Basic principles market economy the following: freedom of choice of types and forms of activity, market mobility; equality of subjects with different forms of activity; self-regulation of activities; principle contractual relations; freedom of pricing; decentralization of management and independence; economic responsibility; state regulation; competition and mechanism social protection.
The main principle of a market economy - freedom to choose types and forms of activity - declares the right of any business entity, whether it be a person, family, group, enterprise team, to choose the desired, expedient, profitable, preferred type economic activity in any form permitted by law. Under the types of economic activity are meant: the production of various types of products, goods and the provision of paid services, trade and intermediary, financial and credit, scientific and information, management activities.
One of the fundamental principles of a market economy - the equality of market entities with different forms of ownership - provides that the rights of each entity in economic activity, as well as restrictions, taxes, benefits, sanctions should be equal (adequate) for all entities. Pluralism of forms of ownership in a market economy, their economic equality give rise to a variety of these forms, which is not usually inherent in a centralized (command) economy.
Self-regulation processes inherent in a market economy, complementing and replacing public administration, extend" to the creation of enterprises. Granting individuals, groups, collectives the right to form new enterprises, both initially from scratch and on the basis of divisions of existing enterprises, activates the process of democratization of economic management, but not only. This is another direction for implementing the principle of economic freedom.
The market economy is often defined as the economy of developed commodity-money relations. With the same reason it can be called the economy of contractual relations. The advantage of an agreement between interacting economic entities as a tool for managing economic relationships is that it increases the economic independence of enterprises, promotes the transition from coercive to voluntary relations, and increases the reliability of the economy. The principle of agreement is universal. It extends its action to mutual deliveries, and to purchases, and to obligations.
In the functioning of a market economy, the principle of freedom of pricing is actively operating. The price is not set by anyone, but is formed as a result of bargaining, based on mutual agreement between seller and buyer. It is these prices that are called market prices.
One of the principles of a market economy is self-financing. ATP is an economic unit (i.e. an independent economic entity, which is a legal entity and has its own bank account) and, therefore, is obliged to carry out financial self-sufficiency, i.e. self-financing.
The principle of management decentralization in a market economy is derived from other principles and follows from the properties of this economic system. Decentralization of the economy market type is manifested in the absence of a state plan established by the center, subject to mandatory implementation. It is replaced by an indicative, recommendatory, advising forecast plan (business plan). With decentralization of management, self-regulation occurs economic activity subjects of the market economy. For this, it is necessary to develop a system of rules of economic behavior that are of a general nature for all participants in the economic process. The establishment of uniform rules and norms of economic behavior leads to the economic independence of economic entities.
In a market economy, the principle of economic responsibility operates, which provides for economical ways, measures and means of initiating liability, compensation for damage by persons and organizations that are guilty of it. The principle is based on the observance of contractual conditions, the violation of which is necessarily punishable by real fines, sanctions, payment of a penalty.
An economic entity is responsible for its obligations with its property, monetary assets. An entity that violates its obligations loses trust and essentially loses the status of a full-fledged, reliable partner, a participant in business entrepreneurship.
A market economy cannot exist and function without state regulation, which manifests itself in the formation of a set of rules and restrictions on market activity, its support and updating, monitoring compliance with these rules; withdrawal of part of the profits, income through the operation of the taxation system, through mandatory payments to the budget. State regulation market is carried out on the basis of legislation, issuing
government regulations, through state planning.
One of the important principles of the development of the modern economy is competition between enterprises, organizations and entrepreneurs.
A market economy is characterized by the principle of social protection of the population from adverse or unforeseen consequences. Social protection is carried out through a system of state regulation in the form of restrictions that do not allow market effects to reach a socially dangerous level, and compensation - benefits, subsidies, installments, the provision of goods and services at reduced prices or free of charge. Various forms of charity and assistance to the poor are widely practiced. At the same time, a level of social protection is maintained that does not adversely affect the effective functioning of the economic system and does not lead to social dependency.
When studying economics, macro- and microeconomic problems are considered. Main macroeconomic issues are the volume of production in the country, the economic growth, employment, inflation, social and economic crises, etc. In microeconomics, they study the volume of production and prices in individual markets, the factors influencing the change in supply and demand, find out the motives in the behavior of the individual and the company.
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Principles market relations
Introduction
market like economic category there is a set of specific economic relations and connections between buyers and sellers, as well as trade intermediaries regarding the movement of goods and money, reflecting the economic interests of the subjects of market relations and ensuring the exchange of labor products.
The essence of market relations is reduced to reimbursement of costs of sellers (commodity producers and traders) and their receipt of profit, as well as satisfaction of the effective demand of buyers on the basis of free mutual agreement, compensation, equivalence and competitiveness. This is what constitutes the generic, essential features of the market. The material basis of market relations is the movement of goods and money. But, since the market functions in a certain economic system and, developing, turns into an independent subsystem, this cannot but determine the specifics of the forms of its manifestation (different share of market relations in the entire economic system, different market organization, various forms, methods and sizes). regulation, etc.). The presence of specific features of the market (product range, market organization, traditions, etc.) allows us to speak of Russian, American, Japanese and other markets.
The main property of a market-type economy is the spread of market relations to all economic spheres, their penetration into all sectors, coverage of all regions of the country. This property can be called the universality of market relations. Although the depth of penetration of market relations, the breadth of their coverage of socio-economic phenomena and processes are different in different industries and sectors of the economy, practically none of them is outside the zone of market influence. Thus, the entire economy becomes, as it were, a collection of diverse markets, differing only in the degree, measure, and depth of penetration of market relations into individual parts of the economic system. The market no longer exists only as a territorially and functionally isolated cell of the economy, but penetrates in the form of market relations into all cells of the economic organism.
State intervention in the economy is objectively necessary for any government, regardless of whether it is a market economy or a command and distribution economy. In a distributive economy, the state assumes all rights and obligations for the production and distribution of goods and services. There is simply nothing to regulate here. However, such a system in practice has shown its inefficiency and inconsistency.
The purpose of the work is to identify the relationship and influence of market relations on the socio-economic structure of society.
The subject of research is the market and market relations, the object of research is market relations in Russia.
Work tasks:
Define the concept of the market, market relations, identify the mutual influence of the subjects of market relations;
Highlight the features of market relations and the modern market, its structure;
Consider and analyze the formation of market relations in Russia;
Determine the role of state influence on the market and its problems.
1. The essence of the market
The market is a form of realization of commodity production. In modern economic literature There are many definitions of the market, but they all boil down to the fact that the market is a way of interaction between sellers and buyers:
the market is a set of economic relations of production and exchange of goods with the help of money;
the market is an exchange organized according to the laws of commodity production and circulation;
the market is a mechanism for the interaction of sellers and buyers, the relationship of supply and demand;
A market is any interaction that people enter into to trade with each other.
A developed market system consists of three elements: the market for goods and services, the market for factors of production, and the financial market.
