home Taxes

The team type of economics are examples of countries. Types of economic systems: traditional, planned, market, mixed

Fundamentals of financial knowledge are required for a person all his life. For orientation in the complex issues of our time, already in the eighth grade, types of economic systems are being studied. The table helps to put knowledge on the shelves and remember the material.

Definition of an economic system

The phrase "economic system" has several meanings.

An adopted and functioning scheme of principles for the production of goods, their subsequent distribution and exchange, and consumption by users.
Systematization of economic life.
The type of arrangement of economic life in society, which determines the distribution of missing resources.

Consumer and producer seek opposite goals. Consumer - to the satisfaction of requests with minimal cost. Manufacturer - to profit while reducing costs.

The main types of systems

It is customary to distinguish three main types of economic systems:

1) traditional;

2) market;

3) teamwork.

Increasingly, they began to highlight the fourth type - mixed. It also includes the table "Types of economic systems." Grade 8 is the time when children get acquainted with this information. The table presents the characteristics of each type, differing from each other in answers to the main questions of economic production: what to produce, for whom and how.

Traditional type

The name itself speaks of the selection criteria: the manufacture of goods is based on tradition. Accepted in society, the transmitted skills of production are at the heart of the economic system. Human social roles are inherited, attempts to change are suppressed and arise extremely rarely. Production technologies are limited, and the goods and services produced are not changed. Innovations are not welcome, as they encroach on the undermining of the established way of life.

Advantages of the system: stability, quality of goods, predictability of development. Its shortcomings: denial of progress, movement towards stagnation, defenselessness against external factors.

In the twenty-first century, underdeveloped countries are at this stage of economic development.

Market type

When moving to the industrial level of social progress, a market system is formed. It opens up space for answers to economic inquiries. What, for whom and how to manufacture, is decided by the manufacturer, focusing on prices and demand for goods. Own risk, rather than a traditional solution, is the basis of management.

Advantages of the system: the desire for progress, freedom of activity, personal responsibility and interest in making a profit, pricing structure. Its shortcomings: uneven development (downturns and ups), the likelihood of unemployment, risk, the denial of public interests, the elimination of social guarantees.

In most parts of the world, a market system was established in the twentieth century.

Team type

When the state assumes the right to make decisions on major economic issues, there is a transition to the command type. Each production structure receives a special directive regarding its business activities. The initiative is not welcome, it is being suppressed. State ownership of the means of production does not allow a quick response to the changing needs of members of society.

Advantages of the system: stability, social guarantees, predictability at the central government level, efficiency in the redistribution of resources, high moral motives for work. Its shortcomings: the responsibility of the central government for drawing up plans, disinterest of workers in the results of labor activity, shortage of certain goods, tight control and accounting.

The system became widespread in the twentieth century, classic examples of manifestation are Germany in the thirties and the USSR in the era of the functioning of socialism.

Mixed type

An attempt to take advantage of the market and command systems and give birth to something new without flaws led to the formation of a mixed look. Comparing the market and command types of economic systems, the table presents the advantages of each of them. The regulation of the economy by the state is harmoniously combined with the freedom of producers in resolving major economic issues. Entrepreneurs have a responsibility to meet customer needs. The state is called upon to pursue social, tax and antitrust policies to grow the economy and improve the lives of the country's inhabitants.

State functions:

price management;
creation of conditions for the production of public goods;
antitrust activity;
legislative activity;
protection of the most powerless and vulnerable segments of the population;
macroeconomic control.

Comparison tables

Clearly shows the comparison of types of economic systems table. Let's try to imagine possible structures for comparing the advantages and disadvantages of each type of economy. Consider each option, its pros and cons.

One can imagine the types of economic systems in another form. The table on social studies allows you to highlight the main criteria for comparison.

Comparison criteria	Traditional system	Market system	Command system
What to produce?	Production problems are solved according to established traditions.	The goods with demand.	Good for the whole society.
For whom to produce?		For the consumer of a particular product.	For a variety of consumers
How to produce?		The entrepreneur decides, focusing on making a profit.	Only the central authorities in the state decide.
	To society.	Private property predominates, state and group are present.	State property predominates.
	There is no state yet or its role is to preserve traditions.	The role of the “night watchman” is assigned: the protection of the borders of the state and the rule of law within the country.	All defining issues are resolved at the state level.

Such criteria determine the main types of economic systems. The table can be supplemented with a mixed view. This type of economic system answers the questions presented.

What to produce?	For whom to produce?	How to produce?	Who owns the property?	What is the role of the state in the economy?
Consumer goods and public goods.	Both for specific consumers, and for the whole society.	The state decides on the production of goods, the entrepreneur on the release of goods.	Equality of various species, the predominance of state and private property.	Price regulation; organization and provision of public goods production; fight against monopolies, protection of competition; legislative activities to protect participants in market relations; protection of the poor, protection from the influence of external factors of the entire population; stimulating growth and stabilizing the economy.

You can draw other lines of comparison. Types of economic system table allows you to explore comprehensively. For ease of perception, it can be rotated from vertical to horizontal position, that is, questions will appear in the first horizontal row, and the names of the types of systems in the first vertical column.

Additional comparison criteria

To thoroughly compare the types of economic systems, the table may contain other evaluation criteria. Usually this material is presented at a higher level of education, which is typical for high school students or for students interested in economics. The following are the main types of economic systems. The table of criteria allows you to compare them taking into account modern realities.

The volume of socialization of production	Type of budget constraint	Prevalence of ownership
The governing principle of management	Incentives for increasing labor productivity	Existence of competition
The existence of the shadow economy	Pricing Methods	Methods of control of production facilities
Economic regulation	Social Security	Payroll

Answering these questions, we can comprehensively characterize the types of economic systems, the pros and cons of the table will reflect for each type.

An economic system is a set of interconnected elements that form a common economic structure. It is customary to distinguish 4 types of economic structures: traditional economy, command economy, market economy and mixed economy.

Traditional economy

Traditional economy based on natural production. As a rule, it has a strong agricultural bias. The traditional economy is characterized by clanism, a legal division into estates, castes, and closeness to the outside world. In a traditional economy, traditions and unspoken laws are strong. Personal development in the traditional economy is severely limited and the transition from one social group to another, which is higher in the social pyramid, is practically impossible. The traditional economy often uses barter instead of money.

