What is the object of the economy?

The object of the economy is 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 help him? The answers to all these questions, as well as a number of other questions, will be posted within the framework of this article.

general information

Economics is a clear form of human activity. Therefore, for a correct understanding of the essence of the 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 provides for creative activity. In other words - a certain work. Whereas the second activity is consumption. Proceeding from this, it can be concluded that the object of the economy is the economic life of the community. On a scientific level, this is the sphere of interest in financial theory and related disciplines. That is the object of the economy. But this is only a general description. Whatever a person does during his life, he either creates means to meet his needs, or directly uses them to create a comfortable existence. However, the differences between them are very insignificant, which can cause certain difficulties in identification. But what should we do if there is a desire to understand what are, say, the objects of the world economy?

Consumer activity

This means sleep and food. It's strange, is not it? Let's see why they are objects of the world economy. The fact is that when using explicit criteria, they really are specific types of work. So, for example, when the body is in a long state of rest, then the psychophysiological reaction is continuously tested. During eating, a person performs primitive operations with his hands and jaw, aimed at meeting the needs. Then the important question becomes: how to distinguish between work and work, if the differences between them are not cardinal in the content of the process itself? As a cornerstone here are the goals. So, use satisfies needs, whereas labor develops things and consumption criteria. This leads to an interesting relationship. And more specifically, labor is a source of satisfying needs, but it is not a synonym for consumption. Although, thus, he loses the negative characteristic and is transformed into something pleasant. The presence of various goals in outwardly similar actions can be used to characterize the choice of people by the different organization of work and the means that are used to accomplish the task. All this can take optional and isolated forms. Why? An elementary question. This is due to the fact that each individual can define goals for himself independently, without the influence of other people, communities and systems. Simultaneously, while creating criteria and mass things, an active generalization of the inhabitants of the planet (countries, cities, regions, etc.) in the category is carried out. Such complex cooperation also puts forward demands for the organization of labor activity. At the same time, the structure of the system is constructed in such a way as to minimize costs. Although, this process is not always optimal, from the public point of view, to this state of affairs, he always seeks.

Specificity

The economy is the sphere of labor, which simultaneously pursues the realization of a double goal. The first part is the creation of a specific product or service, the second - the minimization of costs. At the same time, the set labor goals differ. So, in one case, they can be aimed at meeting the already existing needs of individual individuals or entire communities. It is also possible that it will be aimed at the formation of something new. More often it can be met with the filling and exaltation of 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 active development and transformation of needs, it should be noted that they will not be satisfied. Although such non-economic work still forms certain usefulness, due to which there can be something positive embodied in reality. In addition, it promotes self-expression and satisfaction of the inner need to develop, while simultaneously transforming oneself and the environment. In this case, the same is of great importance, which makes it possible to ensure the functioning of economic objects - minimizing costs. 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 has not only a descriptive character and is useful as a kind of database, but also serves as a theoretical platform for implementing financial policy and its regulatory and legal design. And as a complement - serves as a basis for management at the micro and macro levels, acting at the same time and the foundation, and the philosophy of knowledge of economic activity.

We begin to consider the object of the economy

So, we already know that within the framework of the article the most important for us is the economic life of the society with its financial system, for which the goal is profit based on public utility or well-being. The very object of the economy can be divided into several important parts. And we will begin with natural unemployment. The classical economy gives its definition to 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 attempts to regulate the economy, is also considered. Thanks to him, the views on state intervention were revised. We begin to consider potentially dangerous objects of the economy, from the point of view of the stability of the development of the economic sector, but it should be understood that all the majority of dogmas quickly become obsolete. Therefore, the requirement of the theory of universality looks roughly the same as it is difficult to achieve, like the desire to create a tablecloth or a perpetual motion machine. So, if we talk about the objects of the social economy, then attention deserves inflation, 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 like monopolization, growth of business activity and cyclical economic development. In this case, during the detailed study, additional objects are allocated.