Market of goods and services. Historically, it was he who originated. As a result of the development of market relations, the markets for factors of production were separated from the markets for goods and services. The objects of purchase and sale in this market are consumer goods and services.
The market for factors of production. The objects of sale and purchase in this market are land, labor and means of production. Accordingly, it is possible to distinguish between segments of this market: the land market, the labor market and the capital market. In the land market, land refers not only to land as such, but also to those additional goods and services that it provides: crops, raw materials, materials, minerals, etc. The labor market is organized in the form of a labor exchange that brings together employers and hired workers who sell their labor power. In the capital market, they organize the sale and purchase of means of production, buildings, structures, machine tools, and equipment.
Financial market is a market where people buy and sell financial resources: money, bonds, stocks, bills and other securities. This market is developing loan interest, exchange rate and valuable papers. In today's market infrastructure, the financial market is the most perfect market, the most sensitive barometer of market well-being. The main instrument of the financial market is the loan interest, which has become a universal criterion for the effectiveness of capital investments in any branch of production.
The subjects of market relations are participants market transactions, i.e. purchase and sale transactions: individuals- buyers, sellers, entrepreneurs; legal entities - enterprises, associations, organizations, associations, firms, the state, etc. From the positions of the functions performed on the market, the subjects of market relations are divided into sellers and buyers, from the standpoint of forms of ownership, into entities operating within the framework of state property, collective (group) property and private property. The main subjects of market relations in modern economic theory are usually divided into three groups:
1) households. They are the owners and suppliers to the market of factors of production. The money received from the sale of labor services, capital is used to satisfy personal needs, and not to increase profits. Households are consumers of final products and services;
2) a business (firm) is a business enterprise operating for the purpose of making a profit (income). Business involves investing in a business of own or borrowed capital and is a supplier of goods and services to the market;
3) the government (state) is represented mainly by various budget organizations that implement state regulation of the economy. The government also supplies goods and services from state-owned enterprises to the market.
Objects of the market are everything about which purchase and sale relations arise: tangible and intangible goods and services, factors of production, technical innovations and ideas.
The market has a huge impact on all sides economic life, performing a number of functions:
ensuring interaction between production and consumption;
regulatory. The market acts as a regulator of production, supply and demand. A rise in prices is a signal to expand production, a fall in prices - to a reduction;
stimulating. Through prices, the market stimulates the introduction of the achievements of scientific and technical progress into production, reducing the cost of production and improving its quality, expanding the range of goods and services;
informational. The market provides objective information about the socially necessary quantity and quality of those goods and services that are supplied to it;
intermediary. In a market economy, the consumer has the opportunity to choose the optimal supplier of products, and the seller - the most suitable buyer;
sanitizing (sanitary). The market clears social production of economically weak, unviable economic units and encourages the development of efficient firms;
social. The market differentiates producers.
The market has a diverse structure. Markets are classified as follows:
1) for objects of sale and purchase:
resource market,
consumer market: food market; market of non-food products (clothing, footwear, household appliances, cars, cosmetics, etc.); market consumer services(education, healthcare, housing and communal services and other services);
financial market, consisting of the money market (currency and gold), the market for credit resources, the insurance market, the stock market;
market of ownership and use rights (lease and leasing market);
the intellectual property market (the market for patents for various innovations, trademarks, etc., the market for licenses);
market of spiritual values
2) in a spatial context (in terms of scale):
local (local) markets (one or more regions of the country);
regional markets;
national markets;
international markets (integrated national markets of several EU member countries, customs unions within the CIS, etc.);
world market.
3) according to the mechanism of functioning:
free (based on the mechanism of free competition);
monopolized;
state regulated;
4) by the volume of purchase and sale transactions:
wholesale markets;
small wholesale;
retail.
5) in accordance with the current legislation, there are:
legal (official) market;
illegal (shadow) market:
6) according to the degree of saturation, they distinguish:
equilibrium (demand and supply coincide);
scarce (demand exceeds supply);
excess (supply exceeds demand).
All listed types of markets differ with a certain conventionality. All of them not only interact with each other, but also mutually penetrate each other. The same market can be viewed from different points of view, i.e. assign it to a particular species for various reasons.
2. Principles of market relations
Principle 1. Private property - means that any entity, at its own discretion, can acquire, apply, control and implement any material values, real estate, finance, assets, securities and more. The right of private property for several centuries was based on the rights of will and inheritance.
Ownership is based on the rights of possession, use and distribution:
The right of possession is the ability for a subject to exercise physical control over a thing:
The right to use - incorporates the right of possession, and also allows the owner to use the thing, while deriving profit, income or benefit.
The right of disposal - incorporates the right to use, and also allows the subject to decide the fate of the thing, i.e. sell, alienate or destroy.
To characterize property, the presence of a subject, object and subject of property is also important:
The subject of ownership is the person (physical, legal or state) who disposes of the property.
The object of property is the property itself, as a thing or an intellectual product.
The subject of ownership is a set of concepts related to the category of ownership.
It is generally accepted that there are the following types of property: private, state, public, collective, national, family, personal, labor, share, rental, business, joint-stock, mixed, etc. However, in reality there are only private and public. For example, in collective ownership there is no right of use and disposal right, in joint-stock ownership there is no object of ownership.
Principle 2. Personal interest - any subject wants to buy cheaper and sell more expensive, everyone does, first of all, what is beneficial to him. Business entities seek to reduce costs and increase profits.
Principle 3. Freedom of entrepreneurship and choice - means that the subject can engage in any income-generating activity. Personally participate in the business or hire employees. Subjects may work for stock market, carry out real estate transactions, produce goods, provide services, i.e. Any activity that is not prohibited by law is permitted. However, on the one hand, the subjects are free, and on the other, they feel the pressure of the market and competition, and are also forced to work according to the “rules of the game” chosen by the government, i.e. everyone is subject to the law.
Principle 4. Competition is an economic competition (struggle) of subjects totally, in all directions:
at quoted prices.
on product quality.
on the applied equipment and technologies.
on methods of organization and management of production.
on technical characteristics and properties of goods.
Perfect competition - when the market enters endlessly big number producers and sellers of goods, so none of them can influence the prices and volumes of the aggregate supply of goods. Competition allows you to dynamically change the supply of goods and services, the volume of investments and capital, without causing devastating harm to any of the competitors.
Principle 5: Free Pricing - Any price gouging, fixing, or sharp price cuts is punishable by law.
Government functions in a market economy:
development of effective legislation.
antitrust regulation.
maintaining stability financial system and anti-inflationary prevention.
networking and communications.
national defense.
protection of public order.
public administration, regulation and control.
social support for the poor.
financing of the public sector.
Another function of government is to regulate the production of public and private goods.
Public goods - goods and services that are consumed collectively, approximately equally and cannot be excluded from consumption (universal secondary education, public order, the purchase of consumer goods).
Private goods - those goods and services that are not consumed collectively, not equally, or can be excluded from consumption (exclusive goods, paid education and health care, etc.).
