In this lesson we will find out what the main questions are in economics, why it exists, and how it tries to answer these main questions. We will also talk about cost efficiency and economic choice. We will try to show how economics enters the life of every person.

Topic: Economics

Lesson: Basic Economic Issues

In the last lesson, we talked about the fact that resources are very limited, and economics, in fact, is designed to solve the question of how to use these resources with maximum benefit for humanity. All participants in economic processes are in one way or another in a state of choice: they choose which resource to use now and which to use later, which goods to produce, etc. Accordingly, in the economy there arise three main questions to which she must respond: “what to produce?”, “how to produce?” And “For whom to produce?”. The answer to these three questions is the answer to the main task of economic processes. Let's talk about each of them separately.

Rice. 1. Basic issues of economics ()

So the first question is “What goods to produce?” It is clear that a person is a creature who, living in a social environment, largely serves himself. Primitive people, of course, served themselves independently. Thus, the primitive hunter made the items he needed for hunting: a spear, a bow and other things he needed. And in our time, each of us can do some things for ourselves on our own, or we can get these things in another way. They can give you something, something can be passed on to you by inheritance, and you can buy something on the market. Thus, you create your life the way you want it to be. You can become an absolutely satisfied person, all your needs and desires can be realized, but society, alas, cannot live like this due to the limited resources of our resources.

That is why all producers (they can be the state, private firms, even individuals) are in a situation of constant choice of which product they need to produce. It depends on what exactly will be in demand in the near future. Over time, the demand for certain goods changes. A century or two ago, some things were absolutely necessary, but now the need for them has disappeared; among other things, they have become archaic. An example of such a thing would be bast shoes.

Being in a situation of choice, manufacturers strive to obtain not only immediate benefits, but also to lay the foundations for their future production. They strive to increase their profits in the future by anticipating the needs of society that may arise.

Of course, it is very profitable for all manufacturers to produce those services or goods that cannot be refused. A person cannot refuse food or clothing. But the essence of the economy is the presence of competition, the confrontation between different producers, so that the consumer has the opportunity to choose whether to buy cheaper or buy more expensive. By the way, it should be explained why things are generally cheaper or more expensive. This happens because the manufacturer always decides how to produce goods.

Rice. 3. The essence of economics is competition between producers ()

So, we come to the second question - “how to produce goods and services?”. There are always the most different ways and the ability to produce the same product or service. The way it is manufactured and the decisions that manufacturers make during the production of the product depend on what the final product will be. One way or another, any manufacturer makes sure that its solutions are the most effective. And under economic efficiency understand the product of a given volume of finished product at the lowest cost limited resources. Having understood this relationship, we can understand why a particular product has such a price. The manufacturer always strives to reduce the cost of its production, but at the same time does not want to reduce its profits. This is the basis of any production; the economics of production exists on this balance.

However, there is also a third question that we identified today - “for whom to produce goods and services?”. It is clear that we all have different desires, and we all have different opportunities. When producing any product, the manufacturer strives to please the interests of the broad masses of the population. But it is simply impossible to do this with the help of any one service or product. That is why each manufacturer strives to either highly specialize or produce a wide range of goods and services for different social strata. It does not matter whether it is a physical product or a service that does not have physical expression, because it also has a cost and brings profit to the manufacturer.

So, to obtain the correct answers to the main questions of economics, it is necessary to know the capabilities of the economic system, the state of the market, and the factors shaping supply and demand.

As we see, three main economic issues put human society in a state of choice. One way or another, we have to choose where to produce, how to produce, what to produce, for whom to produce. This question is painful every time, because for some time the production of some things and services may be profitable, but then it ceases to be so. It should be understood that almost every day manufacturers are in limbo, because it is very difficult to determine the exact priorities of a person. There is a possibility that our outlook on life will change and the need for some item or service will disappear. You can give a lot of examples in the history of mankind when some important and interesting things that a person used eventually came to nothing. Such is life, such is the economy.

