The economic system is a form of organization of the economic life of society.
Elements of the economic system:
Socio-economic relations. They are based on the forms of ownership that have developed in each economic system. economic resources.
Organizational forms economic activity(natural economy, commodity economy, etc.).
The economic mechanism is a way of regulating economic activity at the macroeconomic level, as well as a system of incentives and motivations that guide the participants in economic life.
Specific economic ties between businesses and organizations.
In any economic system, the economy solves 3 main questions:
What to produce?(That is, what goods and services, in what quantity, by what date).
How to produce?(What resources to use, in what enterprises, with the help of what technology, etc.).
For whom to produce?(That is, the target group of consumers).
Economic systems differ in:
The way to solve the main economic issues.
By type of ownership of the most important types of resources.
In terms of these criteria, the following types of economic systems are distinguished:
traditional system.
These economic systems existed mainly in the early periods of human history. The main economic questions were decided on the basis of instinct. Now these systems are much less common (in the most remote areas of the world, in economically weak developed countries Oh).
Traditions, customs, heredity, class, rituals determine what, how and for whom to produce. Therefore, this economic system based on backward technology, widespread manual labor. Small-scale production is of great importance. It is based on private ownership of productive resources and the personal labor of their owner. Small-scale production is represented by numerous peasant and handicraft farms that dominate the economy. The role of the state is active - providing social support to the poorest segments of the population. The natural-communal form of management prevails.
Administrative command system.
The state plays the main role in this system. It is it that decides what, how and for whom to produce with the help of central planning and management.
Character traits:
Public ownership of all economic resources, monopolization of the economy.
The coordination of economic activity is carried out on the basis of a hierarchy, that is, an administrative method of subordination to a higher authority.
The economy is managed from a single center with the help of orders, direct commands.
From the center, instructions are given: what, how and for whom to produce, where to supply products, in what quantity, at what price. Consequently, the center must know in advance and determine all needs, all resources. On this basis, a directive plan for the development of the economy for a certain period of time is drawn up. Each employee is given specific tasks, and their implementation is strictly controlled.
Giant monopolies do not care about the introduction of new equipment and technology.
A significant part of the resources is directed to the development of the military-industrial complex.
Country examples: USSR, countries of Eastern Europe.
Practice has shown that such a system can be effective in extreme conditions, in emergency circumstances (war). However, in the long run, in a normal socio-political and economic environment, it cannot be effective. Consequences: loss of moral and material incentives to work, loss of a person's sense of the owner, equalization in pay, hence, a decline in production. The economy becomes inefficient.
Market system.
The market is a mechanism of interaction between sellers and producers, the balance of supply and demand.
Question "what to produce?" the consumer decides.
Question "how to produce?" decided by the manufacturer. Under the pressure of competition, manufacturers are trying to innovate so as not to go broke in order to reduce their costs.
Question "for whom to produce?"- in market system, for those who have money.
Thus, in a market system, the main means of coordinating economic activity is commodity-money relations and competition. Private property prevails. This is a very rigid system. You have to pay for mistakes with a "ruble", since miscalculations lead to losses, ruin, bankruptcies. This system is based on the principle of economic feasibility, that is, on the desire to achieve maximum results at minimum cost. In a competitive environment, every entrepreneur is trying to produce a better product, which means he is striving to introduce new equipment and technologies. All this contributes to the NTP.
However, this is not a perfect system and it has many shortcomings. As a result of competition, some are ruined and others are enriched, therefore, the property stratification of society is growing. Social guarantees are minimal, since the state plays a small role, being only an arbiter who monitors the implementation of laws. Thus, high efficiency is combined with a violation of the principles of equality and social justice.
mixed system.
It should be borne in mind that in real life There is no pure market economy. It exists only in theory. In real life, the modern economic systems of most developed countries are mixed.
The main feature of a mixed economy is that both the state and the private sector play an important role in answering the questions: What? How? For whom to produce?
