Preparation for the Unified State Exam in social studies: types of markets. Market functions

Lesson type: combined

Know: the essence of the market, the essence of market demand, supply and the formation of market prices, the essence of price elasticity of supply and demand, the relationship between supply and demand, the main features of a market economy,

Be able to: conduct a discussion and defend your own opinion, master the basics of dialogue, understand some of the problems of modern society, analyze the main features of a market economy and their impact on the development of mankind, explain the laws of a market economy.

Methods: verbal, visual, practical

Conceptual apparatus: exchange, market, price, price equalization, monopoly, shortage, competition.

Lesson plan:

1. Checking homework. Students answer questions on the past topic for the paragraph they studied.
2. Introductory and motivational stage
   2.1. Frontal work with students. Explanation of new material. Organizing a discussion.
3. Working on new material (learning activities)
   3.1. Frontal work with students. Formation of new concepts.
   3.2. Independent work of students.
   3.3. Frontal work with students. Practicing new concepts.
4. 4.1. Working on new material. Specifics of the development of a market economy in Russia.
   4.2. Frontal work with students. Organization of educational discussion.
5. Conclusion

During the classes

2. 1. Frontal work with students.Explanation of new material

If not with the help of a plan drawn up by the wisest of the wise, then how else can we coordinate the efforts of people, ensure that they spend their strength and the resources of nature on producing exactly what society needs?

This problem was one of the main ones for Adam Smith, who thought a lot about the mechanisms of coordination of economic life. Smith came to the conclusion that such coordination of the activities of millions of people becomes possible due to man's desire for profit and his inclination to exchange. These features of human nature underlie the economic mechanism of our civilization. It is this mechanism that forces people to act in the way that is necessary for society as a whole. Smith wrote about this:

“Every person thinks only about his own benefit, but the invisible hand that guides him, as in many other things, will lead him to a result that he himself did not even think about.”

What is this “invisible hand”?

Since the time of Adam Smith, economists have used this mysterious term to describe the mechanism of market relations between people, or, in short, the market mechanism. There is no country in which one cannot find certain elements of market relations.

Market- this is the entire set of forms and organizations of cooperation between people, designed to bring sellers and buyers together for commercial purposes and to enable the former to sell and the latter to buy goods.

Market– indirect, indirect relationship between producers and consumers of products in the form of purchase and sale of goods, the sphere of implementation of commodity-money relations, as well as the entire set of means, methods, tools, organizational and legal norms, structures, etc., ensuring the functioning of such relations .

Market- this is the only system of purchase and sale relations, the structural elements of which are markets for goods, capital, labor, securities, ideas, information, etc.

Market- the basis of a market economy.

Market is a tool or mechanism that brings together buyers (demand providers) and sellers (suppliers) of individual goods and services.

Since time immemorial, places have been known where some sold and others bought: marketplaces, markets, etc. The better the economy developed, the more markets there became. Specialized markets appeared where goods of one type were sold (wool, livestock, grain, etc.).

In the era of capitalism, and now especially, economic ties between regions and enterprises of the country, as well as between countries, have become so close that each state (and even the whole world) represents, as it were, one giant market, consisting of many smaller markets, exchanges, shops , shops, etc.

Thus, we see that the concept of “market” includes food markets, clothing markets, expensive department stores, and all kinds of exchanges, fairs, banks, transport organizations, etc. In other words, all the organizations that help the manufacturer and the buyer find each other, and all the legal documents that govern their relationship, are all elements of the market. The structure of a market economy in any country can be depicted as shown in Fig.

So, the essence of the market is not only that it provides the opportunity to offer your product and buy the right one; the market becomes, as it were, the main economic mechanism and regulator, which shows, with the help of prices, which goods are in abundance and which are in short supply. As you can see, the word “market” has many meanings.

3.1. Frontal work with students.Formation of new concepts.

A) Now "market" means a place where people buy and sell goods.

Depending on the nature of the object commodity exchange are distinguished by the following markets:

1. consumer goods;
2. industrial products and means of production;
3. services;
4. capital.

Markets by status:

1. buyer – market condition in which supply exceeds demand.
   Differences of such a market:
   • a wide range of products offered;
   • sustainable volumes and scale of production of these goods;
   • enterprises clearly respond to changes in customer demand;
   High level of competition.
2. seller– a market condition in which demand significantly exceeds supply.
   Characteristics of such a market:

• poor range of goods;
• volumes and scale of production;
• complete lack of competition.

Market economy – This is a free enterprise economy.

Market economy – This is a system of economic relations regarding the purchase and sale of goods and services, carried out with the help of money in conditions of pluralism of all forms of ownership, free competition and pricing, ensuring the effectiveness of solving socio-economic problems.

Market classification:

1. by application objects: goods market, services market, construction market, technology market, information market, credit market, stock market, labor market;
2. spatially: local, regional, national, regional by integration group, world market;
3. by the mechanism of functioning; free, monopolized, state-regulated and planned-regulated markets;
4. by saturation level; equilibrium (in terms of volume and structure), deficit and excess markets.

