"ECONOMIC THEORY"

SUBJECT AND DUTIES

Its role in the life of the economy and society

It is well known that all living things, including humans, have to consume food in their daily activities in order to survive and thrive. In the early days of human development, human beings, like other living beings, found the food they needed in nature, mostly in a ready-made form. Later, an increase in the number and demand of people led to food shortages.

In addition to food, a person has to wear clothes, an apartment, and so on. There is a need for such means of subsistence. Therefore, people have to influence nature in various ways and means in order to obtain food and so on. They domesticated wild animals, cultivated wild plants, made various tools, and so on.

Man is not only a living being, but also a social being. Therefore, in addition to food, she needs housing, clothing, household items, and so on. Due to the development of society, people's needs are constantly changing, diversifying and at the same time becoming more complex. In addition to material needs, people feel the need for spiritual needs and various services.

The material and spiritual goods that people need are produced in various fields (industry, agriculture, construction, etc.). The sum of these areas is called the economy. The main task of the economy is to produce the material goods and services necessary for the members of society. The economy is the basis of any society, its "backbone". It is a basic condition for the development of society. Thus, as society develops, people's needs increase and different needs arise. To meet all this, the economy must constantly develop. Developing the economy is creating new needs. This cause-and-effect relationship is constant, and it develops society from the lowest to the highest levels.

The main problem of the economy is no ?, how much ?, and sometimes for whom? consists of producing. What? How much? The answer to their questions is clear to everyone. For whom? that is, the activity of production to meet the needs of which class (rich, poor, civil, military, etc.).

In addition to the areas that produce material goods and services, the economy also includes areas that produce intangible services. These include science, education, health, culture and so on. belongs to. As society develops, the number of people working in these fields and the services they provide increases. The rapid development of these areas is a positive thing, a progressive trend. At the same time, the spheres of material production are decisive and leading. Thus, on the one hand, these areas produce material goods and services necessary to meet the necessary physical needs of people, and on the other hand, these areas play a key material role for areas that produce non-material services.

It should be noted that the economy is closely linked with the human factor. Thus, on the one hand, it is a basic condition of the human production process. This is because it is not possible to produce material goods and services without activating one's physical and mental abilities. On the other hand, the main purpose of the economy is to produce the goods and services necessary to meet the needs of the people.

According to the scope of the economy, it manifests itself in the forms of micro, macro, meso and mega-economies.

Microeconomics means the economy of individual households, firms and production units.

Macroeconomics refers to the aggregate of the country's overall economy. The main indicators of macroeconomics are - Gross Domestic Product, national income, inflation, balance of payments and so on. Meso-economics is economics covers different areas of the diet that are closely related to each other. For example; agro-industrial complex, military-industrial complex, fuel and energy complex, etc.

Megaeconomics means the world economy

caught. The concepts of open, closed and hidden economy can also be found in the economic literature and in the media. In an open economy, more than 10% of the national product is exported. In addition, the open economy, along with trade in goods, includes the movement of factors of production, information, the free exchange of national currencies, and so on. It is intended. In a closed economy, the country's economy is closed to the subjects of other countries, they can not operate freely. In a closed economy, economic relations between countries are carried out only by government agencies. The shadow economy means an economy outside the legal laws and regulations. Its specific gravity varies from country to country. This weight is 3-10% in the United States and 3-9% in the United Kingdom. It can be up to 30% in Italy and Russia, and up to 60% in developing countries. Theft, drug trafficking, smuggling, production and sale of non-standard products, tax evasion, etc. enter the shadow economy. income received through.

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