08.07.2020

What is freedom of economic choice. Market freedom of economic selection. What is an economic freedom


Every student in the future sees herself successful and succeeding, and ideally, not at all office clerk with ordinary duties and certainly not a waiter or seller. However, dreams of dreams, and reality does not always develop as we want. Not everyone can find perfect work and build a dizzying career. But everyone who is not afraid to make dreams can create such a business in which he will be interested in developing, and work for himself! For this, there is nothing enough - to open an IP, and, of course, work and work.

Word about status: pros and cons

If you work, the task is not simple and requires many of the qualities of many qualities, experience and knowledge, which he in the learning process and should be ideally to get, then the discovery of IP is a very simple thing, but this is exactly what is the beginning of a small business. By law, without registration of individual entrepreneurship, no private person has the right to lead commercial activity. But registration of IP not only gives you the right to arrange your business, as you want, but also allows you to fully consider you to consider our holiday the day of Russian entrepreneurship, which has been celebrated from 2007 on May 26. Although a trifle, but pleasant.

A significant difference in the status of an individual entrepreneur from, for example, a participant in the limited liability company is that in the case of which an individual entrepreneur is responsible for obligations to all its property, even personal - what is called, according to the full program. But how many advantages! First, without registering your own enterprise, only having received the status of the IP, you can manage your own revenue as you like. Secondly, all the problems associated with the creation and liquidation of the business are minimized. Not necessarily have legal address, Current account in the bank and statutory capital, there is no need to account for various funds. You do not need to pay tax on property, which is somehow involved in commercial activities, you can take all decisions yourself without any meetings and protocols, and there is even an opportunity (if you have some kind of activities), no income is taking into account.

However, it is not necessary to think that everything is so smoothly - yet, no matter how cool, we live in Russia. And the status of the IP has certain flaws that better know in advance. About personal property, which, in case of anything, creditors can take away from you, we have already said. True, for this, you still need to manage to acquire creditors. But that's not all. So, being individual entrepreneurYou will not be able to get some licenses - for example, you will not be allowed to trade alcohol and medicine. The possibility of sharing business here is excluded by itself. Payments to social insurance Only follow from the minimum wagon, taken to the beginning of the corresponding year in the form of a fixed payment, even if there was no activity. And in general, the IP works not under an employment contract, but under a civil-law agreement with all the ensuing pluses and minuses.

Procedure: Easier easy

But the advantages are obvious. Take at least a registration order that is simplified to a minimum in this case. The only inconvenience is that registering as an IP will have to attend the permanent registration at the place of residence. Although this does not in any way prevent activities in any other region of the Russian Federation. But documents for personal innovation do not need to be assigned from the notary (this innovation of 2011) is the saving time and money. In the case of termination of entrepreneurship, it is enough to submit a certificate in electronic form. To register an IP, you need to have only four documents:

  • Statement O. state registration individual entrepreneur;
  • Copy of the passport;
  • Document on the payment of state duty;
  • Certificate TIN.

Well, the procedure procedure itself is not even necessary to pass personally - an authorized representative by proxy with all the necessary documents may appear on it (in this case, the truth is notarized). Documents will be taken from you by issuing a receipt in which the date will be indicated when you can pick up the paper back. If you for some reason you cannot come for them at a specified period, it is not scary: the documents will be sent at your home address. After registration of the IP you will get everything required documentsconfirming your status: Certificate of registration as an individual entrepreneur and EGRIP (an extract from the Unified State Register of Individual Entrepreneurs). However, more detailed information You can give in any company that is engaged in consulting in such matters - for example, in the company "MK Cadar, which provides accounting support and legal services. According to the company's specialists, an individual entrepreneur is the most convenient form for making small private business. Probably, you already understand why.

Yes, to become an individual entrepreneur is to bear full responsibility for commercial activities: to study legislation itself, to engage in all expenses - from transport to workplace and technology, to look for customers and customers, be responsible for all solutions and actions, and most importantly, work itself. But - your money, my own decisions, your own activity (any, if only the law did not violate), your work schedule, your workplace (at least work on the couch!), Your conditions ... On the one hand, what is the responsibility! Well, on the other - what freedom! Considering that such firms as "MK" Cadar "are ready to take on all questions about the registration of IP and are able to assist you in making decisions related to your business, then this freedom is becoming more accessible and therefore all tempting. Cheer!

Each person understands what is freedom - the ability to successfully operate with life. However, what is the economic freedom, which is becoming increasingly attractive in the 21st century?

Among the main features it is supposed to replace external restrictions by internal conventions. At the same time, freedom in the economy has serious advantages and at the same time disadvantages.

What is an economic freedom?

Economic freedom is required for any entrepreneurial activity. Based on classical theory capitalism, one can expect that the market will be a self-regulating system. However, this process becomes possible only if no external management is assumed and the conditions of complete freedom are guaranteed.

The entrepreneur must independently choose directions for his activities, seeking to understand what is the closest to him. In addition, it must independently establish the optimal value for the proposed product. State authorities should only follow the compliance with the legislation of the Russian Federation and antitrust standards. It is such ideas and the concept of "economic freedom" began to actively develop in the XVII century.

What is the essence of economic freedom?

In order to understand the essence of economic freedom, it is necessary to focus on the position of supporters of non-interference of state-owned in market processes. It is assumed that each person is committed to decent benefit. For this reason, if only a reasonable choice is required for maximum profit, then the approach must be appropriate.

