The object of the economy - how much and at the same time little is revealed to us behind these simple words! What does it mean? Where is it used and what is the object of the economy? How can knowledge about it help? Answers to all these, as well as to a number of other questions, will be posted within the framework of this article.
General information
Economy is a clear form of human activity. Therefore, in order to truly understand the essence of an object, we need to define it within the framework of a system of other types of work. Initially, it should be noted that a person can be involved in two types of activities. The first involves creative activity. In other words, a certain amount of work. Whereas the second activity is consumption. Based on this, we can conclude that the object of the economy is the economic life of the community. In the scientific plane, this is the area of interest of financial theory and related disciplines. That's what is the object of the economy. But this is only a general description. Whatever a person does during his life, he either creates the means to satisfy his needs, or directly uses them in order to create a comfortable existence for himself. At the same time, the differences between them are very insignificant, which can cause certain difficulties inidentification. But what should we do then, if there is a desire to understand what, say, the objects of the world economy are?
Consumer Activity
This means sleep and food. Strange, right? Let's see why they are objects of the world economy. The fact is that when explicit criteria are used, they are indeed specific types of work. So, for example, when the body is in a long state of rest, the psychophysiological reaction is continuously tested. While eating food, a person performs primitive operations with his hands and jaw, aimed at satisfying needs. Then the question becomes important: how to distinguish labor and work, if the differences between them are not cardinal in terms of the content of the process itself? Goals are the cornerstone here. Thus, use satisfies needs, while labor develops things and criteria for consumption. An interesting relationship emerges from this. More specifically, labor is a source of satisfaction of needs, but at the same time it is not a synonym for consumption. Although, in this way, it loses its negative characterization and is transformed into something pleasant. The presence of different goals in apparently similar actions can be used to characterize the choice of people of different organization of work and the means that are used to complete the task. All this can take optional and separate forms. Why? Elementary question. This is because each individual candefine goals for yourself on your own, without the influence of other people, communities and systems. At the same time, during the creation of criteria and mass things, an active generalization of the inhabitants of the planet (country, city, region, etc.) into categories is carried out. Such complex cooperation also puts forward requirements for the organization of labor activity. At the same time, the structure of the system is built in such a way as to minimize costs. Although this process is not always optimal, from a social point of view, it always strives for this state of affairs.
Specifics
Economy is a sphere of work, which simultaneously pursues the realization of a double goal. The first part of it is the creation of a specific product or the provision of a service, the second is the minimization of costs. At the same time, the set labor goals differ. So, in one case, they can be aimed at satisfying the already existing needs of individuals or entire communities. It is also possible that it will be directed towards the formation of something new. Most often, this can be found when filling and ex alting the human essence. This primarily applies to science, education, culture, art, legal work, and less to politics and religion. At the same time, despite the activity of the formation and transformation of needs, it should be noted that they will not be satisfied. Although such non-economic labor still forms certain utilities, thanks to which something positive can be embodied in reality. In addition, it contributes to self-expression and satisfaction of the inner need to develop, in paralleltransforming yourself and your environment. In this case, the same thing that makes it possible to ensure the functioning of economic objects is of great importance - cost minimization. In theoretical science, this aspect is expressed in the form of a law. For a better understanding of the topic, it should be noted that economic theory is not only descriptive and useful as a kind of database, but also acts as a theoretical platform for the implementation of financial policy and its legal and regulatory design. And as an addition, it serves as the basis for management at the micro and macro levels, acting both as a foundation and a philosophy of knowledge of economic activity.
Begin to consider the object of the economy
So, we already know that within the framework of the article, the most interesting for us is the economic life of society with its financial system, for which the goal is profit based on public utility or well-being. The economic object itself can be divided into several important parts. Let's start with natural unemployment. Classical economics gives its own definition of this phenomenon. But in a number of countries there is a flexible system of employment and the practical result has led to the fact that these data have been modified. Together with them, the so-called lag effect, which appears when trying to regulate the economy, is also considered. Thanks to him, views on state intervention were revised. We begin to consider potentially dangerous objects of the economy, from the point of view ofstability of the development of the economic sector, but it should be understood that most of the dogmas quickly become obsolete. Therefore, the requirement from the theory of universality looks about as difficult to achieve as the desire to create a self-assembled tablecloth or a perpetual motion machine. So, if we talk about the objects of the social economy, then inflation deserves attention here, or rather its causes. A large number of theories have been put forward that try to understand this process. Some of them offer rather strange explanations, such as dependence on solar activity, and there are more familiar ones, such as monopolization, business growth and economic cyclicality. At the same time, during a detailed study, additional objects are highlighted.
Details
Viewing science as a single body of data is useful, but exploring it all is extremely inefficient. To improve performance, detailing is carried out and individual objects are singled out. Then the choice of what and how to do will depend on its characteristics and the goals pursued. By the way, you should always remember that even getting a negative result is still at least some fruit of the search. Hypotheses are of great help. Depending on the stage of the study, they can be evidence-based or working. If you focus on their content, then the hypotheses are divided into descriptive, explanatory and prognostic. The first are created in cases where it is necessary to define characteristic features. So, for example, we are interested in the principles of sustainability of economic objects, that is,why everything is exactly the way it is at the moment on a planetary scale. For example, let's return to the same inflation. So, its indicator should be small, preferably a single percentage value. But if hyperinflation is observed, then this indicates that the objects of the economy have, potentially, low stability. Also, as an example, other causal relationships can be touched upon. So, if the solvency of the population grows, then there is an increase in total income and consumption rates.