The development of technology in such a society is very slow. Now there are practically no countries that could be attributed to countries with traditional economies. Although in some countries isolated communities that lead a traditional way of life can be distinguished, for example, tribes in Africa, leading a way of life that differs little from what their distant ancestors led. Nevertheless, in any modern society, the remnants of ancestral traditions are still preserved. For example, this may relate to the celebration of religious holidays such as Christmas. In addition, there is still a division of professions into male and female. All these customs in one way or another affect the economy: remember the Christmas sales and the resulting sharp increase in demand.

Team economy

Team economy. A team or planned economy is characterized by the fact that it decides centrally what, how, for whom and when to produce. Demand for goods and services is established on the basis of statistical data and plans of the country's leadership. The command economy is characterized by a high concentration of production and monopolism. Private ownership of factors of production is practically excluded or there are significant obstacles to the development of private business.

A crisis of overproduction in a planned economy is unlikely. More likely is a shortage of quality goods and services. Indeed, why build two stores side by side, when you can get along and one, or why develop more advanced equipment when you can produce low-quality equipment - there is still no alternative. From the positive aspects of a planned economy, it is worth highlighting the saving of resources, primarily human resources. In addition, the planned economy is characterized by a quick reaction to unexpected threats, both economic and military (remember how quickly the Soviet Union was able to quickly evacuate its plants to the east of the country, it is hardly possible to repeat this in a market economy).

Market economy

Market economy. The market economic system, unlike the command system, is based on the predominance of private property and free pricing based on supply and demand. The state does not play a significant role in the economy; its role is limited to regulating the situation in the economy through laws. The state only makes sure that these laws are respected, and any distortions in the economy are quickly corrected by the "invisible hand of the market."

For a long time, economists considered government intervention in the economy to be harmful and argued that the market could regulate itself without external intervention. however, the Great Depression disproved this claim. The fact is that it would be possible to get out of the crisis only if there was a demand for goods and services. And since no group of economic entities could form this demand, the demand could appear only from the state. That is why, during crises, states begin to rearm their armies - thereby they form the primary demand, which revitalizes the entire economy and allows it to leave the vicious circle.

You will learn more about the rules of a market economy from special webinars from forex broker Gerchik & Co.

Mixed economy

Mixed economy. Now there are practically no countries with only a market or command, or traditional economy. Any modern economy has elements of both a market and a planned economy and, of course, in every country there are vestiges of a traditional economy.

In the most important sectors there are elements of a planned economy, for example, the production of nuclear weapons - who will entrust the production of such terrible weapons to a private company? The consumer sector is almost entirely owned by private companies, because they can better determine the demand for their products, as well as see new trends in time. But some goods can only be produced under the conditions of the traditional economy - folk outfits, some food products, etc., therefore, elements of the traditional economy are preserved.

Types of ec. of systems	produce?	How to produce?	For whom to produce?	State role		Property
Traditional	Everything is based on tradition.				No state		Public
Team	Public goods	State decides	For all consumers	Defining		State property
Market	Consumer goods	The manufacturer decides for the greatest profit	For specific consumers	Security (army, police)		Private property
Mixed	Public and consumer goods	Decides the state for public goods and the manufacturer for consumer goods	For all and for specific consumers	· Security; Antitrust · Legislative and judicial; · Redistribution of income; · Ensuring the production of public goods; · Stabilization and stimulation of growth; · Limited regulation of markets; · Informational.		State and private property

The subject and method of economic theory.

To study economic theory, it is necessary to know its genesis, i.e. origin, occurrence, the process of education and formation as an independent science.

Economics is considered one of the most ancient sciences. So, primitive people already owned the basics of economic knowledge, had certain ideas about housekeeping, about the relations that developed between members of the community in the process and as a result of obtaining and distributing goods, exchanging manufactured products. However, these ideas have not yet stood out in an independent field of knowledge, existed within the framework of an undivided public consciousness, and were an integral part of the worldview of people in general.

In the process of formation and development of economic science, several large periods can be distinguished.

The origin of economic thought dates back to the pre-industrial period of history, embracing the ancient civilizations of the East, Greece, the Roman Empire (IV millennium BC - V century AD). At this time, economic thought was characterized by its indifference from religious ideology and political and legal views. The economic views recorded in written sources relate mainly to the problems of functioning and rational organization of the economy and labor, the system of public administration, and responsibility for property. These are socio-philosophical treatises of individuals, codes of laws, treaties, texts of the Old and New Testaments, later the Koran.

Further development of economic thought took place in the Middle Ages, which also covers a large historical period (in Western Europe - from the 5th century to the bourgeois revolution of the 17th-18th centuries, in Russia - from the 9th century to the reform of 1861). By the way, in a number of countries in Asia and Africa feudal relations persisted in the 20th century. At this time, views were being formed on the problems of estate status, land ownership and income distribution, corporate relations (neighboring communities, city communes, craft shops, merchant guilds, monastery and chivalry orders, etc.). Political power was in the hands of secular and ecclesiastical feudal lords (landowners), traditions played a huge role, and a religious worldview dominated. Another feature is the increased interest in commodity-money relations. The main theorists were scholastics, economic ideas were also drawn from heresies (for example, equality, the obligation to work, condemning the sale of indulgences), the demands of peasant uprisings, early utopian socialist ideas.

Under the conditions of the decomposition of feudalism and the emergence of capitalist relations, the first school of political economy arose - mercantilism (mid-15th century - mid-18th century). It is from this period (XVI-XVII centuries) that one can speak of economic theory as an independent science, since the first system of economic views appeared, at the center of which was the problem of wealth.

The mercantilists (T. Men in England, A. Moncretienne and J.B.B. Colbert in France) believed that income is generated in the sphere of circulation, and that the wealth of a nation lies in money — gold and silver. Therefore, they set the goal of the state’s economic policy - by all means, to attract these metals to the country. The source of wealth, in their opinion, was foreign trade.