Think about why the quality of manufactured goods is different. The same thing on the market can have completely different prices depending on its quality. Let's take pens as an example. This is an ordinary everyday item that is familiar to you. But even that can cost completely differently. You can buy a simple and inexpensive ballpoint pen that you will use every day, or you can buy a very expensive gift pen for special occasions. But, nevertheless, it is still the same pen, a writing instrument.

Rice. 4. Simple or gift - a pen is just a writing instrument ()

So where does this price difference come from? It's about human interests and desires. The manufacturer initially focuses on a specific buyer. People's tastes are varied: some have a greater craving for luxury and a desire to surround themselves with expensive items, while for other people it is enough to have simple and multifunctional items at hand. From the point of view of the manufacturer, it is a person with a craving for luxury, unusual things, who is a buyer who is willing to pay a large amount for the same product. The most expensive items and services are aimed at it. For example, a watch can be simple in design, or it can become a complex luxury item that has a lot of additional functions and indicates the high social status of its owner. The need for them is very conditional, but the owner of such a watch is proud that he has it.

Rice. 5. Expensive watches are more of a luxury than a necessity, but the owner is proud of owning them ()

We all surround ourselves with things and objects that we need. This is how we build our own lives. This is how economics enters the life of every person.

Bibliography

1. Kravchenko A.I. Social science 8. - M.: Russian Word.

2. Nikitin A.F. Social studies 8. - M.: Bustard.

3. Bogolyubov L.N., Gorodetskaya N.I., Ivanova L.F. / Ed. Bogolyubova L.N., Ivanova L.F. Social science 8. - M.: Education.

3. Website for professional traders ().

Homework

1. Explain what economic efficiency is.

2. Describe three major economic issues.

3. * Imagine that you have been inherited the right to own a network of confectionery factories. Answer the main ones economic issues: what exactly will you produce, how and for whom.

The basic problem of economics can also be presented as a problem of choice. Indeed, if each factor used to satisfy various needs is limited, then there is always the problem of alternative use and search for the best combination of factors of production, that is, the problem of choice. A reflection of this problem is the statement three main questions economy.

Three main questions of economics:

What? – problem of targeting. – Which of the possible goods and services should be produced in a given economic space and at a given time?

How? – production problem.– With what combination of production resources, using what technology should the selected ones be produced? possible options goods and services?

For whom? – distribution problem.– Who will buy the selected goods and pay for them, benefiting from them? How should society's gross income from the production of these goods and services be distributed?

The fourth question, which also inevitably faces every society, is the question: How? How to get rid of waste generated in the process of life, how to maintain the ecological balance in nature without reducing the level of consumption. This recycling problem.

5. Production possibilities in the economic system and the problem of choice.

The production capabilities of the economic system are limited by the scarcity of the resources used. Moreover, the limitation of all economic resources remains and even increases as society develops. This is due not only to the depletion of irreplaceable natural resources, but also because consumption constantly gives impetus to the development of production, that is, new goods and services are created, their quality characteristics change, which causes an increase in the need for consumer and investment goods. And each time society is forced to decide which of these goods to produce with available resources and on what scale.

The problem of choice in any economic system (be it a family, a company, a state) can be illustrated using economic model “Production Possibility Frontier”. And also, this model allows you to clearly demonstrate such fundamental economic concepts as limited resources, opportunity costs.

To build the model, we will plot the number of consumer goods (X) on the abscissa axis, and the number of means of production (Y) on the ordinate axis (see figure).

Means of production (Y)

Consumables (X)

O X B X C

The ABCD curve, called production possibilities frontier, characterizes the maximum possible volumes of production of means of production and consumer goods with full use of all available resources. Each point on this curve represents a certain combination of goods of these two types (for example, point B represents a combination of X B units of consumer goods and Y B units of capital goods.

