1. People traditionally produce only those goods and services necessary for survival that were produced for many centuries by their ancestors. Such an economy is close to a subsistence economy.
1. People traditionally produce only those goods and services necessary for survival that were produced for many centuries by their ancestors. Such an economy is close to a subsistence economy.
1. People traditionally produce only those goods and services necessary for survival that were produced for many centuries by their ancestors. Such an economy is close to a subsistence economy.
1. People traditionally produce only those goods and services necessary for survival that were produced for many centuries by their ancestors. Such an economy is close to a subsistence economy.
1. People traditionally produce only those goods and services necessary for survival that were produced for many centuries by their ancestors. Such an economy is close to a subsistence economy.
1. The decision on the issue is made at its own discretion by the state. This decision does not always coincide with the needs of the people. Commands from above (from the government) come down (to enterprises). They must comply with the state plan, which indicates what to produce. The state guarantees the manufacturer the sale of products. Due to the approximate nature of planning (plans), there is always a shortage (shortage) of some goods and an excess of others.
1. The decision on the issue is made by individuals and firms at their own discretion. The state (government) does not give them commands. The market forces the production of only those goods that people need, otherwise they cannot be sold. The manufacturer is very risky, as there is no guarantee that he will be able to sell his product.
1. The decision on the issue is made by individuals and firms at their own discretion. The state (government) does not give them commands. The market forces the production of only those goods that people need, otherwise they cannot be sold. The manufacturer is very risky, as there is no guarantee that he will be able to sell his product.
1. The decision on the issue is made by individuals and firms at their own discretion. The state (government) does not give them commands. The market forces the production of only those goods that people need, otherwise they cannot be sold. The manufacturer is very risky, as there is no guarantee that he will be able to sell his product.
1. The decision on the issue is made by individuals and firms at their own discretion. The state (government) does not give them commands. The market forces the production of only those goods that people need, otherwise they cannot be sold. The manufacturer is very risky, as there is no guarantee that he will be able to sell his product.
1. The decision on the issue is made by individuals and firms at their own discretion. The state (government) does not give them commands. The market forces the production of only those goods that people need, otherwise they cannot be sold. The manufacturer is very risky, as there is no guarantee that he will be able to sell his product.
1. The decision on the issue is made at its own discretion by the state. This decision does not always coincide with the needs of the people. Commands from above (from the government) come down (to enterprises). They must comply with the state plan, which indicates what to produce. The state guarantees the manufacturer the sale of products. Due to the approximate nature of planning (plans), there is always a shortage (shortage) of some goods and an excess of others.
1. The decision on the issue is made at its own discretion by the state. This decision does not always coincide with the needs of the people. Commands from above (from the government) come down (to enterprises). They must comply with the state plan, which indicates what to produce. The state guarantees the manufacturer the sale of products. Due to the approximate nature of planning (plans), there is always a shortage (shortage) of some goods and an excess of others.
1. The decision on the issue is made at its own discretion by the state. This decision does not always coincide with the needs of the people. Commands from above (from the government) come down (to enterprises). They must comply with the state plan, which indicates what to produce. The state guarantees the manufacturer the sale of products. Due to the approximate nature of planning (plans), there is always a shortage (shortage) of some goods and an excess of others.
1. The decision on the issue is made at its own discretion by the state. This decision does not always coincide with the needs of the people. Commands from above (from the government) come down (to enterprises). They must comply with the state plan, which indicates what to produce. The state guarantees the manufacturer the sale of products. Due to the approximate nature of planning (plans), there is always a shortage (shortage) of some goods and an excess of others.
2. The issue is solved from generation to generation in the same way, automatically, according to tradition. In countries with such economies, technological progress is not developed. The standard of living is consistently low.
2. The issue is solved from generation to generation in the same way, automatically, according to tradition. In countries with such economies, technological progress is not developed. The standard of living is consistently low.
2. The issue is solved from generation to generation in the same way, automatically, according to tradition. In countries with such economies, technological progress is not developed. The standard of living is consistently low.