Mercantilism arose on the eve of and during the great geographical discoveries, the seizure of colonies, the growth of the influence of cities, and was divided into early and late (the first until the middle of the 16th century, the second from the middle of the 17th to the beginning of the 18th century). Central to early mercantilism was the theory of monetary balance, aimed at increasing the gold and silver in the country by legislative means. In order to retain money, it was forbidden to export them abroad; all merchants received from the sale were required to spend by foreign merchants on the purchase of local goods. Late mercantilism is characterized by a system of active trade balance, which was ensured by the export of national goods abroad. At the same time, a demand was put forward: to export more than to import.

The heyday of mercantilism in Russia fell on the days of Peter I, and it had its own specifics, reflected in the views of Ivan Pososhkov, Yuri Krizhanich, Athanasius Ordin-Nashchokin. They, unlike foreign representatives, paid special attention to the development of industry, agriculture, i.e. were not limited to the rationalization of foreign trade.

Mercantilism for its time was a progressive phenomenon, since it contributed to the development of productive forces, the formation of a capitalist mode of production. However, while analyzing only the process of circulation, the mercantilists could not reveal the deep patterns of economic development.

The subject of economic theory. The evolution of ideas about the subject of economic theory.

At the present stage in society there are a variety of ideas about the economy. First of all, economics is a word of ancient Greek origin, literally meaning "home economics" (oikos - home, household; nomos - teaching, law). For the first time it is found among the Greek thinkers Xenophon and Aristotle, who so designated the doctrine of housekeeping.

Today the term "economy" used in three meanings. So called:

the entire national economy of the country or its part, including industries and certain types of material production and non-production sphere (industry, agriculture, transport, construction, housing and communal services, etc.).

the totality of people's relations in the process of production, distribution, exchange and consumption of tangible and intangible goods and services necessary to meet the diverse needs corresponding to this level of development of productive forces.

a scientific discipline that studies the system of economic activity of people, the principles and laws of its organization (economic theory), as well as its individual constituent elements (for example, labor economics, economics of management, economics of industries). In this sense, economics is an expression in the system of categories, concepts and laws of interconnections and processes of the objective world. The focus is on the problem of people using limited resources to produce goods and services in order to meet their needs.

Any science should have its own thing (what is being researched) and a research method (how is being researched).

The subject of economic theory as a science in the modern sense was not immediately determined and was the result of a long historical development. In the course of the development of economic theory as a science, the views on its subject also changed, and here with a certain degree of conditionality, three main stages (periods) can be distinguished:

saving - as a set of knowledge on the organization of the economy;

political economy - as a reflection of the emergence of a systematic knowledge of the nature, goals and objectives of the economic system;

economics - as the modern stage of the evolutionary development of economic science, taking into account changes in the research methodology and approaches to the analysis of economic processes and phenomena. The focus is on the problems of people using limited resources to produce goods and services in order to meet their needs.

Indeed, if we consider the initial stages of the formation of economic science (the ancient world, the medieval period), then there is no need to speak of a clear definition of its subject, since economic problems have not been singled out in an independent area for research. This period corresponds to the term "savings".

The decomposition of feudalism and the formation of capitalism led to the emergence of an independent science - political economy. This happened when the first school in economic science appeared - mercantilism (mid-15th - mid-18th centuries). One of the prominent representatives of mercantilism A. Moncretien in 1615 published the Treatise of Political Economy, which gave the name to future science.

If we consider the evolution of approaches to determining the subject of economic theory in the framework of various scientific fields and schools, we can see how diverse they are.

Representatives of mercantilism considered the subject of economic science to be national wealth, which they identified with money.

Representatives of the classical bourgeois political economy in both England and France also considered the wealth of the nation the subject of economic science, although they saw its source in production, i.e. the subject of their analysis was the scope of production. However, the specific schools had their own peculiarities: for example, the physiocrats considered only labor in agriculture to be the source of wealth, and the main figures of the English school expanded the subject of political economy to study the conditions of production and accumulation (A. Smith), as well as distribution (D. Ricardo) national wealth created in all branches of material production.

The subject of the study of Marxist political economy in accordance with the class approach to the analysis of the life of society was only production relations (i.e. relations of production, distribution, exchange, consumption), which were considered as a necessary side of social production.

Representatives of the historical school identified as a subject of economic science a study on the daily activities of people, on national or social economy.

Representatives of the Austrian school and the neoclassical direction of economic thought, actively using the methodology of marginalism, considered the behavior of individuals and social institutions (firms, groups, people, etc.), ways and means of achieving their goals in limited resources, as the subject of economic science. For example, A. Marshall defined the subject of economic theory as a study of the normal functioning of human society - a study of wealth and, in part, of a person, more precisely, incentives for action and motives for counteraction. This approach clearly emphasizes the role of man in the economy.

Representatives of the Keynesian direction as the subject of economic theory highlighted the patterns of functioning of the national economy as a whole, focusing on the problems of developing and implementing the state economic policy.

Thus, we can conclude that in the course of the historical development of economic science various approaches to understanding its subject were formed. Obviously, many of them are not mutually exclusive, they specify and detail the levels and directions of research. With the change of approaches to the interpretation of the subject of economic science, a corresponding change in its name took place - from economy to political economy, from political economy to economics.

Despite many approaches, modern Western literature traces the relative unity of opinion on the definition of the subject of economics as a science. In support of this, we give the definitions presented by P. Samuelson and C. McConnell and S. Bru.

"Economic theory is the science of which of the rare productive resources, people and society over time, with or without money, choose to produce various goods and distribute them for consumption in the present and future between different people and groups of society" . See: Samuelson P. Economics. - M., 1992 .-- S. 7.

"The subject of economics is the search for the effective use of rare resources in the production of goods and services to satisfy material needs." See: McConnell K., Bru S. Economics: principles, problems and politics. - M., 1993. - P.18.

Thus, in general, the subject of economic theory is the activity of people using limited resources to produce goods and services in order to satisfy their needs.

The method of economic theory. Micro and macro analysis. Positive and regulatory economics.

The subject of economic theory involves a certain methodology and special research methods. Methodology is the science of methods (general philosophical basis), which allows one to determine with what methods the goal set for the researcher (scientific knowledge of reality) can be achieved.

Four main approaches can be distinguished in the methodology of economic theory:

subjective;

neopositivist-empirical;

rationalistic;

dialectical materialistic.

