12.01.2022

Command (planned) system. Command and mixed economic systems presentation for a lesson on the topic Presentation types of economic systems and their characteristics


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Topic of the consultation: "Types of economic systems"
Tomskaya Zh.V., teacher of the highest category, MBOU secondary school No. 7

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Distribution of tasks by parts of work
Part of the work Number of tasks Maximum primary score % of the maximum primary score from the tasks of this part from 59 Type of tasks
Part 1 20 20 33.9 Multiple choice
Part 2 8 13 22.0 Short answer
Part 3 9 26 44.1 Long answer
Total 37 59 100

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An economic system is an established and operating set of principles, rules, laws that determine the form and content of the main economic relations that arise in the process of production, distribution, exchange and consumption of an economic product. (Goods and services)

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The type of economic system is characterized by: forms of ownership, ways of distributing limited resources; ways of regulating the economy.

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The main questions of the economy:
What to produce? How to produce? For whom to produce?

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A mixed economy is a way of organizing economic life in which land and capital are privately owned, and the distribution of limited resources is carried out both by markets and with significant state participation.

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1. What to produce Products of agriculture, hunting, fishing. Few products and services are produced. What to produce is determined by customs and traditions that change slowly Determined by groups of professionals: engineers, economists, computer specialists, industry representatives - "planners" Determined by consumers themselves Producers produce what consumers want, i.e. what can be bought

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Lines of comparison Traditional Centralized (command and administrative, planning) Market
2. How to produce? They produce in the same way as and with what their ancestors produced. Determined by the plan. Determined by the producers themselves.

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Lines of comparison Traditional Centralized (command and administrative, planning) Market
3. For whom to produce? Most people exist on the brink of survival. The surplus product goes to the chiefs or landowners, the rest is distributed according to custom. "Planners", directed by political leaders, determine who and how much will receive goods and services. Consumers get what they want, producers get profit

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Social market economy model
Market State
Directs production to meet the growing and changing needs of people Contributes to an increase in the cost of human development Assumes the coexistence of various forms of ownership Acts as a social guarantor of stability Protects people in a market economy

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Lines of comparison Traditional Centralized (command and administrative, planning) Market
Definition A method of organizing economic life based on backward technology, widespread manual labor, a multi-structural economy A method of organizing economic life in which capital and land, almost all economic resources are owned by the state A method of organizing economic life in which capital and land are in private property of individuals

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Own
Own
Private
Public
Property of citizens Property of legal entities created by them
State property Municipal property

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The main forms of economic organization of production:
Subsistence economy - an economy in which people produce products only to satisfy their own needs, without resorting to exchange, to the market Commodity economy - an economy in which products are produced for sale, and the connection between producers and consumers is carried out through the market
Centralized (command), market and mixed economies Traditional economy

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Advantages of a planned (command) economy:
Focus on creating a satisfactory standard of living for all (provided a low, but relatively standard of living, but relatively satisfactory for all people). Price stability. Timely payment of wages. Confidence in the future. The absence of a colossal gap in the incomes of citizens and the enrichment of a small part of families at the expense of the impoverishment of other members of society. No unemployment. A higher degree of social protection of citizens from the state. Free and accessible for all basic services (medical, educational).

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Disadvantages of a planned (command) economy:
Lack of opportunity for manufacturers of goods to make their own business decisions. The obligation of enterprises to strictly fulfill the state plan. The focus on "volume", i.e. on the production of as many goods as possible, and not on the production of quality products. Approximation of five-year plans, resulting in a shortage of some goods and an excess of others. The receipt by the management of the enterprise of unreasonably high bonuses for overfulfillment of underestimated planned targets. The reluctance of consumers to buy exactly those goods that are produced by domestic enterprises in accordance with the state plan. The emergence of "black" markets for the sale of scarce goods at speculative prices. Solving the shortage problem with the help of special stores and a coupon-card system. Low quality goods. Weak introduction of advanced production technologies due to its focus on the plan, not profit. Low level of agricultural development. Food problem. Too expensive administrative apparatus, which should monitor the implementation of the state economic plan. State support even for those enterprises that bring losses, produce goods that are not in consumer demand.

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Advantages of a market economy:
Greater freedom of choice for producers and consumers. A large apparatus of officials is not needed to manage the economy. Providing consumers with the goods they need. A wide range of goods and services. Constant focus on finding modern methods for the production of new products, on the introduction of new technologies that provide high quality products and high profits for firms. The impact of competition between firms on the efficiency of their work, on reducing prices and improving the quality of goods and services. Lack of shortages due to the quick response of entrepreneurs to consumer requests. High productivity of farms due to private ownership of land.