The production possibilities frontier graph illustrates the fact that an economy that is fully utilizing productive resources cannot increase the production of any good without sacrificing another good. The functioning of an economy at the frontier of its production possibilities indicates its efficiency.

Based on this, the choice of the combination corresponding to point F is regarded as unsuccessful for a given society, since it does not allow it to effectively use production resources. Having chosen such a point, we would resign ourselves either to the presence of unused resources (for example, unemployment) or to the low efficiency of their use (for example, large losses, including working time). Production based on the choice of point E is generally unfeasible, since this point lies beyond the production capabilities of a given economic system.

Let's compare points B and C. By choosing point B, we will prefer to produce fewer consumer goods (X B) and more means of production (Y B) than by choosing point C (X C, Y C). More precisely, when moving from point B to point C, we will additionally receive Δ X = OX C – OX B units of consumer goods, sacrificing for this ΔY = OY B – OY C units of means of production. The amount of one good that must be sacrificed to increase the production of another good by one unit is called opportunity costs or costs of lost opportunities.

The ABCD curve is convex. This is due to the fact that one resource can be used more productively in the production of consumer goods, while others can be used as means of production.

If new technology, new technological processes are introduced simultaneously and evenly in all industries, then the production possibilities frontier AD will shift to the position of the dotted line A 1 D 1, the possibilities of producing both means of production and consumer goods with the same resources will increase approximately equally ( see fig.).

If innovations are carried out primarily in industries producing capital goods, the increase in the area of ​​production possibilities will be skewed to the right (see figure).

The main economic task is to choose the most effective option for allocating factors of production in order to solve the problem of limited resources and limitless human desires. A reflection of this problem is the formulation of three main questions of economics.

1. What should be produced - i.e. what goods and in what quantity;

2. How the goods will be produced, i.e. by whom, with what resources and what technology should they be reproduced;

3. For whom the goods are intended, i.e. who should consume goods and benefit from them.

Let's look at the content of each question. The first most important choice- which goods to produce can be easily illustrated by the example of a society producing only two goods A and B. Factors of production used in one place cannot at the same time be used in another production. This means that producing good A entails the loss of the ability to produce good B and has an opportunity cost.

The opportunity cost of a good or service is the cost measured in terms of the lost opportunity to engage in the best available alternative activity requiring the same time or resources.

Cash cost and opportunity cost are overlapping concepts. Some opportunity costs, such as tuition, take the form of monetary expenses, while others, such as the cost of leisure time, do not appear in monetary form. Some monetary expenses, such as tuition, represent opportunity costs because... could have been spent on other needs. Other monetary costs, such as clothing, food, etc., always exist and are therefore not included in opportunity cost.

Second Basic Economic Choice- how to produce. It refers to the existence of multiple ways to produce a good or service. Cars can be made, for example, in highly automated factories with huge amounts of capital equipment and relatively little labor, but they can also be made in small factories that use more labor. A key consideration when deciding how to produce is allocative efficiency, or Pareto efficiency.

Pareto efficiency is a level of economic organization at which society extracts maximum utility from available resources and technologies, and it is no longer possible to increase one's share of the result without reducing another.

When efficiency is achieved, more of a good can be produced at the cost of losing the ability to produce something else if the factors of production and knowledge are constant. However, production efficiency can be increased by improving social division labor. Its important characteristics are specialization and cooperation, which allow for comparative advantages in the production of goods to be taken into account.

Comparative advantage is the ability to produce a good or service at a relatively lower opportunity cost.

Let us illustrate the principle of comparative advantage with an example. Let's assume that two students work part-time in an office. Sergey can type a letter in 5 minutes, write and seal an envelope in 1 minute. Andrey needs to spend 10 minutes on the letter and 5 minutes on the envelope. Working independently of each other they can produce 14 letters per hour. Using the principle of comparative advantage, it is more efficient to organize work so that Andrey, who has a lower opportunity cost in typing letters, does only that. Then Sergey sealed and labeled the letters prepared by Andrei, spending 6 minutes on this, and in the remaining time he prepared another 9 on his own. In this case, the total result of the work will be maximum and amount to 15 letters.