See about this: Economic Theory (Political Economy): Textbook / Under the General Ed. IN AND. Vidyapina, G.P. Crane. - M .: INFRA-M, 1999 .-- S. 45-46.

The methodology must be distinguished from the method. In turn, the method is a set of specific techniques, methods and principles, with the help of which the ways of solving the tasks are determined.

In the system of methods used in economic science, universal (philosophical, worldview), general scientific and particular methods are distinguished.

In economic theory, two opposing philosophical method - metaphysical (considers all phenomena in isolation, in a state of immutability) and dialectic. The dialectical method allows you to more accurately reflect reality, because:

he proceeds from the fact that in nature and society all phenomena are in constant development, change;

he proceeds from the fact that development proceeds from simple to complex, from lower forms to higher;

he takes into account that the driving force of development is the unity and struggle of opposites, contradictions of certain phenomena (for example, in economics - the contradiction between production and consumption, contradictions of interests)

General scientific methods include the method of scientific abstraction, analysis and synthesis, induction and deduction, the unity of historical and logical approaches, qualitative and quantitative analysis, and a systematic approach.

(1) One of the most important in economic analysis is the method of scientific abstraction. Scientific abstraction is a mental distraction (abstraction) from non-essential aspects, the properties of phenomena (external visible form) and the search for the most important in them. So the essence of the phenomenon is captured. As a result of abstraction, economic categories are derived. They act as theoretical expressions of the real aspects of the economy (profit, price, product, money, salary). In aggregate, economic categories form a conceptual apparatus. Further knowledge is aimed at studying the relationship of economic phenomena.

(2) Significant in economic theory is analysis and synthesis. Analysis - the division of the phenomenon under study into its constituent elements and a detailed study of each of them separately, clarification of its place and role within the whole. Synthesis is a method opposite to analysis, with its help, the dissected and analyzed elements are combined into a single whole, the internal connection between the elements is revealed, their interaction is clarified, and as a result, a holistic idea of \u200b\u200ba particular phenomenon is recreated.

(3) The essence of phenomena is clarified by induction and deduction. Induction is a movement from the particular to the general (accumulation, systematization and generalization of facts in order to formulate theories, principles, principles). Deduction is a movement from the general to the particular. Although induction and deduction are opposite ways of studying economic phenomena, in the process of cognition it is difficult to separate them.

(4) A useful method is the unity of historical and logical approaches. Its significance lies in the fact that it allows not only to elucidate the origin of the system and its elements, but also to justify development trends, its stages. Economic theory should show the phenomenon in development, movement, i.e. historically. At the same time, she considers economic processes free from the accidents of historical development, i.e. logically.

(5) Another method is qualitative and quantitative analysis. Many economic processes, phenomena develop on the basis of gradual quantitative changes. Such changes can be carried out to a certain level, called the measure of quantitative changes. When further quantitative changes become impossible within the framework of the existing quality, then they imply a qualitative change.

(6) Economic phenomena are often investigated in the framework of a systematic approach. This involves the consideration of the studied object as a system, as a set of elements interconnected. Moreover, this system can be an element of a system of a higher order (level). A systematic approach assumes that economic phenomena are investigated by composition and structure, in a certain subordination, with the allocation of cause and effect relationships.

In Group private receptions distinguish graphical, statistical (for example, correlation analysis), mathematical methods (for example, linear and dynamic programming), modeling (including using computer technology), comparative analysis, and practical experiment.

Economic systems

Economic systems

Economic consumer purpose

Economic company goal

Major economic goals of modern society

Traditional economy based on traditiontransmitted from generation to generation. These traditions determine what goods and services to produce, for whom and how. The list of benefits, production technology and distribution are based on the customs of the country.

Comparison Chart of Economic Systems

The economic roles of members of society are determined by heredity and caste affiliation.

Market economy

WHAT?

AS?

Question " FOR WHOM?

To each enterprise

The economic system. Types of economic systems.

Economic systems - this is a set of interconnected economic elements that form a certain integrity, the economic structure of society; unity of relations arising over the production, distribution, exchange and consumption of economic goods.

Economic systems

Modern economies

The use of resources to satisfy needs is subordinated to the economic goals pursued by the subjects of economic relations in their economic activities.

Economic consumer purpose is maximizing the satisfaction of all needs.

Economic company goal advocates maximizing profits or minimizing production costs.

Major economic goals of modern society are: economic growth, increased production efficiency, full employment and socio-economic stability.

Fundamental questions of economics: What, How and for Whom to produce, in order to achieve the above goals, are solved differently in different economic systems.

To distinguish these systems, two main criteria are used:

ownership of the means of production (means and objects of labor);
a way to coordinate and manage economic activity;

With a great deal of conventionality, we can single out the model of traditional, command-administrative (centralized) and market economies.

Traditional economic system

Traditional economy based on tradition

This type of economy has survived today in some underdeveloped countries, where technical progress penetrates with great difficulties, since it, as a rule, undermines the customs and traditions established in these countries.

Characteristic features of traditional economies:

Weak development of engineering and production technologies;
A large share of manual labor in all sectors of the economy;
An insignificant role in the traditional economy of entrepreneurship, including small, with a constant increase in the scale of activity of large units;
The prevalence of traditions and customs in all aspects of the life of society.

Market economic system

The main features of the capitalist economy:

Market economy characterized by private property on resources and using the system of markets and prices to coordinate economic activity and manage it. What, how and for whom to produce determines the market through the mechanism of supply and demand.

In the capitalist system, material resources belong to private individuals. The right to conclude binding legal contracts allows private individuals to dispose of their material resources at their discretion.

The manufacturer is committed to producing ( WHAT?) those products that satisfy the needs of the buyer and bring him the greatest profit. The consumer himself decides what goods to buy and how much money to pay for him.

Since pricing does not depend on the manufacturer in conditions of free competition, the question " AS?"to produce, the economic entity responds with the desire to produce products at lower costs than its competitor in order to sell more because of lower prices. The use of technological progress and various management methods contribute to this task.

Question " FOR WHOM?"decided in favor of consumers with the highest income.

In such an economic system, the government does not intervene in the economy. Its role is to protect private property, establish laws that facilitate the functioning of free markets.

