Sample questions

1. Economics, its role in the life of society.
2. Types of economic systems.
3. Economic cycle, its main phases.
4. Economic growth.
5. Economic content of property.
6. Legal aspects of economics: property rights. Forms of ownership. Denationalization and privatization.
7. Production: structure, factors, types.
8. Entrepreneurship: essence, functions, types.
9. The market as a special institution that organizes the socio-economic system of society. Market mechanism.
10. Diversity of markets in the modern economy.
11. Money. Money turnover. Inflation.
12. Banks and banking system. Money-credit policy. Banking activities in the Russian Federation.
13. State and economy.
14. State budget, its essence and role. State debt.
15. Taxes, their types and functions.
16. World economy. Russia in the system of world economic relations.
17. Labor market. Employment and unemployment.
18. Economic culture.
19. Russia in a market economy.

1. Economics, its role in the life of society

Economics plays a huge role in the life of society. Firstly, it provides people with the material conditions of existence - food, clothing, housing and other consumer goods. Secondly, the economic sphere of society is a system-forming component of society, a decisive sphere of its life, determining the course of all processes occurring in society. It is studied by many sciences, among which the most important are economic theory and social philosophy. It should also be noted that such a relatively new science as ergonomics (it studies a person and his production activities, with the goal of optimizing tools, conditions and the labor process).
Economics in a broad sense is usually understood as a system of social production, i.e., the process of creating material goods necessary for human society for its normal existence and development.
Economics is the sphere of human activity in which wealth is created to satisfy their various needs. A need is a person’s objective need for something. Human needs are very diverse. Based on the subjects (carriers of needs), needs are distinguished between individual, group, collective and public. By object (subject to which they are directed) - material, spiritual, ethical (relating to morality) and aesthetic (relating to art).
By area of ​​activity, the needs of labor, communication, and recreation (rest, recovery) are distinguished.
When organizing their economic activities, people pursue certain goals related to obtaining the goods and services they need. To achieve these goals, first of all, a workforce is needed, that is, people with abilities and work skills. These people use the means of production in the course of their work.
The means of production are a combination of objects of labor, i.e., that from which material goods are produced, and means of labor, i.e., that with which or with the help of which they are produced.
The totality of the means of production and labor power is usually called the productive forces of society.
Productive forces are people (human factor) who have production skills and produce material goods, means of production created by society (material factor), as well as technology and organization of the production process.
The entire set of goods and services necessary for a person is created in two complementary spheres of the economy.
In the non-productive sphere, spiritual, cultural and other values ​​are created and similar services are provided (educational, medical, etc.).
Services are understood as expedient types of labor with the help of which certain needs of people are satisfied.
In material production, material goods are produced (industry, agriculture, etc.) and material services are provided (trade, utilities, transport, etc.).
History knows two main forms of material social production: natural and commodity. Natural production is a production in which the products produced are not intended for sale, but to satisfy the manufacturer’s own needs. The main features of such an economy are isolation, conservatism, manual labor, slow pace of development, direct connections between production and consumption. Unlike natural commodity production, commodity production is initially market-oriented; products are produced not for one’s own consumption, but for sale. Commodity production more dynamically, since the manufacturer constantly monitors processes occurring in the market, fluctuations in demand for a particular type of product and makes appropriate changes to the production process.
The most important role in material production belongs to the equipment and technology used by the manufacturer.
The original ancient Greek word techne meant art, skill, craft. Over time, the meaning of this concept has narrowed, and today technology refers to the means created by people with the help of which the process of material production is carried out, as well as serving the spiritual, everyday and other unproductive needs of society. Like other subsystems of the economy, technology went through a number of different stages in its development: periods of its evolutionary development were replaced by “leaps”, due to which its level and character changed. Such leaps are called technical revolutions.
Throughout economic history, three technical revolutions in production have occurred.
During the first - Neolithic - revolution, the emergence of a productive economy and the transition to a sedentary lifestyle became possible. This contributed to a sharp increase in population: the so-called first demographic explosion occurred - the growth rate of the Earth's population almost doubled. Production at this pre-industrial stage was characterized by the predominance of agriculture, the dominance of manual labor and primitive forms of organization of the latter. Such production still remains typical for some African countries (Guiana, Guinea, Senegal, etc.).
The second - industrial - revolution occurred in the second half of the 18th - 50-60s. XIX century It is called industrial because the main content of this revolution was the industrial revolution - the transition from manual labor to machine labor. From now on, mechanical engineering becomes the main area of ​​production, and the bulk of the population now works in industry and lives in cities. Associated with this stage of economic development, called industrial, is the second demographic explosion, during which the planet's population increases almost sevenfold. However, the achievements of the industrial economy are not enough to meet the needs of all residents of industrialized countries. From a certain point on, the contradiction between relatively limited production capabilities and a completely new - both quantitative and qualitative - level of people's needs is increasingly felt. This contradiction is resolved during the course that began in the 40s and 50s. XX century scientific and technological revolution.
The scientific and technological revolution represented a qualitative leap in the development of the productive forces of society, its transition to a new state based on fundamental changes in the system of scientific knowledge.
The main directions of the scientific and technological revolution:
1) automation and computerization of production;
2) introduction of the latest information technologies;
3) development of biotechnologies;
4) creation of new structural materials;
5) development of new energy sources;
6) revolutionary changes in the means of communication and communication.
The result of this revolution was the transition to the post-industrial stage of production and the information society. The service sector is now experiencing the greatest development, in which 50 to 70% of the working-age population works. The social structure of society is changing, the number of people with higher education is growing significantly.
Each of the technical revolutions listed above entailed the replacement of the dominant technological method of production with a new one that better met the increased needs of society. History knows four successive technological methods of production:
1) appropriating;
2) agricultural-craft;
3) industrial;
4) information and computer.
Each technological method of production was characterized by specific, unique tools and a system of labor organization.
In the course of practical activities, people producing material goods are faced not only with a certain level of development of technology and technology, but also with the relationships that have developed in this regard, which are usually called technological.
Technological relations are the relations of the producer of material goods, developing on a certain technical basis, to the object and means of his labor, as well as to the people with whom he interacts in the technological process.
Another system of relations is economic or production. The main one is the relationship of ownership of the means of production.
Today, the economic sphere occupies a leading place in the system of social relations and determines the content of the political, legal, spiritual and other spheres of society. Modern economy is a product of long-term historical development and improvement of various forms of organization of economic life. In most countries, it is market-based, but at the same time it is regulated by the state, which seeks to give it the necessary social orientation. The economy of modern countries is characterized by the process of internationalization of economic life, the result of which is the international division of labor and the formation of a single world economy.

2. Types of economic systems

An economic system is a way of organizing the economic life of society, which is a set of ordered relationships between producers and consumers of tangible and intangible goods and services.
The famous American economist P. Samuelson wrote in the textbook “Economics” that any society in the process of organizing economic activity is faced with the need to answer three questions:
1. What should be produced and in what quantity?
2. How will goods, goods and services be produced, i.e. by whom, using what resources and what technology?
3. For whom are the goods, services and goods produced, intended, that is, who should have them and how should they be distributed among individuals and families?
Over a long period of its history, humanity, trying to find the most optimal answers to these questions, has used various options for economic systems, from the diversity of which economic science distinguishes four main types: traditional, centrally regulated, market and mixed. To determine whether an economic system belongs to one type or another, two main characteristics are usually used: the form of ownership of the means of production, which shows who exactly owns them, and the method of managing economic activity, which gives an idea of ​​who exactly makes decisions on the distribution of production resources.
The oldest of the economic systems is the traditional system, which is a way of organizing economic life in which land and capital are in common ownership, and the basis for resolving the issues of “what, how and for whom” are traditions passed down from generation to generation. In economic life, continuity is valued above all, giving the traditional system a certain stability and stability. However, there are also disadvantages of this method of management - lack of technical progress, weak production potential, undeveloped infrastructure, limited number of goods produced. The basis of a centrally regulated economic system is state monopoly, that is, state dominance in the economy.
It is the state that manages all economic resources and organizes the production of goods in accordance with a plan previously adopted by it. A huge bureaucracy is working to draw up this plan. The state is the owner of all means of production. Economic management is carried out using command and administrative methods (orders, control, punishment, encouragement). There is no independence of commodity producers in matters relating to the production and distribution of products, since such decisions are made by central government bodies. Prices are also set by the state and do not depend on the presence or absence of supply and demand for a particular type of product. In fact, there is a dictatorship of the manufacturer over the consumer. Most of the profit received by the enterprise goes to the state budget, and each employee engaged in production receives a strictly fixed amount of wages. The economic position of producers under this system depends little on their initiative and enterprise; they lose incentives to work efficiently. The inflexibility of the command system leads to economic stagnation and a shortage of consumer goods on the shelves. At the same time, such a system also has certain advantages:
1) it guarantees people the necessary minimum of life’s goods, thus ensuring their confidence in the future;
2) planned management of all labor resources makes it possible to avoid unemployment in society, although universal employment is achieved, as a rule, by artificially restraining the growth of labor productivity (where one person could work, two work).
In a market economic system, producers decide issues of production and sale of manufactured products independently. A market economy is an economy in which the decisions of producers and consumers themselves determine the structure of the distribution of labor, material and financial resources in it. The main feature of the market is that it is based on spontaneous coordination or spontaneous order. This makes this economic system self-regulating and rapidly developing.
The market economic system performs many different functions, among which the main ones are:
a) the intermediary function, which consists in the fact that the market directly connects producers of goods and their consumers;
b) the pricing function, which is implemented in the process of market play and competition and is manifested in the establishment of a certain equilibrium price for a particular type of goods;
c) information function, the essence of which is to provide the market, through a specific price range, with information about the size of a particular production and the satisfaction of consumer demand for specific goods;
d) a regulatory function, which involves the flow of capital from less profitable industries with lower prices to more profitable industries with higher prices (that is, from those industries in which there is overproduction to industries where there is a shortage of products);
e) sanitizing (or healing) function, within which the economy is “liberated” from ineffective and socially unnecessary a number of social problems; the ideals of humanism are alien to it.
A mixed economy combines the features of a market, centrally regulated and even sometimes traditional economy (for example, in Japan - loyalty to national traditions) and to a certain extent eliminates the disadvantages of each of the above types. A mixed economy is a way of organizing economic life in which land and capital are mainly privately owned, but the owner of a certain part of economic resources is the state. The distribution of resources is carried out both through the market mechanism and with significant government participation. A classic example of a mixed economy is the economic system of Sweden, Japan, and the so-called “Asian dragons” (Taiwan, Hong Kong, etc.).
As for the Russian economic system, it is in a transitional state. Having used for the first time in the world the experience of a centrally regulated economy in the form of state socialism, at the present stage the country is fully introducing market forms of management and at the same time using elements of a mixed economy.

3. Economic cycle, its main phases

One of the features of a market economy is the tendency to repeat such economic phenomena as an increase or decrease in demand, an increase in production volumes or its stagnation. Historical experience shows that the market economy does not develop in a straight line, gradually and evolutionarily gaining height, but cyclically: from rise to crisis, then again to rise and again to crisis. The period of development of a market economy from one crisis to another, which includes four phases - crisis, depression, recovery and recovery - is called the economic cycle.
The crisis is characterized by a sharp reduction in sales of manufactured goods, a decrease in profits from enterprises and banks, massive bankruptcy of enterprises and banks, non-payments, unemployment, etc.
The first global cyclical crisis was the crisis of 1857, the most devastating were the crises of 1900-1901. and 1929-1933 The latter forced the governments of many countries to switch to direct state intervention in the national economy and to carry out a number of government measures to overcome it. The intensification of the economic role of the state and the policy of anti-crisis regulation yielded certain results, and subsequently, for more than half a century, the market economy did not encounter cataclysms similar to the events of 1900-1901. and 1929-1933 Since the 60s. XX century Cyclical crises are usually accompanied by rising inflation. This led to the emergence of a new type of crisis economy - stagflationary.
The depression phase that comes after a crisis can last a long time. It is characterized by a low but fairly stable level of production and a high level of unemployment. Although at this stage the inventory is exhausted, the business gradually begins to accumulate investments. Individual points of economic growth are emerging.
The next phase - recovery - is accompanied by a slight increase in production levels and a slight reduction in unemployment. Demand for consumer goods, new industrial equipment and investments gradually begins to increase, prices and interest rates rise.
The revival gives way to an upsurge, which often acquires a rush character. The level of production exceeds that achieved in the previous cycle, prices are rising wildly, unemployment is falling to minimum levels, while wages are rising significantly. Consumer and investment demand, as well as the demand for raw materials, is growing. However, during the recovery phase, imbalances in the economy that were inherent during the recovery period also grow. As a result, after some time the crisis begins again and the economy moves on to the next cycle of its development.
Economists distinguish between short, medium and long economic cycles. Short cycles (the so-called “Kitchin cycles”, named after the English economist and statistician Joseph Kitchin) last about 4 years. They are usually associated with restoring equilibrium in the consumer and investment markets. Average economic cycles are called industrial or “Juglar cycles” (named after the French physicist and economist Clement Juglar). These cycles are associated with changes in demand for fixed capital, the renewal and replication of which on a massive scale covers a period of 8 to 12 years. Finally, long economic cycles, or long waves, the pattern of which was substantiated by the Russian economist N. Kondratiev, are called “Kondratiev cycles (waves). These cycles are caused by the fact that the market economy at the industrial stage of its development goes through successively alternating periods of slow and accelerated growth. The duration of each such cycle is about half a century.
The reasons for the cyclical development of a market economy still remain a subject of debate among economists. External theories, i.e. theories that explain the economic cycle mainly by the presence of external factors, name such reasons as political upheavals (wars, revolutions), the development of new territories and associated migrations and fluctuations in the world population, powerful breakthroughs in technology , inventions and innovations that make it possible to radically change the structure of production, and even the appearance of sunspots (which, according to the English economist W. Jevons, ultimately lead to crop failure and a general economic decline). Internal theories, on the contrary, consider the economic cycle as a product of internal factors inherent in the economic system itself. The latter include the physical service life of fixed capital, personal consumption (the reduction or increase of which affects the volume of production), investment, and state economic policy.
However, it is impossible to explain the economic cycle only with the help of external or internal theories. Large-scale changes in the economic system cannot be caused only by external or only internal factors. As a rule, they are the result of a combination of factors, both internal and external.