3. Features of the formation of market relations in Russia
The essence of market relations is reduced to the reimbursement of the costs of sellers (commodity producers of merchants) and their profit, as well as the satisfaction of the solvent demand of buyers on the basis of free, mutual agreement, compensation, equivalence and competitiveness. This is what constitutes the generic, essential features of the market. The material basis of market relations is the movement of goods and money. When market relations are random, most often commodity (barter) in nature, this characterizes an undeveloped market. Here, the market plays a certain role, contributes to the differentiation of members of society, and increases the motivation to develop the production of certain goods:
1) Unlimited number of participants in market relations and free competition between them;
2) Free access to any economic activity of all members of society;
3) Complete mobility of factors of production and unlimited freedom of movement of capital.
4) Each participant has complete information about the market (on the rate of return, demand, supply, etc.) The implementation of the principle of rational behavior of market entities is impossible without information; and others. All this characterizes the free market, i.e. classical.
Distribution in the market is carried out on the basis of received income. From the standpoint of market relations, any income received on the basis of free competition is fair. And those who are not able to receive this income are doomed to a miserable existence. For us today it is extremely important, as V.Leontiev noted, to find the optimal combination of market and state regulation. So far, there is not a single state that would ideally meet this requirement.
The state, to a certain extent, provides the conditions for the functioning of the market, and excessive state intervention in market relations leads to their deformation. In order to eliminate the deformation of the market, to eliminate the diseases of the market economy (unemployment, inflation, instability), it is necessary to create conditions for the transition to a market economy in Russia and its subsequent development. These conditions are:
1) Ensuring freedom of economic activity;
2) Formation of a free pricing mechanism;
3) Free maneuvering of resources;
4) Completeness and access to information;
5) Availability of market infrastructure;
6) Preservation of the non-market sector of the economy;
7) Sequential integration;
8) Providing social guarantees to citizens.
Unfortunately, these conditions have not been created in Russia on the eve of the third millennium. The development of the market in the transitional economy of Russia is carried out in three directions:
1) Within the framework of corporate monopoly forms of large economic systems. The most important task of moving towards a market economy is to break this corporate monopoly power and develop real independence for all. economic organizations and small business structures, various forms of free association;
2) Where previously commodity economic relations did not arise. This applies to real estate, housing, finance, monetary resources;
3) The formation of new markets that characterize a new direction of evolution - the emergence of market relations of labor and capital, the formation of labor and capital markets, the genesis of which is a specific feature of a transitional economy.
It was assumed that the transition to market relations should be based on six fundamental principles. These principles are in the nature of world experience and act as the ABC of the "transition to market relations." So:
1) Price liberalization. Prices are formed based on supply and demand.
2) Private property, including in agriculture, guaranteed by law, protecting the rights of the owner and ensuring the reliability of the implementation of business contracts.
3) Privatization state enterprises, including the legalization of the right of individuals to create new enterprises, the sale of most state property and the demonopolization of production in various industries.
4) The formation of the economy open type, including free trade relations, proper protection foreign investment, providing an opportunity for the repatriation of profits and a convertible ruble.
5) Limit direct government intervention into the economy. The successful completion of economic reform will require a complete overhaul of the traditional role of the state. This means giving up most of the features that state institutions tried to perform in a command economy: government orders for most types of products, government approval of most investment projects, state establishment of the majority of prices, etc. Instead, in a market economy, the main task of the state is to protect and ensure sales opportunities, property rights and concluded business contracts, promote competition in the markets through the implementation of antitrust policy, reasonable tax and monetary policy, development of the social protection system, assistance in the development of the main sectors of infrastructure: transport and communications, etc.
6) Macroeconomic stabilization, meaning the elimination of the state budget deficit.
The main task for the transition to market relations is the liberalization of the economy, which includes:
1) domestic economic liberalization;
2) liberalization of foreign economic relations;
3) formation of market infrastructure.
Such transformations are characteristic of all countries making the transition from planned economy to the market. Domestic economic liberalization is associated with the following steps:
1) the release of the price formation process from centralized regulation;
2) the introduction of free trade for individuals and legal entities;
3) subordinating the activities of producers to the requirements of the market.
These transformations have a serious impact on the existing economic system, people's way of life and thinking, and give rise to serious problems.
Significant contradictions arise in the manufacturing sector:
1) many enterprises in market conditions turn out to be uncompetitive, especially with foreign producers;
2) manufacturers who previously received subsidies from the state or worked for government order(at military-industrial complex enterprises, in agriculture);
3) the difficult situation of commodity producers is exacerbated by the reduction in demand of the population.
4. Liberalization of foreign economic relations
An effective market mechanism in the economy can only be created if it is closely interconnected with the world market. The main forms of such liberalization are: increasing access to the country foreign investment; elimination of centralization foreign economic relations; removal of protectionist restrictions on imports; export liberalization; ensuring the convertibility of the national currency.
The policy of foreign economic liberalization in a transitional economy should be optimal, ensuring the development of market relations in the country and their inclusion in world economy, as well as supporting the development of domestic production.
Conclusion
The market is the whole system of diverse economic relations between people that arise in the process of production, distribution, exchange and consumption, based on certain principles, the main of which is the freedom of economic activity.
The market is a special economic mechanism that, through competition, promotes the rational distribution of resources, affects the volume and structure of production, forces the consumer to choose a rational consumption system, and, ultimately, improves the Russian economy, freeing it from unprofitable, non-competitive enterprises. For the relationship of market relations important role plays the presence or absence of the traditional right of private ownership of economic resources and, above all, land resources and tools for their own management. In most countries, the evolution of communal economic relations and the emergence of classical market system connected precisely with the traditions of private ownership of land as a resource of management. The preservation of these traditions has always and in all countries been accompanied by economic confrontations between communities, with a private land allotment, allowing the former community member to create a separate economy, the development of which would be unthinkable without the exchange of products produced in it. Such a separate economy could exist economically only through the exchange of produced products.
For many years, our country has been behind a kind of curtain, whose name is the “administrative-command system”, covering all spheres of society, including every person. The most vivid reflection of this phenomenon was found in the economy of the state, since, along with politics and law, it determines the foundations of state and public life, it is in this triad that the most clear contradictions and patterns of development of society are manifested.
The transition to the market is a very complex and lengthy process. To create national structure of its economy, adequate to market requirements, Russia must go through the painful path of determining its priorities in all areas and at all levels of society and economy. After all, it should not only be included in the modern world economy, but to predict its role and place in the global division of labor.
The transition to a market economy marks a fundamentally different approach to the problem of managing the economy in modern conditions. The acute situation in the economy of our country and Eastern European countries led to the transition to the market as an urgent measure. So far, it is impossible to speak seriously about any market in our country. In the recent past, our economic system completely lacked the basis of market relations in the form of private property. The market was usually considered under socialism only as a market for goods and services with a centralized distribution of material and financial resources, planned and directive distribution of labor force. Under present conditions, there is no such market for goods, because there is an almost absolute shortage.