Team Economic System

A command or centralized economy is the opposite of a market economy. It is based on state ownership of all material resources. Hence, all economic decisions are made by state bodies through centralized (directive planning).

To each enterprise the production plan provides what and how much to produce, certain resources are allocated, thereby the state decides how to produce, not only suppliers, but also buyers are indicated, that is, the question is decided for whom to produce.

Means of production are distributed among sectors on the basis of long-term priorities determined by the planning authority.

Mixed economic system

Today it is impossible to talk about the presence in a particular state in its pure form of one of the three models. In most modern developed countries, there is a mixed economy that combines elements of all three types.

A mixed economy involves the use of the regulatory role of the state and the economic freedom of producers. Entrepreneurs and workers move from industry to industry by their own decision, and not by government directives. The state, in turn, implements antitrust, social, fiscal (tax) and other types of economic policy, which to one degree or another contributes to the economic growth of the country and increase the living standards of the population.

Major economies

Economic systems

Modern economies

The use of resources to satisfy needs is subordinated to the economic goals pursued by the subjects of economic relations in their economic activities.

Economic consumer purpose is maximizing the satisfaction of all needs.

Economic company goal advocates maximizing profits or minimizing production costs.

Major economic goals of modern society are: economic growth, increased production efficiency, full employment and socio-economic stability.

Fundamental questions of economics: What, How and for Whom to produce, in order to achieve the above goals, are solved differently in different economic systems.

To distinguish these systems, two main criteria are used:

ownership of the means of production (means and objects of labor);
a way to coordinate and manage economic activity;

With a great deal of conventionality, we can single out the model of traditional, command-administrative (centralized) and market economies.

Traditional economic system

Characteristic features of traditional economies:

Weak development of engineering and production technologies;
A large share of manual labor in all sectors of the economy;
An insignificant role in the traditional economy of entrepreneurship, including small, with a constant increase in the scale of activity of large units;
The prevalence of traditions and customs in all aspects of the life of society.

Market economic system

The main features of the capitalist economy:

The manufacturer is committed to producing ( WHAT?) those products that satisfy the needs of the buyer and bring him the greatest profit.

The main types of economic systems: traditional, market, command, mixed

The consumer himself decides what goods to buy and how much money to pay for him.

Question " FOR WHOM?"decided in favor of consumers with the highest income.

In such an economic system, the government does not intervene in the economy. Its role is to protect private property, establish laws that facilitate the functioning of free markets.

Team Economic System

Means of production are distributed among sectors on the basis of long-term priorities determined by the planning authority.

Mixed economic system

CHAPTER 2. ECONOMIC SYSTEM

2.1. The economic system. Types of Economic Systems

Economic system - an organization of the economic life of society, based on a certain structure of relationships between economic agents.

The type of economic system depends on the prevailing economic goals in society, forms of ownership and methods for solving economic problems.

As noted in Economics by K.R.Maconnell and S.L. Brew "... the industrialized countries of the world mainly differ in two ways: 1) in the form of ownership of the means of production; 2) in the way in which the economic is coordinated and managed activity "(Campbell R. McConnell, Stanley L. Brue. Economics. M.: 1992. - S. 47). There are two ways to coordinate economic choices: spontaneous and hierarchical. The spontaneous method assumes that each firm and household decide independently what, how and for whom to produce. The hierarchical order distinguishes such an economic entity that answers the fundamental questions of the economy alone for all other economic agents.

Economists distinguish four types of economic systems: traditional, market, command, and mixed.

Types of Economics

Each system in its own way answers the fundamental questions of economics, which were discussed in paragraph 1.3.

Traditional economy -this economic system is based on the observance of historically established customs, canons of religion, traditions that define technology and means of production, exchange, distribution and consumption of economic goods. The role of economic agents in the economic system is largely determined by the heredity and continuity of economic relations, as well as the division of society into classes. Economic problems - what to produce, how to produce and for whom to produce - are mainly determined by traditions that have developed over centuries. Customs determine the distribution, exchange and consumption of resources and products. The introduction of new equipment and technology is very slow, as it conflicts with customs and traditions, threatens their conservation, and therefore the stability of the existing social system. Currently, this economic system operates with elements of a market economy in approximately 140 countries in Asia, Africa and Latin America.

The main features of the traditional system are (Balikoev V.Z., Kovalev V.A., Semenikhina V.A. Course in General Economic Theory: Textbook. Novosibirsk State University of Natural History, Novosibirsk, 1993. - P. 37):

1. The predominance of private ownership.

2. Production, distribution and exchange are based on customs, traditions and religious rites. Religious, caste and cultural values \u200b\u200bare primary in relation to new forms of economic activity.

3. The economic role of households is determined by heredity and caste.

4. Technical progress is sharply limited, as it threatens the foundations of a traditional society. As a result, the pace of economic growth is negligible. Moreover, the population growth rate exceeds the growth rate of industrial production.

5. Illiteracy, high unemployment and low labor productivity.

6. The huge external debt of the state, which is difficult to eliminate.

7. The large role of the state and law enforcement agencies (army, police) in the economy and politics of these countries.

Market economy it is an economic system based on the spontaneous coordination of economic elections. This type of economic system is characterized by free enterprise, pricing based on the interaction of supply and demand, the predominance of private property. The market system answers the fundamental questions of economics as follows. Firms produce those goods and services that are in demand. Goods are produced using technology that can minimize costs. Goods and services are produced by those economic agents that have advantages in the production of this product. Advantages mean the possibility of minimizing costs. And finally, goods are produced for those who have sufficient income. People with no income find themselves outside the process of consuming goods. In a market economy, there is a private form of ownership of resources and final goods and services.

In a market economy, the state does not interfere in economic relations and does not affect the behavior of agents regarding the production, distribution and consumption of goods. The market mechanism is discussed in more detail in the chapter -.

Team Economy - ethe economic system, the main role in the regulation of which is played by the state. In this system, the state determines what products and in what quantity should be produced, for whom to produce and how to produce. Why does the state play the role of the main regulator in the economy? Because in this economic system state ownership prevails over all the basic means of production, that is, the bulk of the economic resources are owned by the entire population living in the country. On behalf of the population, the state also controls the distribution of all basic economic resources, as well as their use.