Planned methods are quite widespread in it: plans for the development of individual firms based on marketing research, specific government intervention. Plans of different economic levels influence the structure and quantity of products produced, ensuring their greater compliance with social needs.
The task of using resources is solved within the framework of large companies also on the basis of an analysis of promising industries.
Thus, the state in a mixed economy acts in many areas (including financing of new, low-profit industries, retraining of personnel, the development of medicine, social protection), exerting an impact on the economy, which increases dramatically during periods of crisis.
However, the market mechanism continues to play the main role in answering the classic trio of questions.
Farm organization models:
American model- This is a liberal market-capitalist model, which assumes the priority role of private property, a market-competitive mechanism, as well as a high level of social differentiation.
German model- a model of a social market economy, which links the expansion of competitive principles with the creation of a special social infrastructure that alleviates the shortcomings of the market and capital.
Swedish model is a social model characterized by high level social guarantees based on a wide redistribution of income.
Japanese model- a model of regulated corporate capitalism, in which favorable opportunities for capital accumulation are combined with the active role of state regulation in the areas of programming economic development, investment and foreign economic policy, and with a special social significance of the in-house principle.
The basic problem of economics can also be presented as a problem of choice. Indeed, if each factor used to satisfy various needs is limited, then there is always the problem of alternative use of it and the search for the best combination of factors of production, that is, the problem of choice. This problem is reflected in the statement three main questions economy.
The three main economic questions are:
What? – goal setting problem. – Which of the possible goods and services should be produced in a given economic space and at a given time?
How? – production problem.– With what combination of production resources, using what technology, selected from options goods and services?
For whom? – distribution problem.– Who will buy the selected goods and pay, benefiting from them? How should the gross income of society from the production of these goods and services be distributed?
The fourth question, which also inevitably confronts every society, is the question: How? How to get rid of waste generated in the process of life, how, without reducing the level of consumption, to maintain the ecological balance in nature. it recycling problem.
The production possibilities of an economic system are limited by the rarity of the resources used. Moreover, the limited nature of all economic resources remains and even increases as society develops. This is due not only to the depletion of irreplaceable natural resources, but also to the fact that consumption constantly gives impetus to the development of production, that is, new goods and services are created, their quality characteristics, which causes an increase in demand for consumer and investment goods. And every time society is forced to decide which of these goods to produce with available resources and on what scale.
The problem of choice in any economic system (be it a family, a firm, a state) can be illustrated using economic model "Production Possibility Frontier". And also, this model allows you to visually demonstrate such fundamental economic concepts as limited resources, opportunity costs.
To build a model, we will plot the number of commodities (X) along the abscissa, and the number of means of production (Y) along the ordinate (see Fig.).
Means of production (Y)
Consumables (X)
O X B X S
The ABCD curve is called production possibilities frontier, characterizes the maximum possible volumes of production of means of production and consumer goods with the full use of all available resources. Each point on this curve represents a certain combination of these two types of goods (for example, point B represents a combination of X B units of commodities and Y B units of capital goods.
The production possibility frontier graph illustrates the fact that an economy that is fully utilizing productive resources cannot increase the production of any good without sacrificing another good. The functioning of the economy at the frontier of its production possibilities testifies to its efficiency.
Based on this, the choice of a combination corresponding to point F is regarded as unsuccessful for a given society, since it does not allow it to efficiently use production resources. Having chosen such a point, we would resign ourselves either to the presence of unused resources (for example, unemployment), or to the low efficiency of their use (for example, with large losses, including working hours). Production on the basis of the choice of point E is generally not feasible, since this point lies beyond the border of the production possibilities of this economic system.
Compare points B and C. By choosing point B, we prefer to produce fewer commodities (X B) and more capital goods (Y B) than choosing point C (X C, Y C). More precisely, when moving from point B to point C, we will receive additional Δ X = OX C - OX B units of consumer goods, sacrificing for this ΔY = OY B - OY C units of means of production. The amount of one good that must be sacrificed to increase the production of another good by one is called opportunity cost or cost of missed opportunities.