Tasks

Mr. X there was an urgent need for an operation to remove the appendix. And he has enough money to do this operation. Finished with his appendix, Mr. X states: “Economists are wrong when they say that needs cannot be satisfied. Personally, I have completely satisfied my need.” Do you agree with Mr. X or not?


Tasks

Nadia Ivanova, after graduating from high school, could work as a cutter at the Krasny Bogatyr factory, receiving a salary of 300,000 rubles a month, as a secretary-typist with a salary of 400,000 rubles a month, or as a salesperson, having an income of 500,000 per month. However, Nadia decided to become a student and entered the Higher School of Economics, rightly assessing the prospects for her future profession. What is the opportunity cost of her choice?


Tasks

Petya Sidorov decided to play tennis. Court visits are expensive. With limited funds, Petya will obviously have to give up the cost of meeting other needs. What in this case can act as an alternative cost:

  • - the cost of visiting theaters;
  • - the cost of learning Japanese;
  • - the cost of food and clothing;
  • - the cost of riding?

Traditional and market economic systems § 3.4


Types of economic systems

Traditional

Command

Market

mixed


Traditional system

  • dominance of subsistence farming.
  • There is no commodity-money exchange.
  • commitment to tradition.
  • Lack of technical progress.
  • Land and capital are in common ownership.


market system

  • The manufacturer decides what, how and for whom to produce.
  • Land and capital are in private hands.
  • The state ensures order in society within the framework of the law.


What type of system characterizes the text?

“... In October 1922, a new Land Code was adopted in our country, according to which the peasants received the right ... to choose the forms of land use. Strict centralization ... was abolished. The factories independently solved the issues of procurement of raw materials and the sale of finished products.


  • The Indian economy has elements of the traditional economic system.
  • The economy of the country of Orange is a market economy, because its ruler, the Duke of Orange, owns and manages all the enterprises of this country.
  • Freedom of enterprise and choice is an important characteristic of the traditional economy

Think.

In a market economy, there is freedom of enterprise. Is it possible to say that an entrepreneur in a market economy is free to produce absolutely whatever he wants?


Command and mixed economic systems


command system

  • The state strictly regulates production, exchange and distribution.
  • Planning.
  • Land and capital are predominantly owned by the state.



mixed economy

I - scope of market mechanisms

II - the scope of command mechanisms, i.e. control by the state.


1. What most accurately reflects the economic system of Russia?

a) command economy;

b) market economy;

c) transitional economy;

d) traditional economy.


2. In the country of Limonia, private firms may produce goods and services in any legal manner. In this country:

a) market economy;

b) traditional economy;

c) command economy;

d) None of the above apply.


3. Private property, free pricing system and competition are the basis for:

a) any economic system;

b) traditional economy;

c) command economy;

d) market economy.


4. The special role of the profitability motive in a market economy is that it:

a) forces producers to produce what buyers need;

b) forces buyers to buy what manufacturers produce;

c) keeps people away from risk;

d) undermines consumer sovereignty.

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An economic system is an ordered set of socio-economic and organizational relations between producers and consumers of goods and services. economic system

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Various criteria can underlie the selection of economic systems: the economic state of society at a certain stage of development (Russia in the era of Peter I, Nazi Germany); stages of socio-economic development (socio-economic formations in Marxism); economic systems characterized by three groups of elements: spirit (the main motives of economic activity), structure and substance in the German historical school; types of organization associated with ways of coordinating the actions of economic entities in ordoliberalism; a socio-economic system based on two features: the form of ownership of economic resources and the method of coordinating economic activity.