The principle of comparative advantage has a fairly wide application. It can be used not only to organize production within an enterprise, but also in connection with the division of labor between firms or government agencies, as well as between countries.

The third key question of economics- This is the distribution of the produced product among members of society. It can be viewed in terms of both efficiency and fairness.

Efficiency in distribution is a situation in which it is impossible, by redistributing the existing amount of goods, to satisfy the desire of one person more fully, without thereby harming the satisfaction of the desires of another person.

Distributive justice has been interpreted in different ways. Let us highlight two extreme concepts. The first is that all income and wealth should be distributed equally. An alternative position is that justice does not depend on “equalization”, but on the operation of a distribution mechanism based on the right of private property and the absence of discrimination. At the same time, equality of opportunity is more important than equality of income. In a market economy, any product is distributed among consumers based on their willingness and ability to pay the prevailing price for it. Discussions about allocative efficiency are seen as part of positive economics, and those about fairness as part of normative economics.

The questions of what, how and for whom to produce are basic and common to all types of farms, but different economic systems solve them in their own way.

Major economic systems:

Traditional economics is an economic system in which the main economic problems societies - what, how and for whom to produce - are decided mainly on the basis of traditional patriarchal, tribal, semi-feudal hierarchical ties between people.

Market economy- this is an economic system in which the main economic problems of society are solved, first of all, through a competitive price formation mechanism.

Centrally planned or command economy- an economic system in which the main economic problems of society are solved mainly through the mechanism of directive centralized economic management.

Mixed economy considered as a variety market economy, as an economic system in which, along with the developed private sector, the public sector of the economy also operates.

Transition economy is a modern economic system that exists in countries where the transformation of a centrally planned economy into a market economy is underway.

1. Main economic issues

Each society, faced with the problem of limited available resources with an unlimited growth of needs, makes its own choice and answers the three main questions of economics in its own way.

What to produce? How to determine priorities in meeting needs, which goods and in what quantity should be produced?

How to produce? How to use available resources most effectively, what resources to attract, how to organize production?

For whom to produce? How to distribute produced goods, who will receive them and on the basis of what principles?

Depending on how society answers the main questions of the economy, certain types of economic systems: traditional, market, centralized.

An economic system is a way of organizing the joint activities of people in society. The concept of an economic system includes such decision-making mechanisms as the legal system, forms of ownership, moral norms, habits, customs accepted in a given society.

2. Types of economic systems

In a traditional economic system, the three main questions of economics (what to produce? how to produce? for whom to produce?) are resolved in accordance with established traditions. Examples of observed traditions in the economy are: customary farming methods, norms of consumption of certain products, religious prohibitions on the production and consumption of specific goods, etc. Sales and purchase relations are poorly developed, agriculture predominates.

Most of the history of human development took place within the framework of the traditional economic system.

O Remember from the course of general history what forms of social

development corresponds to the traditional economic system.

The main incentive economic activity under the traditional system is the desire to survive. The advantages of this system are predictability and stability. Serious disadvantages include a low standard of living, lack of progress, economic growth.

A centralized system, which is also called a planned, administrative, command system, is characterized by the fact that state ownership is the main form of ownership. Three main issues are decided by central government agencies. These decisions are reflected in state plans and take the form of directives (orders), which are binding on all enterprises. Centralized regulation is carried out not only in the sphere of production of goods, but also in the sphere of their distribution. Such an economic system was implemented in the Soviet Union and, partly, in the countries of the socialist community. The centralized solution of the main economic issues in the USSR made it possible to achieve success in the natural sciences, space exploration, ensure the country's defense capability, and create powerful systems social protection etc.

