The main economic task at all historical stages is the choice of the most effective option distribution of factors of production in order to solve the problem of limited resources and unlimited human needs. This problem is reflected in the formulation of three basic questions of the economy (Figure 12).
Rice. 12.
Let's consider each question in more detail.
The first fundamental question is what goods to produce can be demonstrated by the example of an organization that produces two basic goods - this is product A and product B. The factors of production used to produce the first product (A) cannot be simultaneously applied to the production of the second product (B). Thus, we can say that the production of good A leads to the loss of the ability to produce good B and, in turn, has an opportunity cost.
The opportunity cost of a good or service is the best value forgone as a result of choosing a specific alternative that requires the same time or the same resources.
Cash costs and opportunity cost are overlapping concepts. Some opportunity costs, such as treatment fees, are in the form of cash costs, while others, such as leisure time costs, are not measured in monetary terms.
In this case, the tuition fee represents the opportunity cost, since in fact, it can be used to meet other needs. At the same time, such monetary costs as, for example, the purchase of clothes, food, etc., always exist and therefore are not included in the opportunity cost.
Second main economic choice- how to produce.
This question is caused by the existence of several ways to produce a product or service.
The key factor in deciding how to produce is allocative efficiency or Pareto efficiency. Figure 13 depicts the consumer opportunity curve MN.
Figure 13. Pareto efficiency
Any point on the curve (eg A or B) is Pareto efficient. Movement along the curve means an improvement in the situation (resources, costs) of one consumer while the situation of others worsens.
When efficiency is achieved, more of the good can be produced at the cost of losing the ability to produce something else if the factors of production and knowledge are unchanged.
However, the efficiency of production can be increased by improving the social division of labor. Its important characteristics are specialization and cooperation, allowing to take into account comparative advantages in the production of goods.
The principle of comparative advantage is quite actively used not only for the organization of production at the enterprise, but also in connection with the division of labor between firms or government agencies, as well as between countries.
The third key question of the economy is for whom to produce, it consists in the distribution of the produced product among the members of society.
This issue can be considered both from the point of view of efficiency and from the point of view of fairness (Figure 14).
Rice. fourteen.
The questions of what, how and for whom to produce are basic and common for all types of farms, but different economic systems solve them in their own way.
In the traditional economy, the main economic problems issues are resolved mainly on the basis of traditional patriarchal, tribal, hierarchical ties between people.
The list of benefits, production technology and distribution are based on the customs of a given country. Economic roles members of society are determined by heredity and caste.
It produces mainly products necessary for own consumption, and not for sale.
With regard to production technology, in the traditional economy the same products are produced from generation to generation, while the methods of production remain the same as they were hundreds of years ago. Technological progress and the growth of production efficiency are impossible, because each manufacturer copies the methods of work of his teachers. Every detail in the production process is enshrined in special rules. Thus, labor productivity remains at the same level for centuries.
For whom to produce or distribute the product among consumers - this issue is also decided on the basis of traditions passed down from generation to generation.
Along with egalitarian distribution taking into account gender and age, there are elements of unequal distribution depending on the place occupied in the social hierarchy and depending on the results of work.
For example, if Brazil grew mainly coffee last year, then this year it will also grow coffee, and with the same technological methods, and for the same importers.
Also an example of a traditional economic system can serve as remote villages in central Africa, in the jungles of Asia, in the desert corners of Australia, in the tropical forests of Latin America. Here people live according to ancient customs, do everything the way their ancestors did, for example, they hunt and fish, grow wheat, rice, coffee. They lead a subsistence economy, that is, they provide themselves with everything necessary for minimum level life.
Market economy.
Characterized by private ownership of resources and the use of price to coordinate economic activity and its management. Thus, what, how and for whom to produce is determined by the market, prices, profits and losses of economic entities.
The manufacturer strives to produce the product that satisfies the needs of the buyer and brings him the greatest profit. The needs of society are expressed in the demand for a particular product, and the scale of demand is determined by how much people can pay for different goods. Those products will be bought, the price and quality of which satisfy consumers.
Quantity and price are inversely related: when the price falls, demand increases; when the price rises, demand decreases. This relationship is called the law of demand. In economic theory, this relationship is depicted using the demand curve (Figure 15).