In the process of regulating social production, the market performs the following: Features:

1. informational, those. dissemination of various information necessary for a person in a wound;
2. mediation. In conditions of a developed division of labor, economically isolated producers can exchange the results of their labor;
3. promoting efficient management, rational use of organic resources by humans and society.
   Using the equilibrium price mechanism:
   a) maximum (structural proportions and production volume are optimally formed;
   b) rational distribution of organic production resources is ensured;
   c) the most technological production methods are developed and costs are minimized with high quality products;
4. distribution and exchange(distribution and exchange between groups of society is ensured);
5. proportionality(the market helps to establish correspondence between production and consumer);
6. refurbishment(through the mechanism of competition, the market is cleared of non-competitive enterprises)

B) The state of the market is determined by the ratio of supply and demand.

Supply and demand - interdependent elements of the market mechanism, where demand determined by the solvent needs of buyers (consumers), offer– a set of goods offered by sellers (manufacturers); the relationship between them develops into an inversely proportional relationship, determining corresponding changes in the level of prices for goods.

Offer– This is the quantity of a product that the manufacturer considers profitable to offer on the market at a certain price level.

Demand is depicted as a graph showing the quantity of a product that consumers are willing and able to buy at some price possible over a certain period of time. Demand gives rise to a number of alternative possibilities, which can be presented in the form of a table. It shows the quantity of a product for which (other things being equal) will be demanded at different prices. Demand shows the quantity of a product that consumers will buy at various possible prices.

Ask price – the maximum price at which a consumer is willing to buy a given product.

Quantities of demand must have a certain value and relate to a certain period of time. The fundamental property of demand is the following: with all other parameters remaining constant, a decrease in price leads to a corresponding increase in the quantity demanded. There are cases when practically data contradict the law of demand, but this does not mean its violation, but only a violation of the assumption, all other things being equal.

The existence of the law of demand is confirmed by some facts:

1. Typically, people actually buy a given product more at a low price than at a high price. The very fact that firms organize “sales” serves as clear evidence of their faith in the law of demand. Enterprises reduce their inventories not by raising prices, but by lowering them.
2. In any given period of time, each buyer of a product receives less satisfaction, or benefit, or utility from each subsequent unit of the product. Because consumption is subject to the principle of diminishing marginal utility—that is, the principle that successive units of a given product produce less and less satisfaction—consumers buy additional units of a product only if its price decreases.
3. At a slightly higher level of analysis, the law of demand can be explained by income and substitution effects. Income effect indicates that at a lower price a person can afford to buy more than one product without denying himself the purchase of any alternative goods. That is, reducing the price of a product increases the purchasing power of the consumer's monetary income. And therefore he is able to buy a larger quantity of this product than before. A higher price will lead to the opposite result. Substitution effect is expressed in the fact that at a lower price a person has an incentive to purchase a cheap product instead of similar products that are now relatively more expensive. Consumers tend to replace expensive products with cheaper ones. The income and substitution effects are combined and lead to the fact that the consumer has the ability and desire to buy more goods at a lower price (see Table No. 1). The inverse relationship between the price of a product and quantity demanded can be depicted as a simple two-dimensional graph showing quantity demanded on the horizontal axis and price on the vertical axis. Placing price on the vertical axis and quantity demanded on the horizontal axis is an economic tradition. A mathematician would place prices on the horizontal axis and quantity demanded on the vertical axis, since price is the independent variable and quantity demanded is the dependent variable.

Table No. 1 you can see in Appendix 1.

Each point on the graph represents a specific price and the corresponding quantity of the product that the consumer has decided to buy at that price. The graph reflects all possible options for the relationship between the magnitude of demand within its limits. The law of demand is reflected in the downward direction of the demand curve. The graph allows you to clearly present a certain relationship between price and demand, as well as manipulate its various combinations.

There are many buyers in any market, so it makes sense to talk about market demand. The transition from the scale of individual demand presented by each consumer at different possible prices. We simply combine the individual demand curves horizontally to derive the overall demand curve (see Table No. 2).

Table No. 2 You can see in Appendix 2.

The intersection of the supply and demand curves determines the equilibrium price (or market price) and the equilibrium quantity of output.

Excess supply, or excess output occurring at prices above the equilibrium price, will induce competing sellers to reduce prices to get rid of excess inventory.

Falling prices:

1. will tell firms that it is necessary to reduce the resources spent on the production of these products;
2. will attract additional buyers to the market.

Changes in any of the factors affecting production costs, such as production technology, or in input prices, taxes or subsidies, will lead to certain shifts in the supply curve. The relationship between changes in demand and the resulting changes in the equilibrium price and equilibrium quantity of output is direct. An inverse relationship exists between changes in supply and subsequent changes in price. At the same time, the relationship between a change in supply and a subsequent change in the quantity of production is direct.

