What helps the manufacturer is rational to decide. What helps the manufacturer rationally solve the main issues of the economy? What is the principle of the "invisible hand" of the market? a) the process of human impact on the substance of nature in order to create material goods,

1. Why is a person forced to choose ways to use resources to meet their needs?
2. What economic system provides a more efficient distribution of limited resources and why?
3. What helps the manufacturer rationally solve the main issues of the economy? What is the principle of "invisible hand" of the market?
4. What are the characteristic features of a market economy?

What are the functions of the market?

why does the competition consider the main motor of the market economy?

What affects demand and supply in the market?

How do producers in the conditions of the market decide the main issues of the economy?

What is the mechanism for establishing an equilibrium price?

What is the principle of "invisible hand" of the market?

Sometimes novice entrelers in their attempts to organize an income thing to fail. It may be that their proposals are not satisfied with the market.

or in quality, or in content, or similar proposals much more than the need for them. Sometimes seemingly well-innovative ideas and inventions do not find a response from people because their use does not simplify, but, on the contrary, it complicates life. Telegraph, as you know, has appeared long before the phone and quickly became a popular intercession of information transfer. But few people know that in the 19th century there was an attempt to make a business on trade in telegraph devices, promoting them to the market as devices for personal domestic use. This business did not take place, since each buyer of the device had to study the Alphabet of Morse and pre-make the skills of communication on this "inhuman language." Engineer Bell, seeing that society needs communications, soon invented the phone, ensuring a simple and natural way to communicate. With the use of the phone, the communication business has become quickly expanding.

As in a concrete situation, the main issues of the economy were solved:

1) What and in what amount to produce?

2) How to produce?

3) for whom to do?

1 Finish the phrase. "The process of depreciation of money, which is manifested in the form of a long-term increase in prices for goods and services,

called ... ".

Below is a series of terms. All of them, for excluding
We have one, belong to the concept of "consumption". Find I.
Indicate the term falling out of the general range and
to other characteristics of the economic life of society.

Goods, living on minimum, specialization, purchasing power, demand, service.

. Read the text and answer questions.

"Since no conceivable center is able to always be aware of all the circumstances of constantly changing demand and suggestions for various products and promptly bring this information to the attention of interested parties, you need some mechanism that automatically register all the substantive consequences of individual actions and expressing them in universal A form that would be the result of the past, and a guideline for future individual solutions.

It is this mechanism that the price system is in competition, and no other mechanism can replace it. Watching the movement of a relatively small number of prices, as the engineer is observed by the movement of the arrows of the instruments, the entrepreneur is able to coordinate his actions with others. It is essential that this function of the price system is realized only in the context of competition, i.e. Only in the event that a separate entrepreneur must take into account the movement of prices, but cannot control it. "

Questions and tasks: 1. How in competition conditions, individual manufacturers agree on their actions with the actions of others? 2. What do you think the scientist calls the market price of the goods "the result of the past and guidelines for future individual solutions" manufacturers? 3. Describe the value and role of equilibrium (market) price in the implementation of the principle of the "invisible hand" of the market.

Why don't we always buy what we want?
What and for whom it is profitable to produce?
How to win in a competitive struggle?
Market: evil or good for society?

Needs and resources: the problem of choice. In the first chapter of the textbook you got acquainted with the diverse needs of a person: material, social, spiritual. Now let's try to figure out what is necessary for their satisfaction and how the economy participates in this.

To sew a suit, need a cloth. To build a house, we need materials: wood, cement, technique. To produce gasoline for the car, need oil. All this is called resources (from Franz. RESSOURSE - auxiliary means).

Resources in the economy are limited, and examples of this around us: forests, water sources, mineral reserves, etc. Studying the issues of interaction between nature and man, you have already familiarized yourself with the problem of limited natural resources. This determines the need for their careful, skillful use, a reasonable organization of human economic activities.

The limitations of certain resources makes you choose the options for using them. For example, you probably remember about the limited cash resources every time you go to the store. You would like to buy a new tape recorder, and a new jacket, but you can afford to acquire something one. Perhaps going shopping, you can buy a less fashionable jacket and a cheap tape recorder, but in this case you donate the quality in exchange for the ability to purchase both things.

Each person solves the problem of economic choice in its own way, but, as a rule, seeks to come rationally (from Lat. Ratio - Mind; Rationis - measure, calculation), i.e., is reasonable, calculating. In the economy, this implies a choice of an option that seems to be the best person, brings him more benefits compared to costs.