Curve ABCD is convex. This is due to the fact that one resource can be used more productively in the production of commodities, others - the means of production.
If new technology, new technological processes are introduced simultaneously and evenly in all industries, then the production possibility frontier AD will shift to the position of the dotted line A 1 D 1 , the production possibilities of both means of production and consumer goods with the same resources will increase approximately equally ( see fig.).
If, on the other hand, innovations are carried out mainly in industries that produce means of production, the increase in the area of production possibilities will be skewed to the right (see Fig.).
In this lesson, we will find out what are the main questions in the economy, why it exists and how it tries to answer these main questions. We will also talk about economic efficiency and economic choice. We will try to show how the economy enters the life of every person.
Theme: Economics
Lesson: Key questions in economics
In the last lesson, we talked about the fact that resources are very limited, and the economy, in fact, is called upon to decide how to use these resources for the maximum benefit for humanity. All participants in economic processes are in one way or another in a state of choice: they choose which of the resources to use now and which to use later, which goods to produce, etc. Accordingly, in the economy there are three main questions to which she must answer: "what to produce?", "how to produce?" and "for whom to produce?". The answer to these three questions is the answer to the main task of economic processes. Let's talk about each of them separately.
Rice. 1. Basic questions of economics ()
So the first question is What goods to produce? It is clear that a person is a being who, living in a social environment, largely serves himself. Primitive people, of course, served themselves on their own. So, a primitive hunter made the items he needed for hunting: a spear, a bow and other things he needed. And in our time, each of us can do some things for ourselves on our own, or we can get these things in a different way. You can be given something, something can be inherited, and something you can buy in the market. Thus, you create your life the way you want it to be. You can become an absolutely satisfied person, all your needs and desires can be realized, but society, alas, cannot live like this because of our limited resources.
That is why all producers (they can be the state, private firms, even individuals) are in a situation of constant choice of which product they need to produce. It depends on what exactly will be in demand in the near future. Over time, the demand for certain goods changes. A century or two ago, some things were absolutely necessary, but now the need for them has disappeared, among other things, they have become archaic. Bast shoes can serve as an example of such a thing.
Being in a situation of choice, producers strive to get not only momentary benefits, but also to lay the foundations for their future production. They seek to increase their profits in the future by anticipating the needs of society that may arise.
Of course, it is very profitable for all manufacturers to produce those services or goods that cannot be refused. After all, a person cannot refuse food or clothes. But the essence of the economy lies in the presence of competition, in the confrontation between different producers, so that the consumer has the opportunity to choose whether to buy cheaper or buy more expensive. By the way, it should be explained why things are generally cheaper or more expensive. This is because the manufacturer always decides how to produce goods.
Rice. 3. The essence of the economy is competition between manufacturers ()
So we come to the second question - How to produce goods and services?. There are always the most different ways and the ability to produce the same product or service. The way it is made depends on what the final product will be, the decisions that manufacturers make during the manufacture of the goods. One way or another, any manufacturer makes sure that his solutions are the most effective. And under economic efficiency understand the product of a given volume of the finished product at the lowest cost limited resources. Having understood this ratio, we can understand why this or that product has such a price. The manufacturer always seeks to reduce the cost of its production, but at the same time does not want to reduce its profits in any case. This is the basis of any production, on this balance there is an economics of production.
However, there is also a third question, which we have identified today - “for whom to produce goods and services?”. It is clear that we all have different desires, we have different possibilities. Producing any product, the manufacturer seeks to please the interests of the broad masses of the population. But to do this with the help of any one service or product is simply impossible. That is why each of the manufacturers seeks either to narrowly specialize or to produce a wide range of goods and services for various social strata. It does not matter whether it is a physical product or a service that does not have a physical expression, because it also has a cost and brings profit to the manufacturer.
So, in order to get the right answers to the main questions of the economy, it is necessary to know the possibilities of the economic system, the state of the market, the factors that shape supply and demand.