Competition and economic freedom should allow entrepreneurs to understand which strategy of activity is the most worthy and relevant situation. It is important to understand that with a lack of goods of a certain category on the market, someone will definitely offer products in the right amount. In excess of goods, the bankruptcy of weak manufacturers will occur. Taking these factors into account, you need to take care of making a decent choice with existing opportunities.

Advantages of free choice in the economy

Economic freedom is the basis of effective business activities. For this reason, you need to understand the important advantages of the estimated activities.

  1. To obtain the optimal amount of profit, it is necessary to focus on effective development plans not only by the state, but also a business. Only, if you follow the valid principles, you can guarantee maximum success.
  2. Economic freedom contributes to a decrease in unwanted risks. Moreover, this advantage is primarily manifested in countries with an unstable economic system. Only, if the entrepreneur is responsible for his actions, one can count on the maximum success achieved in business.
  3. Economic freedom guarantees the possibility of successful planning activities for many entrepreneurs, but it should be understood that it will not always benefit the economy.
  4. An entrepreneur can engage in activities that will guarantee the maximum level of profit with minimal expenses and risks.
  5. There is a possibility of making any decision when conducting legal business. Only an entrepreneur can decide how it should act to achieve the desired results.
  6. Economic freedom of choice should be based on the desire to help each other. Only in this case is guaranteed a high level of labor efficiency.

Disadvantages of economic selection

  1. Public authorities must control the activities of entrepreneurs. Otherwise, the risk of systematic violations of the current legislation of the Russian Federation appears.
  2. If you reach full economic freedom, the risk of a large number of merchants appears. It should be noted that this is what happened during the collapse of the Soviet Union.
  3. Full economic freedom suggests that the country will follow the path of natural regulation. As a result, in a few years, the economy will be completely destroyed.
  4. In the absence of any regulation there are serious risks for any country: the state industry can be practically destroyed, agriculture - Stopped in its development, science - discarded back. Moreover, it will take a long time to restore position in the country. At the same time lagging in development high technologies Never be able to compensate.
  5. A high level of competition and complete economic freedom can lead to deposits. The state must perform the regulatory function in the economy.

State regulation should not be prohibitive. The only task is to prevent violations of current legislation, which is general and mandatory for all. With reasonable credit Policy, proper improvement of legislation, competent activities tax economic freedom and social responsibility can exist with each other.

Each person understands what is freedom - the ability to successfully operate with life. However, what is the economic freedom, which is becoming increasingly attractive in the 21st century?

Among the main features it is supposed to replace external restrictions by internal conventions. At the same time, freedom in the economy has serious advantages and at the same time disadvantages.

What is an economic freedom?

Economic freedom is required for any entrepreneurial activity. Based on the classic theory of capitalism, one can expect that the market will be a self-regulating system. However, this process becomes possible only if no external management is assumed and the conditions of complete freedom are guaranteed.

What is the essence of economic freedom?

In order to understand the essence of economic freedom, it is necessary to focus on the position of supporters of non-interference of state-owned in market processes. It is assumed that each person is committed to decent benefit. For this reason, if only a reasonable choice is required for maximum profit, then the approach must be appropriate.

Competition and economic freedom should allow entrepreneurs to understand which strategy of activity is the most worthy and relevant situation.

It is important to understand that with a lack of goods of a certain category on the market, someone will definitely offer products in the right amount. In excess of goods, the bankruptcy of weak manufacturers will occur.

Taking these factors into account, you need to take care of making a decent choice with existing opportunities.

Advantages of free choice in the economy

Economic freedom is the basis of effective business activities. For this reason, you need to understand the important advantages of the estimated activities.

  1. To obtain the optimal amount of profit, it is necessary to focus on effective development plans not only by the state, but also a business. Only, if you follow the valid principles, you can guarantee maximum success.
  2. Economic freedom contributes to a decrease in unwanted risks. Moreover, this advantage is primarily manifested in countries with an unstable economic system. Only, if the entrepreneur is responsible for his actions, one can count on the maximum success achieved in business.
  3. Economic freedom guarantees the possibility of successful planning activities for many entrepreneurs, but it should be understood that it will not always benefit the economy.
  4. An entrepreneur can engage in activities that will guarantee the maximum level of profit with minimal expenses and risks.
  5. There is a possibility of making any decision when conducting legal business. Only an entrepreneur can decide how it should act to achieve the desired results.
  6. Economic freedom of choice should be based on the desire to help each other. Only in this case is guaranteed a high level of labor efficiency.

Disadvantages of economic selection

  1. Public authorities must control the activities of entrepreneurs. Otherwise, the risk of systematic violations of the current legislation of the Russian Federation appears.
  2. If you reach full economic freedom, the risk of a large number of merchants appears. It should be noted that this is what happened during the collapse of the Soviet Union.
  3. Full economic freedom suggests that the country will follow the path of natural regulation. As a result, in a few years, the economy will be completely destroyed.
  4. In the absence of any regulation there are serious risks for any country: the state industry can be practically destroyed, agriculture - who has stopped in their development, science - discarded back. Moreover, it will take a long time to restore position in the country.

    At the same time, the lag in the development of high technologies will never be able to compensate.

  5. A high level of competition and complete economic freedom can lead to deposits. The state must perform the regulatory function in the economy.