However, the degree to which consumers react to price changes can vary significantly from product to product. Moreover, we will find that, as a rule, consumer reaction for the same product varies significantly when prices vary within different ranges. Economists measure the degree of responsiveness, or sensitivity, of consumers to changes in the price of a product using price elasticity concept. The demand for some products is characterized by relative sensitivity of consumers to price changes; small changes in price lead to large changes in the quantity purchased. The demand for such products is usually called relatively elastic or simply elastic. For other products, consumers are relatively insensitive to price changes, meaning that a large change in price leads to only a small change in the quantity purchased. In such cases, demand is relatively inelastic or simply inelastic.

Factors of price elasticity of demand:

1. Replaceability. The more good substitutes for a given product are offered to the consumer, the more elastic the demand for it is. The elasticity of demand for a product depends on how narrowly the boundaries of that product are defined.
2. Share of consumer income. The more space a product occupies in the consumer’s budget, other conditions being the case, the higher the elasticity of demand for it.
3. Luxuries and necessities. The demand for necessities is usually inelastic; the demand for luxuries is usually elastic.
4. Time factor. The demand for a product is more elastic the longer the decision-making time. It depends on the consumer's habits and the durability of the product.

Price is the monetary expression of the value of a product. Previously, a system of stable settlement prices prevailed. Prices allowed for comparability of indicators across years. They did not meet the socially necessary costs of labor. In 1991, prices began to rise. This was justified, because bringing prices in line with costs led to increased production.

The price reflects:

1. Cost dynamics.
2. Labor performance indicators.
3. inflation rates.
4. The relationship between supply and demand.
5. Degree of market monopolization.

Correct pricing determines:

1. Profitability of production.
2. Competitiveness of the company.
3. Stability of the company in the market.

Price adjustment required:

1. When developing a new product.
2. When using new sales channels.
3. When entering a new market with a product.
4. When production costs change.

The main component of the price is s/s. S/s structure:

1. Raw materials and materials.
2. Fuel and energy for technological purposes (energy consumption).
3. Salary (up to 50% in developed countries).
4. Social insurance contributions.
5. Equipment maintenance and operation costs:
   • depreciation costs;
   • costs for current repairs;
   • maintenance costs
6. Workshop expenses:
   • costs for current repairs and maintenance of buildings and structures;
   • depreciation of buildings;
   • maintenance of shop personnel.
7. General plant expenses (for administration - management personnel)
8. Non-production expenses:
   • standardization,
   • technical propaganda.

Before developing a pricing strategy, a firm must analyze all external factors influencing decisions. The firm sets an initial price and then adjusts it based on various environmental factors.

Consider the following approaches to pricing systems: new product pricing, product line pricing, geographic pricing, discount and credit pricing, promotional pricing, and discriminatory pricing.

3.2. Independent work of students.

Students are invited to consider diagrams of the essence of a market economy (see above).

The children must explain what the features of a market society are expressed by entering its characteristic features into the diagram, and students must independently highlight the positive and negative aspects of a market economy.

3.3. Frontal work with students.Practicing new concepts.

A) Students are asked to determine the criteria by which the main elements of a market system are identified, and the nature of competition in a market economy. (Appendix 4)

B) it is proposed to identify the main market actors and the features of demand formation.(Appendix 5)

4.1. Specifics of the development of a market economy in Russia.Lecture explanation of new material.

Macroeconomic stabilization took a longer time, but, nevertheless, in 1996 the annual inflation rate (22%) was close to that of Poland (19%) and Hungary (20%). The ruble exchange rate has almost stabilized within the sloping “currency corridor”.

The mass privatization program allowed the privatization of 70% of former state-owned enterprises. According to official statistics, in 1997 there was finally a return to economic growth. (1%).

Economic stability is also threatened by adverse events in the monetary sphere.

The mutual debt of enterprises extremely quickly reached enormous proportions. The debt in paying taxes to the budget is growing. The imperfections of the Russian tax system complicate the budget situation, as tax rates are high, complex and arbitrary. Only 17% of enterprises pay taxes fully and regularly; tax revenues account for only 9% of GDP. In parallel, since 1994, mutual settlement and barter have become widespread in the Russian economy.

Results on the issue: “The reforms laid the foundations for the development of capitalism in Russia.” The first condition for this is “the formation of a system different from the administrative-command system.” The second condition is liberalization, albeit not complete, of prices, domestic and foreign trade, relative stabilization of the budget and tax spheres and convertibility of the ruble.

The economy and society quickly “adapted” to the new pro-market economic system: non-payments, outstanding debts in the context of inflation, restrictive monetary policy testify to this. But, nevertheless, Russia is becoming “a country with a commodity economy, operating according to the general laws of a market economy, although it is not yet sufficiently developed.”