As we can see, three basic economic issues put human society in a state of choice. One way or another, we have to choose where to produce, how to produce, what to produce, for whom to produce. This question is painful every time, because for some time the production of some things and services can be profitable, but then it ceases to be so. It should be understood that almost every day manufacturers are in limbo, because it is very difficult to determine the exact priorities of a person. There is a possibility that our outlook on life will change and the need for some item or service will disappear. You can give a lot of examples in the history of mankind, when some important and interesting things that a person used eventually came to naught. Such is life, such is the economy.
Consider why the quality of manufactured goods varies. The same thing on the market can have absolutely different cost depending on its quality. Let's take pens as an example. This is a common everyday item, well known to you. But even that can cost quite a bit. You can buy a simple and inexpensive ballpoint pen that you will use every day, or you can buy a very expensive gift pen for special occasions. But, nevertheless, it is still the same pen, writing instrument.
Rice. 4. Simple or gift - the pen is just a writing instrument ()
So where does this price difference come from? It's about human interests and desires. The manufacturer initially focuses on a specific buyer. The tastes of people are diverse: someone has more cravings for luxury and a desire to surround themselves with expensive items, while other people just need to have simple and multifunctional items at hand. From the point of view of the manufacturer, it is the person with a craving for luxury, unusual things, who is a buyer who is willing to pay a large amount for the same product. The most expensive items and services are focused on it. For example, a watch can be simple in design, or it can become a complex luxury item that has a lot of additional functions and indicates the high social status of its owner. The need for them is very conditional, but the owner of such a watch is proud that he has them.
Rice. 5. Expensive watches are more of a luxury than a necessity, but the owner is proud of their possession ()
We all surround ourselves with things and objects that we need. This is how we build our lives. This is how the economy enters the life of every person.
Bibliography
1. Kravchenko A.I. Social science 8. - M.: Russian word.
2. Nikitin A.F. Social science 8. - M .: Bustard.
3. Bogolyubov L.N., Gorodetskaya N.I., Ivanova L.F. / Ed. Bogolyubova L.N., Ivanova L.F. Social science 8. - M.: Enlightenment.
3. Site for professional traders ().
Homework
1. Explain what economic efficiency is.
2. Describe the three main economic issues.
3. * Imagine that you have inherited the right to own a chain of confectionery factories. Answer the main economic issues: what exactly will you produce, how and for whom.
At all historical stages of human development, society faces the same question: what, for whom and in what quantities to produce, taking into account the limited resources. The economic system and types of economic systems are designed to solve this problem. And each of these systems does it in its own way, each of them has its own advantages and disadvantages.
An economic system is a system of all economic processes and production relations that has developed in a particular society. This concept is understood as an algorithm, a way of organizing the production life of society, which implies the existence of stable ties between producers on the one hand and consumers on the other.
The main processes in any economic system are the following:
Production in any of the existing economic systems is carried out on the basis of appropriate resources. some elements are different different systems. We are talking about the nature of the mechanisms of management, the motivation of producers, etc.
An important point in the analysis of any phenomenon or concept is its typology.
The characteristic of types of economic systems, in general, is reduced to the analysis of five main parameters for comparison. It:
Based on this, modern economists distinguish four main types of economic systems:
Let us consider in more detail how all these types differ from each other.
This economic system is characterized by gathering, hunting and low-productive farming based on extensive methods, manual labor and primitive technologies. Trade is poorly developed or not developed at all.
Perhaps the only advantage of such an economic system is the weak (almost zero) and minimal anthropogenic pressure on nature.
A planned (or centralized) economy is a historical type of management. Nowadays, it is not found anywhere in its pure form. Previously, it was characteristic of the Soviet Union, as well as some countries of Europe and Asia.
Today, more often they talk about the shortcomings of this economic system, among which it is worth mentioning:
However, this economic system also had its advantages. One of them was the possibility of ensuring social stability for everyone.