So, human needs always exceed the available opportunities. This contradiction gives rise to a complex problem of choice. What to spend the available limited tools? What needs to satisfy first? How to dispose of what we have, well? The problem of distribution of limited resources is the main problem of the economy.

Production factors. To live and meet your needs, we need economic activities to transform resources into economic benefits, i.e. items that satisfy this or that human need (food, clothing, car, books, etc.). For the production of goods it is necessary to combine nature, humans, technicians.

The main groups of resources used in the production process are called production factors (from lat. Factor - making, producing; Factor is the reason for the driving force of any process, a phenomenon that defines its character or individual features). These include land, labor, capital, entrepreneurial abilities. In the second half of the XX century. Another source of wealth became obvious - information. "The one who owns information owns the world." Hence increased attention to this resource.

Land - These are natural resources used in production: Actually Earth (arable land, placement of production facilities), minerals, forests, water and air, vegetable and animal world of nature.

Work - This is a working force participating in production, the so-called "human capital": abilities and skills, health, education, qualifications of employees.

Capital as a factor of production - These are manufactured by people of production: buildings and structures, machines and tools, equipment.

Business abilities - This is a factor connecting the remaining factors of production. It allows you to best use resources in order to obtain high results (more products and better quality). This is a combination of energetic activities of entrepreneurs, their organizational and economic innovation (the search and implementation of new ideas, technologies, approaches) and the readiness for risk in organizing a new case.

Information (from Lat. Informatio - clarification, presentation) - the resource used in economic processes. As a product of mental activity, this is primarily knowledge, information, messages, data used in the process of analyzing and developing economic decisions, in management, etc. Information is so important in modern society that experiences the information revolution, resource, that, in opinion economists, deserves a special place in a number of factors of production.

Main issues of economics. The limited economic resources on the planet and the need to solve a person's problems of their distribution creates three main issues of the economy: what, as for whom to produce.

What to produce, i.e. what goods and services should be offered to the consumer. How to produce, i.e. what methods to get the necessary result. For whom follow produce These products and services, i.e. who can purchase them.

Answers to these questions at all times tried to find every manufacturer and society as a whole.

With natural economy, people could live independently of each other. During the division of labor, the exchange of products between manufacturers has become necessary. Who will be specialized in production, such as clay dishes, being not very confident that it will be able to exchange on clothes, food and other necessary benefits. This relationship between manufacturers requires coordination of their activities. A method of regulating the activities of producers under the conditions of division of labor is called an economic system.

The following types of economic systems are distinguished: traditional, centralized (team) and market. They are distinguished by different approaches to solving the main issues of the economy: what, as for whom to produce. So, in the traditional economy, these problems are solved on the basis of customs and traditions (to do everything as before), in centralized - with the help of a state-established plan, and in the market - on the basis of the personal interests of free producers who seek to produce goods using demand for Market and profit-bringing them.

The product produced by a free manufacturer for exchanging is called a commodity. Remember that a special product-intermediary product was used to exchange at different times: cattle, animal skins, salt, even sea shells. These were the first, so-called commodity money.

Money - This is a product through which the value of other goods is measured, the purchase is paid, gradually the role of money began to perform precious metals: gold and silver. Currently, special paper and coins manufactured by the central bank of each state are money.

The exchange of goods to other goods or money is on the market (the market is not as a place to exchange and conclude trade transactions, but in the scientific sense of the word). In the economic sense, the market is a system of economic relations associated with the exchange, a set of conditions, thanks to which sellers and buyers find each other and can make transactions.

The economic system in which the solution to the question is that, as for whom to produce, is the result of the interaction of sellers and buyers in the market and is called a market economy. Consider on its example, as separate manufacturers solve the main issues of the economy.

"Invisible hand" market. The market as a general principle of organizing the economic life of the country has the following characteristics: free exchange between sellers and buyers, which is stimulated by the benefit of the transaction; The real liability of market exchange participants (sellers and buyers spend their funds and risk them); Competition between producers (sellers) of goods and services for consumers (buyers) of their products. Since competition plays a very important role in a market economy, we will focus on it in more detail.

Competition - rivalry, struggle for achieving the best results in any matter. The word "jumping" indicates a special kind of equestrian competitions - overcoming various obstacles. More familiar to you the word "contest" - competition, rivalry for achieving certain advantages. Remember, competition, the struggle between producers of goods and services existed from the first steps of the development of trading production. Each manufacturer sought faster to sell his goods on the market and make a profit on the money invested. In a market economy, merchants of goods and services compete with each other, trying to attract as much customers as possible. To do this, they reduce prices, improve the quality of goods.