Micro level activities
So, we already know that the object of study of the economy is economic activity. Now let's talk about specific levels. There are three of them: micro, meso and macro. For us, the first and third levels are of greatest interest, so they will be considered. First, we will focus on the micro level, that is, enterprises, households and specific markets. In this case, the concept of the object of the economy refers directly to what affects the subjects. So, as an example, we can cite the unemployment rate in a particular city. Enterprises are very interested in the availability of markets for manufactured products and skilled workers for their manufacture. In the first aspect, the company can maintain the implementation of its business cycle. In the second, they are interested in the fact that the most qualified and diligent employees work for it, and at the same time they are paid the lowest possible wages. Full fulfillment of these criteriaimpossible. But there may be a shift to one side. So, if the country has a high unemployment rate, it is much easier to attract a qualified specialist for a relatively low amount. But globalization makes its own adjustments to the usual processes. So, now a large number of people have the opportunity to easily go abroad or to another part of the country. All this also needs to be taken into account. Therefore, despite the fact that the object of study of the economy is activity, due to its diversity, the study to the end is now not possible due to the numerous processes of change.
Macro activity
So, continues to reveal the next subheading. The macro level is the sphere of interaction between industries, the national economy or entire states. In such cases, the characteristics of the objects of the economy can be formed, depending on what the conversation is about. Let's take a small example. There is one country that has significant reserves of resources. But she does not have the technology and qualified personnel to make the required products from them. There is another country nearby. It has no resources, but it has both technology and qualified personnel. In such cases, an engagement arrangement could be established with the involvement of governments. Thus, the second state sends specialists from itself who help to create production and produce the necessary products that will be sold in both countries. The former will supply resources. The latter will provide production and general guidance. Whereineveryone will win. This applies to objects of the economy that work according to existing rules and do not try to deviate from them. In the case of an attempt to obtain certain preferences or even to get away from the tutelage of the legislation, gray or black economic sectors and markets arise. Here much depends on how effective the principles of sustainability of economic objects are used. So, if we talk about a spherical state, then at the macro level, the greatest danger in terms of such a transformation is corruption and high taxes. In the first case, artificial barriers are created for business entities that prevent them from doing business legally. And for their circumvention, a certain reward is required. High taxes just make entrepreneurs less motivated to operate legally.
About activities and forecasts
To avoid a negative and inglorious end, any subject must plan their activities. But these calculations should be based on something, right? For this, data collection, analysis and forecasting are used. With their help, the foundation for the plan is laid. The object of forecasting in the economy is, as a rule, future activity. In this case, plans can be built on the basis of existing agreements or on contracts that have not yet been concluded. So, there is an enterprise in a vacuum. It is currently working with two other companies. One has already signed a contract for the next year on the supply of manufactured products. It can easily be writtento the action plan. There is a confident cooperation with the second company. But there is no contract for the future. Should they be included in the plan for next year? After all, there is no guarantee that they will not be lured by competitors, and the source of income will be lost. And in this case, there may be problems in the activity. You can take a chance and consider them as your clients. But it is advisable to prepare a backup plan. Before making a decision, you should find out the prices offered by competitors. This will allow you to navigate more successfully. Additionally, you can consider such an object of the economy as the activity of the enterprise and from the point of expansion. That is, it is possible to predict an increase in the volume of activity. It should be understood that this data cannot be taken from scratch. First of all, there must be potential customers in the market. Then you need to take certain actions to interest them. This can be as simple as sending out packages of documents with proposals for cooperation, or presenting your own enterprise at various large-scale exhibitions. But these are all expenses, which, accordingly, should also be included in the plan.
Scientific fit
So, let's say we need to explore important objects of the economy. What they are is not very important to us. Let's create a simple simplified model of actions. So, initially it should be noted that they can be approached from the standpoint of description, explanation and prediction. In the first case, data about a certain process that is going on is simply collected. ATthey can later be used to explain why things are going the way they are. And knowing the cause, it will not be difficult to describe the expected consequences. When working with objects of the economy, you should strive for:
- Progressiveness - the constant pursuit of something new and better.
- Truths - you should make sure that the existing developments correspond to the real state of affairs in terms of usefulness and implementation.
- Criticism - strive to check the result in terms of its improvement to identify ineffective moments.
- Evidence – acting from scratch is high risk. One should use logic, knowledge, theory, and draw conclusions free from subjective reflection and evaluation, as well as from different points of view, morality, culture, religion, and the like.
Rational activity, although somewhat problematic in terms of efficiency and costs, but allows you to make more profitable decisions in the long run. In this case, one interesting aspect should be noted. If we talk about the current state of affairs, then there is no unanimity. In other words, the features of interaction are constantly changing, ongoing processes are improving and improving, new views and approaches to the same things and to the same problems arise.
Conclusion
Here, in general, it is considered what the object of the economy is in general terms. It should be noted that this is a rather interesting topic, whichcan be explored for quite some time. But we have a limit on the size of the article, so not everything will be told. And there is more to talk about. You can consider a large number of both purely theoretical and practical issues. Thus, attention can be paid to the economy of households and communities. Believe me, their activity, although almost invisible, is nevertheless of considerable interest from an inquisitive point of view. You can talk a lot about enterprises, the processes that take place inside them or when interacting with external subjects of economic activity. There are a large number, depending on our point of view, of economic objects that are of interest for study and / or practical implementation. At the same time, it should be remembered that data must not only be taught, but also applied. If you understand how the processes take place and in the laws of the world of entrepreneurship, then you can join the cohort of these respectable people yourself. And once you've started, then win!