4.2. Frontal work with students.Organization of educational discussion.

A variety of questions can be asked. For example, “The problem of privatization in the country, its essence and results.” “The current state of the economy, problems of the crisis,” etc.

5. Conclusion

All the material studied is summarized and a learning task is given. Separate groups of students are asked to select material from the media about the development of market relations in the country.

6. Security questions:

1. What is a market system and a market economy?
2. Give a general description of the market, listing its main features?
3. What elements make up the market mechanism?
4. What are the main reasons for the emergence of a market?
5. What are the main problems the market solves?
6. What problems can't the market solve?
7. Formulate the concept of market demand, demand function and demand curve?
8. What price and non-price factors most strongly influence demand in modern Russia?
9. Formulate the concept of market supply, supply function and supply curve?
10. How do price changes affect supply and demand curves?
11. Explain the economic meaning of market equilibrium?
12. Is market equilibrium established in all cases?
13. How are subjects of a market economy classified?
14. What are the features of simplified economic circulation?
15. Is it advisable for government intervention in the process of market pricing?
16. Why does the involvement of the state in economic processes lead to new losses in the system (taxes) and new investments (subsidies and government spending)?
17. What explains the fact that deposits generate loans?
18. Why is the opposition between the market and the state incorrect?
19. What role does competition play in a market economy?
20. Why does competition lead to lower prices?
21. What is the role of price and non-price competition in different market structures?
22. How do market structures differ from each other?
23. Why is free market access a necessary condition for perfect competition?
24. Why is a monopolist not interested in producing products at the limit of its production capabilities?
25. Under what conditions does an oligopoly maximize profits?

Literature: Lukyanchikova N.P., Arshansky S.B. Introduction to economic theory: Textbook. – Irkutsk: IGEA, 2001.

Market- mechanism of exchange between seller and buyer, mechanism of purchase and sale. Market relations– economic relations involving the exchange of goods for money. In market relations, there is independence of producers of goods, free setting of prices for goods, competition, and free demand. Market functions: informing, regulating, stimulating, healing, intermediary, pricing.

Limits of state intervention in the economy:

Direct intervention: introducing new taxes and increasing existing ones;

Indirect intervention: increased customs duties, increased prices for goods.

Market mechanism- a mechanism for the functioning of the market that stimulates production, informs about goods and services, and determines the division of labor between producers.

Types of markets:

According to legislation: legal (legally), black (unofficial, illegal), gray (semi-legal);

By economic purpose: consumer (goods and services), capital market (loans), labor market (labor), housing market, information market, foreign currency and securities market, investment market;

By spatial basis: international, regional, national, local (local).

Entrepreneurship– activities the purpose of which is to generate profit (income) (trade, banking, management, etc.). An entrepreneur is an owner of a business or a person who engages in economic activity for the purpose of generating income. Entrepreneurial activity (business) is associated with business risks: the possibility of losses or loss of profit. In entrepreneurship there are subjects(private individuals and associations: cooperatives, joint stock companies) and business objects(any type of economic activity: trade, commercial intermediation, transactions with securities).

Firm is an organization that owns one or more businesses and uses resources to produce goods or services for profit.

Organizational and legal forms of commercial firms:

Business partnerships are commercial organizations with capital divided into shares (contributions) of founders (participants). The contribution to the property of a business partnership can be money, securities, etc.;

Joint-stock companies (JSC) are enterprises in which all property and capital are divided into a certain number of shares. Shares are securities that show how much money its owner contributed to the capital of the enterprise. The share gives the right to receive a percentage of the profit (the right to dividends);

Production cooperatives are organizations in which participants and owners themselves work in production or are engaged in other economic activities.

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Slide captions:

2. 4 Market and market mechanism. Supply and demand

We study the Market (signs, functions) Types of markets Demand, law of demand Supply, law of supply Price mechanism

2. Types of markets Classification basis Types of markets Current legislation Legal (legal) Illegal (shadow) Goods and services Consumer goods Means of production Labor Investment Securities, etc. Spatial feature World Regional National Local Type of competition (See next slide)

Competition is rivalry between participants in a market economy for the best conditions for the production and purchase and sale of goods.

Types of competitive markets Market of pure (perfect) competition Many producers of the same type of goods compete, no one can capture such a market share as to impose their conditions on the rest of the participants H – p, market for agricultural products Market of monopolistic competition Many competing firms offering different goods that satisfy the same need N - p, market for food, shoes, clothing, cosmetics Oligopoly market Identical or similar goods are produced by a small number of firms that have divided the market and compete with each other H - p, mobile communications market, air transportation.. Monopoly market One a manufacturer who sets the price higher and produces fewer goods than in a competitive environment N – r, rail transportation

Natural monopoly is an industry in which the production of goods (services) is concentrated in one company due to objective (natural or technical) reasons and this is beneficial to society. For example, a natural monopoly can be established by a company that has discovered a deposit of unique minerals. Technical monopolies - water supply, sewerage, electrical networks, etc.