Rice. fifteen.
On the other hand, the volume of goods produced and their assortment are expressed in the supply of goods. Producers will produce those goods, the price of which reimburses them for their costs and makes a profit. In other words, they will seek to sell more goods at a higher price. This relationship is called the law of supply. This relationship is depicted using the supply curve (Figure 16).
Rice. 16.
Prices for goods are formed based on the interaction of supply and demand. Consumer demand plays a critical role in determining what and how much to produce. Consumers "vote with the ruble." If enough votes are cast in favor of a given product to ensure a profit for enterprises, then they will produce it.
When consumer demand rises, profits increase, which serves as a signal to expand production. Conversely, if consumer demand decreases, then profits decrease and production begins to decline.
How to produce? In a market economy, production is carried out by those enterprises that use the most efficient, that is, the most profitable, technology. Efficient technology involves the selection of such resources, the prices of which are relatively low, because the business executive responds by striving to produce products at the lowest cost than his competitor, in order to sell more and at a lower price.
Technology and organization of production, the use of technical progress, and various management methods are aimed at solving this problem. Resource prices, in this case the cost of equipment and the level wages, provide a basis for solving the problem of how to produce.
If there is a shortage of capital in a country to buy expensive equipment, but at the same time there is a cheap labor force, then a labor-intensive technology is chosen.
For whom to produce? That is, how should the output be distributed among the members of society?
In principle, products are distributed among consumers according to the ability of consumers to pay the market price for them. These opportunities, in turn, are determined by the income of consumers. The amount of income directly depends on the prices of resources.
What the consumer will buy depends on the prices of goods and services, in other words, the price of the product plays a key role in determining the range of goods and services that the consumer will receive.
Thus, the role of price in a market economy is very significant (Figure 17).
Rice. 17.
command economy.
The command economy is the opposite market economy. It is based on state ownership of everything material resources. All decisions on the main economic problems are taken by the government.
For each enterprise, the main points are provided for by the production plan (Figure 18).
Rice. eighteen.
economic economic price economy
There are countries in which all resources are distributed by directives, including consumer goods and services. This is how economic life is organized in North Korea, for example. Currently command economy operates in Cuba, North Korea, some countries of Southeast and Central Asia.
A mixed economy occupies an intermediate position between a purely market economy and a command economy. Most of the countries of the world live in the conditions of this particular economy. It all depends on the extent to which the government participates in the economy.
Table 5. Solution of the main issues in a mixed economy
Thus, under the conditions economic activity All participants economic processes one way or another, they are in a state of choice: they choose which of the resources to use now and which to use later, which goods to produce, and so on. Accordingly, there are three fundamental questions: "what to produce?", "how to produce?" and “for whom to produce?”. The answer to these three questions depends on the type of economic system used, which in turn differ in the way economic life is organized, the attitude towards property, the degree of state regulation etc. It is these distinctive features that underlie the solution of the questions posed.
Let's analyze economic efficiency the types of economic systems described above for a number of countries using different economies, based on the data contained in the Reports of the United Nations (UN).
To analyze the effectiveness of the applied economic system, the levels of development of different countries, economists most often use indicators:
Gross domestic product (GDP) per capita;
Gross national product (GNP) per capita;
an indicator of the competitiveness of the economy;
· human development index (HDI).
We focus on the analysis of such countries as Russia and China - they represent a mixed economy, the United States - a market economy, as an example of the traditional type of economic system, countries are indicated that are in the last places on the list, which means that these countries have an undeveloped economy, and such an economy is assessed as traditional. At the end, an analysis of the USSR as a country representing a planned economy will be carried out.
GDP per capita determines the level of economic development of the state. GDP per capita cannot be considered an accurate characteristic, since the sectoral structure of production, the quality of manufactured goods, the efficiency of materials and energy consumption per unit of output, etc. are of considerable importance. All indicators for comparability are expressed in single currency-- U.S. dollar. Recalculations from national currencies in dollars are carried out at market exchange rates currencies.
Tables 6 and 7 show the annual GDP per capita for the richest and poorest countries world at a nominal (absolute) value, expressed in US dollars at current prices (not adjusted for inflation). The data are presented as of 2014 (published in July 2015, updated in December 2015).
