Presentation. The main questions of the economy
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Goals
- to bring students to an understanding of the basic problem of the economy, the limited resources and the boundlessness of human needs;
- introduce the principles of the market, the economic system and its functions;
- continue the formation of skills to analyze, draw conclusions, work with text, establish cause-and-effect relationships.
English writer George Bernard Shaw (1856-1950) - said: "Economy is the ability to use life in the best possible way."
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What to produce?
Any society, regardless of the level of well-being, must be able to determine what goods, how and for whom to produce.
Organizations, enterprises, firms, taking into account consumer demand, limited resources, constantly make decisions about what goods and services should be produced using the resources at their disposal.
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How to produce?
There is a choice:
- Economic resources
- Technology
- Location of the enterprise
- Use of financial, technical costs
- Human Resources
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Economic efficiency is considered, i.e. an economic calculation is performed on how to fulfill the volume of production at the lowest cost. To do this, the manufacturer uses the following methods:
- - introduction and use of new technologies;
- -economical and careful use of resources;
- - attraction of highly qualified employees;
Conclusion: producers must decide: with the help of what technologies, from what resources and by whom goods should be produced, how production should be organized.
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Who is the product for?
The manufacturer takes into account the needs for goods and services of various groups of the population with different incomes and decides for whom to produce: for the rich (luxury goods), for the mass consumer (consumer goods), for the poor (cheap goods). Through choice, the problem of distribution of economic benefits is solved.
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Economic system and its functions
There are several options for organizing economic life, i.e. it is an economic system - a set of organizational ways of coordinating the economic activities of people to resolve issues: what, how and for whom to produce.
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Types of economic systems
- Traditional
It is based on the use of manual labor, community farming, barter. The main economic issues are resolved in accordance with traditions and customs (do everything as before). The leading industry belongs to agriculture.
At present, the traditional economy has been preserved in Central Africa, South and Southeast Asia.
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- Command (planned)
The state is the owner of all economic and natural resources. The state controls and regulates the production and distribution of basic goods. The main economic decision is made by the state. What, how and for whom the state plans to produce from a single center on the basis of orders, laws, targets. Manufacturers turned into executors of other people's orders. Such an economic system existed in the USSR and other socialist countries. The leading role belongs to the manufacturing industry (industry)
Currently, such an economy is present in North Korea and Cuba.
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- Market economy
Market - a set of economic relations, manifested in the field of exchange and transactions.
The market economy is based on private property, entrepreneurship, competition, free pricing. Each producer independently makes economic decisions in accordance with his own interests and needs: what to produce, how to produce, for whom to produce. In a free market economy, the rule is that demand creates supply.
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- mixed economy
Modern economy - both the market and the state play an active role. Various forms of state regulation are used. Private property and state property interact. For example, in the well-developed countries of the USA, Japan.
Conclusion: the economic system contributes to solving the problem of efficient use of limited resources. The main task is to bring into line the unlimited needs and limited opportunities of the members of society through the solution of questions: what, how and for whom to produce?
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Material used
- "Social science" 8 cells. textbook, ed. Bogolyubova L.N. Ed. Enlightenment, 2011
- http://website/
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8th grade. Social science according to the textbook, ed. Bogolyubova L.N.
Slide 2: The purpose of the lesson:
To get acquainted with the main issues facing the economy of any society and the features of the functioning of the main economic systems.
Slide 3: Lesson plan:
1. Do I need to regulate production? 2. Economic system and its functions. 3. Types of economic systems.
Slide 4: Let's do it again.
limited unlimited
Slide 5: Let's do it again.
Free goods Economic goods Tailoring in a tailoring house Water from a spring Wind energy Ice cream Apartment renovation Rain Bus travel Street lighting
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English writer George Bernard Shaw (1856-1950) - said: "Economy is the ability to make the best use of life"
Slide 7: 1. Should production be regulated?
1. Read the textbook section p. 92-94., look at the illustrations, identify the main issues of the economy 2. Explain the following points with examples: The economy cannot provide unlimited production of goods and services; 2) Participants in the economy are forced to make a rational choice of production and consumption of the benefits provided to society; 3) Producers are forced to take into account the needs of certain consumers of goods when organizing production.
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Any society, regardless of the level of well-being, must be able to determine what goods, how and for whom to produce. 1. WHAT TO PRODUCE? Organizations, enterprises, firms, taking into account consumer demand, limited resources, constantly make decisions about what goods and services should be produced using the resources at their disposal.
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2. HOW TO PRODUCE? 1. There is a choice: Economic resources Technologies Location of the enterprise Use of financial, technical costs Labor resources
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3. FOR WHOM SHOULD THE PRODUCT BE PRODUCED? The manufacturer takes into account the needs for goods and services of various groups of the population with different incomes and decides for whom to produce: for the rich (luxury goods), for the mass consumer (consumer goods), for the poor (cheap goods). Through choice, the problem of distribution of economic benefits is solved.
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Slide 11: 2. The economic system and its functions
They differ in 1) the way of making decisions 2) the type of ownership of economic resources 3) Motivation of people to work
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There are several options for organizing economic life, i.e. this is an ECONOMIC SYSTEM - a set of organizational methods for coordinating the economic activities of people to resolve issues: what, how and for whom to produce.