4. Economic growth

Economic growth is understood as a quantitative increase and qualitative improvement of social production.
Achieving economic growth is one of the most important tasks in the development of society at both the micro and macro levels. At the enterprise level, economic growth leads to a strengthening of its role and place in the market, and an increase in the well-being of the enterprise’s workforce. At the level of society, economic growth generates an increase in national wealth, improves working conditions and living standards of people, and leads to increased international influence and prestige of the country. However, the process of economic growth can also have negative features: at the micro level, it can cause an increase in costs and excessive intensification of labor, giving rise to the problem of marketing manufactured goods; at the macro level - lead to the depletion of resources and deterioration of the ecological state of the environment.
A general indicator of the dynamics of economic growth is usually considered to be the increase in gross national product, net national product or national income over the year.
Gross national product is a macroeconomic indicator that expresses the total value of final material goods and services created only by national enterprises during a certain time (usually a year) both in the territory of the country and abroad. Nominal GNP is calculated in actual market prices, real GNP is calculated in comparable, constant prices of any base year.
Net national product is the portion of gross national product minus depreciation.
Subnational income is understood as the total, newly created value in the sphere of all social production of a particular country.
Labor productivity, growth in energy consumption, volume of cargo transportation, etc. are used as additional indicators to judge economic growth. The qualitative side of economic growth is determined by comparing the growth of economic indicators with the growth of the country's population.
The rate of economic growth depends on a number of direct and indirect factors, of which the most important are:
1) natural resources;
2) labor resources;
3) the type of socio-economic system and the state of the socio-political situation in the country (its stability or, on the contrary, explosiveness);
4) the structure of social production, the volume and quality of its factors, as well as the level of its organization;
5) the degree of use of scientific and technical progress achievements in production.
Depending on how technological progress is used to expand the scale of production, extensive and intensive types of economic growth are distinguished. In the extensive type, expansion of production volumes is achieved by increasing capital investments and the number of labor employed in production. However, this type of economic growth is characterized by technical stagnation, since a quantitative increase in output in this case is not accompanied by the introduction of new technologies. In contrast to the extensive, intensive type of economic growth is based on increasing the efficiency of the production process through the use of scientific and technical progress. Modern economic science believes that the intensification of the production process in the conditions of the current stage of scientific and technological revolution leads to a qualitative renewal of the entire process of expanded reproduction. The new quality of economic growth is expressed in ever-increasing efficiency of production, that is, in a reduction in labor costs and means of production per unit of national income while simultaneously increasing the quality of manufactured products. The structure of production is also being updated: the share of knowledge-intensive industries in it is increasing. The share of intermediate products is decreasing and the share of products going directly to consumption is increasing. The latter helps to improve the level and quality of life of the population.
In recent decades, high rates of economic growth (more than 10%) have been characteristic of countries with economies in transition that have modernized their production with the help of advanced Western technologies (primarily countries of Southeast Asia). However, such high rates led these countries to inflation and financial crisis.
Developed countries are characterized by low (1-4%) rates of economic growth. These countries can no longer freely attract additional natural and labor resources into production. The development of production in them is mainly carried out by improving existing technologies. Some of these countries are pursuing so-called “zero growth” policies, which involve keeping economic growth rates in line with population growth rates. This makes it possible to maintain the existing high standard of living and at the same time maintain the existing balance between the level of employment and the level of inflation. Recently, the “zero growth” policy has been transformed into an environmental policy, which makes it possible to significantly limit the negative impact on the environment. To achieve this, strict environmental standards are established and large fines are applied for their violation, and taxes on hazardous industries are increased. As a result, part of the production capacity is transferred abroad, as a rule, to underdeveloped countries.
In Russia, the rate of economic growth in the 90s. were negative, there was a drop in production, and only after the 1998 crisis did some stabilization occur and a tendency toward an increase in its volumes emerged.

5. Economic content of property

Property is a complex social phenomenon that is studied from different angles by several social sciences (philosophy, economics, jurisprudence, etc.). Each of these sciences gives its own definition of the concept of “property”.
In economics, property is understood as real relations between people that develop in the process of appropriation and economic use of property. The system of economic property relations includes the following elements:
a) relations between the appropriation of factors and results of production;
b) relations of economic use of property;
c) relations of economic sale of property.
Appropriation is an economic connection between people that establishes their relationship to things as their own. In assignment relations, four elements are distinguished: the object of assignment, the subject of assignment, the assignment relations themselves, and the form of assignment.
The object of assignment is that which is to be assigned. The object of appropriation can be the results of labor, i.e. material goods and services, real estate, labor, money, securities, etc. Economics attaches particular importance to the appropriation of material factors of production since it is the one who owns them who also owns the results production.
The subject of appropriation is the one who appropriates property. The subjects of appropriation can be individual citizens, families, groups, collectives, organizations and the state.
Actually, the relationship of appropriation represents the possibility of complete alienation of property by one entity from other entities (the methods of alienation may be different). However, the assignment may be incomplete (partial). Incomplete appropriation is realized through relations of use, ownership and disposal.
Forms of appropriation of property can be different. In the economic aspect, a distinction is made between individual, collective and state forms of appropriation of goods and services. An individual form of appropriation can exist in the form of personal property, individual labor activity or personal subsidiary plot. The collective form of appropriation can be presented in the form of collective, rental, joint-stock enterprises, cooperatives, partnerships, associations, etc. Finally, the state form of appropriation can be national, regional, municipal, etc.
Owners of the means of production do not always engage in creative economic activity themselves. Some of them provide the opportunity to use their property for economic purposes under certain conditions. Thus, relations between the owner and the entrepreneur arise for the economic use of property. Although not the owner of material goods, an entrepreneur nevertheless gets the opportunity to temporarily own and use them. An example of this type of relationship is a lease. Under a lease agreement, one party (the lessor, usually the owner of the property) provides the other party (the lessee) with property for temporary use for a fee.
Property is sold economically if it generates income for its owner. Such income represents the entire newly created product or that part of it that was obtained thanks to the means of production and (or) labor owned by the owner. The forms of sale of property can be: profit, interest, rent, wages, various types of payments. The size of the form of sale of property is a criterion for its effective or ineffective economic use.
The system of economic property relations covers the entire economic process from beginning to end, giving rise to people’s economic (material, property) interests. The main one of these interests is to maximize the multiplication of material goods owned in order to best satisfy one’s needs. Thus, property predetermines the direction and nature of people’s economic behavior.

6. Legal aspects of economics: property rights. Forms of ownership. Denationalization and privatization

Unlike the economic category of property, the legal aspect of property rights does not reveal the process of creating objects of property, the reasons for its concentration in the hands of some and the absence of others, or trends in changes in these processes with the development of production, but only reflects economic or other property relations that have developed in society. In a legal sense, property rights are considered as a set of legal norms that consolidate and regulate relations regarding the ownership of material goods. The content of property rights includes a number of powers: the power of possession, the power of use, the power of disposal.
The right of ownership is the legally secured possibility of economic domination over a thing. Depending on whether this right is based on relevant legal provisions or not, possession may be legal or illegal. For example, a thief who steals an item actually owns it, but he is an unlawful owner. Only the owner of a thing whose possession is based on a legal basis - title will be recognized as legal. Therefore, legal ownership is sometimes also called title ownership.
The right to use is the legally enforceable ability of the owner to extract useful properties from a thing in the process of its personal or productive consumption. The owner can transfer his property for use to other persons and under certain conditions. In this case, the boundaries of the right to use the non-owner’s thing may be determined by law, agreement (for example, a rental agreement) or other legal basis. In this case, a relationship of economic use of property arises between the owner and the one to whom he has granted the right to use his property for economic purposes and under certain conditions. An example of the economic use of someone else's property is a lease - the temporary provision of certain property of one person to another for temporary use for a certain fee.
Finally, the power of disposal is the legally secured ability of the owner to determine the fate of a thing by performing legal acts in relation to this thing (sell, rent, mortgage, transfer somewhere as a contribution or share, etc.)
History knows several types of property. Historically, the first type of property was common property, in which all people were united into groups and all means of production and goods produced belonged to all members of this society. The second in time of origin was private property, in which individual people treated the means of production as belonging personally only to them. Private property is a form of legal assignment to a person of the rights to own, use and dispose of any property, which he can use not only to satisfy personal needs, but also to conduct commercial activities.
Private property was dominant in the economy until the 20th century. Discussions continue among scientists about the positive and negative effects generated by its existence. Opponents of private property point out that it is a source of exploitation of man by man, contributes to the separation of people, develops in them such qualities as selfishness, individualism and greed, and creates inequality between people. Proponents of private property defend the thesis that the feeling of property is a natural feeling of a person, corresponding to his nature. In addition, they say, private property provides the individual with the opportunity not to depend on the state and is a kind of guarantee of human rights.
In the 20th century, the third type of property became widespread - mixed (collective) property, which combines the characteristics of the first two types. The most common form of this type of ownership is that of a corporation, or joint stock company. The capital of such a company is formed as a result of the sale of securities - shares, which indicate that their owner has made a contribution (share) to the capital of the corporation and has the right to receive a dividend. A dividend is a part of the profit that is paid to the owner of a share (usually in proportion to the amount of the share contributed by him).
With a certain degree of convention, we can distinguish two basic models of joint-stock ownership that exist today:
1. Anglo-Saxon, when 20-30% of the shares are immobile, remain in the hands of a few owners for a long time, forming controlling stakes, and 70-80% of the shares are mobile, easily change hands, and are an object of trade on the stock market.
2. Continental, when permanent shareholders concentrate 70-80% of the securities, and 20-30% of them go to the market and are considered by investors as an object for temporary investment of funds.
The main difference between the two models is the role played by the stock market. Unlike the continental one, the Anglo-Saxon model allows that new controlling blocks of shares can be formed from securities traded on the stock exchange.
Individual private property is also very common. It is the main one in enterprises operating in the field of trade and services, as well as in agriculture.
Such a form of ownership as state ownership is also of great importance in the economy. Typically, the state concentrates in its hands enterprises and industries that are of strategic importance for the existence and development of the country (railroads, communications enterprises, nuclear and hydroelectric power plants, etc.) and the privatization of which it considers inappropriate. Today, the share of state ownership in the economies of developed Western countries ranges from 15 to 20%. In many countries, forms of ownership such as cooperative and collective ownership have also been preserved. With cooperative ownership, a group of people who have united to share some property (own or rented) manages this property. In a collective enterprise, the owner is the team of this enterprise, which takes part in managing the production process.
In modern literature, in addition to the main forms of ownership, other derivative forms are distinguished. A special place among them is occupied by intellectual property, which is a set of legal norms governing the appropriation of knowledge, the exchange of scientific information, inventions, achievements of science and culture.
According to paragraph 2 of Art. 8 of the Constitution of the Russian Federation in the Russian Federation recognizes and protects equally private, state, municipal and other forms of property. A similar provision is enshrined in Art. 212 of the Civil Code of the Russian Federation, which, however, is not limited to this, subjecting these forms of ownership to further division. From the contents of Art. 212-215 of the Civil Code of the Russian Federation, it can be concluded that private property under Russian legislation is divided into the property of citizens and legal entities, and state property - into federal property belonging to the Russian Federation, and property belonging to the subjects of the Federation - republics, territories, regions, cities of the federal meaning, autonomous okrugs and autonomous region. As for municipal property, its subjects are urban and rural settlements, as well as other municipalities. The list of forms of ownership specified in the Constitution and the Civil Code of the Russian Federation is not exhaustive, since it is accompanied by a reservation, by virtue of which other forms of ownership are recognized in the Russian Federation.
Traditionally, private property is considered the most economically efficient type of property. Being in the hands of specific people and being the source of their well-being, independence and freedom, it gives rise to a person’s powerful interest in the results of his work. However, there are a number of areas in the economy (for example, energy) in which state ownership is preferable. In different countries and in different historical periods, the specific ratio of private and public property may vary. The state carries out either nationalization of property (from the Latin natio - people), i.e., transferring it from private hands to the hands of the state, or privatization (from the Latin privatus - private) - transferring its property to individual citizens or legal entities created by them.
As a rule, privatization becomes the predominant form of denationalization during transition periods of economic development. It can be of several types and is carried out using a variety of methods:
1. Mass privatization is carried out by issuing privatization checks (vouchers) to citizens free of charge or at low prices, which can be used to purchase assets of state-owned enterprises. Mass privatization took place in the Czech Republic, Slovakia, Slovenia, Kazakhstan, Mongolia and Russia.
2. Privatization by direct sales of assets, securities, property complexes to a pre-prepared investor (often foreign) or through cash competitions, auctions, tenders, etc. Compared to voucher privatization, the number of investors in this case is greatly limited to those who have real capital . This is how privatization took place in the Eastern states of Germany, Croatia, and Estonia.
3. Privatization, or preferential sale of state assets to employees of privatized companies. This method, along with voucher privatization, was used in Russia, and also became widespread in Poland, Lithuania, and Latvia.
4. Reprivatization, i.e. restoration of property rights to persons illegally deprived of property as a result of confiscatory nationalization. The main forms of reprivatization are restitution, i.e. the return of property to the previous owners in kind, and compensation, i.e. the return of the value of confiscated property in money or special vouchers. Reprivatization in both forms was carried out in the Czech Republic, Hungary, Bulgaria, Slovenia, Croatia, and Estonia.