State regulation should not be prohibitive.

The only task is to prevent violations of current legislation, which is general and mandatory for all. With reasonable credit policy, proper improvement of legislation, competent activities, tax economic freedom and social responsibility can exist with each other.

Market economy Freedom of selection of species and forms of activity

Introduction 3.

1 Market economy: freedom of species and forms of activity 4

2 irregular forms of ownership of the vnunochny economy 6

3 Independence of Management and Principles

functioning 7.

4 How the market is responsible for fundamental economies of the economy 8

Conclusion 17.

Winged sources 18.

Introduction

Today, the acute problem of our state is its role in the economic system. There is also a serious problem - the development of its market and expansion inconomics.

The market economy, which is in economic free-weathering subjects, independently of the ownership of their economic acceptance to rational economic, is largely in the community to realize the strong partnership production and the market of coinsens of socio-economic cooperation.

It creates optimal (at least not absolutely the best in economical social plan) the system of attracting effective, initiative Icommunity economic behavior.

In the market economy, the latter if it is initiated, then primarily economic methods. People and teams are oriented by their own interests and forces, and the directional consequences of the economists are responsible.

This is responsible to resources, initiative, active, resourceful economic activity.

Simultaneously with this, market economy is a rather tough national plan, it is not allowed for escape and deterrence, excluding the possibility of equal distribution and riches of society, and therefore characterized by chronic social symbol.

The market economy has the originational use of resources, the bright manifestation of which is the economic crises with their ruinage on the created commodity forces, an increase in the fundamental use of industrial goods and unemployment. But to ensurely ensure a decent standard of society by all of society without a transition to a socio-oriented market, as the most of the economists of the estimates in Kazakhstan, it is impossible.

1 Market economy: freedom of species and forms of activity

The market is a complex economic system of social reproductiveness in the field of economic production. It is due to multiplecrisses, which cause media and distinguish from other economic systems.

These principles are based on a man's headband, its entrepreneurial-plants and on a fair respect for him. Indeed, the data of the data is a bit - they can be counted by the fingers of one hand, but their importance of the very concept market economyit is difficult to overestimate.

And these basics, namely: Freedom of the individual and honestly theory - are very closely connected by the spontaneity of the legal state. The guarantee of freedom and honest competitions are given only in the Costgradan society and legal consignment.

But the very essence of the rights found by the person in the context of legal consumption is the right of the benefits: every citizen is entitled to his life as it is refined, as part of its financial capacity.

It is human like that in order for the rights to ownership with indestructible, and in this defense of their gaga, he is played by himself, and the Rolpot Protection against illegal encroachment, the property of a citizen is owned by the state. Sular forces holds a person within fee, since ideally states on his side.

The law, which is to respect, whatever he is, becomes fair at least for the matter who respects it. But, protecting the rustunctan, the state should not translate, both totalitarianism and chaos. In the first case, the initiative of the nationality to hold back or manifest itself, and in the second - the states of its laws can be revealed by violence.

However, the "distance" of intravertalitarianism and chaos is dear, and the state in any challenge to play "his" role. The role is evaluated in efficient regulation. Under the regulation, you should have a very wide range of measures, which is more effective than its use, topical confidence in the state.

Market economics itself as a mechanism of regulation of economic relations is a rather scientific abstraction, a simplified model of demonstration of the principle of inheritance and comparison by the symbol forms of the so-called-wide economy. In market economies, all the principles determined by it are fully implemented.

Although the market economy is a multi-valued concept, the main embresence can still be allocated. Etoprecipit of freedom of economic activity.

Naturally, economic freedom, as well as political, social, spiritual, moral, is limited to socially installed funds, which do not allow it to expose anarchy, to turn into a fundamental economic arbitrariness. Without a system of public restrictions, some will be dominant.

But at the same time, the presence of restrictions indicates that in conditions of influence, freedom is concluded in advanced framework. The whole question is what the level of restrictions.

Sugging restrictions, you can reduce the area of \u200b\u200beconomic proximity to zero, and, expanding free economic sustainable, it is possible to make it and imparting restrictions not to syvertising economic activities, initiative, enterprise.

The principal principle of the market economy declare the law of any economic entity, whether it is a person, a family, a group, collective enterprises, choose the desired, expedient, profitable, preferred economic activity to provide this activity in emitting the law. The law of jebierzvan to limit and prohibit the tevids of economic and economic activity, which represents the danger of life and freelide, social stability, contradict the norms of morality. Everyone remains permitted both in the formation of labor and in the ecollective and state formations. Thus, the market economy acts the next baseprincipss: "Each subject is entitled to have arbitrary formational economic activities, except for prohibited by law, due to their public hazard."

2 Equipment forms of ownership of the vnunochny economy

It should be necessary that the market of universality is being implemented in the market. It causes the componension of the market economy, the GDen should be structures that are not useful to monetary relations, which are the most important attributamine in the economy.

The determination of the market economy is the equality of the equality of market subjects with different forms of ownership.

Equipment says: economic rights of these subjects, including the possibility of economic efficiency, restrictions, taxes, benefits, sanctions, should be adequate to all subjects.

In the sense that they do not depend on the form of ownership existing in this enterprise.

Naturally, equality or, it is better to say, the adequacy of the rights of enterprises with dyingforms of ownership does not follow the perpetrators as absolute equality, the sameness, indistinguishability. Different ownership of themselves, denteen different production, economic possibilities.