Competition encourages manufacturers to improve their products, look for the most rational ways to obtain and use limited resources for their manufacture.

Despite the fact that the manufacturer solves the main issues of the economy at their own peril and risk, that is, freely and independently, the chaos and anarchy will not come together in society. Why? The fact is that in the conditions of the market, the manufacturer submits a very influential force - dictatorship of prices.

To understand how prices on the market are prompted by the manufacturer that, as for whom to produce, get acquainted with the concepts of "demand" and "proposal".

Demand - This is the desire and consumer opportunities to buy a specific product or get the service at a specific time and in a particular place. The basis of demand - needs, but limited to the buyer's solvency, i.e., the amount of funds he can allocate from its income to acquire a specific product or service. Demand is in reverse dependence on the price. The higher the price unit of the goods, the less the demand for this product.

Sentence - This desire and the possibilities of sellers sell a specific product at a specific time and in a particular place. The offer is directly dependent on the price: the higher the price of a unit of goods, the more product producers agree to produce and sell.

The situation in the market, when the seller may and want to sell exactly so many goods and at such a price, how much the buyer wants and can buy for this price, economists are called market equilibrium, and the price on which the real deal is the equilibrium price. The equilibrium price is not just a condition for selling the goods, it becomes an important guideline for manufacturers, suggesting them that at which prices can be bought in the market and that, therefore, can be produced.

The price determined by the demand for goods is not the only signal for the manufacturer in choosing what to produce. Another signal is the profitability of the goods. It chooses for release those goods for which the excess of revenue over the cost of its production, called profit, will be the greatest.

The main principle of the market - the transaction must be a profitable and seller, and the buyer.

Thanks to this, all people (and therefore, all society) achieve the best results for themselves, the Company's resources are distributed as the most rational. Regulations when all market participants seek to ensure an increase in the welfare of all as each seller and every buyer seek to satisfy personal interest in respect of their welfare, the great English economist Adam Smith called the "invisible hand" of the market. It is she who forces everyone to think about the interests of others, because otherwise the producer's goods may be unnecessary and instead of the benefit to bring losses. The "invisible hand" of the market sends the desire of individual manufacturers for the overall benefit.

Let's see how the interaction of supply and supply helps to answer the question of how to produce, what technologies and methods of production. To get a big profit, the manufacturer needs to reduce production costs, so it introduces the savings mode, introduces a new technique.

Finally, the market answers the question for whom to produce or how products and services are distributed. They are distributed by the market between those who want to buy them on the only basis - the availability of money for the purchase. And if the goods are missing, then the one who may pay them more. It is his preferred manufacturers in the desire to get the greatest benefit.

Basic concepts

Economic system, market economy, market, production factors, competition, demand, offer.

Terms

Economic benefits, resources, equilibrium price, money.

Questions for self-test

Why is a person forced to choose ways to use resources to meet their needs?
What economic system provides a more efficient distribution of limited resources and why?
What helps the manufacturer rationally solve the main issues of the economy? What is the principle of "invisible hand" of the market?
What are the characteristic features of a market economy?

Tasks

Explain how you understand the following statement by J. Bernard Shaw: "The economy is the ability to use life in the best way."
Prove that resource limitations is the main problem of any society, countries.
Explain how the market provides an effective allocation of limited resources. What is the principle of "invisible hand" of the market?
Indicate the signs of a market economy. Find one incorrect answer:
1. competition of manufacturers;
2. free pricing;
3. centralized price settlement by the state;
4. independence manufacturers.
Most of humanity preferences a market economy. Try to find the arguments in favor of this choice.

How do costs and profits relate?

Remember: What and for whom it is profitable to produce? Who can be called a rational manufacturer? Where are the borders of economic freedom?

Do you need to regulate production? The limited economic resources on the planet generates the need to solve the problem of their rational use and distribution. From the previous paragraph, you learned that it is constantly doing an economic choice to anyone who takes economic decisions: households, firms, state. Anyone society, regardless of the level of welfare, should be able to determine which goods, as for whom to produce. These three issues of the economy are decisive for. The development of society. Consider them in more detail.