The market is a complex and multifaceted economic system that is typical for most countries in the modern world. Also known by another name: "capitalism". The fundamental principles of this system are the principle of individualism, free enterprise and healthy market competition based on the balance of supply and demand. Here private property dominates, and the main incentive for production activities there is a desire for profit.
However, such an economy is far from ideal. The market type of economic system also has its drawbacks:
In addition, there is also a fourth - a mixed type of economic system, in which both the state and the private sector have an equal weight. In such systems, the functions of the state in the country's economy are reduced to supporting important (but unprofitable) enterprises, financing science and culture, controlling unemployment, etc.
It remains to consider examples for which this or that economic system is characteristic. For this, a special table is presented below. The types of economic systems are presented in it taking into account the geography of their distribution. It should be noted that this table is very subjective, since for many modern states it can be difficult to unambiguously assess which of the systems they belong to.
What type of economic system is in Russia? In particular, Professor of Moscow State University A. Buzgalin described modern economy Russia as a "mutation of late capitalism". In general, the country's economic system is considered today to be transitional, with an actively developing market.
Each economic system responds differently to the three "what, how and for whom to produce?" Modern economists distinguish four main types: traditional, command-and-plan, market, and mixed systems.
Speaking about Russia, we can say that in this state a specific type of economic system has not yet settled down. The country is in transition between a command economy and a modern market economy.
At almost all stages of human development, society faces main question: "How and in what quantities with limited resources to maximize productivity?" To solve this problem, economic systems and their types have been invented. Each of these systems solves this issue in its own way. They have pros and cons. Let's consider in more detail. Evaluation of the economic system - important nuance in the politics of the state.
The economic system is the unifying economic processes, relations of production structure that exists in society. This concept should be understood as an algorithm, as well as a way of production, which, on the one hand, determines the relationship with consumers, and on the other hand, establishes links between producers.
It should be noted that the concept of "economic system" and its types strongly depend on the scientific school in question. In some, it is considered with the help of macroeconomic concepts, in others - due to human influence, in others, attention is focused on what are the mechanisms of the economic system: systemic, and so on.
In any economic system there will be basic processes of production, distribution, exchange and consumption. In any of the available systems there is a production process that is created with the help of special resources. However, some elements in this matter are different. We are talking about what mechanisms of production are used, the motivation of the producer himself, and also how difficult the nature of socio-economic relationships is.
The most important thing in the analysis of the described term should be called typology. The characteristic of each type of systems has 5 main parameters by which they are compared with each other. Below, the types of economic systems and their characteristics are described in detail, but for now let's focus on more important information.
We are talking about the mechanisms by which the system functions: about social parameters, that is, about the amount of working and free time, about how labor protection and real income are carried out. Relationship between planning and market regulation is also taken into account. Also, this should include relations in the field of ownership, as well as parameters of a technical and economic type. Thanks to this data, economists were able to identify the main economic systems. We are talking about traditional, market, mixed, as well as command-planning.
This system of economy was the very first. She was born in ancient times. At that time, the system was based on subsistence farming. Now the traditional type is almost nowhere to be found. Sometimes it can be found in third world countries, as well as in some regions of America, Asia and Africa. In order to sustain this economic system, it is necessary to use hunting, gathering, together with low-productive farming, which is completely based on the manual method of work. Technologies are practically not used here, if you do not take into account the most primitive ones. At the same time, trade is practically not developed, if it exists at all. Features of the economic system of this type are only in its dignity.
The only advantage of this economic system is that there is no environmental pollution during operation. In addition, the burden on nature is practically not carried out.
This system is also called centralized. It also refers to historical types of economic systems. At the moment, it is impossible to find it in its pure form. Previously, it was found in the Soviet Union, and was also used in some countries of Europe and Asia. Other types of economic systems and their characteristics allow us to conclude that this policy is completely unprofitable.
Now scientists highlight the disadvantages of the system more than its advantages. We will review them.