The formation of market relations presupposes the presence of all the necessary attributes of a developed market, including the money market, markets for factors of production, securities, and labor. These elements must be given full freedom of expression. Only then can regulatory systems be formed. The problems of effective market regulation can be positively resolved, first of all, as the task of ensuring a balance of interests of various business entities. The effectiveness of market regulation methods depends on a rational combination of means of direct influence on the market situation and indirect means through the influence on various cost instruments. Market relations are still far from perfect today, perhaps due to the fact that perfection in nature is generally unattainable.
Transition economy - economic system, which combines economic relations and mechanisms inherent in both the dying and the emerging system; the interaction of elements of the old and new systems leads to the displacement of the former and the establishment of the latter as dominant.
The transition to the market is an indicator of the democratization of Russia, the provision of freedom of economic activity for every person and the strengthening of the rights of the owner. These categories are the most striking indicators of the revival of Russia. And even though the transition to the market is going on very painfully, slowly.
List of used literature
economic market money
1. Bazylev N.I. Economic theory: studies. allowance / N.I. Bazylev - M.: INFRA-M, 2011. - 672 p.
2. Genkin B.M. Economics and sociology of labor: Textbook /B.M. Genkin. - M.: NORMA - INFRA-M, 2010. - 416 p.
3. Zhuravleva G.P. Economic theory. Microeconomics: Textbook / G.P. Zhuravleva, N.A. Pozdnyakov, Yu.A. Pozdnyakov. - M.: INFRA-M, 2013. - 440 p.
4. Kiryushin O.I. Economic theory: Textbook / R.S. Gaisin, O.I. Kiryushin, V.G. Kuchkin, V.S. Semenovich. - M.: NITs INFRA-M, 2013. - 330 p.
5. Kovrey V.A. Economic theory: Intensive training course / V.A. Kovrey, M.Z. Achapovskaya, V.V. Ozhigin; Ed. I.V. Novikova, Yu.M. Yasinsky. - Minsk: TetraSystems, 2009. - 400 p.
6. Sazhina M.A. Economic theory: Textbook / M.A. Sazhina, G.G. Chibrikov. - M.: ID FORUM, NITs INFRA-M, 2013. - 608 p.
7. Slagoda V.G. Economic theory: Textbook / V.G. Slagoda. - M.: Forum, 2013. - 368 p.
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The concept and functions of the market. Conditions for the emergence of market relations. Types of the market distinguished in its historical development. Stages of development of market relations in Russia and the period of state monopoly. Economic reforms during the transition to the market.
1. The essence of the market and its principles.
2. Market structure.
3. Demand and its elasticity.
4. Offer. Balance price.
5. Market functions.
1. Market - a system of transactions for the purchase and sale of goods, including paid services.
The essence of the market is the economy of free enterprise. The basic law of the market, its "invisible hand" is free competition. This is a competition between entrepreneurs for profit. The one who offers a product (service) of good quality, sufficient quantity and at an affordable “average” price will receive the greatest profit.
Another important law of the market is the law of supply and demand. If demand exceeds supply, then prices rise and vice versa.
Also, for the functioning of the modern market, there must be certain conditions, principles, its most important rules:
a ) Freedom to choose types and forms of economic activity. Each subject can choose any form of economic activity, except for those prohibited by law.
b) The totality of the market. It embraces by market relations the whole variety of values created by nature and man.
in) Equality of market subjects with different forms of ownership.
G) Self-regulation of activities. Creation and self-disclosure of the enterprise.
d ) The principle of contractual relations. It also applies to mutual deliveries, purchases and obligations, and also acts in the form of labor contracts.
e) Freedom of pricing. The market price reflects the cost of production, its exchange rate in relation to other goods, its consumer properties.
and) Self-financing. Generates a sense of economic responsibility, in connection with the threat of financial bankruptcy, teaches you to take into account money, streamlines accounting and control.
h) Economic responsibility. Violation of contractual obligations, conditions leads to financial sanctions and deprives the status of a reliable partner.
and) State regulation. Without it, a market economy is impossible. Economic relations are regulated through a system of banking and tax policies.
to ) Competition and the mechanism of social protection. For strong members of society to create the most favorable competitive conditions to earn. And to think over a mechanism of social protection for the least protected segments of the population, as well as from dangerous market effects. For example, setting minimum wage, maximum tax and social compensation (benefits, subsidies).
2. The market structure includes:
A) The market for food and industrial goods (necessary for the effective provision of the population with food and industrial goods;
B) Services market;
C) the market for living space;
D) The market for the means of production. Systematic increase in volumes social production requires the continuous flow of the necessary means of production to replace the means and objects of labor already consumed in production;
D) Financial market (banks, exchanges);
E) Investment market - financing of the production sector as the most important tool for economic development;
G) Labor market (labor exchange);
H) Market of innovations (technologies); Sale of patents, licenses.
3. Neither the vast majority of families, nor any country is able to fully satisfy their needs in the purchase or production of the necessary goods. People in the family identify primary needs, something that cannot be dispensed with, and this list of goods often does not coincide with financial possibilities. After that, the opportunity cost of the goods is calculated and the most necessary is selected, that for which there is enough money. This is how solvent demand is revealed.
Demand is influenced by the following factors:
1. The level of prices for goods.
size 2 cash income population.
3. Saturation of the market with goods and services.
Let's formulate the law of demand. Demand is inversely related to the price of goods: the lower the price, the greater the demand, and vice versa.
For example, you decide to open your own business: to produce meat pies and sell them near the medical college. You have to decide how many pies to make. Let's interview future buyers: how many pies they can buy, and at what price. Let the total number of pies you can make be 200. How many can you sell? Table 1 will help you calculate this.
| Price of a pie (rub.) | 1,5 | 1,8 | 2,1 | 2,4 | 2,7 | 3,0 | 4,5 |
| Demand (pieces) | |||||||
As a result of the survey, you found out the opinion of future buyers and determined the amount of demand for this product, depending on its price. For clarity, the data of the survey will be shown in chart 1.
The table provides information at strictly defined prices, and the graph allows you to identify the amount of demand at any price, for example, 2 or 4 rubles.
The magnitude of demand on the chart is shown by points Q1, Q2, Q3. Demand curves can move to the right and left.
Graph 1.
Let's imagine that buyers have decreased cash income. Accordingly, the number of sold pies will also decrease, i.e. their demand will decrease. If they have more money, the demand for pies increases. We can visualize this in Figure 2.
A decrease in demand is reflected in curve D2, and an increase in demand is reflected in curve D3.
Demand for goods does not always follow such clear patterns. It is possible to identify a number of goods, the demand for which is almost independent of price and income. These include bread, cereals, potatoes, dairy products. They are the main food in most families. They can be bought in smaller quantities, for the sake of them they can refuse other purchases. In science, this phenomenon is called demand inelasticity. Elastic demand occurs when even small changes in price cause a change in demand for a good. Yes, in the summer
The demand for apples increases, and in winter it decreases sharply, because the price changes.