What to produce? Which possible goods and services should be made at this time? A separate person can provide himself with the necessary goods in various ways: to make them on their own, exchange to other benefits, get them as a gift. Society as a whole can not increase production All goods and services at the same time. He has to do a rather difficult choice: what I would like to get immediately, with obtaining what you can wait or from something to refuse. Firms, individual entrepreneurs constantly make decisions on which goods and services should be manufactured using the resources available and their disposal and are proposed to the consumer.

So, the essence of the problem is that resources are limited and the economy cannot provide an unlimited issue of goods and services. Therefore, it is necessary to make decisions, which products and services should be made, and from which you need to refuse. (Bring examples of similar solutions to the participants of the economy.)

How to produce?The solution of this issue is associated with the choice of economic resources, technology, placing the company, organization of production, etc.

There are various options for the production of goods. From the set of options it is important to choose the most efficient. So, there are always several ways to build roads, make cars, master new mineral deposits. One method requires a large cash costs, the other - technical, the third - significant use of labor resources, etc. What is the connection required for the production of resources is optimal? When deciding this issue, the economic efficiency of the project is taken into account.

Economic efficiency means obtaining this volume of products at the lowest costs of limited resources. A greater amount of products produced by this amount of resources being spent means greater efficacy, and vice versa. From the social science grade 7, you know the relationship between the amount of production resources and the number and quality of the product produced. Recall that the manufacturer, solving the problem "costs - release," seeks to find the best ways to combine resources and organizing its production. So, it is effective to use resources and reduce costs to the manufacturer, the following methods are helped: the introduction of technical innovations and new technologies, economical and careful spending of resources, improving the skill of the employee, the use of division of labor.

Thus, society as a whole and individual manufacturers should decide: whom, from what resources and with the help of which technology should benefit, how should production be organized?

Who is the product produced? Who can buy goods and services and how are they distributed among members of society?

Since no society is not able to provide each wishes to provide, for example, its own cottage or car, then you have to put up with the fact that someone lives in an apartment building or uses public transport. The society is forced to focus manufacturers on a certain consumer of economic benefits. Manufacturer Gives the needs of products and services of various population groups with different incomes and decides, for whom to produce: for rich (luxury items), for mass consumers or for poor (cheap goods).

The clock manufacturer can produce a wrist watch in a simple metal case or in gold, ordinary mechanical alarm clocks or complex electronic. Its choice will depend, in particular, from solving the issue of who will use produced products. Thus, through the choice, the problem of the distribution of economic benefits is solved.

All listed major economic issues are based on the choice and are solved by the participants of the economy in close relationship.

Economic system and its functions. We have already affected the question of how people make a choice in the conditions of limited resources. In order for the economy of any country to work normally, it is necessary to find a way to coordinate this choice of millions of people.

The variety of ways to coordinate economic life and decision-making on the main economic issues depends on the dominant shape of ownership (who has access to economic resources), methods of economic decision on the organization of production and distribution of goods (spontaneously with the help of orders, teams), as well as methods Notes of people to economic activity (incentives and motives of participation in activities).

In the most general form, three ways to solve the Company's main issues in the society are: according to the established customs (by tradition); by returning orders and orders "top down" (by command methods); With the help of the market. Let us last in more detail on them further.

The development of society has shown the possibility of existence of several options for organizing economic life. They got the name of economic systems.

The economic system is a set of organizational ways to coordinate the economic activity of people to address issues: what, how and for whom to produce?

Economists allocate the following main types of economic systems: traditional, centralized (team), market. Each of them is looking for their approaches to solving the main economic issues and the ways to distribute limited resources. However, such a selection of economic systems is sufficiently like. In real life, it is difficult to find a state with a purely pronounced type of economic system. The world's existing economic systems use various combinations of the methods of organizing economic life above.

Types of economic systems. The economic activity of people implemented in a particular economic system has its own characteristics. Consider them on the example of the main types of economy.

Traditional economy- The economic system, which customs and traditions determine the practice of using limited resources. It is based on the widespread use of manual labor, backward technology, community management, natural exchange, the main economic issues are solved and according to customs and traditions (do everything as before).

The inhabitants of the African jungle or the islands of South Morain, Canadian Eskimos are committed to business based on age-old traditions transmitted from generation to generation. Economic resources in the traditional economy are most often in the collective ownership of a tribe or community. The decision to use community resources is accepted collectively.

A set of manufactured economic benefits is not distinguished by a variety. The same is also typical for certain types of activities (mainly labor in agriculture, crafts). Technologies and methods of production in the traditional economy do not change in centuries, which inhibits the development of the economy and the growth of production efficiency. Such an economic system, despite the stable, predictable nature, is able to satisfy only the minimum, the vital needs of people.