The state pursues a competitive market policy and antimonopoly regulation Methods of antimonopoly regulation: Legal responsibility for attempts to monopolize the market Extreme simplification of the procedure for creating new companies Removal of export/import barriers Forced division of the largest monopolistic firms into several independent firms State control over the merger of firms, etc.

3. The concept of demand, the law of demand, factors of demand formation Every person needs the goods of life, but the real opportunities to purchase goods often diverge from the needs. The consumer chooses goods and services taking into account their price. This is how demand is formed. Demand is the dependence that has developed on the market in a certain period of time of the quantity of a certain type of product that consumers are willing to purchase (the amount of demand) on the prices at which these goods can be offered by producers/sellers.

Let us pay attention to the following aspects: demand - the dependence of a certain type of product that consumers are willing to buy on the prices at which these products are offered; consumers demand for goods; the amount of demand develops over a certain period of time, under the influence of specific factors, and it can change, either in the direction of increase or decrease.

Scientists and economists formulated the law of demand. Law of Demand: An increase in prices usually leads to a decrease in demand, and a decrease in prices usually leads to an increase. Therefore, increasing prices does not always increase the revenue of manufacturers/sellers, and decreasing prices does not always reduce it (and may even increase it)

Visually, the law of demand Demand is usually represented in the form of a demand curve, where dd is the demand curve, P is the price per unit of goods, Q is the quantity of goods.

Factors influencing the formation of demand PRODUCT TYPE Give examples of each type of product

Factors influencing the formation of demand PRICES FOR COMPLEMENTARY AND SUBSTITUTE GOODS Complementary goods - goods that support each other (cars and gasoline) Substitute goods - goods, analogues that satisfy the same needs and compete for demand (marshmallows, marshmallows, marmalade) Pattern: a change in the price of one complementary product leads to a change in demand for all goods of the group (the price rises - the demand for goods of the group decreases; the price decreases - the demand for goods of the group increases) Pattern: a change in the prices of some substitute goods leads to a change in the demand for other substitute goods (became marshmallows are more expensive, the demand for marshmallows has increased)

Factors influencing the formation of demand Income of consumers Number and age and gender composition of buyers Religious and cultural traditions influencing consumption Expectations regarding price dynamics in the future Seasonality Give examples of each type of factor influencing the formation of demand

4. The concept of “supply”, the law of supply, factors of supply formation Supply is the dependence, established on the market during a certain period of time, of the quantity of a certain type of product that producers/sellers are willing to offer (the amount of supply), on the prices at which this product can be sold.

Let us pay attention to the following aspects: the offer is formed on the side of the seller/manufacturer: the seller/manufacturer offers his product for sale; the dependence of the quantity of a certain type of product that the manufacturer/seller is willing to sell on the prices at which this product can be sold; dependence that has developed on the market during a certain period of time (which changes dynamically under the influence of various factors)

The law of supply is clear. Supply is usually represented in the form of a supply curve, where Ss is the supply curve P is the price of the product Q is the quantity of the product

Scientists and economists formulated the law of supply. Law of supply: as a rule, an increase in prices causes an increase in the quantity of goods produced / offered for sale, and a decrease in prices causes a decrease in this quantity

Factors influencing the formation of supply The cost of production factors (purchase of raw materials, rental of premises, wages, etc.) In the conditions of an increase in their cost, the company will reduce their purchases or look for cheaper ones. An increase in the cost of factors of production leads to higher prices and can make the product uncompetitive. Technologies used The introduction of new technologies is an effective means, i.e. the costs of new technologies are lower than the income they provide Number of sellers If a new seller of the same product appears in the industry, then market supply increases and vice versa

Factors influencing the formation of supply Taxes and subsidies Taxes, as a price premium, increase the price of a product, supply decreases. Providing subsidies is a gratuitous transfer of funds for specific purposes. The state provides assistance to companies whose goods are especially needed. Expectations regarding future price dynamics Anticipating a future decline in the general price level, producers can increase supply at current high prices and, conversely, hold back goods until the expected price increase.

5. Price mechanism Price mechanism is the formation and change of market prices as a result of coordination of the interests of market participants who freely make economic decisions. Prices inform market participants: producers about how in demand a product is and whether it is profitable to produce and sell it in a given price range; consumers that they can decide to make or delay purchasing a product

Excess (overstocking) is a market situation when, at the existing price level, producers/sellers offer for sale a larger volume of goods than consumers are willing to purchase at that price. For a short time, the market reaches equilibrium when supply is approximately equal to demand, but then the situation changes again. Scarcity is a market situation when consumers, at the existing price level, are willing to purchase more goods than producers/sellers are willing to offer.

Sources: http://www.yurikozhin.ru / Social science. Grade 10. Modular triactive course / O. A. Kotova, T. E. Liskova. M. “National Education”, 2017.