To be elementary to have the same rules, let's say, taxation for enterprises by large and small teams of other participants. We are talking about a friend: In order to incorporate the "special" conditions for the prerequisite regime of conduciveness, a sign of the form of ownership, putting a favorable position one of them and the wrong one.

In essence, this is an equalization of honest competition of nature. The second, not the manifest side of the principally declared principal, in providing all the formamas of the right to exist, the right to be presented in the economy.

It is understood here, first of the prolongedness of the genocide in relation to the coherent, family, group owner of the means of production, stoligible in the near-passenger economy.

3 Independence of the management and principalization of the market

It is already under the independence of independence in electionalforms and activities, but it should be added to the case: the market economy is characterized by processes that distributed only to the management of the enterprise, but also to its creation and liquidation.

Moreover, in contrast to the conditions of state-economic, in the framework of the market of enterprise-dependent on various types of state-frameworks, and ideally, only the defincinance state on permanent enterprises.

So, on the basis of the listed parent principles, a market economic system operates.

To understand how the market economy works, the existence of five-informal issues should be recognized, for which the economic system should have the answer. These questions.

    How much should it be produced? In what volume or what part of the available resources you need to take or use in the manufacturing process?

    What should be produced? What a set of goods and services will most fully satisfy the material needs of society?

    How should this products be produced? How should production be organized? What firms should produce and what to use production technology?

    Who should get this product? In particular, how should the products between individual consumers be distributed?

    Is the system capable of adapting to change? Can the system achieve proper correction in connection with changes in consumer demand, in the supply of resources and production technology?

All ETATICOSS exist only because the supply of society is endless, the arrests, capable of data needs to be limited.

4 How the market is responsible for fundamental economy

Economic Dictionary - The meaning of the word freedom of choice

free right to use the available resources and money at its discretion; Free law of workers choose the place and type of labor at their request; free right consumers to spend their

revenues for their own needs.

Watch value Freedom of choice in other dictionaries

Freedom 1. - Independence

Synonym dictionary

Freedom 2. - Wola
Synonym dictionary

Freedom 3. - Vololyoprivollyelyely

Synonym dictionary

freedom Well. Sloboda South. Zap. sowing. Freight Vost. sowing. his will, space, the ability to act in its own way; Lack of constituent, captivity, slavery, subordination of someone else's will. Concept ...... ..
Explanatory dictionary of Daly

freedom - Freedom, g. 1. Only units. The possibility of manifestation of a subject of their will (see Will in 1 Sign.; Philos.). - Engels says: "Hegel first presented the ratio of freedom ...... ..
Explanatory Dictionary Ushakov

freedom - independence, sovereignty; lack of oppression, prohibitions, restrictions; The ability to act at its own discretion. Absolute, boundless, limitless, unconditional, ...... ..

Eptetov dictionary

Without a choice of ads. . - 1. Without parsing, in a row.
Explanatory dictionary Efremova

Freedom J. - 1. Lack of political and economic oppression, constraints and restrictions in public life. 2. State independence, sovereignty. 3. No fortress ...... ..
Explanatory dictionary Efremova

Publicity and freedom of speech (print) - - One of the fundamental human rights, consisting in the legal law and the real possibility of each person publicly express its opinion on topical issues of public ...... ..
Political Dictionary

Choice right - - The natural right of each person declared in democratic states to exercise the free choice of representatives into state authorities .........
Political Dictionary

freedom - - Independence of social and political subjects (personalities, their groups, socio-political bodies, organizations and associations, etc.), expressed in them ...... ..
Political Dictionary

Freedom of religion - - one of the fundamental freedoms in civilized states. Other states declare this concept to seem in the eyes of the world community to seem more civilized .........
Political Dictionary

Freedom of activity - (Freedom of Movement). In the theory of Rotter - great freedom of activity reflects the waiting for a person, something or that behavior will lead to success, while small freedom of activity ...... ..
Political Dictionary

Freedom of information - - In the constitutional law, the concept covering a whole group of rights and freedoms: freedom of speech (freedom of expression), freedom of printing and other media, ...... ..
Political Dictionary

Freedom of the press - - One of the oldest constitutionally fixed personal rights of the human rights and the political rights of citizens, which is an integral part of the more general right - freedom of expression ...... ..
Political Dictionary

Freedom political - - Natural, inalienable from a person, social communities of people quality, allowing them to express their thoughts and actions in accordance with legal norms, interests ...... ..
Political Dictionary

Freedom of speech - - one of the fundamental freedoms declared in democratic societies. It is believed that in the freedom of speech, anyone can state their thoughts in the amount and quality, ...... ..
Political Dictionary

Freedom of conscience - - The ephemeral concept concluded in the declaration of hypothetical freedom to do everything at its discretion, without having remreed conscience. Highlighted ...... ..
Political Dictionary

Theory of rational choice - - according to its main position, the main subject of political participation is a free individual, striving for the maximum realization of its interests and efficiently ...... ..
Political Dictionary

freedom - -; Well.1. Lack of political and economic nest, lack of constraints, restrictions on socio-political life of society. S. Manifestations. Political ...... ..