2. The issue is solved from generation to generation in the same way, automatically, according to tradition. In countries with such economies, technological progress is not developed. The standard of living is consistently low.
2. The issue is solved from generation to generation in the same way, automatically, according to tradition. In countries with such economies, technological progress is not developed. The standard of living is consistently low.
2. The issue is decided by the state. The main thing for enterprises is to fulfill the state plan. Due to the focus of production on the plan, and not on profit, enterprises have little interest in updating production equipment, in improving the technology for manufacturing goods. All products of enterprises belong to the state.
2. The issue is decided by the state. The main thing for enterprises is to fulfill the state plan. Due to the focus of production on the plan, and not on profit, enterprises have little interest in updating production equipment, in improving the technology for manufacturing goods. All products of enterprises belong to the state.
2. The issue is decided by the state. The main thing for enterprises is to fulfill the state plan. Due to the focus of production on the plan, and not on profit, enterprises have little interest in updating production equipment, in improving the technology for manufacturing goods. All products of enterprises belong to the state.
3. The issue is decided according to custom. The rules of trade have long been established. Prices change infrequently
2. The issue is resolved by individuals and firms who choose the most advanced production technology, because all the goods produced do not belong to the state, but to the manufacturer, and the more of them, the richer he is. Competition (rivalry) between firms that produce homogeneous products makes it necessary to look for best ways production.
2. The issue is resolved by individuals and firms who choose the most advanced production technology, because all the goods produced do not belong to the state, but to the manufacturer, and the more of them, the richer he is. Competition (rivalry) between firms producing homogeneous products makes it necessary to look for the best methods of production.
2. The issue is resolved by individuals and firms who choose the most advanced production technology, because all the goods produced do not belong to the state, but to the manufacturer, and the more of them, the richer he is. Competition (rivalry) between firms producing homogeneous products makes it necessary to look for the best methods of production.
2. The issue is resolved by individuals and firms who choose the most advanced production technology, because all the goods produced do not belong to the state, but to the manufacturer, and the more of them, the richer he is. Competition (rivalry) between firms producing homogeneous products makes it necessary to look for the best methods of production.
2. The issue is resolved by individuals and firms who choose the most advanced production technology, because all the goods produced do not belong to the state, but to the manufacturer, and the more of them, the richer he is. Competition (rivalry) between firms producing homogeneous products makes it necessary to look for the best methods of production.
3. The issue is decided according to custom. The rules of trade have long been established. Prices change infrequently
3. The issue is decided according to custom. The rules of trade have long been established. Prices change infrequently
3. The issue is decided according to custom. The rules of trade have long been established. Prices change infrequently
3. The issue is decided according to custom. The rules of trade have long been established. Prices change infrequently
3. The issue is decided by the state. All produced goods are distributed by the government on the principles of equality. Prices for goods are set by the state and are not reviewed for a long time.
3. The issue is decided by the state. All produced goods are distributed by the government on the principles of equality. Prices for goods are set by the state and are not reviewed for a long time.
3. The issue is decided by the state. All produced goods are distributed by the government on the principles of equality. Prices for goods are set by the state and are not reviewed for a long time.
3. The issue is decided by the state. All produced goods are distributed by the government on the principles of equality. Prices for goods are set by the state and are not reviewed for a long time.
3. The issue is decided by the state. All produced goods are distributed by the government on the principles of equality. Prices for goods are set by the state and are not reviewed for a long time.
3. The issue is resolved by private manufacturers. The goods are produced for those who have the money to buy them, and if there are not enough goods, then those who can pay more will get them. There is inequality because people have miscellaneous income. There are free prices: they are not set by the state, but depend on the demand for goods offered for sale and their quantity. The shortage of goods causes an increase in its price, which means that the one who has money will buy it.