7. Production: structure, factors, types

Production is a certain process of creating vital goods necessary for the existence and development of human society.
Social production is a complex system in which three levels can be distinguished:
Level I - labor activity of an individual worker.
Level II - production within a company or enterprise (the so-called micro level)
Level III - production within society, the state (the so-called macro level).
In the process of transition from one level to another, the elements of production become more complex: at the individual level, it represents the work of one person; at the micro level, it is the cooperation of labor, i.e., the unification of several individuals in a single process; at the macro level, it is the cooperation of the labor of the whole society in within a given country or even the entire world community.
Today, in all developed countries, the economy consists of two interconnected and complementary types of production: material, in the process of which material wealth is created, and intangible, in which the process of creating spiritual, moral and other values ​​takes place. Also, the structure of modern production includes a special sphere - the service sector. A service is a type of activity, the useful result of which is manifested during labor and is associated with the satisfaction of some need. Finally, in the structure of modern production, infrastructure stands out - the set of those industries and areas of activity that create general conditions for the functioning of production.
The successful functioning of production at any level depends on the availability and effective combination of various factors of production. Factors of production in a broad sense mean any elements of the production system and any phenomena and processes affecting production; in a narrow sense - the productive forces of society. At all stages of human development, the main factors of production were labor (human factor) and means of production (material, or material, factor).
Labor force is a person’s ability to WORK, the totality of his physical and mental forces used in the process of producing vital goods. The realization of labor power occurs in the labor process, therefore the concepts of “labor power” and “labor” as a human factor of production are often identified. The most important indicator of labor is its productivity. Labor productivity is measured by the amount of products produced per unit of time. The level of labor productivity is influenced by a number of factors: the level of professional qualifications of workers and the degree of their interest in the results of their work, the application of science and technology in the production process, the intensity (or speed) of labor, etc. With the development of mankind, labor productivity in society increases. This growth acquired a particularly rapid pace with the beginning of the scientific and technological revolution (STR), which caused enormous changes in the production process and contributed to a change in the role of man in this process: from a mechanical performer, he became the main link in the technological production process - its controller and regulator. Scientific and technological revolution has also led to changes in the nature of work: the latter is becoming increasingly intellectual and creative in nature.
The second main factor of production is the means of production. They represent a set of objects of labor, i.e., that from which material goods are produced, and means of labor, i.e., that with which or with the help of which they are produced. By origin, all means of production are divided into natural resources (arable land, forests, minerals, etc.) and manufactured resources, i.e. things created or processed by people and intended for their further use in production (equipment, buildings and structures of various kinds semi-finished products, etc.). The means of production produced by people are often called capital (from the Latin capitalis - main).
In a broad sense, capital is understood as everything that brings income to its owner. These can be means of production, leased land, cash deposits in a bank, and labor used in production. Capital is divided into real, or physical, and monetary, or financial. Real capital refers to the means of production themselves, while financial capital refers to the money used to purchase the means of production. This money is also commonly called investment. By investing in production, its continuity is achieved. The continuously repeating process of production is called reproduction. Reproduction can be simple or extended. Simple reproduction is a continuous repetition of the creative activity of people in which the scale of production, the size (or quantity) of products created and the size of operating capital remain unchanged. Expanded reproduction means an increase in the size of capital, which leads to an increase in the scale of production and to an increase in the amount of created life goods. The modern economy is characterized by expanded reproduction. This means that new investments directed into production not only replace previously expended capital, but also increase it, thereby ensuring capital accumulation.
The continuously occurring circular movement of capital forms its turnover. Moreover, at the production stage, different parts of productive capital turn over in different ways (over different periods). Depending on this, productive capital is divided into fixed and circulating capital. Fixed capital is involved in production many times, transferring its value in parts to finished products and returning to the investor in cash in parts.
It includes factory buildings, machinery, equipment, etc. In contrast, working capital is involved in production once, is completely transferred to the created product and is returned to the investor in cash during one cycle. This includes raw materials, materials, semi-finished products, etc., as well as wages of employees.
In addition to labor and means of production, organization and production technology are considered one of the key factors of the modern economy. The organization of production is a certain arrangement of intra-production connections that ensure the unity and orderliness of the entire production process. Production technology represents specific methods of processing objects of labor and a certain order of production processes. Under the influence of scientific and technological revolution, today traditional machine technologies of the 70-80s. give way to other methods of producing useful things. A characteristic feature of new, or high, technologies is their reliance on the widespread use of information and computers in the production. Therefore, such technologies are sometimes also called information or information-computer. This gives an idea of ​​how enormously important one factor of production is - information. It is through the transfer and use of information that the stable and efficient operation of equipment (especially with program control), the exchange of advanced know-how is ensured, the optimal organization of production itself is achieved and its progress is monitored.
The next factor of production, the importance of which is constantly increasing, is science. Science is usually called theoretical, systematized views of the world around us, reproducing its essential aspects in an abstract and logical form and based on scientific research data. There are three main areas of scientific research:
1) fundamental scientific research, which is carried out with the aim of obtaining new knowledge and identifying patterns of the phenomena being studied;
2) applied scientific research, which uses the achievements of fundamental science to solve practical problems;
3) research and development work (R&D), which completes the connection between science and production and provides both scientific and engineering development of a particular project.
Second half of the 20th century in highly developed countries is characterized by an increase in the share of R&D costs in total production costs. The knowledge intensity of production is becoming one of the most important criteria for its progressiveness and competitiveness. Today, even special companies have appeared on the market that are engaged in the commercialization of scientific research in those knowledge-intensive and high-tech areas where achieving the desired result is not guaranteed. These venture (risk) firms create about 90% of new technologies introduced into production.
Began around the middle of the 20th century. The scientific and technological revolution contributed to the transformation of science into a leading factor of production. The time frame for the practical implementation of scientific discoveries has sharply decreased, and the integration of science and production has taken place. The previously separate processes of development of science and production were united into a single, constantly developing system: science - technology - technology - production. And scientific and technological developments themselves have become one of the main driving forces of economic growth.
The so-called energy factor also plays a major role in the production process. In the course of historical development, man gradually masters new types of energy. At first he used only his physical strength, then he moved on to using the physical strength of animals, the energy of falling and flowing water, wind and steam! Already in the 20th century. began to widely use electricity, and in the mid-50s. - and nuclear energy. The world's energy consumption is growing all the time. Today, not a single medium or large production can do without solving the issue of its energy supply. At the same time, coal continues to bear the main burden in providing industry with energy resources. Scientists suggest that the next 50-60 years will be marked by fundamental changes in the structure of the world energy balance: production needs will lead to the emergence of transnational and global energy supply systems.
The environmental factor of production is closely related to the energy factor. It represents a set of problems related to the relationship between man and nature and the environment in the production process. Since modern production actively interacts with nature, taking into account the role of the environmental factor in economic practice is necessary. This, in particular, is manifested in the transition of a number of enterprises to resource-saving and waste-free technologies. If traditional technologies were characterized by environmental pollution, then high technologies, as a rule, are environmentally friendly. They use closed water supply systems, closed production cycles, and widely use secondary raw materials and industrial waste. This ensures an increase in the economic and social efficiency of people's economic activities.
Finally, another important factor of production is infrastructure. Infrastructure is divided into industrial and social. The production infrastructure includes auxiliary industries that directly serve production (transport, communications, logistics, etc.). Social (or non-production) infrastructure is the area that provides the necessary socio-cultural living conditions for production workers and their families (housing and utilities, trade, consumer services, healthcare, education, etc.).
In real life, each production subject strives to find the best combination of production factors within the framework of a specific technology in order to achieve the highest output. No production is possible if there are no human or material factors of production, since any production involves their joint use. However, at every moment the situation in the market for production factors changes: the market can provide a sufficient amount of one factor, while another factor will be clearly in short supply. In this case, it is necessary to choose a production technology in which a rare and therefore expensive factor will be used to a lesser extent than a more common and cheaper one (for example, if there is little land in the city and its prices are high, they resort to the construction of multi-story buildings). Comparison of the costs of various factors ultimately determines the principles of production organization. If one factor is more expensive, it is replaced by another. As a result, a need for a certain technology is formed. And since the factors of production are, in a certain sense, interchangeable, the main criterion that guides any subject of production when making their choice in favor of one or another factor is the greatest reduction in production costs while achieving maximum efficiency of the latter.

8. Entrepreneurship: essence, functions, types

Entrepreneurship is usually understood as a certain way of managing that has become established in the economies of developed countries as a result of centuries of evolution. Initially, entrepreneurs were people who were energetic, gambling, and prone to risky operations. Subsequently, entrepreneurship began to include any activity aimed at making a profit and not prohibited by law. Entrepreneurship has developed in a complex and contradictory manner. Its first shoots began to emerge along with the emergence of market relations. However, the emergence of entrepreneurship as an established sustainable phenomenon dates back to the 17th century.
Nowadays, entrepreneurial activity is called production and economic activity carried out at one’s own peril and risk, aimed at making a profit, and not prohibited by law.
Entrepreneurial activity has some specific features, which are sometimes also called the principles of entrepreneurship:
1) an entrepreneur always acts as an independent, independently operating entity;
2) the entrepreneur bears financial responsibility for his business (either to the extent of the entire property, or to the extent of the share, or to the extent of the block of shares);
3) entrepreneurial activity is inherent in risk, i.e. the likelihood of losses, loss of income by the entrepreneur or even his ruin;
4) entrepreneurial activity always has as its goal making a profit.
There are individual and collective entrepreneurship. Individual entrepreneurship is any creative activity of one person and his family. Collective entrepreneurship is a business in which a whole team is engaged. It includes small (up to 50 people), medium (up to 500 people) and large (up to several thousand people) businesses.
Depending on the connection with the main stages of the reproduction process, entrepreneurship is divided into production, commercial, financial, insurance, and intermediary.
Manufacturing entrepreneurship is one of the most socially necessary and at the same time the most complex types of business. Its basis is production of any direction: material, intellectual, creative.
The essence of commercial entrepreneurship is the sale by the entrepreneur of finished goods purchased by him from other persons.
Financial entrepreneurship is a special type of entrepreneurship in which the subject of purchase and sale is money, foreign currency, securities sold to the buyer or provided on credit.
Insurance business is that the insurer-entrepreneur guarantees the insured, for a fee, compensation for possible damage to property, valuables, and life as a result of an unforeseen (insured) event.
Intermediary entrepreneurship is characterized by the fact that the entrepreneur helps sellers find buyers and vice versa and conclude a purchase and sale transaction between them.
Economists identify three main functions of entrepreneurship.
The first function is resource. Any economic activity requires economic resources: natural, investment, labor. An entrepreneur who starts his own business helps to combine them into a single whole, thus increasing the efficiency of the economy. He achieves this by carrying out the second function of entrepreneurship - organizational. The entrepreneur uses his abilities, providing such a combination of factors of production, which is designed to help achieve the goal - obtaining a high income. The third function of entrepreneurship is creative, associated with innovation in entrepreneurial activity. The importance of this function has increased sharply in connection with the latest achievements of scientific and technological progress and the expansion of the market for scientific and technical developments. A special direction of entrepreneurship has emerged - venture (risk) entrepreneurship, the essence of which is the introduction into production of new models of equipment and the latest technologies.
For modern Russia, entrepreneurship is a relatively new phenomenon. Its current history begins on January 1, 1991, when the RSFSR Law of December 25, 1990 “On Enterprises and Entrepreneurial Activities” came into force. According to the current Russian legislation, entrepreneurial activity is recognized as independent activity carried out at one’s own risk, aimed at systematically obtaining profit from the use of property, sale of goods, performance of work or provision of services by persons registered in this capacity in the manner prescribed by law (Article 2 of the Civil Code of the Russian Federation). This article of the Civil Code of the Russian Federation provides the main criterion for isolating entrepreneurship from the general mass of economic activity, namely: its inherent goal is the systematic receipt of profit.
Profit is the income of an entrepreneur received in the form of an increase in capital invested in production. Making a profit is the main incentive and the main indicator of the effectiveness of any enterprise. High profits force capital and labor to migrate from one industry to another, since profits in different sectors of the economy - manufacturing, banking, trade - are generated differently and their size can vary significantly.
Profit represents the excess of total revenue from the sale of products over all production costs. Practically and statistically, it is calculated as the remainder after subtracting production costs from sales volume. For example, if goods worth 4,000 rubles were sold, and production costs amounted to 2,000 rubles, then the profit is equal to 2,000 rubles.
Production costs are the monetary costs incurred by an entrepreneur in the process of producing a product. There are fixed and variable production costs. Fixed costs include those costs that the enterprise must bear in any case and which, to a certain extent, depend little on the volume of production (building rent). Variables are those costs that are associated with the cost of purchasing raw materials and labor, the use of which directly affects the volume of products produced (the more products, the more raw materials used, i.e. costs). Since the main reference point in a market economy is the market price, each entrepreneur tries to find a production technology such that the average production costs are lower than this price and, thus, the enterprise would bring higher profits.

Entrepreneurship is carried out in certain organizational and legal forms. The choice by an entrepreneur of one form or another depends on many factors: the operating environment, the financial capabilities of business entities, the comparative advantages of one form or another. Each country has its own legislation on organizing business. At the same time, there are some organizational and legal forms of entrepreneurial activity that are typical for world practice. These include various types of business partnerships and business societies, as well as types of state enterprises. In some countries, these basic forms have their own modifications.
All those engaged in entrepreneurial activities can be conditionally divided into two large groups: legal entities and individual entrepreneurs.
A legal entity is a special organization that has a number of specific characteristics, which can independently, on its own behalf, participate in property turnover, acquire civil rights and obligations, and which is formed and ceases to exist in a special manner. A legal entity is the main legal form of collective participation of persons in civil circulation. Individuals (citizens) can engage in business by acquiring the status of an individual entrepreneur. To obtain such status, they must have civil capacity.
As noted above, economic activity can be carried out by various entities - individuals, family, state, etc., but the main productive functions in the economy belong to the enterprise. On the one hand, an enterprise is understood as a complex material, technological and social system that ensures the production of economic goods, and on the other hand, the very activity of organizing the production of various goods and services. As a system that produces economic benefits, the enterprise is integral and acts as an independent reproduction unit, relatively isolated from other units. The enterprise independently carries out its activities, manages the products produced and the profit received, remaining after paying taxes and other payments.
An enterprise is usually viewed as a unity of property, rights and obligations, as well as relationships with other enterprises and persons. As for the definition of an enterprise as an organizational form of management, the dominant view is that it is a property-separated economic unit designed to solve production problems, achieve set economic goals and is capable of self-reproduction (ensuring its life cycle).
At one time, the prevailing opinion in economic science was that large enterprises have an advantage over small ones. Therefore, the future of the world economy was seen in the functioning of large giant enterprises. Many developed countries have gone through these illusions, but this path has shown to be a dead end. It is obvious that large-scale production has a number of undeniable advantages:
1) allows you to solve problems on a larger scale (for example, the construction of a railway is possible only by a large organization);
2) due to the concentration of income, it has greater opportunities for maneuvering production resources, which allows for sustainability in income generation;
3) has the opportunity to establish mass production and thereby reduce its costs.
However, to satisfy many needs there is no need to organize large enterprises. This is especially true for those types of activities that focus on a fairly narrow circle of customers with individual requests. In addition, large production easily develops into a monopoly, which infringes on the interests of consumers. A monopoly often reduces production in order to inflate prices. Small production does not have such opportunities. Therefore, it does not pose a threat to the state as a potential monopolist. By filling empty niches in the market that are unprofitable for large businesses, small businesses make it more diverse. In addition, by filling the market with additional quantities of goods, small enterprises increase aggregate supply, preventing the rise in commodity prices. Therefore, small business today is encouraged by many states with market economies.
In the international practice of entrepreneurship development, the main institutions for the protection of entrepreneurial activity have been developed. International standards for the protection of entrepreneurs are defined in well-known international conventions and treaties (for example, the Vienna Convention on Contracts for the International Sale of Goods). Since independent private producers participate in business relations, direct government intervention in these relations is minimized and the main means is to protect the interests of the injured party through the courts. In the Russian Federation, the system of legal protection of entrepreneurship is in the process of formation; its legal forms have not yet taken shape.