Explanatory dictionary of Kuznetsov

Associations Freedom - - See the right to unite. NENIE
Legal vocabulary

freedom - The Slavonic Word, ascending to the same basis as the feature, especially, its own.
Etymological Dictionary of Krylova

Contract freedom - - See the principle of Freedom of the Agreement.
Legal vocabulary

Base restriction of freedom of movement, choosing a place of stay and residence - - Position federal Law On the admissibility of restricting the right of citizens to freedom of movement, choosing a place of stay and residence in strictly defined areas ...... ..
Legal vocabulary

Sex freedom - - Freedom of sexually self-determination of man, i.e. the right independently and without coercion to choose sexual partners, the form of intimate relations. Unlike sexual ...... ..
Legal vocabulary

The right to choose a pension - - According to the pension legislation of the Russian Federation, the possibility of a citizen who has at the same time the right to various state pensions, choose one of them.
Legal vocabulary

freedom - - fixed in the constitution or other legislative Act The possibility of a certain behavior of a person (eg, freedom of speech, freedom of religion, etc.). Category……..
Legal vocabulary

Freedom association - - See the right to unite.
Legal vocabulary

Freedom of religion - - One of the main personal freedoms of a person who includes the right individually or together with others to confess any religion, to freely choose, have and distribute ...... ..
Legal vocabulary

Freedom of choice - -1) the free right of the owner to use available resources and money at its discretion; 2) Free law of workers choose the place and type of labor at their request; ...... ..
Legal vocabulary

View in Wikipedia article for Freedom of choice

Economic Freedom, Her Forms and Types

Definition 1.

Economic freedom is an economic behavior of economic entities in the process of choosing the forms of ownership and application of their own capabilities and abilities, knowledge and skills.

Implementation of economic freedom occurs due to legislative Forms States, at the same time its important feature is in the inseparalness of economic responsibility.

Adam Smith called the main conditions of prosperity of the state and its citizens:

  • Perfect legislation
  • Complete tax levels
  • The main components in canonical definition of freedom of economic activity.

Note 1.

In a modern sense, economic freedom of entrepreneurship is in free production, trade, savings, investment, use created and earned, the establishment of contacts with domestic and foreign enterprises, the use of any monetary units.

Success in the development of entrepreneurial activity is depending on the efficiency of the market economy, which should be based on the principles of the market, freedom of entrepreneurial activity, etc.

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A large role in the effective functioning of the market economy and the development of entrepreneurship plays the legislative support of the unhindered implementation of the relevant principles. In this case, the most important functions legal support are:

  • The formation of relevant legal acts in order to support the main conditions of the market action,
  • Economic freedom and price competition,
  • Formation and provision of certain rules for the relationship of market subjects.

Economic Freedom Forms

Economic freedom of consumers and manufacturers can be achieved with greater efficiency through the institution of private ownership, which is functioning on the basis of existing laws.

The main guarantor of the implementation of laws is represented in our country by the Constitution, which includes the formulation of the regulation of ownership. So, in our country, the municipal, state and private property types were recognized as equal.

In modern conditions, the state has substantial, but limited economic resources to achieve fully their goals and interests.

The purpose of the state is represented by the expansion of the circle of public functions of entrepreneurial activities.

This can be achieved through legislatively regulated funds in the implementation of social functions in the country.

On the other hand, the achievement is possible through the construction of state structures effective mechanismwhich is able to stimulate entrepreneurial activities of this direction.

Types of economic freedom

Economic freedom can be expressed in freedom of consumer choice.

The behavior of the consumer is the process of forming customer demand. Consumers choose benefits when taking into account prices and a personal budget, including their own cash incomes.

The basis of consumer choice consists in the wishes of the consumer to the satisfaction of a certain need.

Each person has its own preferences, with the help of market demand These individual preferences are summed up, since buyers can express their own desires through the distribution of income between the diversity of products and services, determining the prices and volume of market supply.

Note 2.

This consumer ability to influence manufacturers is called consumer sovereignty, which is represented by the ability to affect consumers on producers through the free choice of market products.

Freedom of consumer choice is an important form of economic freedom, while its restriction is able to deprive the possibility of buyers to acquire specific goods on the market and have an impact on production. Decisions taken through an administrative method most often lead to a crisis.

Freedom of choice is often distorted as a result of several situations:

  • follow the buyer for most consumers, which finds its expression in the effect of joining the majority or imitation effect,
  • buyer's desire to stand out from the common crowd, that is, the snob effect,
  • persistent demonstration of prestigious consumption expressed in the effect of weblands or the effect of demonstration of its exclusivity.

Despite the presence of admissibility from the position of society and the need for their adjustment, in economic theory, they suggested that the individual in their consumer behavior behaves most often reasonably.

The hypothesis of rational behavior of consumers is characterized by the fact that they seek to the maximum effective disposal of their means. Abstract, the perfect person corresponding to this hypothesis in the economy is called a "economic person."

Analysis of the consumer behavior is characterized by the knowledge of the criteria that it applies with its own free choice. This criterion is mainly represented by the utility of the good, which is a measure of satisfaction provided by the consumption of a certain product.

At the same time, in the course of consumption, the usefulness of the goods is committed to reducing. The utmost usefulness of a certain good is an increase in the overall utility of a product set with an increase in consumer benefits per unit. The relationship of 2 Economic Law of the Gossen is related to this concept.

The first law is called the law of decreasing utility utility. In accordance with it, each continuous act of consumption is characterized by descending the usefulness of each next unit of consumed goods.