Due to the insignificant share of private ownership of the means of production or its absence in the command economy, there is no market. It is replaced by central planning, distribution, and procurement. However, there are elements of the market. Manufactured products are considered goods, but the prices are set by the state. There is a network of trading institutions that mediate between sellers (state or cooperative enterprises) and buyers (enterprises, institutions or the public).

The benefits of a team economy are:

1) a minimum of uncertainty in changing the economic situation in the near future, the relatively stable development of the economy;

2) the possibility of setting social goals for the economy and their achievement;

3) the absence of sharp changes in the income levels of the population between its various groups, which contributes to a more even development of all sectors of society;

4) the ability to maintain a stable level of employment.

But, like any economic system, a command economy has its drawbacks:

1) lack of freedom of choice of goods (in particular, means of production) for sellers and buyers - everything is planned and distributed in advance;

2) the need to create a large, complex bureaucratic structure of economic management, which often interferes with the rapid adoption of operational decisions;

3) subjectivity in economic management, which leads to imbalance and disproportionate development of industries;

4) the alienation of owners (population) from property (means of production) and the lack of competition (competition), which leads to lack of initiative of workers and insufficient incentive in a more efficient use of economic resources; as a result - underutilization of the achievements of scientific and technological progress, decreased efficiency, stagnation in the economy.

An example of a command economy is the economic system in the former Soviet Union and in the countries of the socialist direction of development.

Comparing a market economy with a command-administrative economy, two main signs of difference can be distinguished, which are presented in Table. 2.1.

Table 2.1.

Characteristics of market and team economic

systems on two main grounds

Signs of difference:
	prevailing form of ownership	mechanism for regulating economic relations
Market economy	private ownership of the means of production	market (objective)
Team economy	state ownership of the means of production	state (subjective)

Mixed economy - This is a type of economic system based on a market pricing mechanism, but including government intervention in economic relations.

In modern conditions, a combination of two types of economic systems — market and command — finds more and more place. This allows you to use the advantages of these systems and, to some extent, neutralize their shortcomings. There are countries in which a market-based regulatory mechanism prevails, and state ownership, like government intervention in the economy, plays a less significant role. These include the United States and many countries of Western Europe.

But there are also countries where the state is actively involved in managing the economy in a market setting certain development goals and using various management methods. Among these countries, two main models of a mixed economic system can be distinguished. One of these models reflects the economic system of Japan, which reached a high rate of development in the post-war period. Another model is the economic system of Sweden, with social goals prevailing in its objectives.

Table 2.2.

The main features of the Japanese and Swedish economic models

Japanese model	Swedish model
1. The global goal is high rates of economic growth with the subsequent achievement of social results.	1. The global goal is the solution of social problems.
2. State economic development plans that are advisory (optional) in nature, but contribute to a more proportionate and effective development.	2. Active participation of the state in ensuring economic stability and redistribution of income, the creation of significant public (state) consumption funds for this.
3. Preservation of customs and traditions along with the active study and implementation of best practices of other developed countries.	3. A high level of civil rights, social justice.

The economic system, in which social goals (free health care, education, the preservation and development of culture, equalization of income between layers of the population, etc.) are becoming increasingly important, is called a socially oriented economy.

Since the beginning of the 1990s, Russia has been moving from a command economy to a mixed one. The transition concept includes three stages: creating the prerequisites for market relations; creating conditions for the formation of market infrastructure and creating conditions for the functioning of the market mechanism.

The prerequisites of market relations include:

- Advance creation of a legal framework for a market economy;

- privatization - the privatization of a significant part of the means of production, leading to the emergence of private owners, the development of entrepreneurship and competition;

- liberalization of pricing - the transition from hard state prices to free market prices.

Market formation conditions are:

- gradual removal of public authorities from direct participation in the economic activities of enterprises;

- an integrated triune approach to the formation of the main types of market - commodity, financial and labor market;

Active formation and development of market infrastructure

Creation of a network of commercial banks, commodity and stock exchanges, investment funds, insurance companies, arbitration institutions, etc.

- the gradual opening of the national economy and integration (entry) into the system of world economic relations;

- provision by the state of social protection of citizens.

The conditions for the functioning of the market should be:

- freedom of activity of economic organizations (economic agents) in the framework of state laws regulating the relations of entities;

- full responsibility of entrepreneurs for the results of their activities;

- freedom of competition, where it is effective;

- pricing freedom limited to monopoly markets.

Analyzing the models of a mixed economy, three main groups of economic functions of the state can be distinguished: maintaining economic efficiency, maintaining development stability, and ensuring social justice. The role of the state and its functions in a mixed economy will be discussed in section 15.1.

The economic system of society. Criteria for the allocation of economic systems.

Economical system - a complex, ordered set of economical. relations, types of households. activities of the company, carried out in the form of certain production and social. relations and social institutions whose purpose is meeting the needs of society in material goods and services.

In economical. science, there are different approaches and different criteria for the periodization of socio-economic. development of society. The main approaches are: formational and civilizational.
The boundaries separating the economy. systems apart, are the industrial and scientific and technological revolution. Within each of these systems, a more detailed typology is possible, which allows us to determine the direction of synthesis of formational and civilizational approaches.
I. Formation Approach characteristic of Marxist theory. Marx formulated a three-term classification:
Primary (archaic) formation included primitive communal and Asian modes of production.
— Second large formation based on private property (slavery, serfdom, capitalism), Marx called secondary.
— Third – communist based on the destruction of private property, which includes a number of methods of production and consisting of two phases (socialism; communism).
According with the formation approach of K. Marx that determined the relationship between the nature of the combination of means of production and labor allocated five socio-economic formations:

— primitive communal formation - the undivided rule of communal ownership of the means of production;

— slave formation - the full ownership of slaveholders in all conditions of production;

— feudal formation - the complete ownership of the feudal lords on land, which determined the personal dependence on them of peasants attached to the land;

- capitalist formation - private ownership of the means of production and the separation of the worker from them;

- Communist formation - public ownership of the means of production, from which the direct producers are not separated.