9. The market as a special institution that organizes the socio-economic system of society. Market mechanism

In modern economic literature there are many definitions of the concept “market”. Having summarized the most frequently used of them, we can conclude that among academic economists there is a dual understanding of the market - narrow and broad.
In the narrow sense of the word, the market is understood as a set of relations, forms and organizations of cooperation between people with each other relating to the purchase and sale of goods and services.
In a broad sense, the market is the entire complex mechanism for the movement of goods and services in the form of goods and money within the framework of all social reproduction at all levels of the economic system of a given society.
The main parameters regulating the behavior of market entities are demand, supply and price, between which there is a mutual connection. The simple supply and demand model has been around for almost 200 years. During the 20th century it, in a more developed form, formed the core of economic science. A simple supply and demand model answers the following questions:
1. Why do prices for certain goods rise or fall?
2. What happens to the economy if it is regulated in a certain way?
3. What processes are caused by the introduction of new technology into production?
According to this model, in its most general form, the mechanism of the commodity market is regulated by two laws: the law of value and the law of supply and demand. Demand is the quantity of goods of a certain type that a buyer is willing to buy at a certain price level. Supply is the amount of goods that the seller is willing to offer to the buyer in a specific place and at a specific time.
According to these laws, the production and exchange of goods is carried out on the basis of their value, the value of which is determined by the costs invested in them. The monetary expression of value is the price, which is set by the manufacturer and, in theory, can be higher than the value, lower than the value or correspond to it. The price is influenced by the demand that a particular product enjoys: if it rises, then the manufacturer can raise the price and expand production of this type of product; if it falls, then the price also falls and the output of the product is reduced. It is worth taking into account the fact that potential consumers of a product come to the market with limited financial resources, which they are willing to spend on purchasing the product they need. Therefore, they are always interested in buying it cheaper, while the manufacturer wants to sell the product at a higher price. Therefore, in reality, two prices are formed on the market:
a) demand price, which means the maximum price at which the buyer agrees to buy the product;
b) supply price - the minimum price at which the manufacturer is willing to sell the product.
The market price, i.e. the price at which the volume of demand is exactly equal to the volume of supply, cannot fall below the supply price (since then the seller will go bankrupt) and rise above the demand price (in this case the buyer will not be able to buy the product offered). In reality, it fluctuates between these two values, stimulating producers. To achieve a reduction in the cost of production of goods and thus encouraging an increase in labor productivity, the introduction of new technical advances and technologies, as well as promoting the redistribution of resources for the production of those goods that are in stable or increased demand among consumers. Thus, price, demand and supply are active regulators of the market mechanism for the production and exchange of goods.
Another element of the market self-regulation mechanism is competition.
Competition (from the Latin concurrere - to push, compete) is the rivalry between participants in a market economy for the best conditions for the production and purchase and sale of goods. This clash is inevitable, and it is generated by such objective market conditions as the complete economic isolation of each of its subjects and the struggle of the latter for the greatest profit. Competition can only exist under a certain market condition and be free or monopolistic.
Free competition is a type of market structure in which the price is set as a result of balancing the supply and demand curves. In Western economic literature, free competition is also called pure, since it is free from any government intervention and the market itself is free from monopolies. Free competition corresponds to the period of classical capitalism. It manifested itself in full, perhaps, only in England in the 19th century. In modern conditions, free competition is a very rare phenomenon (although it can be found, for example, in the securities market).
Unlike free competition, monopolistic competition is a market where there are a large number of sellers offering similar but not identical goods. Monopolistic competition should be distinguished from monopoly.
A monopoly is the exclusive right to production, trade and other activities owned by one person, a certain group of persons or the state. With a monopoly in the market, there is only one seller of the product, who sets his own price (often inflated). By its nature, a monopoly is directly opposite to free competition.
Taking into account the degree of economic coverage, the following types of monopolies are distinguished:
1. Pure monopoly on the scale of a certain industry. Its characteristic feature is the presence of only one seller on the market (access to the market is closed to possible competitors). This seller has complete control over the quantity of goods to be sold and its price.
2. Absolute monopoly on the scale of the national economy. The monopolist here is the state represented by its economic bodies.
3. Monopsony (can be either absolute or pure) - a type of monopoly in which there is only one buyer of resources or goods on the market.
Depending on the nature and reasons for their occurrence, monopolies are distinguished between natural and artificial. Natural monopolists, as a rule, own non-reproducible elements of production (for example, rare minerals) or own entire sectors of infrastructure (for example, railways). The state often supports such monopolies because they provide greater economic benefits than many similar small firms, or because they have important strategic importance for the entire society.
Artificial monopolies are associations of several enterprises created to obtain monopolistic benefits. The main forms of artificial monopolies are cartel, syndicate, trust and concern.
A cartel is an association of a number of enterprises in the same industry, the participants of which enter into an agreement among themselves on the prices for the sale of goods, distribute sales markets, and the share of each participant in the total volume of production. Manufacturers belonging to the cartel retain their ownership of the means of production and its products. A cartel is the lowest type of monopoly. (A striking example of a cartel on an international scale is OPEC (Organization of Petroleum Exporting Countries) - Organization of Petroleum Exporting Countries.)
A syndicate is an association of a number of enterprises in the same industry in which its participants retain production independence and ownership of the means of production, but the enterprises included in the syndicate lose their commercial independence, and the products produced by them are sold as the property of the enterprises through a single office.
A trust is a single joint-stock company that dominates a particular industry. Enterprises included in the trust are deprived of production and commercial independence. When organizing a trust, the owners of enterprises transfer the means of production - a share - into the ownership of the trust and in return receive a number of shares corresponding to the amount of this share.
A concern is understood as an association of enterprises from various sectors of the economy, trading firms, banks, transport companies, which is under unified financial control.
Monopolists conquer the market in order to be able to set a monopoly price on it. A monopoly price is a special type of market price, which is set at a level above or below the equilibrium price and is a tool for obtaining monopoly income. Such actions of monopolists harm the use of production resources. Therefore, the state is trying to fight monopolies by adopting so-called antimonopoly (antitrust) legislation, forming special antimonopoly committees whose task is to analyze the market situation, and supporting competition in its civilized forms.
Today, all economists note the fact that in the current market there is practically no free competition or monopolies in its pure form. They call the current state of the market “imperfect competition,” meaning by this term two main forms of a peculiar combination of monopoly and competition: the above-mentioned monopolistic competition and oligopoly.
Oligopoly (from the Greek oligos - few, poleo - sell) is a market dominated by several (usually three to five) large firms (for example, in the USA, an oligopoly is usually formed by the four leading firms in the industry, selling up to 60% of the market). all products). Oligopoly is competition between a few. In an oligopoly, an agreement between two or more large firms on price is possible. Often such agreements are secret, since in most countries their conclusion is prohibited by law.

10. Diversity of markets in the modern economy

In modern highly developed countries, there really is not just one market, but a whole system of markets, each of which has its own special functional purpose. The reasons for the emergence of such a variety of markets are:
a) expansion of the market space as a result of a change in the nature of the economy (transition from subsistence farming to commercial farming);
b) an increase in the range of material goods and services that satisfy people’s needs, and, as a consequence, the impossibility of their sale in any one market;
c) extension of the social division of labor to the market sphere;
d) growth of international economic relations.
In the modern system of markets, the following large sectors of market activity are quite clearly distinguished: the market for consumer goods and services, the market for means of production, the labor market, the investment market, the foreign currency market, the stock market, the market for scientific and technical developments, the information market, etc.
The market for consumer goods and services represents the purchase and sale of end-use products (it is divided into many markets selling food and non-food products, the housing market, etc.), as well as various types of services (medical, educational, transport, etc.) . The market for means of production is the market for goods used for industrial consumption. Here equipment, buildings, raw materials, fuel, electricity, etc. are sold and purchased. The labor market is a market in which labor is the object of free purchase and sale. The investment market is a market in which the object of market relations is long-term capital investments. In the foreign currency market, the main players are national and international institutions through which the purchase, sale, exchange of one foreign currency unit for another is carried out, as well as monetary settlements between states. The subject of purchase and sale on the stock market are shares, bonds, bills and other income-generating securities. In the market of scientific and technical developments, the purchase and sale of innovations, i.e., new technologies, inventions, and rationalization proposals, is carried out. Finally, in the information market, the objects of purchase and sale are books, newspapers, various types of advertising, as well as other items that carry the necessary information.
From the point of view of compliance with current legislation, economists distinguish between legal (legal) and illegal (shadow) markets. The latter is an integral part of the so-called shadow economy, which is an underground production associated with violation of any requirements (technological, environmental, etc.) or aimed at tax evasion.
Based on spatial characteristics, local, national, regional, and global types of markets are distinguished.
Based on the level of saturation of goods, the market is divided into equilibrium, deficit and excess.
According to the mechanism of functioning, the market can be free, monopolized, state-regulated and deformed.
According to the nature of sales, the market can be wholesale or retail.
Finally, according to the degree of maturity, a distinction is made between undeveloped developed and emerging markets, as well as markets with varying degrees of restriction of competition (pure competition market, monopolistic, oligopolistic).
The modern market structure is not something static; it is constantly becoming more complex. Currently, the telecommunications market is taking shape, as well as the computer market.

11. Money. Money turnover. Inflation

Money is the universal commodity equivalent, expressing the value of all goods and serving as an intermediary in their exchange for each other.
Money is a historically developing economic category. They arose many thousands of years ago and successively went through two main periods in their development: the period of full-fledged money and the period of inferior money.
The history of money began with its full-fledged version. Full-fledged money is called money whose intrinsic value (i.e., the actual costs of producing the coin) approximately corresponds to the nominal value (i.e., the one indicated on the coin).
Initially, grain, furs, livestock, etc. served as full-fledged money. Over time, the role of money was assigned to two metals - gold and silver. Moreover, in the history of money there were moments when bimetallism existed (i.e., both of these metals were in circulation as money) and periods of monometallism (when either gold or silver played the role of money). In particular, at the early stage of the development of capitalism in Europe, bimetallism was widespread. However, the difficulties associated with the use of double money and prices tipped the scales in favor of gold monometallism. The choice of gold was not accidental. Gold is a noble metal with great preservation properties. It has a number of qualities necessary for universal equivalence: divisibility, portability (or high concentration), high cost and availability in quantities sufficient for exchange. The system of gold monometallism was established in Great Britain at the end of the 18th century. At the end of the 19th century. the most developed countries of continental Europe also switched to the gold standard. The gold standard is a monetary system in which gold plays the role of the universal equivalent, and gold coins (classical form) or banknotes redeemable for gold are used in circulation.
Under the gold standard, money served several functions.
Firstly, they served as a measure of the value of all goods. The cost of a thing expressed in money is called price. The prices of various goods were expressed in a certain amount of gold, which was measured by the weight of the latter. A certain weight amount of gold was taken as a unit of its mass. This unit, established by the government as a monetary unit, is called the price scale. The price scale and its multiples served to measure the mass of gold, and all prices of goods were expressed in a certain number of its weight units (for example, in the Russian Empire at the end of the 19th century, the monetary unit was the ruble, the weight of gold of which was 0.774254 g).
The second function that money performed was that of a medium of exchange. It consisted in the fact that money acted as an intermediary in the exchange of goods, passing from the hands of buyers to the hands of sellers, and vice versa. This gave people the opportunity to get rid of barter exchange and separate the moments of buying and selling goods both in time and in space. At first, the function of a medium of exchange was performed by gold bars. This created certain inconveniences, since these bars had to be weighed at each exchange. Therefore, the state began to give these ingots a small, usually standard, shape and put a corresponding stamp on them. So gold money took the form of a coin. During the process of circulation, the coins were gradually worn out and the amount of gold in them decreased. There was a separation of the nominal value of the coin from its real content. The shortage of gold gradually led to the fact that states began to replace gold coins with cheaper silver and copper ones, and then completely replaced metallic money with paper money.
The third function of money was realized when goods were sold on credit (that is, in debt with deferred payment). Money was used as a means of payment, not only in the commodity sphere, but also outside it (for example, to pay taxes, loans, etc.). But if the person who received the money for his goods did not want to spend it right away, but decided to save the proceeds, then the money began to serve as a means of creating treasures, that is, it accumulated as wealth in general.
The abolition of the gold standard occurred in the 20th century. The first blow to gold monometallism was dealt by the global economic crisis of 1929-1933. The unprecedented depreciation of paper money led to the fact that their exchange for gold became impossible and was stopped in almost all countries.
After World War II, the economically strengthened United States introduced its own currency, the dollar, as the main means of payment. Central banks of various countries could now exchange dollars for gold. However, America was unable to artificially maintain the gold content of the dollar for long. In addition, a lot of gold, along with dollars, flowed to Western Europe (the so-called Eurodollars) and the Middle East (petrodollars). In December 1971, the gold standard was completely abolished. There was a demonetization of gold, i.e., its “removal” from monetary functions. The gold standard has been replaced by an artificial monetary system, within which inferior money operates, the nominal value of which does not correspond to the costs of its production. The main types of defective money are:
a) paper money;
b) billon coins (or simply billons) - metal banknotes in the form of coins made of base metals;
c) credit money (bills, checks, plastic cards, etc.).
Paper money has varying degrees of liquidity. Liquidity refers to their ability to be converted into cash and spent on the purchase of goods and services. For example, cash is 100% liquid, since it can be used to purchase various types of life goods at any time. Various types of bank deposits are much less liquid.
Money is in constant motion, moving between individuals, legal entities and the state. The movement of money as they perform their functions is called money circulation.
In fact, modern monetary circulation includes two main forms of money:
1) cash, which combines paper money and small change;
2) non-cash funds, which means all funds in bank accounts.
The ratio of cash and non-cash funds in the modern economy is 1:5.
The system of monetary circulation that has historically developed in the state and is enshrined in legislation is called the monetary system of the state. The legal basis of the monetary system of the Russian Federation is the Constitution of the Russian Federation, the Civil Code of the Russian Federation, the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”. The official currency in Russia is the ruble. The introduction of other monetary units on the territory of the Russian Federation is prohibited. The relationship between the ruble and gold or other precious metals is not established by law. The official exchange rate of the ruble to foreign monetary units is determined by the Bank of Russia and published in the press.
The Central Bank of the Russian Federation has the exclusive right to issue cash, organize its circulation and withdraw it on the territory of Russia. He is responsible for the state of monetary circulation in order to maintain a normal economic situation in the country.
The types of money that have legal tender force are bank notes (banknotes) and metal coins, which are backed by all assets of the Bank of Russia, securities, and reserves of credit institutions held in the accounts of the Central Bank. Samples of banknotes and coins are approved by the Bank of Russia.
For the normal functioning of the economy, a certain amount of money must be available for circulation. From time to time, situations have arisen and continue to arise in which the sphere of circulation is filled with “extra” money, that is, the amount of money exceeds the actual need of the economy for it. In such situations, inflation is said to occur. During inflation, paper money loses value:
- in relation to gold (under the gold standard);
- in relation to goods and services;
- in relation to banknotes of other states.
In the first case, the market price of gold increases, in the second - prices for goods and services, in the third - the exchange rate of the national currency falls in relation to foreign currencies.

The level of inflation is measured using a price index (cost of living index), which reflects the percentage increase during the period under study in the cost of the so-called “consumer basket” - a certain set of goods and services necessary for life.
There are several types of inflation.
Depending on the average annual price increase, the following are distinguished:
1) moderate (or creeping) inflation, in which prices rise gradually and at a moderate pace (by about 10% per year);
2) galloping inflation, characterized by rapid rise in prices (approximately 100-150% per year);
3) hyperinflation, the distinctive feature of which is extremely high price increases (up to 1000% per year).
Based on the nature of the inflation process, a distinction is made between open and suppressed inflation. With open inflation, there is an unrestrained rise in prices. When suppressed, the state artificially controls prices, which leads to shortages and a “black market”.
Inflation affects the situation of economic entities in different ways. As a rule, it is disadvantageous for all recipients of fixed incomes (public sector employees, creditors and savings owners). For those people who have diversified sources of income, such as real estate, inflation may even be beneficial. Inflation can also be beneficial for the state, which, by financing the budget deficit by printing money, receives a so-called inflation tax.
The main consequences of inflation are, firstly, a significant redistribution of income in society in favor of individuals and structures (usually financial) and the destruction of normal socio-economic relations. The population begins to panic and get rid of rapidly depreciating money and seeks to invest the latter in material goods. And hyperinflation generally leads to the collapse of the monetary system and money losing its functions.
There are two options for government policy in a situation of inflation: either adapting to inflation or fighting it. In the first case, indexation of the population's income is periodically carried out (increasing salaries, pensions, scholarships, etc.). However, continuous indexation can, in turn, provoke increased inflation, giving rise to a wage-price spiral. The fight against inflation involves a tight monetary policy, reducing the budget deficit through social programs, limiting the role of the state in the economy, supporting entrepreneurship, gradually reducing the money supply and other measures.

