12. Mixed Economy
All economies are mixed economies because the three basic choices are adressed by some combination of market and centralized making. Pure market and pure planned economies are polar cases that help us order our thinking but have no real-world counterparts. An important factor giving the different economies their unique styles is the manner and degree to which individual and collective decision making are combined.
13. Planned economy is based on a philosophy of collectivism. In this type of economy, decisions are made by planning authorities, not by individuals
They are often associated with socialism. In a socialist system, there may be no private property rights, since governments or collective groups of citizens officially own all resources.
Strengths: Ability to accomplish social goals quickly
Can reduce unemployment by planning for more labor in production
Can provide for an equal distribution of income and goods and services
Possible provision for more economic security and safety nets
Weaknesses: Creation of production problems due to complexity of planning
Few incentives to create quality products or services, operate efficiently, or meet consumer demand
Few incentives to protect the environment. Few economic choices for most participants
14. The operation of a market economy, circular flow
Expentidure
Expentidure
Income
Income
Factors of production
Factors of production
Goods and services
Goods and services
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.
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:
Harmonization of production and consumption in the assortment structure, maintaining a balance of supply and demand in terms of volume and texture.
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.
Economic incentives for efficiency, encouraging manufacturers to create the necessary products at the lowest cost and maximum profit.
Promote scientific and technological progress based on the intensification of production and efficiency of the whole economy.
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.
The economics of consumption reduce distribution costs in the consumption demand of the population and proportion to wages.