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Slide 13: 3. Types of economic systems
Traditional Command Market 1) How and by whom are the main issues of the economy solved? 2) Who owns the economic resources (land, capital)? 3) How are benefits distributed? 4) What are the advantages and disadvantages of different systems?
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1. TRADITIONAL Based on the use of manual labor, community farming, barter. The main economic issues are resolved in accordance with traditions and customs (do everything as before). The leading industry belongs to agriculture. At present, the traditional economy has been preserved in Central Africa, South and Southeast Asia
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2. COMMAND (PLANNED) The state is the owner of all economic and natural resources. The state controls and regulates the production and distribution of basic goods. The main economic decision is made by the state. What, how and for whom the state plans to produce from a single center on the basis of orders, laws, targets. Manufacturers turned into executors of other people's orders. Such an economic system existed in the USSR and other socialist countries. The leading role belongs to the manufacturing industry (industry) Currently, such an economy is present in North Korea, Cuba
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3. MARKET ECONOMY Market - a set of economic relations, manifested in the field of exchange and transactions. The market economy is based on private property, entrepreneurship, competition, free pricing. Each producer independently makes economic decisions in accordance with his own interests and needs: what to produce, how to produce, for whom to produce. In a free market economy, the rule is that demand creates supply.
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The last slide of the presentation: "The main issues of the economy"
4. MIXED ECONOMY Modern economy - both the market and the state play an active role. Various forms of state regulation are used. Private property and state property interact. For example, in the well-developed countries of the USA, Japan. CONCLUSION: the economic system contributes to solving the problem of efficient use of limited resources. The main task is to bring into line the unlimited needs and limited opportunities of the members of society through the solution of questions: what, how and for whom to produce?
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The presentation on the topic "The main issues of the economy" can be downloaded absolutely free of charge on our website. Subject of the project: Social science. Colorful slides and illustrations will help you keep your classmates or audience interested. To view the content, use the player, or if you want to download the report, click on the appropriate text under the player. The presentation contains 12 slide(s).
Presentation slides
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8 cells social science "MAIN ISSUES OF ECONOMY" Purpose: to bring students to an understanding of the main problem of the economy, the limited resources and the boundlessness of human needs; introduce the principles of the market, the economic system and its functions. Continue the formation of skills to analyze, draw conclusions, work with text, establish cause-and-effect relationships. English writer George Bernard Shaw (1856-1950) - said: "Economy is the ability to make the best use of life"
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Topic: MAIN ISSUES OF ECONOMY Any society, regardless of the level of well-being, must be able to determine what goods, how and for whom to produce.
1. WHAT TO PRODUCE?
Organizations, enterprises, firms, taking into account consumer demand, limited resources, constantly make decisions about what goods and services should be produced using the resources at their disposal.
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2. HOW TO PRODUCE?
1. There is a choice: Economic resources Technologies Location of the enterprise Use of financial, technical costs Labor resources
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1. Economic efficiency is considered, i.e. an economic calculation is performed on how to fulfill the volume of production at the lowest cost. To do this, the manufacturer uses the following methods: - introduction and use of new technologies; -economical and careful use of resources; - attraction of highly qualified employees;
CONCLUSION: producers must decide: with the help of what technologies, from what resources and by whom goods should be produced, how production should be organized.
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3. FOR WHOM SHOULD THE PRODUCT BE PRODUCED?
The manufacturer takes into account the needs for goods and services of various groups of the population with different incomes and decides for whom to produce: for the rich (luxury goods), for the mass consumer (consumer goods), for the poor (cheap goods). Through choice, the problem of distribution of economic benefits is solved.
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ECONOMIC SYSTEM AND ITS FUNCTIONS
There are several options for organizing economic life, i.e. this is an ECONOMIC SYSTEM - a set of organizational methods for coordinating the economic activities of people to resolve issues: what, how and for whom to produce.
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TYPES OF ECONOMIC SYSTEMS
1. TRADITIONAL Based on the use of manual labor, community farming, barter. The main economic issues are resolved in accordance with traditions and customs (do everything as before). The leading industry belongs to agriculture. At present, the traditional economy has been preserved in Central Africa, South and Southeast Asia
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2. COMMAND (PLANNED) The state is the owner of all economic and natural resources. The state controls and regulates the production and distribution of basic goods. The main economic decision is made by the state. What, how and for whom the state plans to produce from a single center on the basis of orders, laws, targets. Manufacturers turned into executors of other people's orders. Such an economic system existed in the USSR and other socialist countries. The leading role belongs to the manufacturing industry (industry) Currently, such an economy is present in North Korea, Cuba
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3. MARKET ECONOMY Market - a set of economic relations, manifested in the field of exchange and transactions. The market economy is based on private property, entrepreneurship, competition, free pricing. Each producer independently makes economic decisions in accordance with his own interests and needs: what to produce, how to produce, for whom to produce. In a free market economy, the rule is that demand creates supply.
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D.Z. § 12, p. 99 questions, task 1, repeat § 11.