12. Banks and banking system. Money-credit policy. Banking activities in the Russian Federation

One of the conditions for the normal functioning of a modern market economy is the presence of a clearly organized banking system. The banking system is one of the most important elements of the economic system of the state. It includes all banks in the country.
A bank is a commercial institution created in accordance with the current legislation of the state, engaged in business activities in the financial sector and operating on the principles of commercial settlement.
The main functions of the bank are that it:
a) accumulates temporarily free monetary resources;
b) acts as a center through which funds and capital flow from one economic entity to another, from one sphere of the economy to another;
c) acts as an intermediary in making payments between enterprises, organizations, and the population.
Banks traditionally carry out three main types of operations: passive, active, off-balance sheet.
Passive operations are aimed at attracting free funds from individuals and legal entities to banks. Passive operations include settlements with clients, deposit operations, issue of money and securities, as well as control over money circulation and the movement of securities.
Active operations are aimed at profitable placement of collected funds. Operations of this type include lending, bank investments, factoring and leasing services, and trust operations.
Off-balance sheet transactions represent the direct business activities of the banks themselves. These are stock exchange speculations in the securities market, currency exchange, consulting services, etc.
Currently, almost all countries of the world have a two-tier banking system. The first level of this system is formed by the central (issuing) bank, the second - by private and state banking institutions.
The main link in the banking system of any state is the country's central bank. It is to him that the state grants the exclusive right to issue banknotes. Some of the central banks were immediately established as state institutions (German Federal Bank, Reserve Bank of Austria), others were nationalized after World War II (Bank of France, Bank of England, Bank of Canada). Some central banks still exist on the basis of mixed public-private ownership (for example, the US Federal Reserve). The central bank in many countries reports directly to parliament, although the degree of its independence varies from country to country.
Central banks are called upon to perform a number of important functions, among which are:
a) issue of banknotes;
b) accumulation and storage of reserves of other banks, gold and foreign exchange reserves of the country;
c) lending to commercial banks;
d) carrying out settlements and transfer operations for the government of the country;
e) control over the activities of credit institutions.
The exclusive function of the central bank is monetary regulation of the entire monetary circulation of the country through the implementation of appropriate monetary policy. It can be carried out either in the form of credit expansion, i.e., stimulating all commercial structures to obtain loans, or in the form of credit restriction, i.e., limiting commercial structures in obtaining loans. The first form of monetary policy, as a rule, takes place during periods of slowdown in production growth, the second - during periods of economic growth.
The main instruments that the central bank uses to conduct monetary policy are: increasing or decreasing the discount rate, changing the rate of required reserves that credit institutions must keep, conducting open market operations, regulating the money supply by issuing money.
The discount rate is the interest rate the central bank sets for purchasing payment obligations. At this rate, commercial banks can borrow reserves from the central bank. It usually differs from the current rates of commercial banks and entails easier or more difficult access to loans from commercial banks.
The essence of central bank open market operations is the purchase and sale of securities. These operations are intended to tie up or release a certain amount of capital.
In many countries, the central bank has the ability to directly influence the amount of bank reserves by simultaneously changing the required reserve ratio for all banking institutions. Reserves represent deposits of commercial banks with the central bank, the amount of which is set in proportion to bank assets. The system of bank reserves is a reliable means of protecting the stability of the banking system and, at the same time, a way to expand its capabilities for lending to clients, based on the centralization of part of the banks’ funds in special funds managed by the main bank of the country.
The second important element of the banking system is commercial banks - credit institutions of a universal nature. Their functions are very diverse: economists count more than 800 types of operations performed by commercial banks. The main indicator of the activity of a commercial bank is its liquidity, i.e. the ability to pay your obligations in full at any time. The existence of a certain number of commercial banks in the country is determined by both economic feasibility, the needs of financial services for clients, and the peculiarities of legislative regulation of the banking system.
Currently, the Russian Federation has a two-tier banking system. The legal basis regulating its activities is the Constitution of the Russian Federation, federal laws “On banks and banking activities”, “On the Central Bank of the Russian Federation (Bank of Russia)”, etc., as well as regulations of the Central Bank of the Russian Federation. The Central Bank of the Russian Federation heads the country's banking system, has a monopoly right to issue banknotes and implements monetary policy in the interests of the national economy. The Bank of Russia has a dual legal nature: on the one hand, it is a government body with special competence and manages the monetary system of the state, and on the other, it is a legal entity and can make civil transactions with Russian and foreign credit organizations, and also with the state represented by the Government of the Russian Federation.
Within the limits of exercising its powers, the Bank of Russia is independent, therefore government bodies, government bodies of constituent entities of the Russian Federation and local self-government do not have the right to interfere in its activities.
To conduct banking activities, commercial banks must obtain a license to carry out banking operations from the Bank of Russia. All banking operations and other transactions are carried out by them in rubles, and, if they have the appropriate license from the Bank of Russia, in foreign currency. Conducting banking operations without a license or in violation of licensing conditions entails legal liability.

13. State and economy

No economic system, even a system of free market competition, can be called absolutely free, since it cannot operate without government intervention. After all, it is the state that takes responsibility for organizing monetary circulation in the country, for meeting the needs of certain categories of the population, for compensating for or eliminating the negative effects of the behavior of participants in the market game. The modern market is not regulated only with the help of a free pricing mechanism, since, acting spontaneously, the laws of the market too often not only give a positive effect, but also give rise to negative trends in the economy, such as monopolism, unemployment, etc. In addition, the market system is not able to ensure the implementation of such an inalienable socio-economic human right as the right to a standard of well-being, that is, to receive such income that could provide an individual with a decent existence, regardless of the forms and results of his economic activity. The market mechanism cannot be expected to respect other socio-economic human rights, in particular the right to work for those who can and want to work. For a number of objective reasons, in a market economy, unemployment in its various forms is inevitable: structural, regional, technological, hidden.
The limited capabilities of the market mechanism for regulating the economy became especially obvious at the end of the 19th and beginning of the 20th centuries, when the era of free competition was replaced by monopolies that captured production and the sales market for goods. In 1929-1933. An economic crisis broke out in the world, the consequence of which was a drop in production volumes and mass unemployment. Crisis of 1929-1933 forced economists to reconsider many of the provisions of economic theory.
In 1936, the English economist John Keynes published a book called “The General Theory of Employment, Interest and Money,” in which he argued that the problems that capitalist countries faced during the crisis could only be solved if the market economy will be regulated by the state. The intervention of the latter will help to minimize the negative consequences caused by the action of market laws. Keynes actually revolutionized “classical economics” by concluding that only an active financial policy of the state, which would help stimulate demand, could cope with mass unemployment. During the Second World War, this point of view became dominant throughout the world, and Keynes's views had a huge influence on both world economic thought and the practice of organizing economic life in various countries.
Today, the leading countries of the world are becoming increasingly active participants in market relations. They take upon themselves the solution of those problems that the free market is not able to solve: redistribution of public income, regulation of the labor market, providing material support to those people who, against their will, lost their jobs and were unable to find another job. The state also takes care of the employed, setting a minimum wage for them, i.e., a level that would allow them to survive.
Another area of ​​activity of modern states is to ensure strategic breakthroughs in the field of science and technology, which is especially important in the modern conditions of development of scientific and technological progress.
The most developed countries invest huge amounts of money in conducting fundamental scientific research and make capital investments in the newest sectors of the economy that will produce products with demand prospects that are not yet entirely clear.
Finally, since today it is obvious that not a single economy - neither market nor command - has innate immunity against at least two serious chronic diseases - inflation and monopolism, then it is the responsibility of government agencies to develop and take effective measures on anti-inflation and anti-monopoly prevention. To solve the above problems, modern states use certain methods of state regulation of economic life.
State regulation of the economy in market conditions is a system of standard legislative, executive and regulatory measures carried out by authorized government agencies and public organizations in order to stabilize and adapt the existing socio-economic system to changing conditions. Specific directions, forms, and scales of state regulation of the economy are usually determined by the nature and severity of economic and social problems in a particular country in a particular period. The task of state regulation of the economy is to establish a compromise between the numerous and varied interests of economic entities in order to achieve the maximum public good within the framework of the existing socio-economic system.
All methods used by the state to influence the economy can be divided into several groups. The first group consists of legal methods, which consist in the fact that the state passes laws designed to streamline the relationships between participants in the market game. A special place among these laws is occupied by the so-called antimonopoly legislation, with the help of which the state prevents the emergence of monopoly enterprises in the economy, since a monopoly, by its nature denying competition, leads the economy to stagnation and decay. Also, governments of various countries are passing laws aimed at strengthening small and medium-sized businesses, thus supporting a diverse production structure.
The second group includes financial and economic methods - primarily taxes. Taxes play an active role in redistribution relations, seriously affecting production. By raising or lowering taxes, the state either promotes its development or restrains the rate of economic growth.
The state also has a certain influence on the economy when carrying out its monetary policy. The main responsibility for carrying out the latter, as a rule, lies with the state bank of the country, which regulates the bank interest rate. With its help, the state bank either limits or, conversely, expands the opportunity for entrepreneurs to receive credit for the development of production.
The state also helps producers by introducing certain customs duties. A duty is a special government tax on goods purchased abroad. It is introduced so that imported goods are more expensive than domestic ones and consumers choose the latter. Thus, the state, on the one hand, restrains imports, and on the other, protects the relevant domestic industries (for example, it does
The Government of the Russian Federation in protecting domestic car manufacturers).
Another important instrument of state regulation of the economy is state ownership (the so-called public sector). The public sector is a certain addition to the market mechanism, operating where and to what extent this mechanism itself cannot cope or does not cope quickly and effectively with global or private economic tasks. The public sector is created as a result of the construction by the state of various economic facilities, as well as the purchase from private owners of enterprises, real estate, stakes and entire industries. The transition of economic assets from private to state ownership is called nationalization. Nationalization serves as a powerful tool for stabilizing the country's market economy during critical periods of its development. In countries where the share of state ownership in the national economy is significant, it is invariably used to smooth out the economic cycle and maintain employment. In conditions of worsening economic conditions, depression or crisis, when private investment in the economy is reduced, state-owned enterprises, on the contrary, do not reduce production. Moreover, it is during these periods that they strive to renew fixed assets, thus counteracting the decline in production in other industries and the growth of unemployment. The structure of the public sector is not unchanged: after the creation or reorganization with re-equipment of unprofitable or low-profit facilities, but necessary for the country’s economy, the latter are privatized, i.e. move from state ownership to private ownership. The state is switching to new objects and areas where the activity of private capital is insufficient.
Finally, various types of planning are common in a market economy: at the level of individual enterprises, regions, and even the entire economy as a whole. The latter type of programs are created by the state.
The state economic program is a set of hierarchically subordinate goals important for the development of the country's economy, as well as a set of means to achieve them within a specified time frame. The development and implementation of such programs is called state economic programming.
Programs are normal and emergency. Emergency programs are developed and implemented during critical situations (for example, natural disasters). Some of these programs are preventive, that is, designed to prevent impending undesirable consequences. Based on the duration of action, government programs are divided into short-term, medium-term and long-term. A special place among government programs is usually occupied by government programs of nationalization and privatization. The level of state programming varies from country to country, but state economic programming itself exists in almost all countries with a market economy.
Thus, in modern capitalist countries, the state actively intervenes in the economy, trying to influence, depending on the need, the situation in a particular market (production, exchange, labor, etc.). The most developed mechanism of state regulation of the economy has developed in Western European countries (France, Germany, Italy, Scandinavian countries, etc.), Japan, and a number of rapidly developing countries in Southeast Asia and Latin America. State regulation of the economy plays a particularly important role in developing countries that create an independent national economy, and in former socialist states making the transition from a planned economy to a market economy.
Despite the obvious effectiveness of state regulation of the economy, the experience of many countries proves that such intervention should not be total - the economy cannot be kept in complete subordination to the state. That is why the basic principle of state regulation of the economy is often expressed by the phrase “don’t interfere with the market.” There are many examples in economic history when the state, relying exclusively on administrative methods of managing the economy, was not only unable to solve pressing problems, but also contributed to their aggravation. On the other hand, the state must observe moderation in the use of economic methods of regulating the market, since some of them, for example, tax or monetary policy, in terms of the strength of their influence on the economy, may well be comparable to centralized planning. So, in the late 70s. In many countries, governments have actually lost their sense of proportion in the application of economic methods of regulation, and this has led to serious deformation of a number of market processes. The price for indiscretion was increased unemployment, intertwined with inflation and the breakdown of the monetary system.
Thus, government intervention in the modern economy is necessary. The main directions of its economic activities can be reduced to the following: 1) development, adoption and organization of implementation of market legislation (the legal basis of the market);
2) ensuring the safety of the market mechanism and creating conditions for its normal operation, smoothing out structural and regional imbalances in the economy, organizing environmentally friendly production;
3) guaranteed implementation of fair distribution of income.
The modern market places rather strict and specific requirements on the economic activity of the state. Wherever government activity meets these requirements, it helps to strengthen the market mechanism, improve the state of public finances and ensure the socio-economic rights of members of society.

14. State budget, its essence and role. State debt

The state budget is an important link in the financial system of any country, combining the main income and expenses of the state. In its economic content, it reflects the monetary relations that develop between the state and legal entities and individuals regarding the redistribution of received national income between various spheres of the economy and social groups of society.
The state budget (from the English budget - suitcase, bag of money) is the main financial plan of the state for the current year, which is a list of its cash income and expenses and has the force of law. The state budget of the country is approved by the legislative body - the parliament; in the Russian Federation - by the Federal Assembly of the Russian Federation.
The budget structure in different countries of the world is not the same: it is determined by the specifics of the political system of a particular country. In federal states, along with the federal budget, there are also budgets of the constituent entities of the federation and local budgets. Thus, the state budget system of Russia includes the federal budget, 21 budgets of the republics within the Federation, 56 regional and regional budgets, budgets of Moscow and St. Petersburg, 10 district budgets of autonomous okrugs and about 29 thousand local budgets.
The procedure for drawing up, considering, approving and executing a budget is called the budget process. The budget process in the Russian Federation is regulated by the Constitution and legislation of the Russian Federation and consists of five stages:
Stage I - drawing up a draft budget by the Government of the Russian Federation;
Stage II - consideration of the draft budget by the State Duma and the Federation Council of the Federal Assembly of the Russian Federation, the Accounts Chamber of the Russian Federation;
Stage III - approval of the budget, adoption of the budget law by the Federal Assembly of the Russian Federation, signing it by the President of the Russian Federation;
Stage IV - budget execution, which is carried out by executive authorities from January 1 to December 31 annually. This period of time is called the budget year;
Stage V - drawing up a report on budget execution and its approval (usually within the first 5 months of the next year).
Budgets of the subjects of the Federation and local budgets are developed and approved in the same way.
The budget is implemented with the help of budget financing. In Russia, an important role in this process is played by the Ministry of Finance of the Russian Federation, which heads the entire system of public financial management, pursues a unified policy, organizes and controls budget execution. Also, state financial control in the Russian Federation is carried out by the Accounts Chamber of the Russian Federation, which is accountable in its activities to the Federal Assembly of the Russian Federation.
The budget of any state consists of two parts - revenue and expenditure.
The revenue side of the budget is generated through taxes paid by individuals and legal entities, as well as loans and money issues. Depending on the state structure of the country, budget revenues are divided into revenues of the central and local budgets (in a unitary state) or into federal budget revenues, revenues of federal subjects and local budget revenues (in a federal state).
The expenditure side of the budget represents the costs that the state incurs in connection with the performance of its economic, social and political-administrative functions. Depending on the direction of cash flows, five main groups of expenses are distinguished: expenses for maintaining the state apparatus, military expenses, expenses for the social sphere, expenses for financing certain sectors of the economy, expenses for providing subsidies and loans to other countries and servicing state debts (domestic and external) .
In the process of drawing up and executing the budget, the state, as a rule, is faced with the impossibility of achieving equality of its revenue and expenditure parts. In this case, two options are possible: a budget surplus or a budget deficit.
A budget surplus is the excess of budget revenues over its expenses. This is a relatively rare phenomenon that occurs only in the presence of a number of favorable internal and external conditions for the development of the national economy. A much more common occurrence is a budget deficit, that is, an excess of budget expenditures over its revenues. The budget deficit may arise as a result of the economic policy of the state or be caused by any emergency circumstances. It can be overcome in several ways: reduce (sequester) budget expenditures, find additional sources of income, organize the issue of money, take out a loan from the population or other states and international financial organizations.
The amount of outstanding obligations of the state to creditor banks, individuals and legal entities, holders of government securities (residents and non-residents), to extra-budgetary funds, foreign governments or international financial institutions is called public debt. Public debt is divided into internal (debt of the state to citizens, enterprises and organizations of its country) and external (debt to citizens, organizations and governments of other countries). Based on the repayment period, debt is divided into short-term (up to 1 year), medium-term (from 1 to 5 years) and long-term (over 5 years).
It is rare that the state manages to repay state loans in full on time and pay interest on them from current budget revenues. Therefore, governments, constantly in need of funds, resort to new loans, covering old debts, but thus creating new ones. As a result, public debt is growing at different rates in different countries. The most difficult to repay are short-term debts, for which you have to pay the principal amount with high interest over a short period of time. That is why government agencies try to consolidate short-term and often medium-term debt, that is, turn it into long-term debt, postponing the payment of the principal amount for a long period and limiting it to annual interest payments. In a number of countries, government agencies have special structural units that are responsible for repaying and consolidating old debts, as well as for attracting new loans. However, consolidation of external debt is possible only with the consent of creditors. The latter create special organizations-clubs, where they develop a solidarity policy towards countries that are unable to fulfill international financial obligations. The most famous are the London Club, which includes creditor banks, and the Paris Club, which unites creditor countries. Both of these clubs have repeatedly met the requests of debtor countries (including Russia) to defer payments, and in some cases, partially written off their public debts.