Market- the totality of all relationships, as well as forms and organizations of cooperation between people with each other, relating to the purchase and sale of goods and services.

Conditions for market emergence:
- social division of labor;
- economic isolation of producers;
- independence of the manufacturer.

Market and its signs

Market functions

Market system:

Conditions necessary for the development of a market economy:

Competition- competition, competition between producers (sellers) of goods for the best results, in the general case - between any economic entities, struggle for markets for goods in order to obtain higher incomes.

Production costs— these are the costs of the manufacturer (the owner of the company) for the acquisition and use of production factors.
Economic costs- costs with which the company pays for the necessary resources (labor, material, energy, etc.). Economic costs are divided into:
- internal (or implicit) - the cost of one’s own resource; they are equal to the monetary payments that could be received for an independently used resource if its owner had invested it in someone else’s business:
- external (explicit, accounting) - the amount of cash payments that the company makes to pay for the necessary resources.
Fixed costs- part of the total costs that does not depend on the volume of output (the company’s rent for premises, building maintenance costs, costs of training and retraining of personnel, salaries of management personnel, utility costs, depreciation).
Variable costs- part of the total costs, the value of which for a given period of time is directly dependent on the volume of production and sales of products (purchase of raw materials, wages, energy, fuel, transport services, costs of containers and packaging, etc.).
Economic profit is the difference between a firm's total revenue and economic costs.
Accounting profit is the difference between total revenue and accounting costs.
Money- this is a special product that plays the role of a universal equivalent in the exchange of goods.

(according to the textbook by Vazhenin A.G. Social studies for secondary vocational education)

The normal functioning of the economy is impossible without the exchange of results of production activities.Exchange is the process of movement of consumer goods and production resources from one participant in economic activity to another. It connects producers and consumers, connects members of society. Through exchange, a system of economic relations is formed.

Exchange methods may vary. In ancient times it prevailednatural exchange. It became necessary in conditions of social division of labor (into agriculture, cattle breeding and crafts) and specialization. People who produced diverse products were forced to exchange the products of their labor in order to more fully satisfy their material needs. When exchanging, it was necessary to compare the value and utility of the exchanged items so that the interests of each party were not infringed. Measuring the values ​​of things in natural exchange presented a very difficult problem. How, for example, can you determine how many clay pots you can get for a cow? Therefore, over time, objects that were equally valued by most people began to be used to measure the value of things. This is how they appearedmoney, and with themmoney exchange.

At first, various things acted as money: animal skins, livestock, shells, grain, etc. To this day, some relict tribes use such items as money. The inconvenience of such money was its fragility and loss of useful properties over time. Thus, the skins gradually wore out, and livestock could get sick and die. Real money has been replaced bymetal. They were more durable and could be divided into parts. At first the metal was used in ingots. To pay for an inexpensive purchase, a piece was cut from the ingot, which had to be weighed to determine its value. In Rus', the main unit of payment was the hryvnia (about 400 grams of silver). Quite often it was a hoop worn around the neck. To pay for goods, it could be divided in half (cut), hence the name “ruble.”

Constantly dividing metal ingots and weighing cut pieces was also not entirely convenient. That's why they appearedcoins - metal money with a strictly fixed weight and value. In most cases, coins were and still are disk-shaped. On each of its sides there were some images minted. Most often these were the faces of monarchs, state emblems, as well as various inscriptions. Coins were quite common money for many centuries until the 18th century. didn't show uppaper money. They are more convenient because they are lighter in weight than metal ones and take up much less space. Paper money is still widespread today. But despite the convenience, they also have disadvantages. Metal money (gold, silver) isreal money, they are unlikely to ever lose value. Paper money is calledsymbolic. Their real value is equal to the cost of paper and printing services used for them. At the same time, the formal value of money is determined by itspar value those. the amount indicated on the bill.

Paper money, for all its advantages, gave rise to a lot of problems. They are easy to fake. Modern printing technologies make it possible to copy even the most advanced security measures. Another problem is the wear and tear of banknotes. The state is forced to constantly remove old banknotes from circulation and replace them with new ones.

The release of new batches of paper money is called emission. The state strictly controls this process, granting the right to issue to one or more banks. In accordance with Article 75 of the Constitution of the Russian Federation, money issuance is carried out exclusively by the Central Bank of the Russian Federation.

The amount of paper money in the country must correspond to the volume of commodity supply and the gold and foreign exchange reserves of the state.The overflow of the sphere of circulation with paper money, causing its depreciation, is called inflation. As a result of the fall in the purchasing power of money, prices for goods and services increase, and the standard of living of the population decreases. Inflation became a common phenomenon of the 20th century. Its slow pace is acceptable and is taken into account when drawing up the state budget. According to the pace of development, they are distinguishedmoderate inflation (up to 10% per year),galloping (up to 200% ) And hyperinflation (up to 1000%). To avoid high rates of inflation, the state must constantly control money circulation.