Graph 2.
Why is the demand for some goods inelastic because it is:
Ø Essential goods;
Ø There is no replacement for them;
Ø Traditions in their consumption are strong.
The elasticity of demand is expressed on the graph of the curve with different levels tilt. Graphs 3 and 4.
The elasticity of demand depends on the following factors :
› change in price;
› emergence of substitute products. For example, your company that sells pies has a competitor offering rolls;
› change in income;
› usefulness of things. If a television program talks about the dangers of fried pies, the demand for them will decrease;
› changes in tastes, habits, fashion.
The elasticity of demand can be seen not only in examples, in economics it can be measured mathematically as the percentage change in sales compared to the change in price that caused the change in demand. For example, an increase in the price of a product by 100% leads to a reduction in its sale by 50%, other things being constant.
Elasticity coefficient = 50% : 100% = 0.5
The operation of the law of demand is closely related to such circumstances as interchangeable and complementary goods. In our example, the fungible goods are pies and rolls. Other examples: tea and coffee, soda and juices. A change in the price of one good causes a change in the demand for another good. For some goods, the demand can change at the same time as the demand for another good, such as a car and gasoline. The more cars they buy, the more gasoline they buy. These are complementary products.
Graphs 3 and 4.
4. The offer determines the behavior of the manufacturer and seller of the goods. They are interested in a higher price for the product.
The offer shows the quantity of goods that will be produced for sale at a given price in a certain period.
Law of supply means: the higher the price, the greater the supply and vice versa. An increase in price enables the seller, firstly, to recover the costs necessary for the production and sale of goods, and secondly, to make a profit. Therefore, production will be organized only at a price that will be beneficial to the producer, and the higher the price, the more goods will be produced. Consider how the production of pies will change depending on the price (see table 2).
Table 2.
Let's show this dependence in graph 5.
Graph 5.
Like the demand curve, the supply curve can shift to the right and to the left. Let's say income has gone up. This means that the firm can increase the production of pies.
The following factors influence the offer:
Ø Change in production costs. If costs rise sharply, then it becomes unprofitable to manufacture goods;
Ø Prospects for the growth of consumer demand of the population. If the income of the population is expected to increase, there is an opportunity to increase production;
Ø The amount of possible profit.
Equilibrium price means coincidence interests buyer and seller. It is determined by the intersection of supply and demand curves (see Chart 6).
Graph 6.
Let's consider digital schemes of supply and demand for pies together (see table 3).
Table 3
It follows from the table that the equilibrium price is 2.7 rubles. At the same time, buyers who can pay from 1.5 to 2.6 rubles for a pie will be left without a purchase. And sellers who do not want to sell pies at a price less than 2.7 rubles cannot sell part of their products.
In our example, the equilibrium price is 2.7 rubles. But it can change. For example, a manufacturer of patties will reduce the cost of their production and agree to sell them at a price of 2.4 rubles. In this case, buyers will be able to buy already 130 pies, which will lead to a decrease in unsatisfied demand and an increase in production, and the equilibrium price will decrease.
The equilibrium price may rise if, as a result of an increase in money income, buyers agree to buy pies for 3 rubles. In this case, the unsatisfied demand will also decrease and the volume of supply will increase.
5. The market performs the following main functions:
reproductive function market means that the market ensures the continuity of the production process of the whole variety of goods;
The function of the main regulator of economic activity market means that the market, through the ratio of supply and demand and the price level, informs producers about the state of affairs in all sectors and spheres of the economic life of the country and each individual region, determines the social utility of products, and indicates the direction of changes in production and consumption.
Stimulating function market means that the market serves as a powerful lever to reduce production costs, economy of social labor. The performance of this function is associated with competition and market prices.
Wellness function market lies in the ability of market relations to strengthen the "health" of the economic organism, to heal its individual parts in a conservative or surgical way. The market dictates strict requirements to each manufacturer, forces him to reduce production costs, to economically spend material, monetary and labor resources, improve production efficiency, introduce new technology.
The most important element of commodity production is the market. In the economic literature, the concept of "market" is used in various aspects and there are many points of view on this issue. Here are some of them:
§ the market is a place where trade transactions are made;
§ exchange organized according to the laws of commodity production and circulation;
§ the form of relationships between economic entities that independently make economic decisions.
The concept of "market" is legitimate, in our opinion, to define in a narrow and broad sense:
§ In a narrow sense, the market is a relationship of purchase and sale. In this case, these relations cover only the sphere of circulation (exchange);
§ in a broad sense, the market is a relationship between people, covering all phases of commodity production: production, distribution, exchange and consumption.
The subjects of market relations are: household, enterprise (firm) and the state. Relations between them form the market environment.
Modern market is a combination and interweaving of many markets, each product and each service has its own market.
From the point of view of the economic purpose of objects of market relations, market structure includes the following markets:
§ means of production;
§ capitals;
§ valuable papers;
§ goods and services;
§ informational, etc.
All markets in organic unity and interaction form a single whole. "Failures" in the functioning of any of them adversely affect the market system.
In terms of scale and territorial boundaries, markets are distinguished:
§ local (within the village, city, district, region, region);
§ national (or internal);
§ world (or external).
The market performs the following main functions:
§ ensures the relationship between production and consumption. The market performs this function through the correspondence of the supply of goods and services to the solvent demand of the subjects of market relations;
§ Guarantees (carries out) a public assessment of the labor of isolated commodity producers. The mechanism for such an assessment is simple: the act of sale or purchase took place or not;
§ frees the economy from those unable to work. The winner is the one who guessed the change in consumer demand, quickly applied new technologies, and reduced production costs. Who is late, he is ruined;
§ carries out Information Support. Without generalization, analysis and use of information about the state of affairs in a particular market (prices, market conditions, competitors, etc.), there is no progress, no success.
Market mechanism- this is a mechanism for the formation of prices and the distribution of resources, the interaction of sellers and buyers of goods and services regarding the establishment of prices, production volume and structure. The market mechanism functions according to the theme economic laws: the law of value, the laws of supply and demand, the law of diminishing marginal utility, the law of diminishing returns, etc. The action of these laws is manifested through the main elements of the market mechanism, which include:
2) supply and demand;
3) competition;
4) state regulation of the economy.
The ideal picture of the market and its mechanism is represented by supply and demand curves. The graph of dependence: demand (D) on price (P) has the form of a descending curve, and the graph of supply (5) on price (P) is ascending (Fig. 2). At the point of intersection of these curves, market equilibrium is reached. The price at which it takes place (P0) is called the equilibrium price, and the volume of supply and demand (Qq) is called the equilibrium volume. Equilibrium is never static, it is constantly changing under the influence of supply and demand. In place, it stands only on the chart. Consider the mechanism for establishing market equilibrium.