15. Taxes, their types and functions

Taxes are mandatory payments levied by the state from individuals and legal entities to the budget of the appropriate level in the amounts, manner and under the conditions determined by current legislation.
Taxation has gone through a long journey of development. The first taxes arose during the period of division of society into classes and the formation of the state. They were predominantly in kind and represented “citizen contributions” intended to support public authorities. As commodity-money relations developed, taxes acquired a monetary form and became the main type of government revenue: today monetary taxes provide up to 9/10 of all budget revenues of industrialized countries.
In modern conditions, taxes perform three main functions: fiscal, regulatory and distribution.
The fiscal function of taxes is that with their help the financial resources of the state are formed, i.e. the revenue side of the budget, extra-budgetary funds, etc.
The essence of the regulatory function is that taxes are one of the main instruments of state economic policy, stimulating or restraining the rate of reproduction.
The distribution function of taxes is manifested in the fact that with their help the state influences the distribution and redistribution of reproduction results at both the micro and macro levels between economic sectors and various population groups.
Some economists combine the regulatory and distribution functions of taxes into one common function - the economic one.
Any tax consists of the following elements: subject of tax, object of tax, source of tax, unit of taxation, tax rate, tax salary, tax benefits.
The subject of the tax, or taxpayer, is an individual or legal entity who is required by law to pay tax.
A tax object is an item (income, property, goods) subject to taxation. Often the name of a tax is derived from its object (for example, land tax).
The source of tax is understood as the income of the subject of the tax (salary, profit, interest), from which the tax is paid. Sometimes the source and object of the tax may be the same (for example, income tax).
The unit of taxation is the unit of measurement of the tax object (for land tax, such a unit can be, for example, a hectare).
The tax rate is the amount of tax per unit of taxation.
Tax salary is the amount of tax paid by a taxpayer on one property.
Tax benefits mean complete or partial exemption of a subject from taxes in accordance with current legislation. The most important tax benefit is the non-taxable minimum - the smallest part of the property that is exempt from tax.
The totality of taxes established by the state, the methods and principles of their construction, as well as methods of collection constitute the tax system of the state. The modern tax system includes various types of taxes. Their main group consists of direct and indirect taxes allocated to the object of taxation.
Direct taxes are established directly on income or property and are divided into real and personal. Real taxes are typically collected from certain types of property (land, per capita, industrial); taxation is based on the average profitability of this property. Personal taxes are taxes on income or property, levied at source or by declaration (inheritance tax, income tax, profit tax).
Indirect taxes are taxes on goods and services paid in the price of a product or included in the tariff. They are divided into monopoly fiscal taxes (value added tax), excise taxes, i.e. additions to the price of certain types of goods, and customs duties (export, import). When such goods (services) are sold, tax amounts received from actual payers are transferred to the budget by the person carrying out their sale.
According to the direction of their use, all taxes are divided into general, which go to the general budget of the state and are spent by the latter at its own discretion, and special, directed by the state only for predetermined purposes.
Depending on the government body that collects taxes and manages the funds received, taxes are distinguished between federal, republican (taxes of federal subjects) and local.
Tax practice knows three ways to collect taxes. The first method is called cadastral. The cadastre is a register containing a list of typical tax objects, classified according to external characteristics, with an established profitability of the taxable object (for example, in the case of land tax, the external characteristic is the size of the plot). The second method is the withdrawal of tax before the taxpayer receives income: the tax is calculated and withheld by the accounting department from the legal entity that pays income to the entity (income tax is collected in this way). In the third method, tax is withdrawn from the subject after he has received income - on the basis of a declaration of income received by the taxpayer to the tax authorities.
There is a relationship between the amount of money that the state can receive and the tax rate, proven by the American economist Arthur Laser. According to Laser, the government will not receive money in two cases: when it does not collect taxes (that is, sets the tax rate to zero) and when it takes all profits. An excessive increase in taxes on corporate profits deprives the latter of the incentive to invest, slows down economic growth and ultimately reduces the flow of revenue to the state budget. That is why any state strives to find the optimal amount of the tax burden and build an effective and fair tax system.
In the Russian Federation, the formation of a modern tax system after 1991 took place in difficult conditions of economic recession, inflation and the crisis of public finances. In 1992, the Law “On the Fundamentals of the Tax System in the Russian Federation” was adopted, and in 2000 the Tax Code of the Russian Federation was put into effect.
Like most large countries, the Russian Federation has a three-tier taxation system.
The first level consists of federal taxes, which apply throughout the country and are regulated by federal law. On their basis, the revenue side of the federal budget is formed; at their expense, the financial stability of the budgets of the constituent entities of the Federation and local budgets is maintained.
The second level includes taxes of the republics within the Russian Federation, as well as territories, regions, autonomous regions and autonomous districts. They are established by the representative bodies of the constituent entities of the Federation on the basis of the principles enshrined in federal legislation. Some of these taxes relate to generally obligatory payments throughout the Russian Federation. In this case, regional authorities regulate only the rates of these taxes within certain limits, determine the procedure for their collection and the provision of tax benefits.
The third level is local taxes, i.e. taxes of cities, towns, etc. They are established by local representative authorities. Moreover, the representative authorities of Moscow and St.
Petersburg have the right to establish both local taxes and taxes of the subject of the Federation.
The disadvantages of the modern taxation system in the Russian Federation are obvious: a large number of taxes and the complexity of their calculation, a high level of taxation, as well as constant changes in tax legislation. In order to eliminate these shortcomings, the federal authorities are currently trying to carry out tax reform in the country.

16. World economy. Russia in the system of world economic relations

The world economy is a system of national economies of individual countries, united by the international division of labor, as well as trade, production and other diverse norms of economic relations.
The formation of the world economy has come a long way. Historically, the first form of international economic relations was trade. Its objective basis was the social division of labor, which transcended national borders and reached the international level.
The international division of labor represents the specialization of individual countries in the production of certain types of products that they exchange among themselves. The international division of labor originated in the manufacturing period of the development of capitalism. Moreover, the main form of its implementation at that time was bilateral and trilateral foreign trade relations. During the era of the industrial revolution, the interconnectedness of national economies increased and they were drawn into the world market. A feature of the international division of labor at the end of the 19th - first half of the 20th centuries. became a monocultural specialization of an entire group of countries (colonial and dependent), i.e., consolidating them as suppliers of one or several goods, mainly raw materials or energy.
With the development of industry and the deepening of technological specialization in the sphere of production, the international division of labor acquired modern forms. Today, the main forms of world economic relations are: international trade in goods and services, movement of capital, interstate integration in the sphere of production, migration of labor, exchange in the field of science and technology, monetary relations. Accordingly, the structure of the world market consists of the following elements:
1) the world market of goods and services;
2) global capital market;
3) global labor market;
4) global financial market. The modern world market is an integral system of trade and financial and economic relations between national economies. In this market, world prices are formed and act.
International trade includes two interrelated processes: export and import. Export (export) of goods means that they are sold on the foreign market. The economic efficiency of exports for a particular country is determined by the fact that this country exports those products whose production costs are lower than the world ones. When importing goods, a country acquires those goods whose production is currently not economically profitable for it. The total amount of exports and imports forms foreign trade turnover (balance) with other countries.
Historically, there have been various forms of state protection of national interests in world markets. In the XV-XVIII centuries, when the main dominant economic theory was mercantilism, states in every possible way stimulated exports and restrained imports, primarily by introducing customs duties. Customs duty is a tax that is levied when a product crosses a customs border and therefore increases the price of the imported product. However, protectionism inevitably leads to a reduction in foreign trade and self-isolation of the country. That is why, during the industrial revolution, many countries came to the idea of ​​free trade - free trade (from the English free trade - free trade). They began to open their domestic markets to foreign goods, capital and labor in order to increase competition in the domestic market.
However, instability in world trade and global economic crises of the 20th century. forced many countries to revive protectionist policies. Today, most states in their foreign economic policy combine liberal ideas of free trade and protectionism, using not only customs tariffs, but also non-tariff measures. The latter include licenses, quotas, standards, labeling, etc. Free economic zones are also widespread in world practice. To regulate relations between countries in the field of international trade, the World Trade Organization (WTO) was created, in which our country has had observer status since 1992.
Economic reforms carried out in Russia since 1991 have led to the integration of Russia into the system of world economic relations. However, the country's current position in the system of international division of labor is complex and contradictory. The reproducing production structure was practically destroyed during the reform process. The migration of highly skilled labor from the country has reached enormous proportions. Processing industries could not withstand competition with imported products flooding into the market. The country has practically secured the status of a raw materials power, supplying cheap gas, oil, timber, fish, furs and other raw materials to the international market. Russia's exports to non-CIS countries are dominated by mineral products (40.2%), metals, precious stones and products made from them (31.7%), wood and pulp and paper products (5.5%); imports from these countries include machinery, equipment, vehicles (39.4%) and food products (26.6%), which are often of low quality and are not harmless to public health.
The 1998 crisis and the subsequent devaluation of the ruble allowed Russian enterprises to force foreign goods out of the market for some time, but economists note that this effect is gradually fading away. Currently, the country is faced with the task of restoring production, its technological re-equipment in order to produce goods that would be competitive both in the domestic and foreign markets.

17. Labor market. Employment and unemployment

Each person in the course of his life enters into various economic relationships with other people, mainly playing the role of a buyer. However, only someone who, in turn, is able to offer a product in demand for sale and receive money for it can become a buyer on the market. If a person does not produce material goods that can be exchanged for other material goods, then he can sell his ability to work, i.e., labor power, on the market as a commodity. There is a special market for labor trade - the labor market.
The labor market refers to social mechanisms through which some members of society - workers - have the opportunity to find a job that matches their abilities, knowledge and skills, while others - employers - can hire exactly those workers they need.
In the labor market, a special product called labor power is bought and sold. Labor force is the physical and mental capabilities, as well as skills that allow a person to perform certain types of work, while ensuring the required level of labor productivity and quality of manufactured products.
As in other markets, the processes occurring in the labor market are regulated by the law of supply and demand: workers offer their labor for the payment they would like to receive, and employers indicate their demand for the labor they need and the price they are willing to pay. pay her. Thus, in the labor market, as in other markets, there is supply, demand and price - wages.
Wages are the amount of monetary remuneration that an employer pays to an employee for performing a certain amount of work or performing his official duties for a certain time.
The volume of labor supply in the market varies and can be determined by various factors: the distance of the proposed workplace, the tax system, social benefits and, of course, wages. The higher the wages that workers demand for their work, the fewer of them employers will be able to hire, and, conversely, the lower the wages offered by employers, the fewer people are willing to do the required work. The volume of labor demand is determined by the needs of employers, production equipment and the general needs of the economy as a whole. At the intersection of the interests of workers and employers, the equilibrium price of a good called labor power, i.e., wages, is formed. It is an indicator that the number of people willing to do a certain job and the number of places provided by the employer coincide.
The minimum price of labor is determined by the subsistence level. The subsistence minimum is the level of income that a worker needs to purchase an amount of food not lower than physiological standards, as well as to satisfy his needs (at the most necessary level) for clothing, shoes, transport, and payment of utilities. The cost of living is the lower limit of wages.
Wages can be paid to an employee in several forms:
1. Time wages are a method of remuneration in which the amount of wages is directly proportional to the number of hours worked by the employee.
2. Piece wages are a method of remuneration in which the amount of wages depends on the amount of work performed or goods produced by the employee.
3. A mixed form of wages is a method of remuneration that combines elements of both time-based and piece-rate payment. This form of remuneration is one of the most popular today. With it, the amount of wages depends not only on the amount of time worked by the employee, but also on the latter’s personal contribution to the business, on the success and income of the entire company as a whole.
There is a distinction between nominal wages and real wages. Nominal wage is the remuneration for work that is assigned to the employee in the form of a certain amount of money. Real wages are the amount of life's goods that can be purchased for a nominal fee at a given price level for goods and services.
Those whom employers provide the opportunity to work are called employed. Those who could not find a job are unemployed.
Unemployment is a situation in the economy in which some people who are capable and willing to work for hire cannot find a job that matches their abilities.
In economics, there are many different theories about what determines unemployment. When analyzing them, three main points of view on this issue can be distinguished:
1) the cause of unemployment is too high wages;
2) the cause of unemployment is too low demand;
3) unemployment is predetermined by the inflexibility characteristic of the labor market; such inflexibility makes it difficult to establish the necessary relationship between supply and demand.
The first explanation of the causes of unemployment is sometimes also called the “classical” explanation. It dominated economic science until the appearance of the works of John Keynes. According to supporters of this point of view, the cause of unemployment is the excessive demands of the workers themselves on the employer regarding the amount of wages they desire. In such a situation, no special economic policy is required, since, according to classical economists, unemployment in this case is voluntary: employees who do not agree to work for the offered wages themselves choose the state of unemployment.
In the 30s XX century, during the global economic crisis, the fallacy of such a position became obvious. It was no longer possible to argue that unemployment was not a serious problem or that it was a voluntary choice of employees. Therefore, the dominance of the views of classical economists has come to an end. A new explanation of the problem was proposed by J. Keynes. According to Keynes, the volume of production in a society is controlled by the so-called aggregate demand; it also determines the demand for labor. Therefore, Keynes argues, unemployment arises from insufficient demand. Keynes argued that the traditional policy of non-intervention by the state in solving the problem of unemployment is ineffective. He argued that the state should fight unemployment through an active financial policy. By raising government revenues or reducing taxes, the government can increase the amount of aggregate demand in the economy. This will increase the demand for labor and reduce the unemployment rate in society.
The third explanation for the causes of unemployment comes down to the thesis that unemployment is a consequence of the inflexibility characteristic of the labor market. Basically, supporters of this point of view rely on statistical data in their conclusions. According to these data, the market is constantly experiencing, on the one hand, the emergence of vacant jobs, and on the other hand, an influx of labor. The supply is constantly changing: someone finds a job, someone loses it, someone changes their social status and becomes a pensioner. The requirements for the qualifications of job seekers are also constantly being improved. Therefore, the availability of available jobs may not always lead to a reduction in the number of unemployed. Thus, there is some discrepancy between the needs of those people who are looking for work and the needs of employers who are willing to provide jobs. To be even more specific, in practice there is not a single labor market, but a combination of various specialized markets for a particular profession. Therefore, in practice it often turns out that the vacancies that exist in any specialized labor market cannot objectively be filled by people looking for work, due to the fact that the latter simply do not have the necessary education.
According to this view, both vacancies and unemployment are constant. Moreover, these can be different types of unemployment:
a) structural - a type of unemployment in which employment is impossible due to differences in the structure of demand and supply of labor and there are no means that can change this situation;
b) frictional - a type of unemployment in which a dismissed employee is faced with the need to find a free place to work in his specialty;
c) stagnant - a type of unemployment in which workers are faced with the inability to find work due to the fact that the region in which they live is affected by the economic crisis. In this case, there is a reduction in the total number of jobs, and the only solution for workers is, as a rule, to move to a new place of residence;
d) hidden - a type of unemployment in which the employee agrees to part-time work or part-time work week due to the impossibility of other employment in his main specialty.
Economists propose a number of measures that can alleviate the unemployment problem. Firstly, the state must take care of creating a sufficiently flexible education system in the country that would be able to quickly respond to changes in the structure of demand in the labor market. This applies to both primary and higher education, as well as the system of retraining and retraining of those workers who are really at risk of unemployment. Secondly, a well-organized information service, whose task is to inform workers about the availability of vacancies and employers about available labor offers, can be of great help in the fight against unemployment. Finally, it is worth taking into account the factor of geographic mobility, i.e. the tendency of people to move to places where there is work. The state should encourage such moves and help moving people settle in a new place. On the other hand, with the help of well-thought-out policies, the state can ensure a reasonable proximity of jobs to the unemployed, which will prevent the process of depopulation of economically disadvantaged regions.
At the same time, modern economic science has already come to the conclusion that the complete eradication of unemployment is impossible. Moreover, it is useful for a country to have a small, so-called natural rate of unemployment. This helps maintain the necessary competition in the labor market, since this market, like any other, if there is no competition in it, can become stagnant. However, if unemployment in a country exceeds its natural level, it can cause serious social conflicts.