3. The issue is resolved by private manufacturers. The goods are produced for those who have the money to buy them, and if there are not enough goods, then those who can pay more will get them. There is inequality because people have different incomes. There are free prices: they are not set by the state, but depend on the demand for goods offered for sale and their quantity. The shortage of goods causes an increase in its price, which means that the one who has money will buy it.
3. The issue is resolved by private manufacturers. The goods are produced for those who have the money to buy them, and if there are not enough goods, then those who can pay more will get them. There is inequality because people have different incomes. There are free prices: they are not set by the state, but depend on the demand for goods offered for sale and their quantity. The shortage of goods causes an increase in its price, which means that the one who has money will buy it.
3. The issue is resolved by private manufacturers. The goods are produced for those who have the money to buy them, and if there are not enough goods, then those who can pay more will get them. There is inequality because people have different incomes. There are free prices: they are not set by the state, but depend on the demand for goods offered for sale and their quantity. The shortage of goods causes an increase in its price, which means that the one who has money will buy it.
3. The issue is resolved by private manufacturers. The goods are produced for those who have the money to buy them, and if there are not enough goods, then those who can pay more will get them. There is inequality because people have different incomes. There are free prices: they are not set by the state, but depend on the demand for goods offered for sale and their quantity. The shortage of goods causes an increase in its price, which means that the one who has money will buy it.
2. The issue is decided by the state. The main thing for enterprises is to fulfill the state plan. Due to the focus of production on the plan, and not on profit, enterprises have little interest in updating production equipment, in improving the technology for manufacturing goods. All products of enterprises belong to the state.
2. The issue is decided by the state. The main thing for enterprises is to fulfill the state plan. Due to the focus of production on the plan, and not on profit, enterprises have little interest in updating production equipment, in improving the technology for manufacturing goods. All products of enterprises belong to the state.
The concept of an economic system.
Types economic systems.
Traditional economy (subsistence economy, traditional production, community property).
Market economy (private property, motivation, competition, freedom of enterprise, market pricing).
command economy(state property, Gosplan, state regulation and pricing).
mixed economy(state and private property, market pricing and state regulation).
Taking into account the fact that, in a resource-limited environment, the problem economic choice unavoidable, humanity throughout its history has developed several ways to distribute a limited amount of resources between alternative goals.
An economic system is a way of organizing relationships between economic agents that determines the answers to the questions: “What to produce?”, “How to produce?” and “For whom to produce?”
Economic agents - subjects of economic relations, involved in the production, distribution and consumption economic benefits. The main economic agents are individuals (households), firms, and the state.
System attributes:
· Property Institutions: Resources can be owned by society (or the state as its representative), or privately owned.
· Decision mechanisms.Decision making can be centralized when commands about the use of resources are issued by the government and decentralized when resources are allocated according to the decision of individual participants economic activity.
· Forms of motivation: people are involved in economic activity, guided by some motives. These can be economic (high incomes) and non-economic incentives, the latter are very diverse and range from moral satisfaction to fear of punishment.
A certain "set" of property rights, decision-making mechanisms and forms of ownership characterizes type economic system.
Traditional economic system
A traditional economic system is an economic system in which the main economic problems Societies - what, how and for whom to produce - are decided mainly on the basis of traditional patriarchal, tribal, semi-feudal hierarchical ties between people.
At its core, the traditional economy is a set of subsistence farms in which the bulk of the products are produced for own consumption, and not for sale. The most important economic units of the traditional economy are small family farms within the rural community and larger farms of the tribal aristocracy. Within the traditional economy, there is a natural and rudimentary social division of labor, a primitive traditional technology for cultivating the land, raising livestock, and handicrafts. In a traditional economy, customs fix not only the set of goods produced, but also the distribution of occupations. In India, for example, people were divided into castes of priests, warriors, artisans, and servants. No one could choose a profession at will. A man necessarily inherited his father's craft. Thus, the distribution of labor resources was dictated by indestructible centuries-old traditions. The same can be said about the choice of produced goods and technologies. The same products were produced from generation to generation, while the production methods remained the same as they were hundreds of years ago. On the one hand, this allowed hereditary artisans to achieve the highest level of skill, on the other hand, nothing new was invented or produced. Technological progress and the growth of production efficiency were impossible, because each artisan copied the methods of work of his teachers. Any improvements are strictly prohibited. Every detail in the production process was enshrined in special rules. Consequently, labor productivity has remained at the same level for centuries.
