accumulation and savings. Types of money: paper bills, billon coins (coins made of metals), credit money (bills, plastic cards). Inflation- depreciation of money due to issuance money supply beyond the needs of trade. Money is issued in large quantities, but the output of goods remains the same. The population seeks to quickly get rid of depreciating money and buy as many goods as possible. However, the size of the money supply does not correspond to the quantity of goods. Shortage (shortage) of goods leads to higher prices and further depreciation of monetary units. Causes of inflation. The source of inflation can be the domination of monopolies, excessive state spending on the military industry, depletion of the country's gold reserves due to theft and corruption of officials. Inflation often occurs during force majeure circumstances: wars, natural disasters, global economic crises. Types of inflation. According to the rate of price growth, there are: a) moderate (or creeping) inflation - the prices of goods rise gradually and by no more than 10% per year; b) galloping - there is a rapid rise in prices, from 10 to 200% per year; in) hyperinflation- arises with ultra-fast price growth (more than 200% per year). Consequences of inflation: shortage of goods and products, depreciation of the monetary savings of the population, deterioration in the economic well-being of the population, social tension in society, collapse monetary system and the loss of money of its functions during hyperinflation. Anti-inflationary policy consists in adjusting to inflation or fighting it. Adjusting to inflation, the state controls prices and raises wages. The government can fight inflation by reducing the money supply by withdrawing excess money from circulation ( deflation); through consolidation and exchange monetary unit (denomination).


Similar information.


economic system is the totality of all economic processes taking place in society on the basis of established property relations and economic mechanism. F. Pryor wrote: "The economic system includes all those institutions, organizations, laws and rules, traditions, beliefs, positions, assessments, prohibitions and patterns of behavior that directly or indirectly affect economic behavior and results."

There are several types of economic systems:

traditional;

Command and administration

market;

mixed.

AT traditional system the economy is based on the natural form of social economy, products are produced primarily for their own consumption. The dominant form of ownership is communal. The traditional economy is characteristic of pre-industrial societies. Recent history knows two main types of economic systems - command-administrative and market.

An example of a command-administrative system is the economic system of the Soviet Union, formed by the end of the 1920s and operating until the beginning of the 1980s. 20th century Currently, the economic systems of Cuba and North Korea are examples of a command economy. The basis of the command-administrative system is state ownership of all resources. Economic planning is carried out from a single economic center and is of an administrative nature. Pricing is also centralized, does not reflect a real assessment of manufactured products and does not depend on the presence or absence of supply and demand for a particular type of product.

In a market economic system, the basis of economic relations is private property. Manufacturers decide on their own issues of production and sale of manufactured products, based on personal interest. A feature of the market system is also pricing, which is not regulated by the state, but is formed by the interaction of demand and supply of goods on the market. An element of the market mechanism of management is also competition, that is, rivalry between participants in the market economy for Better conditions production and sale of goods. But the role of the state in a market economy cannot be denied. It is the state that creates equal conditions for the competition of producers, limits monopolized production, stabilizes economic fluctuations and performs other functions in economic sphere, using legal (the adoption of laws) and financial and economic methods (establishment of taxes, duties, etc.).

However, in modern world there is practically no economy that would be based only on market mechanism and would not include elements of a planned economy. An economy that combines elements of different economic systems is called a mixed economy. It seems that this type of economic system makes it possible to effectively use strengths both the command-and-control economy (planning, social guarantees for employees) and the best aspects of the market economic system.


Own can be defined as the attitude of a person to a thing belonging to him as to his own. At the same time, non-owners of this thing treat it as someone else's.

In a legal sense, property is the unity of the rights to own, use and dispose of a thing.

Ownership- is the actual possession of the thing belonging to the owner. Sometimes they also use such an expression: "actually holding it in their hands."

Under use is understood as the extraction of its useful properties from a thing in the process of its consumption. Often the same thing can be used not only for the purpose of personal consumption, but also for profit.

Disposition- this is a complete or partial transfer of a thing to other persons with the help of any acts that determine its fate, including: selling a thing, pledging it, transferring it as a donation to a charitable foundation, destroying a thing.

It is generally accepted that the right of ownership is one of the exclusive rights, but this does not mean that the power of the owner in relation to the property belonging to him has no limits. Indeed, in relation to his things, he has the right to perform any actions, but only not contrary to the law.

No one may be deprived of his property except by a court decision. Compulsory alienation of property for state needs is possible, but only subject to prior and equivalent compensation. So, before starting construction of a multi-storey building, the municipality, which is the developer, is obliged to provide new apartments to the owners one-story houses located on this site, and only then have the right to demolish these houses.

In accordance with paragraph 2 of Article 8 of the Constitution of the Russian Federation, in our country “private, municipal and other forms of ownership are recognized and protected in the same way.” All forms of ownership are equal and protected by law. But it was not always so. During the Soviet era, there were significant differences in legal regime property, the privileged position of socialist, especially state, property and restrictions on the personal property of citizens.

Articles 212-215 of the Civil Code of the Russian Federation divide private property into property of citizens and legal entities and state- to federal, owned by the state (Russian Federation) and subjects of the Federation. Local self-government bodies of cities and towns act as subjects of municipal property. rural settlements, municipal districts, city districts or intra-city territories of cities of federal significance. Other forms of ownership include the property of public organizations, the property of foreigners in Russia, the property of joint ventures, etc.

Economic systems is a collection of interrelated economic elements, forming a certain integrity, economic structure society; the unity of relations that develop over the production, distribution, exchange and consumption of economic goods.

These relationships can be carried out in different ways, and it is these differences that distinguish one economic system from another.

The use of resources to meet needs is subject to the economic goals pursued in their economic activities.

Economic the purpose of the consumer is the maximization of the satisfaction of all .

Economic purpose of the firm stands for maximization or minimization.

The main economic goals modern society are: , improve production efficiency, full and socio-economic stability.

Modern economic systems

In the capitalist system material resources belong to private individuals. The right to enter into binding legal contracts allows individuals to dispose of their material resources at their own discretion.

The manufacturer seeks to produce ( WHAT?) the product that satisfies and brings him the greatest profit. The consumer himself decides what product to buy and how much money to pay for it.

Since, under conditions of free competition, the establishment of prices does not depend on the producer, then the question " AS?"to produce, the economic entity of the economy responds with the desire to produce products with lower prices than its competitor, in order to sell more due to lower prices. The use of technological progress and various management methods contribute to the solution of this problem.

Question " FOR WHOM?" is decided in favor of consumers with the highest income.

In such an economic system, the government does not interfere in the economy. Its role is reduced to the protection of private property, the establishment of laws that facilitate the functioning of free markets.

Command economic system

A command or centralized economy is the opposite. It is based on state ownership of all material resources. From here everything economic decisions accepted government bodies through centralized (directive planning).

For every enterprise the production plan provides for what and in what volume to produce, certain resources are allocated, thereby the state decides how to produce, not only suppliers, but also buyers are indicated, that is, the question is decided for whom to produce.

The means of production are distributed among branches on the basis of long-term priorities determined by the planner.

Mixed economic system

Today it is impossible to speak about the presence in this or that state in its pure form of one of the three models. In most modern developed countries, there is a mixed economy that combines elements of all three types.

A mixed economy involves the use of the regulatory role of the state and economic freedom manufacturers. Entrepreneurs and workers move from industry to industry by their own decision, not by government directives. The state, in turn, implements social, fiscal (tax) and other types of economic policy which contributes to some extent economic growth country and improve the living standards of the population.