If the demand for a product exceeds supply, i.e., a certain product is produced in a smaller quantity than society needs, then the market price for it rises, and producers receive large incomes. This encourages producers from other industries where incomes are lower to invest in this industry. The production of goods expands, and if it reaches such a point that supply exceeds demand, then the price, and with it the income, fall. Then funds from this industry are poured into others, where incomes are higher.
The market economy is not ideal. Against. it has significant drawbacks, namely:
ü does not guarantee the right to work and income, that is, it generates and reproduces social inequality (differentiation of incomes of the population);
ü generates unemployment, crises, inflation;
ü does not create incentives for:
§ development of fundamental science;
§ production of goods and services for general use (roads, public transport, education, healthcare, etc.);
ü cannot regulate the use of resources belonging to all mankind;
ü not receptive to nationwide, long-term programs for the development of infrastructure, communications, development of territories, defense industries, etc.;
ü does not create economic mechanisms conducive to environmental protection;
ü monopolies are formed and develop in its depths, which in many ways undermine and deform the market foundations of development.
In all these cases, the state comes to the rescue. State regulation of the economy - this is a centralized purposeful impact of the state on economic processes and business entities to ensure stable, sustainable and efficient functioning of the market economy.
Tasks of state regulation:
o Minimize negative consequences market mechanism of management;
ü ensure social protection of certain groups of the population, including workers;
to create the preconditions for effective development market economy.
State regulation is carried out with the help of a whole arsenal of methods and forms. There are two main methods of state regulation:
ü direct, assuming:
Determining by the state the proportions of economic development;
Formation of the state order for products and services;
State Enterprise- direct participation of the state in the economy through state-owned enterprises;
Drawing up complex-targeted development programs;
Development of the income policy of the population;
ü indirect regulation provides for the impact on the activities of economic entities with the help of financial and credit levers, taxes, price regulation, etc.
The main forms of state regulation of the economy are:
ü legal;
ü financial and economic;
ü socio-economic.
Legal market regulation It is carried out with the help of legislative and regulatory acts that establish the rules for the functioning of the market and its structures. It has its purposes:
§ streamlining of market relations; giving them civilized forms;
§ prevention of various abuses;
§ protecting the interests of consumers and producers.
In Russia, the process of formation of market relations and their legislative formalization. Over 1,000 already accepted legislative documents. But unfortunately. the legislative process in our country still lags behind economic practice.
The central (main) place in the legal regulation of tynka belongs to antimonopoly legislation.
Antitrust regulation- this is a set of legislative, administrative and economic measures that are carried out by the state in order to limit the ability of producers to monopolize markets and protect consumers from the arbitrariness of entrepreneurs.
Federal body executive power in this area is the Federal antimonopoly service administered by the Government of the Russian Federation. Its main functions are:
§ in the analysis of the structure of markets;
§ revealing the facts of monopoly;
§ enforcement of antimonopoly legislation;
§ antimonopoly expertise of adopted laws and government decisions;
§ application of sanctions against monopoly enterprises;
§ preparation of proposals for the transformation and division of monopolies.
The next form of state regulation of the economy is financial and economic regulation. This is done using tools such as:
§ taxes;
§ discount rate bank interest;
§ fixed state prices;
§ grants;
§ investments, etc.
Taxes are one of the most powerful instruments of state influence on business processes. The course of reforming the economy largely depends on the amount of taxes levied.
State in the region tax policy solves a dual problem.
§ impose on individuals and legal entities tax burden sufficient to support the activities of the state apparatus and the implementation of social policy;
§ at the same time, do not ruin the subjects taxed.
In general, the parameters of the tax burden should be such that the remaining income can ensure reproduction (simple and extended). The minimum tax burden should ensure expanded reproduction, and the maximum - simple.
Practically in all developed countries provided tax incentives when implementing:
§ priority scientific and technical programs;
§ environmental protection measures;
§ Charity.
An important element of financial and economic regulation is the state regulation of pricing. In market conditions, prices are formed freely under the influence of supply and demand. But this freedom is not absolute.
The impact on prices by the state should come from the need to:
§ encourage competition;
§ restrain exorbitant appetites of monopolists;
§ pursue a firm financial policy.
An integral part of the regulation of the pricing process is the anti-inflationary policy of the state, within the framework of which the following are carried out:
§ regulation monetary circulation;
§ compression money supply;
§ cessation of immoderate price increases.
Anti-inflation policy carried out mainly by freezing or limiting the growth of incomes and prices.
An important tool (element) of financial and economic regulation of the economy - planning and programming. The forms of planning are different. In the United States, for example, programming has been widely developed (the adoption and implementation government programs), in France - the development of state 4-year plans. The need for planning is due to the need to influence the cyclical nature of economic development.
The modern market economy requires adequate means of planned regulation - not command-directive planning, but the so-called "indicative", strategic planning, the implementation of which is then carried out by the economic levers of the state.
One of the most important forms of state influence on the market is the socio-economic regulation of the market - the provision of social protection for certain groups of the population.
The need for this regulation is due to the fact that the market generates such negative phenomena as unemployment and inflation. Therefore, social protection of the population is necessary. This task is called upon to fulfill the state.
The central link in the socio-economic policy of the state is the policy (system) of generating incomes for the population. The essence of this policy is the formation of such incomes of the population that would provide employees with a comfortable existence. It has been developed and implemented in market states since the early 1970s.
Thanks to it, in most Western countries, the strike struggle has practically come to naught. So, for example, in Japan there have been no strikes for 20 years, in Finland even longer. The same trend is emerging in other market states.
In general, within the framework of the income policy of the population, the means of influencing the volume and structure of demand are determined. It is she who primarily affects the total amount of paid salaries, pensions, scholarships and other cash income. That is, by determining the average per capita income for various groups of the population, the state also regulates the structure of demand. Through it, the state also influences production, its structure, proportions.
One of the tasks of the income policy of the population is to ensure the achievement of agreement between the main groups of workers and employers, including the public sector, the creation of a climate of public trust, an environment of social justice and respect for the law.
Social politics the Russian state after the collapse of the USSR has serious flaws. During the years of reforms, the standard of living of the population has sharply decreased.
To determine the minimum value of the cost of living, categories such as:
§ consumer basket - a minimum set of food products, non-food products and services necessary to maintain human health and ensure its vital activity; it is established in accordance with the physiological needs of various groups of the population and the actual structure of consumption;
§ living wage- valuation of the consumer basket, as well as mandatory payments and fees.
The economic crisis that engulfed Russia in the 1990s did not allow proper financing of such key social spheres like healthcare, housing, education, etc.
Currently, the Government of the Russian Federation is trying to catch up and is implementing the "national projects" put forward in the field of health care, education, affordable housing and agriculture.
Test questions:
1. What is the market structure and its main functions?
2. What is meant by market infrastructure?
3.What is the market mechanism?. Name its main elements.