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The traditional economy is based on the dominance of traditions and customs in economic activity. an economic system in which the distribution of limited resources occurs in accordance with customs; the pace of change and development in it is extremely low; people do what their parents used to do; most of the goods are consumed where they are produced Elements of the traditional economy are found in the most remote areas of the world: in isolated tribes or groups (peoples of the Far North, peoples of Africa) Traditional economic system

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The command economy is due to the fact that most enterprises are state-owned. an economic system in which resources are state property; the most important decisions affecting the allocation of resources are made by government agencies Typical command economies: Cuba, North Korea, Vietnam, China, Albania, USSR, Eastern European countries Command economies

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The market economy is defined by private ownership of resources, the use of a system of markets and prices to coordinate and manage economic activity. economic system in which economic decisions at the national level are the result of decisions made by individual sellers and buyers in the market Market economic system is typical for countries: Argentina, India, Turkey, Indonesia and others Market economic system

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A mixed economy is an economic system where both the state and the private sector play an important role in the production, distribution, exchange and consumption of all resources and material goods in the country. an economic system that combines elements of public ownership of the means of production with private property A mixed economic system is typical for most countries in the modern world: Japan, Sweden, the USA, Canada, Finland and others. There are five main tasks solved by a mixed economy: providing employment; full use of production capacity; price stabilization; parallel growth of wages and labor productivity; equilibrium of the balance of payments. mixed economy

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Transitional economy - an economy that is in a state of change, transition from one state to another, both within one type of economy and from one type of economy to another, occupies a special place in the development of society. At present, various approaches to the study of transitional processes occurring in the economies of post-socialist countries are being proposed. The complexity and versatility of the problem of transition (transformation) of the economy from one type to another, according to a number of authoritative researchers, lies both in the deep root foundations of individual transformation processes and in their interaction. transitional economy

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Summing up, we note that economic systems are multidimensional. They can be formalized: ES = f(A1, A2, A3 ... An). In other words, an economic system (ES) is defined by its properties (A), where there are n such properties. This means that an economic system cannot be defined in terms of a single characteristic.

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Tasks of economic activity

What to produce? (what goods and services, in what quantities.) How to produce? (using what technologies and what resources.) For whom to produce? (how these goods and services will be distributed.) The main task of the economy is the choice of the best solution among alternative options, in which the maximum satisfaction of needs is achieved.

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Functions of the economic system.

Mankind constantly has to adjust its boundless desires and limited possibilities. The more developed the division of labor, the greater the dependence between producers and the greater the need to coordinate their activities. Such coordination should be carried out by the economic system - a certain way of organizing economic life.

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Economic systems are forms of organizing the economic life of society, differing in: The way of coordinating the economic activities of people, firms and the state The type of ownership of economic resources

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Types of economic systems

The command system (socialism) is a way of organizing economic life in which capital and land are owned by the state, and the distribution of limited resources is carried out according to the instructions of the central government and in accordance with the plan. The market system (capitalism) is a way of organizing economic life in which capital and land are privately owned, and limited resources are distributed through the market. A mixed system is a way of organizing economic life in which land and capital are privately owned, and the distribution of limited resources is carried out both by markets and with significant state participation. The traditional system is a way of organizing economic life in which land and capital are held in common by the tribe, and limited resources are distributed in accordance with long-standing traditions.

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The real economy of any country is not purely market, purely centralized, or purely traditional. Elements of different economic systems are combined in a special way in each country. It is necessary to avoid the emergence of a command system and to allow state intervention in the economic life of the country only to solve those economic problems that markets cannot or fail to cope with.

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The share of the public sector in the systems of the economies of some countries

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    Thank you for your attention! Think about whether you filled out the table correctly.

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    Traditional economy

    For most of the history of mankind, the questions of WHAT, HOW and FOR WHOM to produce were decided in accordance with traditions and customs (“as before”). At present, such an economic system has been preserved in its pure form among some tribes of Central Africa, South and Southeast Asia, and the Amazon Valley. In India, for example, people were divided into castes of priests, warriors, artisans, and servants. No one could choose a profession according to his desire, a person necessarily inherited his father's craft. Thus, the distribution of the most important resources at that time - labor - was dictated by indestructible centuries-old traditions.

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    The same can be said about the choice of produced goods and technologies. The same products were produced from generation to generation, while the production methods remained the same as they were hundreds of years ago. On the one hand, this allowed hereditary artisans to achieve the highest level of skill, on the other hand, nothing new was invented or produced. Technological progress and the growth of production efficiency were impossible, because each artisan copied the methods of work of his teachers. Distribution and exchange of products were also decided according to customs.

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    command economy

    In this economic system, decisions about WHAT, HOW and FOR WHOM to produce are made from a single center, which is usually the head of state. A command economy in a relatively pure form existed, for example, in the state of the ancient Incas. After many centuries, a similar economic system developed in the USSR and other socialist countries. At present, such an economy can only be found in Cuba and North Korea. In a centralized economy, all material resources and products of production usually belong to the state. Coordination of economic activity occurs with the help of plans (planned economy). The calculation of the plan in real life goes like this: all industrial and agricultural enterprises existing in the country report to the top how much they could produce in the next year. These figures are summed up and, with minor amendments, a plan is drawn up, which is then returned to the same enterprises.