Nowadays, along with paper documents, they are becoming increasingly important.electronic money. They operate in the form of non-cash payments, i.e. transfers of money from one bank account to another. One form of electronic money is represented by credit cards in the form of a personal monetary document issued by a credit institution (bank), identifying the owner of a bank account and giving him the right to purchase goods and services in retail trade without paying in cash. Credit cards appeared in the 1950s. and have become a fairly common means of payment today. The credit card owner does not have to carry money with him. When purchasing a product, the required amount is withdrawn from his account, and if cash is needed, it can be obtained through an ATM.

Regardless of its form, money has common characteristics and performs the same functions.Signs of money are their portability (take up little space)uniformity (equal value of similar bills),stability (same cost over time) andrecognition (difficulty of counterfeiting).

Money fulfills threeFeatures: serve as a means of circulation, a measure of value and a means of accumulation. Asmeans of circulation money acts as a means of payment in the exchange of goods. When purchasing an item, the buyer pays money for it; the seller, having received the money, pays for goods and services, etc. The faster money circulates, the less money supply there is in the country and, accordingly, the less likelihood of inflation. Speaking asmeasure of value, money acts as a unit of account, a universal equivalent, thanks to which the cost of all goods and services can be compared. Howstore of value money comes into play when it is not spent, but put aside in order to accumulate the necessary amount to buy an expensive item or for a “rainy day.”

With the development of monetary exchange there appearsmarket. This word has several meanings. In a broad sense, a market is a place where the purchase and sale of goods and services takes place. Depending on the type of goods, grocery, automobile, radio markets, etc. are distinguished, and according to the form of trade - wholesale and retail.

From the point of view of economic sciencemarket - This is a form of economic relations between consumers and producers in the sphere of exchange, a mechanism for interaction between buyers and sellers of economic goods. The market serves production, exchange, distribution and consumption. For production, the market supplies the necessary resources and sells its products, and also determines the demand for it. For exchange, the market serves as the main channel for the sale and purchase of goods and services. For distribution, it acts as the mechanism that determines the amount of income for owners of resources sold on the market. Through the market, the consumer receives the bulk of the consumer goods he needs. Finally, the market determines the price, which is the main indicator of a market economy.

Price - It is a monetary expression of the value of goods and services. The process of applying foam to a product is calledpricing. Of course, the seller can set the price arbitrarily. But if the price is too high, the product will not be bought, and if it is below cost, the entrepreneur will go bankrupt. The pricing process is influenced by many objective factors: the ratio of supply and demand, rarity (scarcity) and prestige of the product, the possibility of replacing the product with a similar one, the degree of its need.

Prices come in several types: wholesale and retail, domestic and world. But regardless of the type of price, they perform the samefunctions. Price informs (informing function) buyer Ohow much money the seller wants to receive for the product. This information guides(orienting function) buyer in choosing a product and determines the demand for it. An increase in the price of a product stimulates the manufacturer to produce products(stimulating function), and an increase in demand for a product with a decrease in price encourages the manufacturer to reduce costs(resource-saving function). Finally, price changes helpredistribution To anuma l a (distribution function) from one sector of the economy to another.

Conditions for the existence of the market are the division of labor, specialization, exchange, the presence of independent subjects of economic activity, freedom of entrepreneurial activity. based on private property. All this is regulated by generally binding rules of behavior - customs, traditions, laws. The market as a mechanism for interaction between buyers and sellers (the “big” market) consists of separate (“small”) markets - capital, labor, securities, currency, food, housing, insurance services, etc.

The market performs a number of functions. First of all thisinformation function. It manifests itself in determining prices for goods and services, supply and demand for them.Regulatory function manifests itself in changes in the structure of production and regulation of foams. introduction of new technologies, etc. The market acts as an intermediary between producers and consumers(intermediary function), allowing them to find the most profitable purchase and sale option.Stimulating function aims the manufacturer to improve production efficiency.

Buyers and sellers in the market constantly exchange money for goods and vice versa.A product is a product of labor that satisfies some need and is intended not for the manufacturer’s own consumption, but for sale.

An important property of a product is itsutility, those. the ability to satisfy any consumer need. The consumer evaluates the degree of benefit from consuming goods and builds for himself a scale of usefulness of each of them. People's needs are very different from each other. At the same time, there are objective circumstances that force everyone to buy this or that product. In economics it is formulatedlaw of diminishing marginal utility, According to which, as consumption of a good increases, its utility decreases. For example, when a person wants to eat, the first portion of food will have a high degree of usefulness for him, the second - less, the third - even less, and finally, when a person is full, the remaining food will have a minimal degree of usefulness in his eyes. Another quality of the product is itsvalue (cost). Value is understood as the consumer’s monetary assessment of the usefulness of a good.