4. What is the role of state regulation in the market mechanism?
5. What is meant by state regulation of the economy?
6. What are the tasks of state regulation of the economy?
7. What are the main forms of state regulation of the economy?
8. What is market equilibrium?
Test tasks.
1. The market assumes:
a) regulation of economic processes on the basis of objective economic laws;
b) regulation of the economy by dictatorship by the state and ignoring objective economic laws;
c) a mixed system of economic management;
d) none of the above
2. The need for state intervention in the economy is due to the fact that:
a) the market brings chaos to the economy;
b) society requires it;
c) the market is not able to solve all the problems of society;
d) requires it modern level production.
3. Which of the listed functions of the state is fundamental in a market economy?
a) control;
b) provision legal framework and a social atmosphere conducive to the efficient functioning of the market system;
c) redistribution of income and wealth;
d) reallocation of resources.
4. The conditions for the emergence of the market include:
a) social division of labor;
b) the appearance of money;
c) economic isolation of commodity producers based on private property;
d) the origin of the exchange.
5. State regulation of the economy is:
a) purposeful influence of the state on households in order to enrich them;
b) centralized purposeful influence of the state on economic processes and business entities to ensure stable, sustainable and efficient functioning of the market economy;
in) legal regulation states of economic processes;
d) direct state intervention in the activities of economic entities.
6. The market mechanism is:
a) the relationship between sellers and buyers;
b) the mechanism of pricing and distribution of resources, the interaction of sellers and buyers of goods and services regarding the establishment of prices, production volume and structure.
c) a mechanism for determining the volume of production;
d) interaction economic benefits and the needs of the people.
7. In the market economy:
a) the priority position should be occupied by the state;
b) priority should be given to small and medium business;
c) priority should be given to large joint-stock companies;
d) all business entities, regardless of the form of ownership, must be in equal conditions.
8. What is the main problem that the market economy solves:
a) rapid growth of production;
b) restriction of competition;
c) market saturation with limited resources;
d) ensuring the technical and technological development of production.
1. Kamaev V.D., Ilchikov M.Z., Borisovskaya T.A. "Economic Theory: A Short Course: Textbook". - M .: KNORUS, 2007. pp. 40-58
2. Lipsits I.V. Economics for universities - M. Omega L, 2009 pp. 466-475
3. Stolyarov I.V. Economics - a textbook for universities - M. Academy, 2008, pp. 404-424
4. McConnell K.R., Brew S.L. Economics: principles, problems and politics: Infa-M, 2007, pp. 47-54
5. Economic theory. Micro, macro and megaeconomics. Ed. Dobrynina A.I., Tarasevicha L.S.: St. Petersburg-Peter, 2004. pp. 77-112
6. Workshop on economics. Textbook Ed. Yu.M.Busurina Astrakhan, ASTU 2001
7. Modern economy. Public course. Ed. Mamedova O.Yu. Rostov-on-Don, 1996 pp. 69-111
8. Economic theory: tutorial/ ed. A.G. Gryaznova and V.M. Sokolinsky - M .: KNORUS, 2005 - pp. 64-81
Topic: “Demand and supply. Pricing Mechanism"
The action of the market is due to the functioning of the market mechanism. The main elements of the market mechanism are supply, demand, market price and competition.
Demand - the desire and ability of consumers to buy a certain amount of goods.The concept of demand is dual, since on the one hand it is a variety of desires, and on the other hand, opportunities provided by money. Hence demand has a qualitative and quantitative side.
The qualitative side of demand characterizes the dependence of demand on various needs and is formed under the influence of factors such as:
climatic conditions;
the existing social, national, religious environment;
general economic level of development of society.
The quantitative side of demand is always related to money, i.e. with the payment possibilities of the population. Demand backed up by the purchasing power of the population is called effective demand.
Demand is influenced by the following factors:
Thus, demand is a multifactorial phenomenon, which is always supported by money. In the absence of payment opportunities, demand does not manifest itself as an element of the market mechanism.
Distinguish between individual and market demand.
Individual demand - the demand of an individual buyer for a particular product. Market demand - the total demand of all buyers for a given product at a certain price.
Individual and market demand are inversely related to price.
Distinguish between the dependence of demand on price and non-price factors.
The dependence of demand on price is described by the function of demand on price:
where Qd is the volume of demand; P - price; / - demand function.
The demand function shows the quantity of goods that consumers are willing to buy at a given price level. The quantity of goods that consumers are willing to buy at a given price level is called the quantity demanded.
The demand function is described graphically by the demand curve (Fig. 3).
The demand curve shows the inverse relationship between quantity demanded (Qd) and price (P). In other words, the higher the price, the lower the quantity demanded. The dependence in which the volume of demand (purchases) is inversely proportional to the price level is called the law of demand.
 |
|||
D, - demand curve;
O - volume of demand
According to the law of demand, consumers, ceteris paribus, will buy more goods, the lower their price. However, there is an exception to this law. In this case, the relationship between the price and the volume of demand is direct, i.e. As prices rise, demand increases.
This situation can take place in three cases.
1. Goods are designed for rich people for whom the price does not really matter.
2. Buyers judge a product by its price (the higher the price, the better the product).
3. The product is a Giffen product, i.e. there is only one commodity (food) that the population can buy with their extremely low incomes.
In management practice, the usual demand curve prevails (see Fig. 3), which is associated with the rational (effective) behavior of the consumer, his full awareness of the price and nature of the purchased goods.
When demand changes, the demand curve changes graphically. A distinction must be made between movement along the demand curve and movement of the demand curve itself.
Rice. 4. Change in the demand curve under the influence of non-price factors
The action of non-price factors (all the rest) leads to a change in demand and a shift in the demand curve upwards (a) or downwards (b) (Fig. 4).
Demand characterizes the demand price. The bid price is the maximum price a consumer can pay for a given quantity of a good. It is determined by the consumer's income and remains fixed because the buyer can no longer pay for the product. The higher the demand price, the less goods will be sold.
Thus, demand is one of the necessary elements of the market mechanism that characterizes the behavior of the buyer.
The second essential element of the market mechanism is supply.
The offer is the desire and ability of sellers (manufacturers) to sell their goods at a certain price.
The offer is the result of production and reflects the desire and ability of the manufacturer to produce and sell (sell) his product.
The price of the goods sold;
production costs;
Technology level;
Availability of interchangeable and complementary goods;
The amount of taxes, subsidies and subsidies;
The number of sellers of this product;
Inflation expectations of sellers;
Other factors.
Thus, the proposal is multifactorial. Factors that determine the size of the supply, at the same time, are the motivation for entrepreneurial activity.
Distinguish between the dependence of supply on price and non-price factors. The price dependence is described by the function
where Qs - volume of supply; P - price; / - supply function.
The graphic representation of a supply curve is presented on fig. 5
LECTURE № 3 – 4
Topic: Market organization of the economy. Markets and their varieties.