Firstly, the manufacturer has no freedom, that is, how much and what to produce, only higher authorities could decide. It is impossible to meet the wide-ranging economic needs of buyers. Some items are in short supply. A black market is emerging. His appearance is a reaction to the above nuances. It is also impossible to quickly and efficiently introduce new technologies into the process in order to increase production, and so on.
It is because of this that, as a rule, this system economy is always left behind by competitors who work in a different way, entering the global market. Although there is one of the few advantages: this system makes it possible to achieve social stability for every inhabitant of the country.
Anyone who understands even a little about economics understands that the market is a rather complex system. It is now present in almost all countries in modern world. It is also called capitalism.
The main function of the economic system is the principle of individualism, entrepreneurship, as well as competition, which arises in the presence of demand, supply and in the production of products. As a rule, the market is always dominated by only private property, and the incentive to produce any goods is to make a profit.
Even with these advantages, such a system of economics is not ideal. There are shortcomings, for example, incomes are distributed unevenly, social inequality and insecurity of some citizens are relevant. Also, the market economic system is rather unstable. It can cause a crisis. They suffer from it Natural resources(because of the barbaric attitude towards them), and practically no one finances unprofitable programs.
Economists distinguish a fourth type - mixed, which assumes that both the state and the private sector have the same role in society. The function of the economic system is that the state supports unprofitable but important enterprises: they finance science, culture, unemployment, and many other functions, while the private segment is engaged in the production of mass goods and provides the services necessary for everyone.
Be sure to consider modern countries that work with a particular economic system. Since these data are unofficial, and it is impossible to judge for sure which system of the economy they belong to with an accuracy of 100%, economic figures are still trying to determine as correctly as possible the type of economy with which this or that state works.
For example, Vanuatu, Barbados, Zimbabwe, Ethiopia and other countries that are not very developed in this regard are still working with the traditional type of economy.
The planned one is more inherent in the USSR; India also used this type until the early 1990s. In addition, Nazi Germany worked with the same economic system.
Market type in almost many countries that are currently leaders in the economy. These are the USA, Japan, France, Canada, the Republic of South Africa and so on.
Mixed type in China and Russia. More details about the types of economic systems and their characteristics above.
Let's take a closer look at Russia. At the moment, it is impossible to say exactly what economic type the state is working with, but professors from Moscow State University characterize the country's politics as a "mutation of late capitalism." Today adopted the economy Russian Federation taken as a transition, it should be noted that it is quite successful, as the market is developing at a tremendous speed.
It would be fair to consider the transitional economy as well. It combines changes within the current system and the acquisition of some characteristics from any other that exists.
At the moment, in order to produce the formation of an economic system of a transitional type to a market one, it is necessary to reform government sector by introducing privatization and leasing of property. Attention should also be paid to the creation of a market infrastructure that will satisfy the market and make production more efficient if certain resources are available.
It is also important that it is necessary to develop small and medium business and encourage people if they choose to be entrepreneurial. Work with manufacturers who have different forms property: private or public. You should also pay attention to the issue of pricing. It is necessary to introduce market mechanisms.
The article discusses economic types, examples and features. It is important to note that the type of economic systems is an interesting question, given that many states do not announce which mechanism they work with.
The market economic system will be the most effective, as it allows you to develop the economy from the best side, and its shortcomings are gradually reduced to a minimum. If a country begins to enter the global market with its products, then it will be able to pull the whole country out of any situation, improve the economy and put people's lives in order.
Also, don't forget about business development. It is important to encourage all entrepreneurs who are engaged in it. Through the introduction of such activities, it is possible to reduce the costs of producing widely demanded devices, but also to benefit from the functioning of this activity.
According to some reports, Russia belongs to countries with a mixed economy, according to others - with a transition. The types of economic systems described above and their characteristics should already be clear to the reader. It should be noted that, one way or another, the market in the country is really very well developed, so it is unlikely that any problems will arise in the economic sphere in the near future.