In accordance with the second law, a utility maximization rule is formed. So, to obtain maximum utility from a certain number of goods, each of them needs to be consumed in an amount in which the value of the utmost utility of each product will be equal to the same value.

Principles, according to which the consumer shows preference or indifference to a certain set of benefits, one can determine as consumer axis of behavior.

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Introduction

Economy - Public science that studies the elections that people perform using limited resources to meet their desires.

As it becomes clear of the definition, the subject of economic theory is not money or wealth, but people. The economy studies people, because the rarity in itself is a purely human phenomenon.

The second reason why the economy can be considered a science of people, is that the elections that it studies is improved in a social context. Therefore, the economy is considered rather social science than a section of operational analysis, engineering or mathematics.

Economic elections are committed everywhere: in government agencies that make political decisions, in non-profit organizations, such as churches and student clubs, as well as in many other places and situations.

You yourself are committed to the economic selection, as buying clothes or food, when you work, etc.

All these examples belong to the branch of the economy, called microeconomic. The "Micro" prefix, meaning "small" reflects the fact that this section of our subject is studying the election committed by small economic units. Although these units and "small", but microeconomics still covers many different problems of a truly global scale in its study. For example, firms and government agencies carry out world trading with such goods such as cars, chemical products, non-translated oil. This trade and regulatory policy is in the field of understanding of macroeconomics.

In the economy there is also another section called macroeconomics. The "Macro" prefix denoting "big" shows that this branch of the theory studies large-scale ehnamic phenomena. Typical microeconomic problems - how to create conditions in which people seeking to find it can find it; how to protect the economy from the harmful influences of the total increase in prices, called inflation; How to ensure a continuous improvement in living conditions. Government policy related to taxes, costs, budget deficits, financial system - Here are the main topics of macroeconomics.

However, the same as the macroeconomic phenomenon of inflation is the amount of millions of individual elections relating to prices for specific goods and services, and all macroeconomics is resting on a microeconomic basis.

Do we consider micro or macroeconomics, internal or external economic relations - in any case economic analysis Requires a special way of thinking about how people make decisions on the use of rare resources.

Each economic system faces the need to make certain basic types of choice. Among them are the most important: what products to produce, how to produce them, who and what work should do, and for whom the results of this work are intended. The need for each of these elections is dictated by the rarity of resources, and each specific choice can be considered in order to explain the key moments of economic thinking.

1. Deciding on what should be produced

The first most important choice - Which products produce. In the modern economic system, the number of goods and services created is enormous. However, the essential features of choosing what should be released can be illustrated by the example of an economic system in which there are only two alternative goods. Cannot be provided enough goods and services to satisfy the desires of all and everyone. Someone will have to choose, in what quantities what product produce.

The inability to produce so many products, how many people would like, there is a consequence of the rarity of the productive resources used for the release of these goods. Even in order to produce the simplest products, we will have to combine many rare resources. For example, for the manufacture of the table, we will need wood, nails, glue, hammer, saw, carpenter, malarier, and so on. For convenience, productive resources are usually divided into three main categories that are called production factors. Labor includes all productive costs performed by people in the process of their muscular and intellectual activity. Capital includes all the productive resources that are created by people: tools, cars, infrastructure, as well as intangible things, such as computer programs.

Natural resources - It's all that can be used in production in kind, without processing, for example, fertile land, construction sites, forests, materials.

The productive resources used in one place cannot at the same time be used elsewhere. Steel, concrete and construction sites used to build a plant can no longer be used in the construction of the school. People working as teachers cannot work on assembly lines of automotive plants. Even the time that students spend in the audiences, preparing for the exams, could be a productive resource if students were engaged in the factory work instead of preparing for exams. Since production uses resources that could be used somewhere else, the production of any product entails the loss of the possibility of producing another product. In economic terms, everything has an alternative value.

Alternative value Goods or services are the cost measured from the point of view of the lost opportunity to deal with the best of affordable alternative activities requiring the same time or the same resources.

More typical, however, the situation in which we have a lot of goods. In this case, have a large number of one product means sacrifice with a small number of each other goods. In the system with many goods, alternative cost can be expressed through the total unit of measurement - money.

It is very convenient to have a common unit of measurement, but it is worth the measurement of alternative costs in money very carefully, because not all cash spending are sacrificing the opportunity to do somehow otherwise. At the same time, not all the victims that we do take the form of cash costs.

Cash costs and alternative cost - These are intersecting concepts. Some alternative costs, such as training fees, take the shape of cash flow, while others, such as lost income, are not manifested in cash. Some of the cash flow as the same training fee is alternative value, since this money could be spent on something else. Other cash spending, such as housing and nutrition, are not included in the alternative cost of learning, as a person must live somewhere and there is something, regardless of whether he is a student or not.

2. Making a decision on how to produce

Second main economic selection - How to produce. Almost for any product or service there are several ways of production.

Cars, for example, can be done on highly automated factories with a huge number of capital equipment and a relatively small amount of labor, but they can be done at small enterprises using a large amount of labor and only some machines general purpose. The same can be said about education. You can learn any subject in a small class, where one teacher works at a blackboard with twenty students, but the same subject can be studied in a large lecture hall, where the teacher uses monitors, projectors, computers to train at the same time hundreds of students.