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    All employees are subordinate to a government official, who is a more important official, and so on up the administrative ladder up to the supreme ruler, no matter how he is called: pharaoh, emperor, or general secretary of the ruling party. The technology of production is determined by the state, because it owns all buildings, structures, machines, resources, etc. To operate the complex mechanism of a centralized economy, a huge number of managers, planning, calculating and checking officials are required.

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    mixed economy

    A mixed economy is designed to capitalize on the strengths and overcome the weaknesses of market and centralized economies. The main economic issues are mainly decided by the market, but national and regional economic problems are solved by the state. The basis is private ownership of economic resources, although in some countries there is a fairly large public sector. Part of the resources is centralized and distributed by the state through command mechanisms in order to compensate for some of the weaknesses of the market mechanisms.

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    I - scope of market mechanisms II - scope of command mechanisms, i.e. control by the state. Redistribution of income and resources Creation of public goods Weakening of externalities The right of private property Markets of resources and goods Private economic initiative Mixed economic system

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    Market economy

    In a market economic system, there are people who are free from the power of traditions and not subordinate to a single center. The factors of production and its result - the product - does not belong to the community or the state, but to private individuals. Therefore, the problem of incentives for production in a market economy is not worth it. Each of them decides for himself what to produce, how and in what quantity, proceeding from one single goal - personal interest, increasing their own wealth and well-being. In conditions of division of labor and personal freedom, producers are connected with each other through the exchange of goods. This system does not guarantee everyone that he will always be able to exchange his product for others. The flip side of freedom of choice is risk and full personal responsibility. Only by exchanging goods, the manufacturer can get everything necessary to meet his needs.

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    Markets of resources and goods Fundamentals of the capitalist economic system.

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    Slides captions:

    Command and mixed economic systems

    Plan: Command economic system. Mixed economic system. Socially regulated market. Economic system in modern Russia.

    Command economic system This is a way of organizing economic life in which capital and land are owned by the state, and the distribution of limited resources is carried out according to the instructions of the central government and in accordance with plans.

    The heyday of the command economy was after the First World War. An example of a country in the 20th century with a command economic system was Soviet Russia.

    The activities of the command economic system were as follows: What to produce - established by the State Planning Department; How to produce - was established by the sectoral ministry; To whom to sell - established the State Committee for Supply; At what price to sell - set the State Committee on Pricing; How much to pay workers - was established by the State Committee on Labor and Wages; How to use income - established by the Ministry of Finance; What to build for production - established the State Committee for Construction; What to sell abroad and buy was established by the Ministry of Foreign Trade.

    Planning in a command economic system is very intelligent. The plan must: Be drawn up on the instructions of a private owner who bears full financial responsibility; Be implemented on the basis of a free choice of partners in the transaction; To be checked for reasonableness by the demand of buyers; Rely on existing economic information.

    Mixed economic system This is a way of organizing economic life based on the use of various forms of ownership, in which the distribution of limited resources is carried out by markets, and with significant state participation.

    A mixed economic system prevailed for the civilizations of the late twentieth century. The basis of a mixed economic system is private ownership of economic resources.

    Some countries have a public sector. It includes enterprises whose capital is wholly or partly owned by the state, but which: Do not receive plans from the state; I work according to market laws; Forced to compete on an equal footing with private firms.

    The main elements of a mixed economic system:

    A socially regulated market This is a kind of mixed economic system in which society and the state are clearly striving not only to ensure economic growth, but also to fully implement the principles of combining economic freedom, reasonable distribution of responsibility for the life of society between citizens and the state, and civil solidarity.

    The basis of the mixed economic system is the conscious life position of every able-bodied citizen - "I am responsible for my well-being myself!"

    In modern Russia: The foundations of the command system are destroyed; The mechanism of the market system is still being formed; Factors of production have not yet been completely transferred to private ownership. In the near future, Russia will inevitably have to recreate market mechanisms and build a mixed economic system on their basis.

    Thank you for your attention. The presentation was prepared by Anzhelika Aleksandrovna, a teacher of economics at MBOU secondary school No. 5 in Kashin Danilchuk


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