Table 6. Countries with the highest GDP per capita in 2015
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GDP, million dollars |
GDP million USD |
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Luxembourg |
Isle Of Man |
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Liechtenstein |
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Singapore |
Table 7. Countries with the lowest GDP per capita in 2015
Thus, according to the rating tables, we can conclude that the United States with its market economy is significantly ahead of Russia and China, which are very far from the leading positions, as for countries with traditional economies, they are located at the very end of the list, which indicates the minimum values GDP per capita and speaks of the backwardness and underdevelopment of their economic systems. Russia ranks 79th place Russia (from 47th place in 2007) in the world in terms of GDP per capita (23.700), China 112th place (14.300), USA 19th place (56.300).
Gross national income per capita - gives an idea of the amount of goods and services produced per inhabitant of the state, or, in other words, how much each inhabitant of the country would receive if the entire annual national income were distributed among all equally among the citizens of the country. GNI per capita is also referred to as "per capita income" or "per capita income".
Tables 8 and 9 show the annual GNP per capita in the world's richest and poorest countries at nominal (absolute) value, expressed in US dollars at current prices (not adjusted for inflation). The data are presented as of 2014 (published in July 2015, updated in December 2015).
Table 8. Countries with the highest GNP per capita in 2015
Table 9. Countries with the lowest GNP per capita in 2015
The first places are occupied economically the developed countries, including the USA - 10th place (55200), which closes the top ten, Russia ranks 57th in the world in terms of GDP per capita (13220), China 80th place (7400), I close the rating of a country with a traditional economy, for comparison Niger - $410 million
AT last years as a criterion for the effectiveness of the economic system, the indicator of the competitiveness of the economy is used.
For comparison, China and India are ranked 40th and 50th respectively in this ranking. The first places are kept by economically developed countries.
The indicator of competitiveness cannot fully characterize the economic efficiency of the country, but rather reliably evaluates one of the parties. The category of competitiveness is one of the key ones, since it reflects the economic, scientific, technical, production and other possibilities of the country's economy.
Tables 10 and 11 show the competitiveness index values for the richest and poorest countries in the world. The data are presented as of 2014 (published in July 2015, updated in December 2015).
Table 10. Countries with the highest competitiveness index in 2015
Table 11. Countries with the lowest competitiveness index in 2015
The 2014-2015 Global Competitiveness Index is topped by Switzerland, which has been ranked number one for the sixth year in a row. The second place, as well as last year, is occupied by Singapore. The United States has improved its ranking from 5 to 3 and continues to be the world leader in providing innovative products and services. The fourth place is occupied by Finland, the fifth - by Germany. Further in the top ten of the rating: Japan (6th place), Hong Kong (7th), the Netherlands (8th), Great Britain (9th) and Sweden (10th).
Russia in 2015 rose in the ranking from 53 to 45 (4.44). Compared with previous year Russia's position has improved largely due to macroeconomic factors, in particular due to low level public debt and a continuing budget surplus.
An important indicator of the effectiveness of the economic system is the standard of living of the population. The Human Development Report, published by the specialized international recording body, the PLO Development Program (UNDP), provides human development indices (HDI).
Tables 12 and 13 show the HDI values for the richest and poorest countries in the world. The data are presented as of 2014 (published in July 2015, updated in December 2015).
Table 12. Countries with the highest HDI in 2015
Table 13. Countries with the lowest HDI in 2015
The leading position is occupied by Norway, the second place in the ranking belongs to Australia, the USA is in the 8th place. Niger has the lowest HDI. Russia, according to UNDP data, ranks 50th in the list in 2015 (0.798). According to this indicator, our country is ahead of Panama, Belarus, Mexico, Uruguay. China ranks 90th (0.727). In 1988, the USSR was in 26th place according to the UN report.
Consider the key performance indicators of a planned economy on the example of the USSR with con. 20s - early. 30s 20th century until 1992
Until the end of the existence of the USSR, the Soviet economy and industry in terms of gross indicators occupied the second place in the world, second only to the United States (about 50% of the US economy). The share of the USSR in world industrial output was 20%. Only at the turn of the 1980s and 1990s. The GDP of the USSR, excluding price parity, was slightly less than that of Japan.