However, the command-administrative economic system of the USSR turned out to be unable to ensure the development of personal initiative. One of the principles of a command economy is the principle of equal distribution. If an enterprise managed to make a large profit, then almost all of it was confiscated and transferred to the state budget.

Workers received almost the same wages, encouragement for highly qualified, creative work was insignificant and had not so much a material as a moral basis. All this gave rise to the enterprise’s disinterest in improving production technology, increasing productivity, and the lack of personal interest of people in the results of their work. Gradually, the USSR began to lag behind the leading powers of the world community in the most important socio-economic indicators. The suppression of economic independence of economic entities led to a deterioration in the quality of economic growth and its slowdown. There was a need for radical reform of the economic system.

Market system. In a market system, the role of government is limited. The main subjects of market relations are economically independent participants economic activity: citizens and firms. Their interaction takes place on the market. A market is any form of contact between sellers and buyers on the basis of which purchase and sale transactions are made. There are many types of markets; they are classified according to the economic purpose of the objects, by geographical location, and by industry.

Markets are in constant interaction, forming a single complex system.

The basis of the market mechanism is individual freedom to adopt and implement economic decisions. Freedom of choice in a market economy is enjoyed by entrepreneurs, resource owners and consumers.

Enterprises have the right to purchase factors of production at their own discretion, produce those goods and services that they consider necessary, and choose the method of their production; In this case, decisions are made at your own expense, at your own risk.

Resource owners can use resources at their own discretion. This also applies to owners labor resources, they can do any kind of work that they are capable of.

Consumers can buy the goods and services they want within the limits of their income. In a market economy, the consumer occupies a special position; it is he who decides what the economy should produce; If the consumer does not want to buy goods and services, then the firms will go bankrupt.

The main form of ownership of factors of production is private. Private property assigns to a person the rights to own, use and dispose of economic goods or resources.

Remember from your social studies course what property is.

The main issues of the economy in a competitive environment are resolved on the basis of a system of free prices under the influence of market information.

The question “what to produce?” decided by firms taking into account consumer demand.

The question “how to produce?” is decided by firms taking into account the profitability motive, i.e. firms choose the most effective method production.

The question “for whom to produce?” is decided in accordance with the solvency of buyers.

The main incentive for enterprises to operate in a market system is profit. The advantages of a market economy are more efficient use resources, mobility of the system, its ability to adapt to changes, introduction of new technologies. But the market system has a number of shortcomings, so-called market “failures,” which we will consider below.

All types of economic systems can be represented in the form of a diagram.

In real life, all countries have a mixed economic system, which combines the characteristics of other systems: traditional, centralized and market. Depending on their predominance, a mixed economy of traditional, centralized or market type is distinguished.

3. Mixed economic system

In a market economy, problems arise that the market system cannot solve. Such cases of market failure are: inflation, unemployment, the emergence of monopolies, cyclical economic development, uneven distribution of income of citizens.

In a market system, the need to produce public goods also arises. Public goods are economic benefits, the use of which by some members of society does not exclude the possibility of their simultaneous use by other members of society. These include, for example, national defense, fire protection, emergency response (earthquakes, floods), state television and radio broadcasting, etc. Public goods differ from private goods, which have a private seller and a private buyer, in such properties as non-competitiveness, non-excludability and non-profitability. Non-competitiveness means that goods and services can be

used by many people at the same time; at the same time, the amount of goods available to others does not decrease (for example: lighthouse, fireworks). Non-excludability is the impossibility of excluding those who do not pay for them from using these services, the so-called “rabbit effect”, for example national defense or street lighting. Hence the non-profitability of public goods, the unattractiveness of their production for commercial firms (for example: firefighters, emergency rescue services.

Moreover, the market is unable to solve the problem of externalities. Externalities are positive or negative impacts on those who do not participate in the production or consumption of a given good.

Examples of a positive external effect: a free bus to the supermarket - for local residents, a good road to a rich mansion - for everyone who will use this section of the road.