Currently, the traditional economic system has been preserved in its pure form in some tribes of Central Africa, South and Southeast Asia. Separate elements of such an economy can be found in a number of underdeveloped and developing countries. For example, in some states of India, a semi-natural economy is maintained.

(Think, whether there are any parties to economic life in modern Russian society, regulated by traditions and customs.)

Market economy - The way of organizing economic life, based on the variety of forms of ownership, entrepreneurship and competition, free pricing. In this economic system, resolve issues that, as for whom to produce, is the result of the interaction of sellers and buyers in the market. In the economic sense, the market is a combination of economic relations manifested in the field of exchange, as well as conditions, thanks to which sellers and buyers find each other and can make transactions.

In a market economy, the main production resources and its results are in the hands of individuals. People operating in this economy are free from power of customs and orders "from above." Each independently accepts economic solutions in accordance with its own interests and needs. The consumer makes a purchase decision, guided by the desire to get much benefit from the consumption of goods. The manufacturer, solving producing a different product, expects to make a profit. Therefore, to the question "what to produce?" There is one answer in the market economy: only those products that can bring profit will be produced, and those goods whose production entails losses will not be issued. At the same time, the manufacturer seeks to choose such a production technology that will provide him with the greatest profit. In a market economy, production is carried out only by those firms that wish and can apply new production technology. The application of new technologies provides an increase in economic efficiency as a result of a decrease in production costs. Thus, the market economic system favors technical progress.

If each participant in the economy acts in its own interests, how does the problem of the fair distribution of benefits solve? The purchase of consumers produced product depends on the magnitude of their cash income and prices for goods and services. The more consumer income, the most part of the product he can purchase. The lower the price of the product, the higher it is consumed, and vice versa. It is the prices that freely emerging during the sale and purchase process give an answer to questions: what, how and for whom to produce? About how the market is valid, how prices contribute to the effective allocation and use of economic resources, you will learn in detail on subsequent lessons.

Opinions. Economists conduct serious disputes on the efficiency of the market economy: it, on the one hand, contributes to the rational distribution of resources and personal freedom, and on the other, is not enough effective. The so-called "market miscalculations" includes unemployment, excessive inequality in the income of the population. Economic instability, etc.

Command economy The economic system in which the main economic decisions are made by the state, speaking the organizer of the Company's economic activities. It characterizes state ownership of the means of production, centralized planning of production, distribution and consumption of material goods.

All economic and natural resources are owned by the state. Therefore, that, as for whom to produce, the state plans from the Unified Center based on orders (directives), laws, planned tasks. The state controls and regulates the production and distribution of major goods. Such an economic system was in the USSR, other socialist countries. The Unified Economic Center tried to take into account all the needs - from public to individual, to provide for all the problems associated with their satisfaction (think whether it is possible to make an ideal plan for the development of the economy of the whole country. What can interfere with this?)

The result of this planning was often the insufficiency of some goods (your parents still remember numerous queues) or an excess of others, delay due to complex administrative procedures for the implementation of new technologies in the production and new technology in the life of the population.

Manufacturers detached from independent economic decisions turned into performers of other people's orders. They were not interested in the results of activity, since a significant part of income was transferred to the state. This caused a decrease in labor productivity and in general the efficiency of social production. As a result, a low level of meeting the needs of people in products and services. This is one of the reasons for the collapse of the command economy in our country and narrowing the circle of countries in the world, which preserve this type of economy. Currently, the command economy acts on Cuba, in North Korea, some countries of Southeast and Central Asia.

The modern economy of most countries is mixed. It is based on the market, but this uses various forms of state regulation, private property and state property interact. Mixed economy is a modern farm, in which the active role plays both the market and the state.

Document. Russian economist, doctor of Economic Spider E. N. Lobacheva so characterizes the considered type of economy:

"In modern conditions, the most common economic system should be obviously recognized by the mixed economy. It is characterized by the developed market, economic freedom, and therefore the diverse entrepreneurial activities of the wide layers of the able-bodied population and the active regulatory role of the state ... This allows you to realize the possibilities of a market economy to improve production efficiency, and through state regulation orient the country to rational and more complete use of limited resources , application of safe technologies and environmental saving. A sufficiently long period of functioning of reasonable models of a mixed economy shows that the state-regulated market economy is able to ensure the economic and scientific and technical development of the country and provide sufficiently high social guarantees to its citizens. "

The ratio of the economic role of the state and the market in the management of the economy is seriously varied in modern developed countries. So, in the US, about 4/5 of the total volume produced in the country products is provided by the market system. The economy of Japan characterizes government planning and coordination of the economic activity of the government and the private sector.