In 1988, in terms of living standards (HDI), the USSR was in 26th place according to the UN report (Table 14).
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USSR-Russia |
During the period from 1950 to 1981, the GNP of the USSR, according to the CIA, grew by an average of 4.6% per year, while the growth of US GNP over the same period averaged 3.4% per year.
From the data of GDP, GNP and the list of HDI places, it follows that the USSR was catching up with the developed countries of Western Europe.
Thus, based on the analysis of the main indicators of the economic efficiency of countries representing various types of economies, certain conclusions can be drawn.
Definitely, the traditional economy cannot be called the most effective, since the countries in which it is applied occupy the last places in the rating tables for all indicators.
The mixed economy has no unambiguous interpretation. There are several interpretations, but they do not contradict each other. A mixed economy is a simultaneous combination of the private and public sectors of the economy, the market and state regulation, capitalist tendencies and the socialization of life, economic and non-economic principles. If we rely on the data of the study, we can say that the countries - representatives of a mixed economy, and such are Russia and China, are far from leading positions, and are inferior to developed countries with a market economy in all key indicators: in terms of GDP, GNP and etc.
The most controversial issue at the present stage is the choice between a planned and a market economy.
At the same time, based on the analyzed data, we can say that countries with a market economy, have the best performance, are leaders in the ranking.
I consider it more acceptable to consider a planned economy using the example of the USSR before 1990.
A planned economy and a market economy are just ways to achieve a certain goal (plan). In one case, this is a method of directive-address control, in the other, it is unstructured control.
So, what is the best way? Each industry has its own way of managing. For example, for the production of consumer goods, it is better market way, since there can be a great variety of plants and factories and it is impossible to keep track of all, especially since in this case the private owner is much more efficient than when the state is the owner. Heavy industry may or may not be profitable. Or it may become profitable after a significant amount of time. But, nevertheless, it is an integral element of the economy. Defense plants, ferrous metallurgy, oil industry. Here, of course, “public administration” is most suitable.
In the USSR, this was a structural method of management, directive-address, i.e. on command from above, everyone did what was required. Those. the plan is the goals of the state, and the market is the way to achieve the plan in a structureless way. Therefore, when they oppose a planned economy to a market economy, it is like comparing a city with the road that you go to it.
Thus, on present stage the question of the effectiveness of a particular type of economic system is open and problematic. It all depends on the goals pursued by the state, what plan it adheres to.
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. market type The 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 the 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 of all 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. The 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. Natural resources suffer from it (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 form an economic system of a transitional type to a market one, it is necessary to reform the public sector, 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. It is necessary to work with commodity producers who have different forms of ownership: private or state. 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.
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.).
economic system
economic system(English) economic system) - the totality of all economic processes taking place in society on the basis of property relations that have developed in it and economic mechanism. In any economic system, the primary role is played by production in conjunction with distribution, exchange, and consumption. In all economic systems, production requires economic resources, and the results of economic activity are distributed, exchanged and consumed. At the same time, there are also elements in economic systems that distinguish them from each other:
The main types of economic systems are listed below.
The concept of an economic system (its content, elements and structure) depends on the economic school. In the neoclassical paradigm, the description of the economic system is revealed through micro- and macroeconomic concepts. The subject of the neoclassical is defined as the study of the behavior of people who maximize their utility in the environment. limited resources for unlimited needs. The main elements are: firms, households, state.
Economic systems are also studied from the point of view of other theoretical schools directly related to economic theory. From the point of view of researchers of the modern post-industrial society, the post-industrial economy (neo-economics, "information society" or "knowledge society") is born as a special technological order that significantly modifies economic and social systems as a whole. In the “development economics” paradigm, a special group of “third world” countries stands out, where there are a number of important patterns: institutional structure, macroeconomic dynamics, and a special model. Thus, development economics considers a class of special economic systems. In contrast to the dominant concepts of neoclassicism and neoinstitutionalism, the historical school emphasizes the historical differences in national economic systems.