The volume and structure of needs and production in the traditional economy are determined by traditions, habits, beliefs, family relations, hierarchical relations within the clan and community, and change little over time. These traditions, passed down from generation to generation, determine both the motivation of the labor of producers and the mechanism for distributing the products of labor. Along with egalitarian distribution taking into account gender and age, there are elements of unequal distribution depending on the place occupied in the social hierarchy and depending on the results of work.
In the socio-economic structure of the traditional economy, one can single out collective (communal) ownership of the means of production, private family property, semi-feudal property of the tribal aristocracy. Communal property, as a rule, includes arable land, pastures, reservoirs, forests. IN modern world traditional economy plays a significant role only in developing countries Tropical Africa, South and Southeast Asia. The existence of a traditional economy next to a rapidly developing market economy leads to its rebirth and transformation into a market economy.
One of the few advantages that exists in the traditional economy is that the role of individuals is clearly defined. Every member of society knows exactly what he must do.
On the other hand, the traditional economy is defenseless against any external changes, such as climate change, attack from outside. The old traditions do not correspond to the new conditions, and the formation of new ones takes centuries. A striking example: the traditional pastoralism of the inhabitants of North Africa led to the disappearance of vegetation and the formation of the Sahara Desert. Apparently, with a more flexible economic system, this process could, if not completely prevented, then, by at least, significantly slow down.
Command-administrative economy
The traditional economic system is based on traditions passed down from generation to generation. Traditions and customs determine production technologies, types of goods and services produced. IN economic role each member of society is dominated by heredity and caste. Modern technologies and innovations are not applied, manual labor is widely used. Currently, the traditional economy is found in a small number of developing countries.
What is an economic system? In each state at different times there was and is a certain system of the economy. It is possible to characterize the economic system by combining elements consisting of laws, norms, traditions, values, institutions, with the help of which society solves the problems of economic management, and a set of economic and social relations consumers and producers.
Comparison of the advantages and disadvantages of economic systems is carried out according to the following criteria:
- the predominant form of management - in-kind or commodity form housekeeping;
- the main types of property - communal, cooperative-public, private and mixed;
- ways of making decisions on the distribution of income. Community-leveling system (income is distributed among the factors of production) and distribution according to the quality and quantity of the labor contribution;
- the degree of state intervention - free, economically regulated, administrative-command and mixed economic systems;
- a way of coordinating the actions of business entities - traditional, market and planned systems of the economy;
- degree of openness to international relations– closed and open systems;
- degree of maturity - emerging, developed and degrading systems.
IN modern economy economic systems are classified into 4 main types with characteristic properties:
- Traditional.
- Administrative-command (planned).
- Market.
- Mixed.
The earliest form, formed in antiquity, is the traditional economy, when the economic and economic activity, interpersonal relations in society and the system of distribution of material wealth are determined by the principles of traditions and customs.
A distinctive feature of the command-administrative (centralized) system is the predominant role of the state in the economy and a minimum of market relations. The state regulates the main economic processes:
- location of production;
- supply and distribution channels;
- fixing wages and allowances;
- establishment .
The main features of a market economic system are considered to be developed social institutions and the participation of citizens in governance. At market economy material goods must be distributed by self-regulating mechanisms of supply and demand. Consequently, the best material goods will be acquired by citizens who have necessary capital. On the other hand, other people are not prohibited from founding their own business, investing labor, developing as a subject of the economy and acquiring the status of a person with capital.
Distinctive features of the traditional economy
The main features of a traditional society:
Non-market economy originated in the deep past, and is based on natural production, that is, the manufacture of products for one's own consumption. The economic entities at that time were the family, clan, tribe, community.