Examples of a negative external effect: environmental pollution by an enterprise, smoking in public places, etc.

Both positive and negative external influences reduce the efficiency of resource use, since in both cases the price of the product is underestimated. At the same time, the quantity of goods sold is artificially low in the case of a positive external effect and unjustifiably inflated in the case of a negative external effect. In the topic of market equilibrium, we will return to this issue and analyze specific situations with externalities.

The presence of market failures necessitates government intervention and the formation of a mixed economic system. In mixed

system private and public organizations jointly exercise economic control.

Currently, Russia has a mixed market economy.

Three main questions of economics:

What to produce?

How to produce?

For whom to produce?

Depending on how society answers the main questions, a certain type of economic system is formed: traditional, command or market.

The presence of market failures necessitates government intervention and the formation of a mixed system.

Basic Concepts

Economic system Main issues of economics Traditional system Centralized system Market system Market

Private property Mixed system Market failures.

Public goods

External effects

Questions and tasks

1. What is an economic system?

2. Name the three main issues of economics. Why does every society have to deal with these issues?

3. How are the main issues resolved in the traditional system?

4. Which form of ownership is the main one in a centralized system, and which is the main one in a market system?

5. What forces firms to produce quality goods in a market economy? Explain why.

6. Give examples of market failures.

7. What characterizes modern economy in Russia as a mixed market economy?

8. What are public goods and services? Why don't companies produce them?

9. “Either power or the ruble - there has not been and is no other choice in the economy since the ages, from Adam to the present day.” How do you understand this statement by N. Shmelev?

1. Read the text and complete the tasks.

The telegraph, as you know, appeared long before the telephone and quickly became a popular means of transmitting information. But few people know that in the 19th century. there was an attempt to make a business in the trade of telegraph devices, promoting them to the market as devices for personal household use. Such a business did not take place, since each buyer of the device had to learn Morse code and acquire communication skills in this “non-human language.” Engineer A. Bell, seeing that society needed a means of communication, soon invented the telephone, providing a simple and natural way for people to communicate. With the use of the telephone, the communications business began to expand rapidly.

(Based on materials from the Encyclopedia for Schoolchildren)

How the main economic issues were resolved in this particular situation:

1) What to produce and in what quantity?

In large quantities, what the people need and conveniently.

2) How to produce?

Economically, with benefits for yourself and customers.

3) For whom to produce?

For people.

2. Explain the meaning of the concepts.

Economic efficiency is the ratio between the manufacturer's results obtained and labor costs.

An economic system is a set of organizational methods for coordinating the economic activities of people to solve the main issues of the economy .

3. Name several ways to improve production efficiency.

Optimization of technology, increase in personnel levels, etc.

4. Fill out the table using the textbook text.

5. Analyze the situations and determine the type of economic system.

1) In country W, the main wealth is land, which is owned by the community. The production process is carried out in accordance with the customs of our ancestors. Families produce everything they need for life on their own farms. Commodity-money relations are not developed.

Traditional economics.

2) In country N everything is natural and economic resources are owned by the state. Issues of planning and pricing are resolved centrally.

Command economy.

6. Compare market and command economies. Select and write down in the first column of the table the ordinal numbers of their similarities, and in the second column the ordinal numbers of the differences between a market economy and a command economy.

1) dominance of the state form of ownership
2) solving the problem of limited resources
3) production of goods and services
4) competition between producers

7. In the section “The Wise Speak” there is a statement by the American economist V. Leontiev (see p. 160 of the textbook). Analyze the author's words.

1) How do you understand the meaning of this statement?

A person does something on his own initiative and decides where he will take it. Private initiative is decisive.

2) Write down two or three social science terms that can be used to explain the meaning of this statement.

Independent choice, demand, supply.

3) Give some examples to illustrate this statement.

A man opened a store and runs it himself.