Socio-economic formation - This is a historical type of society, developing on the basis of a certain mode of production.
Civilization approach suggests study. world history as a single planetary whole with a gradual change of civilizations. In the selection of differences. periods of development, this approach involves the determination of various periods of social development on the basis of the totality of factors of material and spiritual cultures, and not just industrial and economic ones. An important circumstance for this approach is not social wealth, but human development. In the history of the development of human society, periods of certain states of society (civilizations) are distinguished, rather than successive historical stages; It shows the continuity of the historical process, its movement in the relationship and continuity, the accumulation of universal values. The civilizational approach means the formation of universal values, shows their role in the development of society.
The peculiarity of the first developments of the civilizational approach and periodization of human society consists in dividing the history of society into a number of local civilizations that are little or not connected at all with each other.
A new, modern civilizational approach to periodization of the development of society is significantly different from the previous one. Firstly, he considers humanity as a single civilization with priority and dominance of universal values. Secondly, the priority of the universal puts boundaries in the development of the special features of each culture and at the same time enriches it with the general achievements of all mankind. Thirdly, in the center of civilization is a man, his free, comprehensive development.
The civilization approach was first developed by A. Ferguson. Based on the periodization of the development of forms of economic activity and property relations, he allocated three periods:
- wildness with the development of hunting and the lack of private property;

— barbarismcharacterized by the development of cattle breeding and the emergence of private property;

- civilization with the development of agriculture and the dominance of private property.

The significance of the modern civilizational approach to the periodization of history lies in the fact that it allows in a general way to distinguish such states in the development of mankind as:

- a single (primitive) civilization;

- its division into two large - eastern and western civilizations;

- the formation in modern conditions of a qualitatively new unified world civilization.
III. According to another classification, in which the criterion is used "The degree of industrial development of society", there are three economic systems:

— Pre-instrumental society - characterized by undeveloped productive forces, the need for a direct appeal of man to nature.

- Industrial society - It is distinguished by developed productive forces with large machine production.

— Post-industrial society - It is based on a technological method of production, based on the use of scientific and technical progress, has a highly developed services sector. In its economic system, the main role is played by scientific knowledge and innovations, and in the professional structure, by specialists.

IV. Currently, the classification of economic systems based on "Methods of organizing economic activity" gained the greatest distribution. This approach takes into account the following features:

- the prevailing form of management;

- basic forms of ownership;

- a mechanism for coordination of economic entities and actions;

- motives that stimulate the conduct of economic activity.

Based on these criteria, the following systems can be distinguished:

- traditional economy; - planned economy; - market economy; - transitional economy.
Traditional economy based on customs, traditions, many years of experience in people's behavior in specific economic situations. This is the economy of subsistence farming, serving itself at the expense of its own resources and forces. It is conservative and not flexible enough.
Market type which is based on the mechanism of market pricing, the interaction of supply and demand. Differs in dynamism and ability to self-regulation.
Team economy in which commodity-money relations are formal, managed by the administrative center, characterized by a lack of flexibility, but by great potential for mobilizing resources.
Mixed economy , which is characterized by the presence of elements of different types and sectors of economic systems. It is represented by various models of socially oriented market economy.
Overcoming to some extent the limitations of this classification, the modern economical. thought distinguishes another type of economy - mixed economy.

Major economies

Characteristic for it is the steady presence of elements of different types of economic systems. It is this type of economy that represents a number of modern Western European countries. This type has objective premises. So, the market mechanism alone in modern life does not provide effective and sustainable self-regulation of the economic system, but leads to a well-known deregulation of the economy (crises, unemployment, inflation). The solution is found in a certain integration of regulatory mechanisms - market and state. In this regard, the economic system also becomes mixed.
The main difference between the mixed type of economy - its diversity. The main features of this type are: - a combination of the private and public sectors of the economy;

- a combination of market and state regulatory mechanisms;

- a combination of private-ownership market motivation with the motivation of social sustainability in society.

Introduction

§ 1.1 Economic systems and their essence

§ 1.2 Centralized economic system

§ 1.3 Market economy and its advantages

§ 1.4 Cons of the market and the problem of external effects

§ 1.5 Comparative characteristics of centralized and market economies

§ 1.6 Mixed economy

Chapter 2. Russia between two economies

§ 2.1 Starting positions for the transition to market relations

§ 2.2 Geopolitical and historical features

§ 2.3 Other features of economic development

Conclusion

Bibliography

Introduction

Any modern diversified social production needs a certain internal coordination and organization. How, say, to combine grain production, baking bread and the needs of the population, so that all producers and trade are profitable and consumers are satisfied? Specifically, such a match manifests itself in the solution by any society of the four main problems: what, how, for whom and how much to produce. It is clear that different countries have solved and are solving such problems in different ways.

The totality of all economic processes that take place in society on the basis of property relations and organizational and legal forms existing in it represents the economic system of this society. In the last one and a half to two centuries, the following systems have operated in the world: a market economy of free competition (pure capitalism), a modern market economy (modern capitalism), an administrative-command and traditional economy.

Each system has its own national model of economic organization, as countries differ in their unique history, level of economic development, social and national conditions1.

Based on the foregoing, we can conclude that the topic chosen for the study is very relevant. The relevance of this problem is the motive for its election for this work.

The purpose of this work is to analyze the advantages and disadvantages of various economic systems.

The objectives of the study are as follows: to give the concept and general description of the economic system, to reveal the advantages and disadvantages of various economic systems, and also, within the framework of the items listed, to show some features of the Russian model of transition economy.

This work consists of an introduction, two chapters and a conclusion. In the first chapter, the author considers theoretical approaches to the study of the economic system of society and its various types. The second chapter highlights issues related to the Russian model of transition economies.

This topic has been studied in great detail in many sources of literature.

Chapter 1. The economic system and its structure. Types of Economic Systems

§ 1.1 Economic systems and their essence

In the process of economic activity, economic relations between people always function as a certain system, including objects and subjects of these relations, various forms of relations between them. The economy of each country is a large system in which there are many different types of activities, and each link, component of the system can exist only because it receives something from others, i.e. is interconnected and interdependent on other links.

Economic system - This is a specially ordered system of relations between producers and consumers of tangible and intangible goods and services.

This means that in the economic system, economic activity is always organized, coordinated in one way or another1.