Economic systems are studied from the point of view of technological structures. In terms of structure, these are: pre-industrial economic systems, industrial and post-industrial economic systems. An important parameter for post-industrial systems is the degree of development of creative activity and its role in the economy. It is usually measured using measurable parameters of the level of education, for example, the proportion of persons with higher education, the structure of professional employment, etc. The most important characteristic is the assessment in the economic system of a measure for solving environmental problems. Demographic parameters allow answering questions related to the approach of the economic system to a post-industrial society, and these parameters are directly related to: life expectancy, infant mortality, morbidity, and other parameters of the health of the nation. Specific gravity post-industrial technologies is usually calculated by the share of people employed in the production of various industries in the total GDP.
These parameters are especially relevant for countries with economies in transition. A description is given of the mechanisms of state planning of the economy, the development of commodity-money relations, measures for the development of natural economy, a measure of the development of the shadow economy. Characteristics of market development: a measure of the development of market institutions, a measure of market self-organization (competition), market saturation (no shortage), market structure. Regulatory development measures: antimonopoly regulation; measure of the development of state regulation (selective regulation, countercyclical regulation, programming); a measure of the development of regulation by public associations. A more detailed study of the role of the state in the economy is carried out in the theory of public choice, which considers the decision-making process of the government, the system of social contract (constitutional economics), and so on. .
When analyzing economic systems, a characteristic is given of the ratio of the shares of state, cooperative and private enterprises. However, this characterization is formal; for a deeper characterization of the economic system, qualitative and quantitative characteristics are used to describe the essence of the forms and methods of controlling property and its appropriation. For example, for countries with transition economy This can be done by answering the following questions:
Over time, the economic system can democratize, with more ownership and appropriation given to businesses and individuals.
An important characteristic of property relations is the form of ownership, what is the share of enterprises: wholly owned by the state; joint-stock enterprises, the controlling stake of which is in the hands of the state; cooperatives and collective enterprises; joint-stock enterprises, the controlling stake of which is in the hands of employees; joint-stock enterprises, where the controlling stake is owned by individuals and private corporations; private personal enterprises using hired labor; based on the personal labor of owners; enterprises owned by foreigners; property of public organizations; various types of joint ventures.
Level and dynamics of real incomes . "Price" of the received real income(length of the working week, family working time fund, labor intensity). The quality of consumption (market saturation, time spent in the sphere of consumption). Share of free time, directions of its use. The quality and content of work. The development of the socio-cultural sphere, the availability of its services. Development of the scientific and educational sphere and its accessibility.
The market is a complex economic system of social relations in the sphere of economic reproduction. It is due to several principles that determine its essence and distinguish it from other economic systems. These principles are based on the freedom of man, his entrepreneurial talents and on the fair treatment of them by the state. Indeed, there are few of these principles - they can be counted on the fingers of one hand, but their importance for the very concept of a market economy can hardly be overestimated. Moreover, these foundations, namely: the freedom of the individual and fair competition, are very closely connected with the concept of the rule of law. Guarantees of freedom and fair competition can only be given in the conditions of civil society and the rule of law. But the very essence of the rights acquired by a person under the rule of law is the right to freedom of consumption: every citizen has the right to arrange his life the way he imagines, within the framework of his financial capabilities. It is necessary for a person that the rights to property be inviolable, and in this protection of his rights he himself plays the main role, and the state assumes the role of protecting against illegal encroachments on the property of a citizen of other citizens. This alignment of forces keeps a person within the law, since ideally the state is on his side. A law that is beginning to be respected, whatever it may be, becomes fair at least for the one who respects it. But, protecting the rights of citizens, the state should not cross the border, both totalitarianism and chaos. In the first case, the initiative of citizens will be restrained or manifested in a perverted form, and in the second, the state and its laws can be swept away by violence. However, the "distance" between totalitarianism and chaos is quite large, and in any case the state must play its "own" role. This role lies in the effective regulation of the economy. Regulation should be understood as a very wide range of measures, and the more effective its use, the higher the credibility of the state.
Distinctive features:
In economically underdeveloped countries, there is a traditional economic system. This type of economic system is based on backward technology, widespread manual labor, and a multistructural economy.