The formation of market prices occurs in the process of interaction between producers (sellers) and consumers (buyers), pursuing diametrically opposed goals. This process is in most cases associated withcompetition - rivalry between market participants. Competition can be a struggle both for economic resources and for establishing a stable niche in the market. The advantage of competition is this. that it makes the allocation of scarce resources dependent on the economic arguments of competitors. You can usually beat the competition by offering goods of higher quality at a lower price. That's whyrole of competition lies in the fact that it contributes to the establishment of a certain order in the market, guaranteeing the production of a sufficient quantity of high-quality goods that are sold at an equilibrium price.

There are such types of competition as perfect and imperfect. Atperfect competition There are many small firms offering homogeneous products on the market. The consumer himself does not care from which company he purchases these products. The share of each firm in the total market supply of a given product is so small that any of its decisions to increase or decrease the price does not affect the price of similar goods from other manufacturers. The emergence of new firms in the industry does not encounter any obstacles or restrictions. Exit from the industry is also absolutely free. There are no restrictions on the access of a particular company to information about the state of the market, prices for goods and resources, costs, quality of goods, production techniques, etc.

Imperfect competition associated with a noticeable restriction of free enterprise. Such competition occurs when the number of firms in each field of business activity is small. Any group of entrepreneurs (or even one entrepreneur) can arbitrarily influence market conditions. Penetration of new entrepreneurs into the market is difficult. There are no substitutes for products produced by privileged manufacturers.

An intermediate type of competition ismonopolistic competition. It represents a type of market in whichin which a large number of small firms offer diverse products. Entering and exiting the market is usually not associated with any difficulties. There are differences in the quality, appearance and other characteristics of goods produced by different firms that make these goods somewhat unique, although interchangeable.

The opposite of competition is monopoly. In a monopoly, there is only one seller of a given product that has no close substitutes. Strict barriers are put in place for other firms to enter the industry.

If the buyer is in the singular, then such competition is calledmonopsonies. IN In some industries, there is a bilateral monopoly, when there is one seller and one buyer on the market for a certain product. For example, in the field of military production, the customer is the state, and the supplier is a single company.

Pure monopoly and pure monopsony are relatively rare phenomena. Much more often in a market economy it developsoligopoly, which presupposes the existence on the market of several large firms producing both homogeneous and heterogeneous products. Entry of new firms into the industry is difficult. The peculiarity of oligopoly is the mutual dependence of firms when making decisions on prices for their products.

Within the framework of a market economy, it becomes important to protect the competitive environment in order to achieve an optimal combination of various types of competition and prevent the suppression of some economic entities by others. This task is performed by the state, which pursues antimonopoly policy by enshrining the rules of economic activity in laws.

The most important elements of the market mechanism are supply and demand. Demand - This is the intention of buyers to purchase a given product at a given price, supported by monetary opportunity.In market conditions it works law of demand according to which, under equal conditions, the demand for a product is higher, the lower the price of this product, and vice versa, the higher the price, the lower the demand for the product. Demand largely depends on the consumer’s income and on prices for goods similar in purpose and quality.

The law of demand works in conditions of stable economic development. It does not operate in situations of rush demand caused by an expected increase in prices. The law of demand does not apply to antiques, luxury goods, i.e. for those goods that act as a means of accumulation, as well as for those cases when demand switches to technologically new goods.

The change in the quantity of a good that buyers are willing and able to buy in response to a change in price is calledchanges in the quantity of demand. If the price of a product decreases, then the quantity demanded for it increases, and vice versa. In addition to price, demand is influenced by the income of the population, changes in its structure (by age, professional and other characteristics), changes in prices for other similar goods, as well as changes in fashion, tastes, habits.

Offer - This is the seller’s intention to offer his product for sale within a certain period of time at all possible prices for it. Active on the marketlaw of supply is that, under equal conditions, the higher the price of this good, the higher the price of this good, the higher the quantity of goods offered by sellers, and vice versa, the lower the price, the lower the quantity of its supply. In addition to price, other factors also influence supply. For example, a decrease in production costs leads to an increase in supply.

Demand ratio And offers forms equilibrium market price, which tends to establish itself at a level at which demand equals supply.

Market economies are the most common type of economic systems in the modern world. It is in market conditions that it is possible to most fully realize one’s entrepreneurial abilities and satisfy the necessary needs.

Questions and tasks

What is an exchange? What methods of exchange have existed in human history?

What forms of money were accepted in the past? What are their advantages and disadvantages?

What is inflation? What are its types? How does inflation affect economic development?

Describe the signs of money.

What functions does money perform?

In what meanings is the word “market” used? What is a market from the point of view of economic science?

What is the price? What influences the pricing process?

Name the functions of the market.

What is a product? What are its properties?

How are the relationships between producers and consumers carried out? What role does competition play in this?

What is the difference between perfect and imperfect competition? What is the opposite of competition?

12 What is the relationship between price, supply and demand? Formulate the laws of supply and demand.