Efficiency - This is a key consideration when making a decision on how to produce. In everyday speech, the word "efficiency" means that production comes with minimal costs, efforts and losses. Economists enjoy a more accurate term.

Economic efficiency (Pareto efficiency) - This state of affairs, in which it is impossible to make a single change, more fully satisfying the desires of one person, while damage to the satisfaction of the desires of another person.

Definition itself is actually very close to the generally accepted concept of efficiency. If there is a way to improve your position without damaging anyone, then it is pointless to pass by this possibility (inefficient). For example, if I have a fountain pen, which I am at the moment I do not use, and you need this handle, it would be stupid on your part to buy my own handle. Much more effectively will give you my handle loan; This improves your position and does not worsen my. When there is a way to improve both sides, then not to use such an opportunity - waste. You will lend me a bike, I am a volleyball ball. If I do not often ride a bike, and you do not really play volleyball very often, then we are both unprofitable to buy these things.

Concept economic efficiency It has many applications, one of which is the question of how to produce.

Efficiency in production - This situation in which, in these productive resources and the existing knowledge level, it is impossible to produce more than one product, without sacrificing the ability to produce some other product.

The concept of efficacy in production, as well as the wider concept of economic efficiency, includes generally accepted meaning - avoiding losses. For example, man growing apples always seeks to apply fertilizers in strictly defined quantities, no more than any of the trees. The dose is ineffective in the generally accepted sense of the word; After a certain point, the increase in the number of fertilizers no longer leads to an increase in the number of apples. It would be much better to use excess fertilizers in production, for example, peaches. In this case, more peaches will be produced without reducing the number of apples.

The scientific economic definition includes some more complex opportunities for improving the efficiency of production in cases where resource losses are not so obvious.

When efficiency is achieved, the more product can be produced by the cost of losing the opportunity to produce something else if productive resources and knowledge are unchanged. But over time, the production potential may expand as a result of the accumulation of new resources and the invention of new ways of how to use these resources.

In the past, the opening of new sources of natural resources was important through the expansion of production potential. Another source of growth was (and is still) the growth of the population. However, when the most easily accessible sources of natural resources are exhausted, and the growth of the population is slowed down, then among the three classical factors of production, the value of capital increases sharply, which now becomes the main source of expansion of production capabilities.

An increase in the amount of capital operating in the economic system, that is, an increase in the supply of productive resources, carried out by people, is called an investment. Investment means a refusal of current consumption in favor of future consumption. To build more factories, roads, computers, we are forced to withdraw resources from the production of bread, movies, services and other things that can satisfy our short desires. But at the same time, we find yourself in a better position from the point of satisfying tomorrow's desires.

The increase in the amount of cash factors is not the only source of economic growth. No less important changes in human knowledge - invention of new technology, new forms of organization, new ways to meet needs. The process of finding new features is the introduction of new production methods, openness to new prospects, overcoming old restrictions - all this is called entrepreneurship. This is a dynamic process that destroys barriers established by the existing level of knowledge and proposals of factors.

Entrepreneurship does not necessarily mean the invention of something or the search for a new business, although it often happens. This phenomenon can manifest itself in the search for a new market for an existing product. Every time you do something new, you make a step in the unknown. In this sense, you are also an entrepreneur. Entrepreneurship is so important that sometimes it is called the fourth production factors. However, such a comparison is not entirely legitimate. Unlike labor, capital and natural resources, entrepreneurship is informatically and immeasurably. Despite the fact that entrepreneurs at the market receive remuneration for their efforts, we cannot talk about the price of "units of entrepreneurship"; Such a unit does not exist. Also, unlike human resources, which stare, machines that wear out, and natural resources that can be exhausted, inventions and opening entrepreneurs are not spent as use. If we once created new Product, or concept, such as a transistor, toothpaste tube, or new form Business, then these knowledge do not have to create again (although, of course, they can be replaced by others, even better ideas). In short, it is much more convenient to consider entrepreneurship the search process the best way Connections of the three main factors of production than to consider it a separate fourth independent factor.

3. Who and what work should do

The question of what and how to produce, rises even in front of a person living in isolation. Robinzon Cruzo had to decide whether to catch fish or hunt on birds, and if he was engaged in fisheries, he had to decide how to use it - a network or fishing rod. Unlike Robinson's problems, economic questions About who and what should produce, exists only in human society, and this is one of the reasons that the economy is considered social science.

The question of who and what work should do is associated with the organization of public division of labor. Can every person be independent - farmer in the morning, tailor day and poet in the evening? Or do people need to cooperate - work together, share goods and services and specialize in different works? Economists respond to this question based on the fact that cooperation is more effective. It allows any given number of people to produce more than if each of them worked alone. Three things make a cooperation of valuable: collaboration, training in the process of activity and comparative advantage.

4. For who produce goods

Many economists spend a clear line between issues of efficiency and justice. Efficiency discussions are treated as part of a positive economic theory that deal with facts and real dependencies. The discussions about justice is part of the regulatory economic theory, that is, that industry of science, which makes a narrowing about whether, good or bad specific economic conditions and politics.

Regulatory economic theory relates not only to the problem of justice in the distribution of the product. Estimated judgments are also possible about the remaining three main types of selection committed by the economic system.

Positive theory analyzes the economy, the impact of certain institutions and political actions on the economic system. Positive science traces the relationship between facts, looking for measurable patterns in occurring processes.