The concept of the economic system is interpreted by different economists in different ways:

The economic system is a set of mechanisms and institutions for making and implementing decisions related to production, income and consumption within a certain geographical territory. (P. Gregory, R. Stuart)

The economic system includes all institutions, organizations, laws and rules, traditions, beliefs, attitudes, evaluations, prohibitions and patterns of behavior that directly or indirectly affect economic behavior and results. (F. Prior)

Such definitions show that economic systems are multidimensional.

In fig. 1.1 presents the general points of any economic system.

Figure 1.1. General points of any economic system

Human society in its development has used and is using various economic systems. They differ in their approach and methods of solving the main economic problems.

In the last one and a half to two centuries of the development of human society, various economic systems have acted in the world. Among them, two market systems are clearly distinguished - the market of free competition (pure capitalism) and the modern market economy (modern capitalism) and two non-market systems - centralized and traditional. And yet, in general terms, we can distinguish two main ways of organizing production and, accordingly, two types of economic systems: centralized and market. Let us dwell on these types of economic systems and consider the advantages and disadvantages of each of them.

§ 1.2 Centralized economic system

The essence of this system is in state monopoly, that is, that an omnipotent state (through its powerful bureaucratic apparatus) absolutely dominates the economy. Government officials from the center command all economic resources and autocratically decide what, how, for whom and how much to produce, and most importantly - how to distribute what was produced. Therefore, such a coercive system is often referred to as a command, command, distribution economy1. Characterizing it, we distinguish the following main features (Fig.

USE. Economy. Theme 4. Economic systems

Figure 1.2. Characterization of a centralized economy

First, state ownership of the means of production reigns supreme in the economy. Land, factories, factories, transport, trade and other enterprises - everything belongs to the state. The property of individual citizens is usually limited to personal property and a small subsidiary farm.

Secondly, all production, exchange and distribution of products are carried out according to state plans, which determine the thousands of complex relationships in the national economy. The mistakes that are inevitable in such an all-encompassing planning cause numerous discrepancies, failures and deficits in the economy. And a huge bureaucracy is working to compile and enforce such detailed plans.

At the same time, thirdly, instead of stimulating the production of economic levers (attractive taxes, orders, loans), purely administrative management methods are used (dictate of bureaucracy, orders, control, punishment, encouragement), and the main goal of the enterprises is not work for the consumer, but implementation of the plan (no matter how unreasonable it may be).

Fourth, the financial dictatorship of the state also works to tightly centralize the economy. The lion's share of all funds of business entities is centrally redistributed through the state budget. High taxes and deductions flock to a single center with huge financial flows, on which officials then randomly allocate budgetary allocations to those who, from their point of view, need it.

Prices, salaries, investments, profits and losses - everything is “planned” in advance and guaranteed by the state at the planned level. Therefore, the material situation of producers practically does not depend on their initiative, creativity, labor results and consumer reactions. Moreover, the initiative is even punishable: "initiative" and "unaccounted for" innovation (albeit very effective) can unsettle the company from the planned track, worsen its financial situation and lead to the replacement of the director.

The disadvantages of total centralization can be traced on the example of the former USSR. The main thing is the unsatisfactory work of state property. It was poorly used, pulled away; the equipment has not been updated for decades, resource output was low, and costs were high. The state sector was dominated by mismanagement, irresponsibility and passivity of employees, indifference to any innovation.

Human society in its development has used and is using various economic systems. They differ in their approach and methods of solving basic economic problems. The economic system differs from one another in the following main features:

1. The ratio of ownership;

2. Methods of regulation and management of the economy;

3. Methods of distribution of resources and benefits;

4. Pricing.

Types:

1.Traditional system (economy) - this is the primary type of economic system, where relations are built on the basis of centuries-old and rooted traditions and customs. Traditions passed down from generation to generation determine: what goods and services, how, and for whom to produce. The distribution of the jointly produced product is carried out not on the basis of who produced how much using the means of production, but taking into account who, what position he holds in society. Economic power is connected with political power. It is very stable and difficult to reform, and the stability of society is created by maintaining the status of each individual.

2. Team economy (administrative-planning) - all decisions on major economic problems are made by the state, all resources here are the property of the state, centralized economic planning covers all levels from the household to the state. The state is the main subject of the economy and questions: what, how, and for whom to produce are decided on a planned basis (above). The distribution of resources is carried out on the basis of long-term priorities; therefore, the production of goods is constantly detached from the public.

3. The market system - all answers to basic economic questions - what, how, and for whom to produce determines the market, price, profit and loss.

“What?” Is decided by solvent demand, “voting, money.” The consumer himself decides what he is willing to pay money for. The manufacturer will strive to satisfy the desires of the consumer, to give money for the goods he needs. The question “How?” Is decided by the manufacturer, seeking to get more income. Since the pricing does not depend on him, in order to achieve his goal, the manufacturer must produce and supply as many goods as possible with lower costs (costs) than his competitors. For “Who?” Is decided in favor of the consumer with the highest incomes. In a market economy, private individual property predominates, the behavior of each subject of the economy is motivated by his personal selfish interests. There are many sellers and buyers of products, which contributes to the development of free competition. The market is a self-regulatory system, performing the function of coordination and pricing.

4. Mixed economy - The main producers and buyers of capital goods are large corporations whose activities are regulated by the state. Ownership: public, private, state. The behavior of the subject is motivated by his personal interests, as well as general and priority goals are defined in society.

How to calculate the price of building a house from foam concrete blocks

Aerated concrete and gas silicate calculator

Differences of a cottage from a country house

The choice between brick and foam concrete for construction

Projects of two-story houses: advantages and disadvantages

Turnkey construction of a house and bathhouse from timber on a turn-key basis: where to buy by installments

Projects of one-story houses: drawings and photos

What a private residential building, cottage, mansion, townhouse looks like: photos

Popular

Do-it-yourself house building from foam blocks Reading time ≈ 4 minutes Building a house with your own hands is a process that will help to create housing according to your own plan, from material that ...

Cottages up to 120 sq m. Projects of compact houses Each of us has a dream. Everyone has been dreaming since childhood. First, about a car with a wheel, about your own dog or doll, then about the career of a scientist, businessman, ...

House project up to 150 m2 with attic Many see their future housing as very spacious, with a large number of rooms. But how does such a house fit your needs? It stands ...