The multistructural nature of the economy means the existence of various forms of management under a given economic system. In a number of countries natural-communal forms are preserved, based on communal management and natural forms of distribution of the created product. Small-scale production is of great importance. It is based on private ownership of productive resources and the personal labor of their owner. In countries with a traditional system, small-scale production is represented by numerous peasant and handicraft farms that dominate the economy.
In conditions of relatively underdeveloped national entrepreneurship, foreign capital often plays a huge role in the economies of the countries under consideration.
Traditions and customs illuminated by centuries, religious cultural values, caste and class divisions prevail in the life of society, holding back socio-economic progress.
Solution key economic tasks It has specific features within various settings. For traditional system characteristic feature is the active role of the state. Redistributing a significant part of the national income through the budget, the state allocates funds for the development of infrastructure and the provision of social support to the poorest segments of the population. The traditional economy is based on traditions passed down from generation to generation. These traditions determine whether goods and services are produced, for whom, and how. The list of benefits, production technology and distribution are based on the customs of the country. The economic roles of members of society are determined by heredity and caste. This type of economy is preserved today in a number of so-called underdeveloped countries, into which technical progress penetrates with great difficulty, because, as a rule, it undermines the customs and traditions established in these systems.
Benefits of the traditional economy
Disadvantages of the traditional economy
Distinctive features:
Traditional economic system: Burkina Faso, Burundi, Bangladesh, Afghanistan, Benin. These are the least developed countries in the world. The economy is oriented towards agriculture. In most countries, the fragmentation of the population in the form of national (folk) groups prevails. GNP per capita does not exceed $400. The economies of the countries are represented mainly by agriculture, rarely by the mining industry. Everything that is produced and extracted is not able to feed and provide for the population of these countries. In contrast to these states, there are countries with a higher income, but also focused on agriculture - Azerbaijan, Côte d'Ivoire, Pakistan.
This system dominated earlier in the USSR, countries of Eastern Europe and a number of Asian states.
The characteristic features of the ACN are public (and in reality - state) ownership of almost all economic resources, monopolization and bureaucratization of the economy in specific forms, centralized economic planning as the basis of the economic mechanism.
The economic mechanism of the AKC has a number of features. It assumes, firstly, direct control all enterprises from a single center - the highest echelons of state power, which nullifies the independence of economic entities. Secondly, the state completely controls the production and distribution of products, as a result of which free market relationships between individual farms are excluded. Thirdly, the state apparatus manages economic activity with the help of mainly administrative and administrative (command) methods, which undermines the material interest in the results of labor.
The complete nationalization of the economy causes the monopolization of production and marketing of products, unprecedented in its scale. Giant monopolies established in all areas National economy and supported by ministries and departments, in the absence of competition, do not care about the introduction of new equipment and technology. The scarce economy generated by the monopoly is characterized by the absence of normal material and human reserves in case the balance of the economy is disturbed.
In countries with ACN, the solution of general economic problems had its own specific features. In accordance with the prevailing ideological attitudes, the task of determining the volume and structure of products was considered too serious and responsible to transfer its decision to the direct producers themselves - industrial enterprises, state farms and collective farms.
Centralized distribution of material goods, labor and financial resources was carried out without the participation of direct producers and consumers, in accordance with pre-selected public goals and criteria, based on central planning. A significant part of the resources, in accordance with the prevailing ideological guidelines, was directed to the development of the military-industrial complex.
The distribution of the created products among the participants in production was strictly regulated by the central authorities by means of a universally applied tariff system, as well as centrally approved norms of funds for the wage fund. This led to the prevalence of an egalitarian approach to wages.
Main features:
The main features of the economic mechanism:
This type of economic system is typical for: Cuba, Vietnam, North Korea. Centralized economy with an overwhelming share public sector largely dependent on agriculture and foreign trade. GNP per capita is slightly over $1,000.
A mixed economy is an economic system where both the state and the private sector play an important role in the production, distribution, exchange and consumption of all resources and material goods in the country. At the same time, the regulatory role of the market is supplemented by the mechanism of state regulation, and private property coexists with public and state property. The mixed economy arose in the interwar period and to this day represents the most effective form of management. There are five main tasks solved by a mixed economy:
Distinctive features:
This type of economic system is typical for Russia, China, Sweden, France, Japan, Great Britain, USA.