18. Economic culture

The origin of the concept of “culture” (from Latin colo - to cultivate, cultivate the soil) is directly related to material production through agricultural labor. At the initial stages of the development of human society, this concept was identified with the main type of economic activity of that time - agriculture. However, the demarcation of the spiritual and material-productive spheres of human activity that soon followed created the illusion of their complete autonomy. The concept of “culture” gradually began to be identified only with the phenomena of the spiritual life of society, with the totality of spiritual values. This approach still finds its supporters today. However, along with this, the dominant point of view is that culture is not limited exclusively to the phenomena of the spiritual life of society. It is inherent in all types and forms of human activity, including economic activity.
Economic culture is the totality of material and spiritual socially developed means of activity with the help of which the material and production life of people is carried out.
The structure of economic culture is correlated with the structure of economic activity itself, with the sequence of the main phases of social production: production itself, exchange, distribution and consumption. Therefore, it is legitimate to talk about the culture of production, the culture of exchange, the culture of distribution and the culture of consumption. The structure-forming factor of economic culture is human labor activity. It is characteristic of the entire variety of forms, types of material and spiritual production. Each specific level of economic labor culture characterizes the relationship of a person to a person, a person to nature (it is the awareness of this relationship that is the moment of the emergence of economic culture), and an individual to his own working abilities.
Any work activity of a person is associated with the development of his creative abilities, but the degree of their development varies. Scientists distinguish three levels of these abilities.
The first level is productive-reproductive creative ability, when in the process of labor everything is only repeated, copied, and only as an exception, something new is accidentally created.
The second level is generative creative ability, the result of which will be, if not a completely new work, then at least an original variation.
The third level is constructive-innovative activity, the essence of which is the natural emergence of something new. This level of ability in production is manifested in the work of inventors and innovators.
The more creative the work, the richer the cultural activity of a person, the higher the level of work culture. The latter ultimately serves as the basis for achieving a higher level of economic culture.
Labor activity in any society is collective and is embodied in joint production. Therefore, along with work culture, it is necessary to consider production culture as an integral system.
Work culture includes skills in using tools, conscious management of the process of creating material and spiritual wealth, free use of one’s abilities, and use of scientific and technological achievements in work activities.
The production culture includes the following main elements:
1) culture of working conditions, representing a complex of components of an economic, scientific, technical, organizational, social and legal nature;
2) the culture of the labor process, which finds expression in the activities of an individual employee;
3) socio-psychological climate in the production team;
4) a management culture that organically combines the science and art of management, identifies and realizes the creative potential, initiative and entrepreneurship of each participant in the production process.
In modern society there is a tendency to increase the cultural level of production. It finds its expression in the use of the latest technology and technological processes, advanced methods of labor organization, progressive forms of management and planning, and scientific achievements.
However, the objective nature of the progressive development of economic culture does not mean that it occurs automatically. The direction of this development is determined, on the one hand, by the opportunities contained in the totality of conditions that set the boundaries of economic culture, and on the other hand, by the degree and ways of realizing these opportunities by representatives of various social groups. Changes in sociocultural life are made by people, therefore these changes depend on the knowledge, will, and objectively established interests of people. Depending on these factors, recessions and stagnation in certain areas and economic culture as a whole are possible within the local historical framework.
Progress in the development of economic culture is determined primarily by the continuity of methods and forms of activity of generations, the assimilation of those that have proven their effectiveness, and the destruction of ineffective, outdated ones.
Ultimately, in the course of the development of economic culture, conditions are created that encourage a person to actively creative production activities and contribute to his formation as an active subject of economic processes.

19. Russia in a market economy

The transition to a market model of economic development in Russia was approved by the Government of the Russian Federation in October 1991. At the same time, the first program of radical economic reforms was prepared. Its main points were: the transition to free pricing, denationalization and privatization of enterprises in industry, trade and services. With the help of these measures, the authors of the program hoped, on the one hand, to ease the existing economic crisis, eliminate the shortage of goods, and on the other hand, to create a new class in Russia - the class of owners.
The most serious problem that the government had to face at the beginning of the reforms was the problem of the population mastering a new system of values ​​and developing in citizens the qualities necessary to successfully run their business in a market environment: initiative and responsibility.
The release of prices from state regulation since January 1992 (the so-called liberalization), while the monopolization of production and the market remained, led to a sharp rise in prices by the end of 1992 by approximately 150 times. As a result of tough monetarist policies and months-long delays in the payment of wages and benefits, inflation was reduced to less than 1% per month only in 1996. Wage growth was catastrophically behind price increases. The population's savings were actually confiscated, their standard of living dropped sharply, and social insecurity increased. millions of people.
The positive results of price liberalization include the saturation of the consumer market with goods and the beginning of the formation of a market pricing mechanism (depending on the relationship between supply and demand). Relative financial stabilization was also achieved through huge borrowings abroad: external debt exceeded $130 billion (although the lion's share came from the USSR).
The rejection of the system of centralized material and technical supply (distribution of raw materials and resources), the reduction of state subsidies to industry and agriculture (and in the future, a complete refusal to support unprofitable industries, their bankruptcy) led to a landslide drop in gross domestic product (GDP). Hopes for large-scale foreign investment in Russian industry have not yet been realized. Attempts to bring down inflation led to a tightening of credit policy (high interest rates on bank loans).
The tax system remained stifling domestic production. Liberalization of foreign trade has led to overstocking of the Russian domestic market with relatively cheap and high-quality imported products. This aggravated the crisis in the domestic industry. First of all, knowledge-intensive industries (mechanical engineering, electronics, electrical engineering, military industry, enterprises producing high-tech products), as well as light industry, found themselves in a dire situation. The fuel and energy complex, ferrous metallurgy and other raw materials industries demonstrated relative prosperity. They emerged from the crisis earlier than others, and in some by 1997 there was even a slight increase. In other industries, the decline continued, although the rate of decline in industrial production slowed down significantly over time, and in 1997 reached zero. The government's attempts to introduce restrictions on the import of foreign goods into the country met with vigorous resistance from foreign financial organizations, on whose assistance the stability of the financial situation in Russia largely depends.
The production of agricultural products (especially milk and meat) decreased significantly, caused both by a reduction in government investments in the countryside, the destruction of its technical base, the outflow of workers to the cities, and increased competition from foreign producers. Supporters of deepening market reforms associate the revival of the Russian countryside with the lifting of restrictions on the free purchase and sale of land. This, in turn, meets resistance from the left majority of the State Duma, which fears the massive purchase of land at bargain prices by domestic and foreign speculative capital and its withdrawal from agricultural use. “Farming” of the village also encounters resistance from the leadership and the majority of collective farm members, and also requires huge initial capital and equipment.
Depriving the population of accumulated funds did not allow achieving efficiency in the implementation of the denationalization and privatization program. Denationalization refers to the process of narrowing the public sector in the economy, creating conditions for the development of other, non-state forms of ownership and, ultimately, the formation of a multi-structured economy in the country. Privatization refers to the process of transferring state property into private hands. Privatization can be carried out in various forms:
1) free distribution of part of state property to citizens;
2) rent with subsequent purchase;
3) transformation of state-owned enterprises into joint-stock companies;
4) buyout of the enterprise on a competitive basis.
At the first stage of privatization, the first three forms prevailed. In 1992-1993 All citizens of Russia were given a piece of state property worth 10 thousand rubles free of charge. (in 1984 prices) by issuing vouchers (privatization checks). They could be invested in shares of privatized enterprises. But voucher privatization failed: as a result of buying up privatization checks at low prices and all kinds of speculation, most of the industrial enterprises at bargain prices migrated into the hands of the former nomenklatura, plant directors, shadow business tycoons, etc. Since mid-1994, the second - monetary - privatization stage. This is an actual redistribution of property: state-owned stakes in industrial enterprises are being sold at auctions at very reduced prices. Despite all this, the main goal of privatization - the creation of a wide layer of private owners in the country - has not been achieved.
Since 1992, the state stopped artificially maintaining the exchange rate of the ruble against foreign currencies, which coincided with the liberalization of prices and the beginning of a sharp decline in industrial production. As one would expect, a collapse of our national currency followed: from 300 rubles. for 1 US dollar in the spring of 1992 up to 6000 rubles. per dollar in January 1998
This situation led to the dollarization of the Russian economy and the transfer of household savings into foreign currency. This, in turn, hampered opportunities for financial stabilization. Therefore, the government is taking a number of measures to improve the ruble’s health. The most famous of them was the introduction in 1995 of a “currency corridor” supported by the Central Bank of the Russian Federation. The depreciation of the ruble has slowed down noticeably, but has not stopped.
Thus, the positive results of the reforms include: saturation of the consumer market with goods (though mostly foreign); creation of a market infrastructure in the country, i.e. a network of commercial banks, stock and commodity exchanges, auctions, without which the normal functioning of a market economy is impossible; creation of a private sector of the economy, which produces more than two-thirds of GDP; liberalization of pricing and foreign trade; relative stabilization of the financial situation and the ruble exchange rate; development of a legal framework regulating economic processes in the country. All this made it possible to carry out the redenomination of the ruble in 1998.
It was not possible to stop the deindustrialization of the national economy and achieve industrial growth, as well as an influx of foreign investment. The government has failed to ensure an adequate level of tax collection, the reason being the draconian taxation system. This, in turn, did not make it possible to liquidate the state's wage arrears for public sector employees by the end of 1997. The social costs of reforms are also enormous. The gigantic gap in the level of average per capita income of the richest and poorest population is fraught with the threat of a social explosion. More than a third of the population is below the subsistence level. Unemployment is rising. The state abandoned the implementation of a paternalistic social policy, setting as its task the provision of support only to those segments of the population who were unable to take care of themselves: orphans, disabled people, war veterans, pensioners. However, despite numerous declarations, it still cannot provide these categories of the population with even a minimum standard of living.
In August 1998, an economic crisis broke out in the country, which effectively negated many of the above achievements of the reforms. The government devalued the national currency and froze payments on state bonds. A strong blow was dealt to the banking system: some banks ceased to exist, others are still under threat of bankruptcy and are unable to pay their depositors. In order to pay off the internal debt to public sector employees, the government resorted to an issue. This provoked a further depreciation of the ruble against the dollar. In addition, the threat of national default loomed over the country - Russia was unable to pay its debts, and international organizations refused to provide it with new loans.
One of the positive consequences of the 1998 financial crisis was the increased competitiveness of domestic goods. This made it possible to significantly reduce the share of imported products in the domestic market. The devaluation of the ruble led not only to higher prices and a reduction in imports, but also to an increase in exports. A positive foreign trade balance, a significant increase in prices for the main Russian export goods (oil and gas) on the international market, and the relative success achieved by Russian representatives in negotiations on the restructuring of external debt allowed the government not only to timely pay interest on foreign loans, but and almost completely pay off arrears of pensions and wages. Inflation in 1999 was 36.5%, and in 2000 it was about 22% per year. Central Bank in 1999-2002 managed to maintain a relatively stable exchange rate of the ruble against the dollar and sharply increase its own gold and foreign exchange reserves. At the end of 2000, Russia entered the top ten most dynamically developing countries in the world, outpacing the United States, the countries of the European Union, and Japan in terms of growth rates. However, these successes are largely explained by favorable foreign economic conditions and are not accompanied by noticeable structural changes in the Russian economy.

In the course of his life, a person has to constantly solve pressing problems related to meeting needs - food, housing, gaining knowledge, self-realization and many others. For this purpose, an economic system has been created within which people interact and realize their needs. Let's learn briefly about the role of economics in the life of society.

Needs

Man and society are constantly evolving. They constantly need different things to satisfy their needs. All needs are usually divided into several groups:

• natural (in food, sleep, housing and others);
• social (in communication, friendship, love);
• spiritual (in acquiring new knowledge, mastering cultural values).

The peculiarity of human needs is that they have no limits. When some are satisfied, new ones will certainly arise.

An example of the unlimited nature of needs is the plot of A. S. Pushkin’s fairy tale “The Golden Fish,” in which the old woman, having received a new trough to replace the broken one, wanted a new hut, tower, and so on.

We must not forget that the Earth's resources, unlike its needs, are limited. These include minerals, forests, and fresh water. Therefore, it is important to organize people’s activities so that the use of resources simultaneously satisfies people’s needs and is carried out within reasonable limits. Economics serves to regulate this process.

Participants in economic relations:

• consumers (individuals, family and other groups);
• manufacturers (enterprises, government)

All participants have to choose which needs are more important and which can be reduced or abandoned.

That is, when entering into economic relations, the consumer evaluates what benefits he will receive and what funds he will have to spend. It is important for a manufacturer to create what society needs - economic benefits.

TOP 4 articleswho are reading along with this

The concept of good

Benefits are understood as those means that help a person satisfy his needs. They can be free and economic.

Free goods, as a rule, are available in nature in ready-made form. This is air, water, light and so on. And economic ones are created in the process of transformation of resources. For example, food, equipment, buildings, clothing.

The role of economics

Let's figure out what the role of economics is in the life of society.

Awareness of limited resources and the importance of unification into a single economic system led to the fact that society, having begun its journey with stone processing, has now achieved a high development of science and technology, creating a well-coordinated, extensive trading network.

But with the rapid development of the production of consumer goods, the problem of rational use of resources is becoming increasingly acute. Fresh water, gas, oil, clean air - the destruction of all these benefits is irreversible, since man cannot restore them.

What have we learned?