So, the economic system contributes to solving the problem of efficient use of limited resources. The main task of the economic system will bring infinite-limited opportunities for members of society through the solution of issues: what, how and for whom to produce?

check yourself

1. How to solve the contradiction between limited resources and the growth of people's needs?

2. What is economic efficiency?

3. What is the difference in how to coordinate economic selection in various economic systems?

4. What are the features of the functioning of the main economic systems?

In class and houses

1. Read the following text in which words are missing.

In the market economy, production resources and its result - the product - belongs not to the community, as in -, and not to the state, as in - and private

persons. Therefore, the problem of incentives for production in a market economy is not worth it. Each manufacturer chooses the most profitable product and produces it to get in the end -. He also chooses the most efficient - production, in which the ratio of the results to costs is the largest. The market economy is based on entrepreneurship and private -. Historical experience has shown the advantage of a market economy over others.

Choose from the list below what you want to insert and write down in a notebook (words are given in the nominative case; words in the list are more than you need to choose): 1) Command Economy; 2) traditional economy; structure; 4) profit; 5) trade; 6) technology; 7) revenue; 8) Economic system.

2. Using the knowledge of the history of Russia, the signs of which economic systems are characterized by the economy of the era of Peter I. Bring the necessary examples.

3. Fill out in your notebook table.

Market economy	Command economy	Traditional economy

Write the listed signs of a business system into the appropriate column of the table: the domination of the natural economy; economic independence of manufacturers; control over the distribution of benefits from the state; predominance of state ownership; "Easy work" as the basis of the farm; Equal rights for all forms of ownership: the adoption of state plans, mandatory li producers; Production production is mainly for their own consumption; support by the state of a stable price level; the closure of the economy; centralized redistribution of economic resources; The use of production resources based on customs.

What helps the manufacturer rationally solve the main issues of the economy? What is the principle of the "invisible hand" of the market?

Answers:

Market's ability to independently regulate the quantity of limited resources and provide reliable information to buyers and sellers an outstanding economist Adam Smith called "the invisible hand of Providence. The foiler does not know the seller either the manufacturer, the seller does not know his buyer. But both of them manage the" invisible hand ", ensuring both the welfare of all As each of the sellers and buyers provide their welfare. It is a desire for the welfare of each leads to the wealth of society in general. It is already the principle of Italian economist of William Pereverto)

Targets for students:

Determine the role of the state in the development of the economy;
Determine the role and types of taxes in the economy of the country;
Determine the role of the state budget in the economy of the country;
Determine the objectives of the state's task in the economic sphere.

Verification d / s:

Test;
Questions to §19.

1. Production is ...

a) the process of human impact on the substance of nature in order to create the material benefits necessary for the existence and development of society;
b) the activities of people in enterprises creating material benefits;
c) the process of incorporating workers in labor relations about the creation of the product.

2. The jump in the development of production forces, which consists in moving the manufactory to machine production - this ...

a) scientific and technical progress;
b) scientific and technical revolution;
c) Industrial coup.

3.Thower is ...

a) everything that is sold on the market;
b) the labor product offered for exchange by selling sales;
c) a thunder with high quality.

4. Economy is ...

a) the art of housekeeping;
b) the organization of the farm in the territorial basis;
c) the rational distribution of limited goods;

5. Inflation is ...

a) increasing the overall level of prices;
b) the fall in value and purchasing power of money;
c) growth of life;

Answers:

1. A.
2. B.
3. B.
4. A.
5. A, B

Questions to §19.

1. Why is a person forced to choose ways to use resources to meet their needs?
2. What economic system provides a more efficient distribution of limited resources and why?

Questions to §19.

3. What helps the manufacturer rationally solve the main issues of the economy?
4. What is the principle of the "invisible hand" of the market?
5. What are the characteristic features of a market economy?

Studying a new material

PLAN:
1. Why does the economy state?
2. Tax system.
3. State budget.

Government functions by A. Smith

Providing national defense;
Definitions of justice;
Organization of public works, unprofitable to private entrepreneurship, but necessary to citizens;
Collection of taxes to pay for the needs of the state.