Plan:
1. Definition of the concept of a market economy. The main reasons for the emergence of a market economy system.
2. Basic principles of a market economy.
3. Definition of the market. Economic subjects of the market.
4. Conditions of functioning and main functions of the market.
5. Ways of classifying markets.
6. Models of markets according to the forms of competition.
7. Advantages and disadvantages of the market economy system.
Definition of the concept of a market economy. The main reasons for the emergence of a market economy system.
Under market economy understood as a self-regulating system of economy, which is based on the predominance of private property, freedom of enterprise, buying and selling, not only consumer goods but also means of production.
What are the main reasons for the emergence of a market economy?
1.Limited economic resources. This is an objective law that dictates the need for appropriate behavior of people in the economic system, it affects all factors of production (land, labor resources, capital).
The limited resources and production possibilities force people to choose between relatively scarce, necessary goods, i.e. the release of some goods means the rejection of the release of others.
2.social division of labor. One reason for the division of labor is the limited economic resources. The social division of labor is one of the objective economic laws that accompany the evolution of people's productive activities and the process of the emergence of markets.
3.Exchange of results of work.
The economic relations of the exchange of the results of labor arise from the natural property of a person - the inclination to exchange the products of his labor in order to obtain the material benefits he needs. By exchanging one commodity for another, people most fully satisfy their needs. The exchange of products of labor is caused by the growth of needs. The exchange process acquires a market character, since it is carried out on mutually beneficial, equivalent terms. The principle and meaning of such an exchange looks something like this: "Give me what I need, and you will get what you need." It is in this way that people receive the maximum of consumer goods in conditions of limited resources and the division of labor. Participants in market exchange do not aim to contribute to the public good, but have in mind only their own, individual interest, they pursue only their own benefit. At the same time, the "invisible hand" directs them to the goal that they do not set, namely, the satisfaction of the interests of the whole society, the satisfaction of the needs of the whole society.
The formation of the market is shown in fig. one.
 | |
Fisherman Hunter Fisherman Hunter Fisherman Hunter
Potter Farmer Potter Farmer Potter Farmer
Self-sufficiency Decentralized Centralized
exchange exchange
rice. 1 The formation of a centralized exchange.
Thus, the market organization of the economy arose due to the process of exchanging the products of labor of people who are able to produce them in limited quantities, but who need many consumer goods produced by other people.
Basic principles of market economy.
The main principles of a market economy are:
1.Free choice of types and forms of activity. it main principle market economy. It declares the right of any economic entity (a person, a family, a group of people, a collective of an enterprise) to choose the desired, expedient, profitable or preferred type of economic activity and to carry out this activity in any form permitted by law.
The types of economic activity are the production various kinds products, goods, provision of services, intermediary, financial and credit, scientific, managerial activities. In a word, any kind of actions in the sphere of production, distribution and redistribution, exchange, consumption and use of a social product that are not prohibited by law. In a market economy, prohibitions are lifted not only on production, but also on the sale and resale, exchange of goods both by the producers themselves and by any intermediaries standing between producers and consumers. Prohibited are only those activities that pose a real danger to the life and freedom of people, contrary to moral standards.
Thus, the initial principle of a market economy is the following: "Each subject has the right to choose for himself an arbitrary form of economic, economic activity, except for those prohibited by law, due to their public danger."
2.Free pricing. With free pricing, the price is not constrained by external restrictions, it is not assigned by anyone, but is formed as a result of bargaining, on the basis of a mutual agreement between the seller and the buyer, as a result of the interaction of supply and demand. These prices are called free market prices.
3.Competition - the competition of economic agents in the market for the preference of consumers in order to obtain greater profits. Products offered to the market must be competitive, i.e. have such consumer properties that would make it stand out from the original products of other competitors. In the market, the producer whose product competitiveness is higher wins.
4.Equality of market entities with different forms of ownership. This principle says that economic rights each of the subjects, including the possibility of economic activity, restrictions, taxes, benefits, must be adequate. Naturally, the adequacy of the rights of enterprises with different forms of ownership should not be understood as absolute equality, sameness. Different forms of ownership by themselves create different production, economic opportunities, and it is also irrational to have the same rules, say, of taxation, for enterprises with different profit conditions. It's about about something else: about not creating "special" conditions, special treatment favored on the basis of the form of ownership, placing one of them in an advantageous position and another in an unfavorable position. In essence, this is a prerequisite for fair competition between different forms of ownership. The other side of this principle lies in granting all forms of ownership the right to exist in the economy, which gives rise to their diversity.
5.Self-regulation of economic activity. Self-regulation of the market economy is provided, first of all. the fact that in it the decisive role in management is given to economic, rather than administrative and administrative methods. The market mechanism ensures the self-adjustment of economic processes through fierce competition, bankruptcy and unemployment.
6.The principle of contractual relations. The market economy is not an economy of orders, but of agreements, contracts, agreements. The advantages of the contract as a tool for managing economic relations is that it increases the economic independence of enterprises, promotes the transition from coercive to voluntary relations. The principle is universal, covering all spheres of the economy. However, it must be remembered that the principle of contractual relations is at the same time the principle of obligatory observance by both parties.
7.Self-financing. Any economic unit, acquiring economic independence, pays for it with the need to cover all financial expenses for its existence and development from its own pocket. The principle teaches the ability to live on own funds, generates economic responsibility, teaches the ability to raise money, keep records and control finances. Self-financing is part of more general principle- self-sufficiency of economic entities with all the resources they need.
8.Decentralization of management and independence. The decentralization of the market-type economy is manifested in the absence of a state plan established by the center and subject to mandatory implementation, and its replacement by a recommendatory forecast plan. The rights of the state administrative apparatus are limited and do not give it the opportunity to command the activities of economic entities that have the right to make independent economic decisions. However, in a market economy there are elements of centralization (unified legislative acts and regulations, centralized formation and distribution of a significant part of financial resources).
9.State regulation of the market, which is carried out through legislation, through state planning, distribution, on the basis of regulations adopted by the government.
10.economic responsibility. The market economy proceeds from the need to compensate for the damage caused by its perpetrators. This is facilitated by the need to comply with contractual terms, the violation of which is punishable by significant fines, compensation, payment of a penalty, i.e. an economic entity is liable with its property and in cash and nothing excites responsibility so much as the fear of losing one's own, one's own.
11.Mechanism of social protection. Methods and means of social protection are represented by two main categories: - permanent restrictions (the minimum level wages, minimum allowable tax rates, etc.)
Social compensations (benefits, subsidies, installments, free and preferential goods and services for certain categories of the population)
However, the level of social protection in a market economy is maintained in such a way that it does not have a negative impact on the effective functioning of the economic system.
12.P the principle of universality of the market - the inevitability of the penetration of market relations into all spheres of social production, otherwise the economy would not be a market economy. An economy can be considered a market economy only when commodity-money relations become prevalent and penetrate into all spheres and sectors of the economy. This is the essence of the principle of universality. Everything becomes an object of sale: housing, means of production and Natural resources, capital, labor and labor force, intellectual, information products, spiritual values.