Having studied the topic for grade 10 about economics and its role in the life of society, we discovered that in his life a person is forced to constantly take care of satisfying various needs. The relations that arise in this case are called economic. In conditions of limited natural and other resources, participants in economic relations have to choose for themselves the most important needs and the most significant benefits for production. In general, the role of the economy is great, since the existence of such a system is designed to achieve a fair distribution of resources between people.

Test on the topic

Evaluation of the report

Average rating: 4.1. Total ratings received: 409.

Economics plays a huge role in the life of society.

Firstly, it provides people with the necessary goods and services, that is, it creates material conditions for a normal existence. Food, clothing, housing and other items without which we cannot imagine our lives are the results of people’s economic activity.

Secondly, the economic sphere is decisive for the functioning of other spheres of public life. It most directly influences the processes occurring in society, because the level of development of production, the standard of living of the population, the degree of its provision with goods and services determine the activity of people in all spheres. It is no secret that during an economic crisis there is instability in politics, an increase in social stratification, impoverishment of the population, unemployment and the increase in crime, alcoholism, drug addiction, family destruction, etc. generated by these phenomena, that is, disruptions in the functioning of the social sphere . The economic crisis is also destroying spiritual relations: cultural and educational institutions are financed on a residual basis, and ideas of pragmatism and selfishness are spreading. People are losing values ​​and ideals formed over centuries.

Basic approaches to defining the term “Economy”

The term “economics” has its own history. The original ancient Greek word was “economy,” which meant “the science of the art of housekeeping.” Gradually, this concept was transformed into “economics” and began to mean “the science of the rules of economic activity within the framework of a national state.” Today we often use the term “economy” in our speech. It has acquired a wider meaning. In modern science, the term “economics” is understood in three senses.

First of all, when we say “Russian economy”, “economy of developed countries”, “European Union economy”, we mean an economic system that includes sectors of material production (industry, agriculture, transport, etc.) and the non-material sphere (education, culture, healthcare, etc.), providing society with material and intangible benefits. Characterizing the economy in this understanding, we talk about the existing property relations, the role of the state in regulating economic processes, the formation of the state budget, the amount of public debt, the value of GDP, GNP, the inflation rate, the unemployment rate, the most developed industries, the role of in the system of international division of labor. All this is macroeconomic indicators of economic development.

Another approach to defining this term is to understand economics as a science that carries out a systematic study of the economic activities of people to realize their unlimited needs in conditions of limited resources, with the help of economic categories, laws, patterns, presented in the form of certain concepts and theories.

Economics is a system of sciences that includes:

• economic theory: theoretical understanding of real economic processes, economic reality. She identifies categories and laws.

Economic categories- these are concepts that reflect in a generalized form the most essential aspects of economic processes and phenomena (market, price, demand, property). Cognizing the essence of economic categories and their relationships, economic theory formulates economic laws, the study of which is the task of economics.

Economic laws- these are the most significant, stable, constantly repeating # cause-and-effect relationships and interdependencies in economic processes and phenomena, established on the basis of practical experience, identified through scientific research.

Economic laws- these are the dependencies that arise between economic phenomena and processes, expressing their essential nature.

Economic science has gone through a long path of formation and development. Humanity has accumulated knowledge about economics. This led to the isolation of economic theory as a science.

• sectoral and specific economic sciences - labor economics, agricultural economics, industrial economics, enterprise economics, economics of foreign countries;
• functional sciences - marketing, financial analysis, auditing, finance and credit, environmental economics, etc.

History of the development of economic theory

Table 15

Name of economic school	Representatives	The essence of views
1	2	3
Mercantilism	Thomas Maine, Antoine Montchretien, Jean-Baptiste Colbert	The wealth of society lies in money, gold, silver, and arises only in trade. Therefore, economics is the study of the trade balance of a country. The state needs to expand foreign trade, which ensures the flow of gold into the country, export more goods than import, accumulate gold in the country, and implement a policy of protectionism. Foreign merchants were required to spend all the money received from the sale of their goods on the purchase of local goods.
Physiocracy	Francois Quesnay, Anne Turgot	The main source of the nation's wealth is agriculture and agricultural production. Agriculture is the main sphere of production, since national wealth is provided not by the accumulation of gold, but by the gifts of the land.
Classical political economy	Adam Smith, David Ricardo	The object of the study is industrial production as a source of wealth in a capitalist economy, controlled by the “invisible hand of the market.” The role of labor as a creator of wealth is substantiated, its characteristics are determined: division of labor, labor productivity, the nature of labor, the basic concepts of economics are developed: value, capital, product, rent.

End of table.

1	2	3
Marxist political economy	Karl Marx, Friedrich Engels, Vladimir Lenin	Based on the labor theory of value and the theory of surplus value.
Neoclassical marginalism	Carl Menger, Leon Walras	The foundation of microeconomics is the doctrine of marginal utility.
Institutionalism	Thorstein Veblen, Wesley Mitchell	The main driving force is not the market, but various institutions - rules, norms that limit people's behavior: family, state, trade unions, customs, traditions, habits.
Keynesianism, neo-Keynesianism	John Maynard Keynes	Justification of the need for state regulation of a market economy in order to solve the problem of unemployment and crises.
Monetarism	Miltan Friedman	Limiting government intervention in economic life to only maintaining a stable rate of growth of the money supply.
Market liberalism	Jeffrey Sachs, Friedrich Hayek	Individualization of productive forces, non-interference of the state in economic activities, a return to the principle of “the state is a night watchman.”

• information and management sciences - management, information technology, economic and mathematical methods, statistics, personnel management, analysis of economic activity;
• interdisciplinary sciences - history of economic thought, economic geography, economic statistics, economic sociology.

In the third understanding, economics is such field of activity people, in which wealth is created to satisfy their various needs.

Economy is the interaction between economic entities. These include:

• households (main consumers of goods and services):
• firms (production units):
• the state (acts, on the one hand, as a governing body with authority and implementing state economic policy, on the other hand, as an economic entity participating in economic relations):
• civil society institutions (eg trade unions, non-profit organizations, municipalities).

The object of economic activity is what the subject’s activity is aimed at - the production of goods and services to satisfy human needs.

Need- This is a person’s objective need for something.

Human needs are very diverse.

Based on the subjects (carriers of needs), needs are distinguished between individual, group, collective and public.

By object (subject to which they are directed) - material, spiritual, ethical (relating to morality) and aesthetic (relating to art).

The areas of activity include the needs of work, communication, recreation (rest, recovery).

Sociologist A. Maslow, classifying human needs, built a pyramid.

The purpose of people's economic activity is to obtain the necessary goods and services. This is achieved through production, distribution, exchange and consumption.

Production- the process of creating economic goods and services. In the production process, workers adapt matter and the forces of nature to meet social needs. Production is crucial to the economy: if a product is not created, then there will be nothing to distribute, exchange and consume.

Distribution- division of the produced product, determining the share of each factor involved in the production of a good or service in the produced product or income from its sale.

Exchange- a process in which, in exchange for a produced product, an economic entity receives money or another product (barter).

Consumption- use of durable goods or destruction (consumption) of food. In the process of consumption, people's needs are satisfied.

Factors of production are used in the production process.

Resources that participate in the production of goods and services are called factors of production.

There are four main factors of production:

1. Earth- natural resources, factor income - rent.
2. Capital- material (man-made means) and monetary resources (money for purchasing factors), factor income - interest.

1. Work- people, with their knowledge, skills, physical and mental abilities to create economic benefits, factor income - salary. Depends on the volume and quality of work (level of education, qualifications, health, age, nature of work and motivation for it). Characteristics:

• labor intensity (the degree of labor consumption per unit of time);
• labor productivity (the number of products produced per unit of time).

1. Entrepreneurial skills- the ability to correctly combine factors of production and organize production; ability to make decisions and take responsibility; ability to take risks; factor income - profit.

Recently, some economists have identified a new type of resource - information - as a separate group, but at the same time it can be classified as intellectual capital.

Factors of production, like all types of resources, are limited. The production process is the interaction of factors.

The entire set of goods and services necessary for a person is created in two complementary spheres of the economy.

In the non-productive sphere, spiritual, cultural and other values ​​are created and similar services are provided (educational, medical, etc.).

Rice. 22. Types of production

Services are understood as expedient types of labor with the help of which certain needs of people are satisfied.

In material production, material goods are produced (industry, agriculture, etc.) and material services are provided (trade, utilities, transport, etc.).

The defining moment of production is the labor process.

Work- this is the process of purposeful human activity to transform the substance of nature to satisfy their needs.

Like any process, labor has its own structure and includes the following elements:

1. Subjects of labor are people who operate the means of production (tools, machines, equipment) and have labor skills, knowledge and production experience. In the process of labor, they enter into production relations with each other. These relationships are of two types:

• organizational and economic relations - relations associated with cooperation, division of labor, concentration and specialization of production (For example, the relationship between a foreman and an ordinary employee, between an accountant and the head of the personnel department). Some of these relationships are usually called technological.

Technological relations- these are the relations of the producer of material goods that develop on a certain technical basis to the object and means of his labor, as well as to the people with whom he interacts in the technological process.

• relations of ownership of resources and factors of production (for example, the relationship between the owner of an enterprise and an employee).

1. Objects of labor- this is a thing or several things that, when exposed to the influence of a worker using means of labor, are modified. Objects of labor are divided into natural matter (for example, wood, a coal seam in a mine), raw materials that have been affected by human labor (for example, wood, iron ore in an open-hearth furnace).
2. Means of labor- a set of material means with the help of which people create wealth. They include natural working conditions (for example, waterfalls that are used to build a hydroelectric power station). But the main role among them belongs to technology - these are artificial, human-created means of labor, including tools (tools, machines, equipment, chemical production apparatus). With their help, the original natural substance is transformed into useful goods, as well as into general material working conditions (buildings, roads, warehouses, canals).
3. Result of labor- a manufactured product, an economic good, is an object, a substance necessary to meet the needs of people and available to society in limited quantities. To create economic benefits, resources are needed.

The product produced can be in the form of a good or a service.

Product- a product of labor produced for sale on the market.

Product features:

• intended for exchange;
• has a cost - raw materials, labor and other resources are spent on it;
• utility - able to satisfy human needs;
• has the ability to exchange for another product.

Service- the result of useful activities of enterprises (organizations) and individuals aimed at meeting certain needs of the population and society. The production of tangible and intangible services is called the service sector.

To produce a product or service, labor is needed, i.e. people with abilities and work skills. These people use the means of production in the course of their work.

Means of production represent a set of objects of labor, i.e. that from which material goods are produced, and the means of labor, that is, that with which or with the help of which they are produced.

The totality of the means of production and labor power is usually called the productive forces of society.

Productive forces- these are people (human factor) who have production skills and carry out the production of material goods, means of production created by society (material factor), as well as technology and organization of the production process.

History knows two main forms of material social production: natural and commodity.

Natural refers to production in which the products produced are not intended for sale, but to satisfy the manufacturer’s own needs. The main features of such an economy are isolation, conservatism, manual labor, slow rates of development, and direct connections between production and consumption.

Commodity production is initially market-oriented; products are produced not for personal consumption, but for sale. Commodity production is more dynamic, since the manufacturer constantly monitors processes occurring in the market, fluctuations in demand for a particular type of product and makes appropriate changes to the production process.

The most important role in material production belongs to the equipment and technology used by the manufacturer.

Technology refers to the means created by people with the help of which the process of material production is carried out, as well as serving the spiritual, everyday and other unproductive needs of society. Like other subsystems of the economy, technology went through a number of different stages in its development: periods of its evolutionary development were replaced by “leaps”, due to which its level and character changed. Such jumps are called technical revolutions.

Throughout economic history, three technical revolutions in production have occurred.

During the first - Neolithic - revolution, the emergence of a productive economy and the transition to a sedentary lifestyle became possible. This contributed to a sharp increase in population - the growth rate of the Earth's population almost doubled. Production at this pre-industrial stage was characterized by the predominance of agriculture, the dominance of manual labor and primitive forms of organization of the latter. Such production still remains typical for some African countries (Guinea, Senegal, etc.).

Second - industrial revolution - second half of the XVIII - mid. XIX century The industrial revolution took place - the transition from manual labor to machine labor. Mechanical engineering becomes the main area of ​​production, and the bulk of the population works in industry and lives in cities. The industrial stage of economic development is associated with an almost sevenfold increase in the planet's population. Despite the successes in economic development, there is a contradiction between limited production capabilities and the level of people's needs.

This contradiction is resolved during the course that began in the 40-50s. XX century 3rd scientific and technological revolution. This was a qualitative leap in the development of the productive forces of society, its transition to a new state based on fundamental changes in the system of scientific knowledge.

The main directions of the scientific and technological revolution:

• automation and computerization of production;
• introduction of the latest information technologies;
• biotechnology development;
• creation of new structural materials;
• development of new energy sources;
• revolutionary changes in the means of communication and communications.

The result was a transition to the post-industrial stage of production and the information society. The service sector is now experiencing the greatest development, in which 50 to 70% of the working-age population works. The social structure of society is changing, the number of people with higher education is growing significantly.

Each of the technical revolutions listed above entailed the replacement of the dominant technological method of production with a new one that better met the increased needs of society. History knows four successive technological methods of production:

• appropriating;
• agricultural and craft;
• industrial;
• information and computer.

Each technological method of production was characterized by specific, unique tools and a system of labor organization.

Under economics It is customary to understand the system of social production, the process of creating material goods necessary for human society for its normal existence and development, as well as the science that studies economic processes.

Economics plays a huge role in the life of society. It provides people with material conditions of existence - food, clothing, housing and other consumer goods. Economic sphere- the main sphere of society’s life, it determines the course of all processes occurring in it.

The main factors of production (or main resources) are:

· land with all its riches;

· labor depends on the size of the population and its education and qualifications;

· capital (machines, machines, premises, etc.);

· Entrepreneurial skills.

The main questions of economics are what, how and for whom to produce.

Different economic systems solve them differently. Depending on this, they are divided into four main types: traditional, centralized (administrative-command), market and mixed.

WITH traditional economy a productive economy began. Now it has been preserved in a number of economically underdeveloped countries. It is based on a subsistence form of farming. The signs of natural production are: direct relations in production, distribution, exchange and consumption; products are produced for domestic consumption; It is based on communal (public) and private ownership of the means of production. The traditional type of economy prevailed at the pre-industrial stage of development of society.

Centralized (or command) economy is built on the basis of a single plan. It dominated the territory of the Soviet Union, the countries of Eastern Europe, and a number of Asian states. Currently preserved in North Korea and Cuba. Its main features are: state regulation of the national economy, the basis of which is state ownership of the majority of economic resources; strong monopolization and bureaucratization of the economy; centralized economic planning of all economic activities.

Under market economy is understood based on commodity production. The most important mechanism for coordinating economic activities here is the market. For the existence of a market economy, private property is necessary (that is, the exclusive right to own, use and dispose of human goods); competition; free, market-determined prices.

The above economic systems are practically never found in their pure form. Each country combines elements of different economic systems in its own way. Thus, in developed countries there is a combination of market and centralized economic systems, but the former plays the dominant role, although the role of the state in organizing the economic life of society is significant. This combination is usually called a mixed economy. The main goal of such a system is to use the strengths and overcome the shortcomings of a market and centralized economy. Classic examples of countries with mixed economies are Sweden and Denmark.

In connection with the transition of a number of former socialist countries from a centrally controlled economy to a market economy, they formed a special type of economic system called a transition economy. Its main task is to build a market economic system in the future.