The traditional economic system is characterized by the predominance of peasant and handicraft farms, where the descendants inherit the occupations of their ancestors. The main feature of this economy is that the property belongs to individual farms, and each owner has the right to dispose of their own resources.
Signs of a traditional economy are:
- slow introduction and development of modern technologies;
- power is built on traditional tribal relations;
- semi-feudal socio-economic system;
- characterized by widespread use of manual labor;
- farms make up the bulk of the economy;
- there is no or underdeveloped extractive industry;
- exploitation of the lower classes and restriction of their rights and freedoms;
- science does not develop;
- only a small stratum of society, which is the ruling elite, can get an education;
- the political views of the people are subjected to religious or military pressure.
The main characteristic of the traditional economic system is the low degree of development of production technologies, which is the reason for low labor productivity. The traditional economy characteristic of this type of economy is subsistence farming (farming, hunting, gathering predominates). The introduction of modern technologies causes the destruction of the foundations of such an economy.
Characterizes the traditional system weak economic connection between settlements. This hinders the stable development of the economy, and forces people to take on hard physical labor. The signs also include the traditional communities themselves, which are a condition for the survival of a large group of people, but hinder progress.
Underdeveloped trade can characterize the traditional economic system. Due to low labor productivity, there is no surplus left in the community that can be sold. Trade relations even with the nearest villages are very weak. This contributes to the consolidation of entrenched orders and hinders the introduction of new technologies.
The hallmark of the traditional economy is social and economic stagnation. The development of society is very slow or does not develop at all. The community has retained its way of life since ancient times. An example from history where this happened and led to disaster is the indigenous people of America and Africa.
Economic reasons first cause stagnation, then it is fixed by a system of informal institutions that make up the total traditions and customs of the country. Traditions are involved in regulating the distribution of political power and economic resources. The traditional economy is characterized by:
- Dogmatism.
- Inability to adapt to changing conditions.
- The rigor of execution.
With such a way of society, there is a predominance of the agricultural sector in production. The main value for such communities is food products, since low labor productivity barely allows farmers to feed themselves, and the imperfection of technology with a high birth rate of the population causes the problem of starvation.
Influence of state and religion
Under the traditional economic system, primitive power structures are typical. In most cases, the form of government in such communities is an absolute monarchy, supported by an extensive military estate. The upper classes own the main resources and material goods.
Political power in such a society does not provide social guarantees and development, but collects rent for the upper classes. The state has no social orientation and carries out the forcible preservation of the existing order.
The traditional economy is based on caste and estate division of society and is supported by state violence. The main systemic principle of such a society is the desire of the ruling class to continue to regularly extract rent and maintain the usual way of life of society, and not to introduce modern technologies and innovation.
The state is not the only institution that regulates the economy in traditional societies. Religion plays a significant role in such a society. Religious institutions are being introduced into power structures and formed into a privileged class, which is also interested in collecting and receiving rent. Religious institutions consolidate and substantiate the practice of state violence against those who are trying to change the existing social order.
Pros and cons of the traditional economic system
Table of advantages and disadvantages:
Advantages | Flaws |
---|---|
Relative stability | Slow or absent social and technological progress, low labor productivity |
Predictability. The current order has been preserved for centuries, there are no significant social upheavals | Society adapts poorly to external influences, poor resistance to conquerors and natural disasters |
High quality and quality of material goods. Craftsmen produce goods using technologies that are inherited by their ancestors and maintain quality | Private property under such a system is a very shaky institution. In a society where the right to property is enforced by violence, private enterprise slows down not only low level technologies, but also low guarantees for the safety of manufacturers |
Society's problems are exacerbated by religious institutions and a monarchical way of life. The state does not contribute to modernization and progress, but hinders them |
Ways of making economic decisions (p.t.4). traditional economy. command economy. Market economy. In accordance with customs and traditions. Through orders and directives from top to bottom. With the help of the market.
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