The great Scottish scientist Adam Smith is consideredthe founder of such a great science as the economy. To date, this great science is one of the most urgent and necessary. Knowledge of various economic processes not only makes life easier for people, but also helps to regularly replenish the budget, teaches you how to earn and save.
В современном мире существует огромная need for economically educated people. The importance of the economy is growing every year. This science is being taught even in schools. In every developed country there are many economic universities that almost every year modernize and open progressive faculties.
What is this science and what is the goal of the economy?Social science studying the market and the behavior of participants in the process of economic activity, exploring how people manage property, how they try to satisfy their unorganized needs and is the economy.
Many terrestrial resources are inherently limited.Fresh water, food, livestock, and tissues are earth resources that can be lost. Unlike resources, human needs are not limited. The goal of the economy is to keep limited resources and unlimited human needs in balance.
Famous American scientist, psychologist MaslowAbraham Harold believed that all the basic human needs can be expressed in a pyramid. The basis of the geometric figure is the physiological needs, that is, the human need for food, water, clothing, shelter, and the continuation of the family. Topical issues of the economy are based on this pyramid. The top of the figure is the person's need for self-expression.
На сегодняшний день выделено всего три сектора economy, which in science is called primary, secondary and tertiary. The first sector unites the goals and tasks of the economy in the study of agriculture, fishing, hunting, forestry. The second sector is responsible for the construction and manufacturing industries, whereas the tertiary sector takes as its base the service sector. Some economists prefer to allocate also the Quaternary sector of the economy, which includes education, banking services, marketing, information technology, but in fact, it also studies the tertiary sector.
To understand the purpose of the economy for sure, it is necessaryto familiarize with forms of economy. This important topic is being studied by children in high school not in the lessons of social studies, and then continues to deepen into it in high school and university. There are four forms of this social science.
Market economy is based on freeentrepreneurial activity, contractual relations, the diversity of forms of ownership. The state in this case has only an indirect impact on the economy. Characteristic features of this form are free competition, independence and independence of the entrepreneur, the ability to choose a supplier, the buyer's orientation. The main goal of the economy in this case is to maintain communication between the buyer and the entrepreneur.
The traditional economy has not yet outlived itself,because until now there are still underdeveloped countries. Customs play a major role in this economic form. Agriculture, manual labor, such primitive technologies (use of plow, hoes, plow) are characteristic features for this system. Primitive society was built on a hierarchy and traditional economy, but today some African, Asian and South American countries still retain this form. In its essence, the traditional form is the very first manifestation of economic science.
Administrative-command economy or plannedexisted in the USSR, but is still relevant in North Korea, as well as in Cuba. All material resources are in state, public ownership, the state fully controls the economy and its development. State bodies in the administrative-command economy single-handedly plan production, and also regulate prices for it. A huge advantage of this economic form is a small social stratification.
Смешанная экономика зависит и от entrepreneurs, and from the state. If the administrative-command form includes only state property, then in a mixed form there is also private property. The goal of a mixed economy is the right balance. State property is most often kindergartens, transport, libraries, schools, universities, hospitals, roads, legal services, law enforcement agencies and so on. People are free to engage in entrepreneurial activities. Businessmen dispose of their property independently, make decisions on the release of products, hire and fire workers, train employees. The state is financed by people who pay taxes.
The economic growth of the country is largely determined byeconomy and its role in the life of society. Economic growth allows each state to produce more goods, produce services and goods. The more the country produces goods, and the more they demand, the greater the profit this state will receive. Economic growth should be sustainable, but in no case not an emergency.
The result expected from the economicgrowth, is a significant improvement in the quality of life of the population. But, unfortunately, this is incredibly difficult, since literate economists are less and less. There are several factors that can raise the standard of living of the country.
One of the most important factors is thethe progress of technology and science. Thanks to new mechanisms, technology, the Internet millions of times increased labor productivity, efficiency. A unique, modern, high-quality product is in demand in the sales market.
Another factor of economic growth is thework force. If an employee does not have a higher education, is lazy, not experienced, does not know how to make decisions, then the company will not have success. Human capital is incredibly highly valued in modern society. Education in higher education, work experience, knowledge of foreign languages, personal qualities of a person play a huge role in the hiring process. The economy and its role in the life of society are incredibly high, so it is so important to listen to the advice of experienced scientists. Human capital allows an employee to receive additional income. This term was derived in the 20th century in economic science.
