The operation of a market economy, circular flow

Transactions of this type, where businesses sell goods and services and households buy them, occur in output markets, or product markets. In these markets, buyers and sellers may deal with one another face-to-face.

In second part, a real flow of labor, capital, land and entrepreneurship goes from households (sellers) to businesses (buyers). In return for these resources, businesses send a money flow of wages, interests, rents, and profits to households.

15. Economic and legal content property

Economic content of the property:

Ownership - the relation between economic agents as regards the appropriation of economic resources and consumer goods.

In economic theory, identifies some common features inherent property in any society:

1 Property - general economic phenomenon that exists in all historical stages of social development.

2 Property - social attitudes. It is not only generated by the company, but can actually exist only inside.

3 Ownership is a major attitude, because it binds the property into a coherent whole relations of production, making them of "all" in the "system."

4 As the subjects of ownership may make "individual", "group", "society" with virtually unlimited number of objects of property.

The subject property - the active side of property relations, having the opportunity and the right to possess the subject property.

A Property - passive side of property relations in the form of natural objects, matter, energy, information, property, intellect, wholly or in some degree belonging to the subject.

Economic property relations not only characterize the social side of economic life, but also to determine its form of organization.

Legal content of the property:

Economic property relations in modern society are realized in the legal forms they determine the relationship of the subject property to the subject property, the legal norms include the rights of the owner, his financial responsibility and protect their rights - the right to own, use and dispose of property, whatever it did not conclude . Laws do not create property relations (they are objective), but only fix a relationship that is actually formed in the society.

The right of ownership - is itself actually hold things subject property.

Order - are actions related to the transfer of property from its owner. Right to dispose of - a legal right to determine the fate of the property.

Terms of use - is the right owner for the extraction and appropriation of property useful properties.

Property relations in any society is legally regulated by the Constitution, laws and numerous statutorily. Legal ownership is a concept, that is, is a form of legal relations regulated by civil law. This means that the property has a view of civil legal relationship.

16.The nature and function of the market-Market is a place where buyers and sellers appear to conduct exchange transactions. The only requirement of a market is that all potential buyers and sellers should be in close contact with each other to conduct exchange transaction. The only requirement of a market is that all potential buyers and sellers should be in close contact with each other to conduct exchange transaction.

Function of the market:

1. Harmonization of production and consumption in the assortment structure, maintaining a balance of supply and demand in terms of volume and texture.

2. Becoming a value equivalent to the exchange of products. Market matches the individual costs of labor to produce a model with the public, that is, commensurate costs and results, identify the value of the goods by determining not only the quantity of labor expended, but for what use.

3. Economic incentives for efficiency, encouraging manufacturers to create the necessary products at the lowest cost and maximum profit.

4. Promote scientific and technological progress based on the intensification of production and efficiency of the whole economy.

5. Providing dynamic proportionality in the development of certain regions, provinces, territories and national economies in response to the deepening on the social division of labor and the trend towards internationalization and growth of the integration processes in the economy.

6. The economics of consumption reduce distribution costs in the consumption demand of the population and proportion to wages.

17. Types of the market:

1. Consumer market in the country until recently was organized by the state and cooperative enterprises of trade, public catering, collective and individual markets underdeveloped forms as private. It includes food markets, transportation, the services market of culture, education and health care.

2. The housing market in this country until recently existed in the form of purchase and sale of private homes, villas and other possessions of this kind, which can be sold or bought.

3. The labor market. In our economy workforce there was not an object of free sale in connection with its planned distribution, extra-economic coercion and state wage rates, the lack of a free system if hiring and layoffs.

4. The investment market is one of the varieties of the money market, which are subject to the market relations investment.

5. The securities market is closely linked to the capital market, because it represents an actual title of the property in the capital- stocks, bonds, notes and other liabilities.

6. Money market/ in a very limited form of currency the market covers only the sphere of foreign economic relations. The normal functioning of this market requires the creation of the stock and currency exchanged, which will be sold, and currency for rubles at the global, national, free and auction rate.

And etc.

18.Origin, nature and function of money There are different concepts of money: the rationalist and evolutionary. The rationalist conception explains the origin of money as a result of an agreement between the people, making sure that the values for the movement in the exchange of goods requires special tools. Evolutionary origin of the money concept is the result of the social division of labor, exchange and exchange of commodity production.

19.Classification of money.

Metallic money:

Standard money

Face value = Hidden value

Token money

Face value >Hidden value

Subsidiary money

payment cannot exceed more than 25 in coin.

Paper money

1. Representative money

Slip issued against commodities and metals which was used as money

2. Convertible paper money

Slip issued against gold where face and hidden values was equal

3. Inconvertible paper money

we cannot change from reserve as face value less than hidden value.

4. Fiat money

Color Money issue during any emergency to over come the deficit and it become useless after that emergancy.

20.Primary and secondary functions of money

Primary functions:

- Unit of account

- Medium of exchange

Secondary functions:

- Store of value

- Standard of defer payments

- Easy transfer of value

Date: 2014-12-21; view: 1030