4. MIXED ECONOMY Modern economy - both the market and the state play an active role. Various forms of state regulation are used. Private property and state property interact. For example, in the well-developed countries of the USA, Japan. CONCLUSION: the economic system contributes to solving the problem of efficient use of limited resources. The main task is to bring into line the unlimited needs and limited opportunities of the members of society through the solution of questions: what, how and for whom to produce?
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Microeconomics Microeconomics (ancient Greek μικρός - small; οἶκος - house; νόμος - law) is a science that studies the functioning of economic agents in the course of their production, distribution, consumer and exchange activities.slide 3
Microeconomics studies the following main areas: 1. The problem of the consumer - why agents choose such sets of goods (as a rule, for final consumption). 2. Producer's problem - how and why agents-producers choose exactly such sets of factors of production and output structure. 3. Market equilibrium and market structure. 4. General equilibrium - how and why prices for goods and services are formed, how exchange occurs under various assumptions; when the market is economically efficient. 5. Information asymmetry - how and why mismatch of information sets of economic agents can lead to economic inefficiency. 6. External effects (externalities) - how and why the ability to indirectly influence the decisions of other agents by one's choice can lead to economic inefficiency. 7. Public goods - how and why the existence of certain types of economic goods can lead to economic inefficiency.slide 4
Stages in the development of microeconomics 0. Classical political economy: within the framework of the studies of the classics of political economy - Adam Smith, David Ricardo, Jean Baptiste Say, Thomas Malthus I. "until 1871" there was no known scientific work that proposed a new system of economic thinking to replace classical II. 1871-1880s: "Marginalist Revolution" III. 1890−1920s - In 1890, the English economist Alfred Marshall published his monograph, which became the main textbook on microeconomics in the first half of the 20th century. IV. 1930-1960s - microeconomics is replenished with new discoveries.slide 5
Basic economic concepts Economic needs are internal motives that encourage economic activity. Primary - satisfy the vital needs of a person (sleep, food, clothing). Primary needs cannot be replaced by one another. Secondary - all other needs (leisure, etc.) Economic benefits - means of satisfying economic needs (things, services). Among economic goods, it is necessary to single out interchangeable - substitutes (tea, coffee, train or plane), complementary - complementary goods (paper - pen, car - gasoline). Economic benefits are divided into - present and future, direct (consumer) and indirect (production). Long-term - reusable. Short-term - disappearing as a result of one-time consumption. Economic choice - choosing the best of the alternatives that provides max. satisfaction of needs at given costs. Opportunity cost - costs, costs that must be neglected or sacrificed for the sake of other costs (costs of unused opportunities).slide 6
Production capabilities - the ability of society to produce economic goods with the full and efficient use of resources. The Production Possibilities Frontier shows alternative options when resources are fully utilized. All points within the curve represent underutilization of resources. Any production program characterized by points outside the curve will not be provided with available resources. If technology improves or resources increase, the curve shifts upwards to the right.Slide 7
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Macroeconomics Macroeconomics (from other Greek μακρός - long, large, οἶκος - house and νόμος - law) is a science that studies the functioning of the economy as a whole, the work of economic agents and markets; set of economic phenomena. The term was first used by Ragnar Frisch on August 14, 1933. John Maynard Keynes is considered the founder of modern macroeconomic theory, after he published his book "The General Theory of Employment, Interest and Money" in 1936.Slide 9
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The main problems of macroeconomics The science of macroeconomics deals with questions that cannot be answered at the microeconomic level: the problems studied by macroeconomics are common to the economy as a whole. Macroeconomic problems can be called: Economic growth, economic cycles: What is economic growth? How to determine the rate of economic growth? What factors can influence economic growth? How does economic growth affect the development of the country in question? Unemployment: Who are the unemployed? Is unemployment good or bad for the economy? How to deal with unemployment? How can you determine the different levels of unemployment in a country? What is the impact of unemployment? General price level: What is meant by the general price level? How do changes in the price level affect the state of the economy? What is inflation? Which inflation is good and which is bad? Money circulation, interest rate level: What is the role of money in macroeconomics? What affects the general interest rate and what does it affect in the economy? State budget: How does the state regulate its revenues and expenditures? How do such criteria as the well-being of society or the development of business in the country depend on changes in the state budget? Balance of trade: How does a country trade internationally with other countries? How do changes in exports and imports affect the exchange rate, the development of the country in question, the state of the world economy?slide 11
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mercantilism In the 15th century, mercantilism was born, the first economic school, the development of which was particularly notably influenced by Antoine de Montchretien, William Stafford, Thomas Man, Jean Baptiste Colbertslide 13
physiocrats In the middle of the 18th century, a school of physiocrats was formed (Francois Quesnay, Anne Robert Jacques Turgot, Victor Mirabeau and Pierre Paul Mercier de La Riviereslide 14
Marxism and Marxist Political Economy The 19th century saw the birth of Marxism and Marxist political economy, founded by Karl Marx and Friedrich Engels.slide 15
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The Keynesian Revolution and the Birth of Modern Macroeconomics Gregory Mankiw Ben Bernankeslide 18
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Rational expectations theory 1970s: new classical macroeconomics Late 20th century: new Keynesianism