Most economists consider positive theory with their main and main occupation; But regulatory considerations still have an impact on the development of positive science. The most significant impact is carried out in the field of choices that are recognized particularly important for research. The economist, who considers excessive unemployment to injustice, of course, will begin to study this problem; If a scientist sympathizes the victims of discrimination, he can also study on this topic. In addition, regulatory views often influence considerations of the truthfulness of information, and so on. At one time it was believed that purely positive economic science It may develop completely independently of the regulatory judgments about values \u200b\u200band justice. All disputes can be resolved in positive terms, based on appeal to objective facts. Today, this point of view is gradually losing popularity. Nevertheless, it remains important that most of the major economic problems, especially those relating to government policies, includes both a positive and regulatory component, and it is necessary to understand that each of these components affects our thinking.

Conclusion

economic Resource Personnel Consumer

In order for the economy to function, it must have a certain way to coordinate the elections of millions of people about what to produce, how to produce who and what work should do, and for whom the product is produced. There are two ways to coordinate: a spontaneous order in which individuals suggest their actions to the conditions, based on information and incentives of their immediate environment; The second method is a hierarchy in which individual actions are subordinated to the instructions of the central government.

In economic theory, the main example of the action of the spontaneous order is to coordinate solutions in the process of market activity.

Market - This is any interaction in which people come in for trading with each other. The organizational spectrum of modern markets is very wide: wholesale and retail markets of consumer goods; World markets of thousands of goods and services. Despite the wide variety of forms, all markets have one common feature: they present information and incentives that people need to make decisions.

In addition to the knowledge of how to use the resource in the best way, people also need stimuli to act on the basis of this information. Markets, with the help of prices carry out powerful stimulation of the sale of goods and productive resources exactly where this sale will occur at the highest price; Price incentives also make people strive to buy goods at low prices. Profit considerations forced managers to improve production methods and develop goods that meet consumer requests. Workers who work where their performance is highest, and do not pass by new opportunities, get the highest wage. Consumers who are well informed and spend their money clarifying, live more comfortable with this budget.

Used Books

1. "Market: microeconomic model", Edwin J. Dollane, David E. Lindsin, St. Petersburg, 1992. - 492c.

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Hardworking - bright light burns in life, lazy - dull candle

Pros and cons of market economy, reviews

The problem of a market economy - This is a pretty global question, whose consideration needs to be approached from different sides.

The market economy is the most famous dispute theme among the iconic economists of our time. Their opinions are often completely opposite.

In practice, this question implies a mixed type of economy, which provides for the minimum level of presence of the state apparatus, as well as the maximum market influence.

If we talk about a market economy in such an understanding, then its advantages and disadvantages are visible most clearly.

The main features characterizing the market economy are: The possibility of using and undivided possession own capital, dispersal of economic well-being, the priority of the personal initiative of manufacturers and the minimum invasion of this process of the state.


The benefits of a market economy are as follows:

  1. The market economy is considered one of the main engine technologies. This rationale is very clear, because a high level of competitiveness, which guarantees the good quality of the product produced, will not allow low-quality goods to the market (they simply will not stand competition).
  2. For a market economy there are no concepts of deficit, queues and commercial hunger. The offer in this case is determined by the demand for goods, so all manufactured products are in demand.
  3. Effective and appropriate use of production resources. Commodity manufacturer must take care of the minimization process monetary depositsTherefore, it directs the necessary resources to those zones where they will give the highest return.
  4. Profit In this case, it will be directly dependent on the contribution and level of work. If the entrepreneur makes a real contribution to its production, and takes care of the creation of the product in demand by consumers, then it will receive the maximum level of profitability. For those who competently organize work and is the owner of valuable resources, the market economy guarantees high profits.
  5. Full Economic Freedom, which is expressed in business freedom, freedom of choice of buyers and sellers, freedom of transportation of resource, pricing policy installation, etc.

The disadvantages of the market economy are:

  1. Little stability. The market economy is a cyclic system, and its constant dynamics, as well as the level of inflation and partial employment can undermine the entire exhaust system.
  2. Available trend towards market monopolization. Market economy itself, in fact, can reduce competing forces. This pattern leads to monopolization and the possibility of a secret collusion among firms.
  3. The inability to compensate for some external costs.
  4. The conditions of the market economy are not provided for the production of public benefits. Impossible is the production of protection general order, national defense, fire safety and other things. Also, this mechanism does not help preserve the country's natural resources, and cannot regulate their use (we are talking about gas, oil, corner and other natural values).
  5. Thanks to the market economy arises srayegrain of society. Creating income differentiation contributes to social radius.
  6. In a market economy, poor informative occurs.
  7. Increased unemployment, the occurrence of a number of social problems. These factors appear as a result of fierce competition. They may well undermine stability in the country, cause significant social fluctuations and even undermine the confidence in state power in the country.

The market economy is a self-sufficient mechanism, the origins of which go into deep antiquity. It was more popular for many centuries ago and today is very effective.

The market economy and minuses are not deprived, among which there is a differentiation of income, the impossibility of compensating external costs, etc.

By comparing all the pros and cons of this system, it can be noted that the market economy is not perfect at all, but, despite this, it guarantees a high level of quality of goods, the ratio of demand and proposals, and also regulates the number of unscrupulous manufacturers on the market.


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