Detailing

Considering science as a single data array is useful, but it's extremely inefficient to investigate it all. To improve the 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 objectives pursued. By the way, it should always be remembered that even obtaining a negative result is still at least some fruit of the search. Hypotheses play a significant role in this. Depending on the stage of research, they can be scientifically based or work. If you focus on their content, then the hypotheses are divided into descriptive, explanatory and prognostic. The first are created in those cases when it is necessary to give a definition for characteristic features. So, for example, we are interested in the principles of sustainability of economic objects, that is, why everything is so at the moment on a global scale. For example, let's return to the same inflation. So, its indicator should be small, preferably an unambiguous percentage value. But if there is hyperinflation, it means that the objects of the economy have, potentially, low stability. Also, as an example, you can touch on other cause-effect relationships. So, if the solvency of the population grows, then there is an increase in aggregate income and consumption rates.

Activity of microlevel

So, we already know that the object of studying the economy is economic activity. Now let's talk about specific levels. There are three in total: micro-, meso- and macro-. For us, the first and third levels are of the greatest interest, so they will be considered. First, we will pay attention to the micro level, that is - to enterprises, households and specific markets. In this case, the concept of the object of the economy refers directly to what affects the subjects. For example, the unemployment rate in a particular city can be cited as an example. Enterprises are very interested in the availability of markets for manufactured products and skilled workers for its production. In the first aspect, the company can support the implementation of its business cycle. In the second, they are interested in having the most qualified and diligent employees working for it, and at the same time they are paid the minimum possible salary. Full implementation of these criteria is impossible. But there may be a shift to one side. So, if there is a high level of unemployment in the country, it is much easier to attract a qualified specialist for a relatively low amount. But globalization is making 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. This all must also be taken into account. Therefore, despite the fact that the object of the study of the economy is activity, because of its diversity, the study to the end now is not possible due to the numerous processes of change.

Activity of macrolevel

So, continues to disclose the following subtitle. The macro level is the sphere of interaction between industries, the national economy or whole states. In such cases, the characteristics of economic objects can be formed, depending on what is being talked about. Let us examine a small example. There is one country that has significant reserves of resources. But she does not have the technology and skilled personnel to produce the required products from them. There is another country nearby. She does not have the resources, but there are technologies and qualified personnel. In such cases, an agreement on cooperation with the involvement of governments can be created. So, the second state directs from itself experts who help to create manufacture and to make necessary production which will be realized in both countries. The first will supply resources. The latter will ensure the manufacture and general management. In this case, all will be in the win. This refers to objects of the economy that operate under 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 guardianship of legislation, gray or black economic sectors and markets arise. Here a lot depends on how effective principles of sustainability of economic objects are used. So, if we talk about a spherical state, then at the macro level, corruption and high taxes represent the greatest danger in terms of this transformation. In the first case, artificial barriers are created for business entities, which prevent legally conduct business. And for their circumvention requires a certain reward. High taxes simply lead to the fact that entrepreneurs lose the incentive to conduct their activities legally.

About activities and forecasts

To avoid a negative and ignominious end, any subject should plan its activities. But on some level these calculations should be built, 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, the plans can be based on existing agreements or on contracts not yet concluded. So, there is an enterprise in a vacuum. It is now working with two other companies. With one already signed a contract for the next year on the supply of manufactured products. It can easily be written down in the plan of activity. With the second company there is a confident cooperation. But there is no contract for the future. Is it worth writing them down in the plan for next year? After all, there is no guarantee that competitors will not entice them, 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 customers. But it is desirable and prepare a backup plan. Before making a decision, you need to know the prices that competitors offer. This will allow you to navigate more successfully. In addition, one 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 these data can not be taken from scratch. First of all, there should be potential customers in the market. Then you need to take certain actions in order to interest them. It can be as simple sending out of packages of documents with offers on cooperation, and representation of own enterprise on various scale exhibitions. But this is all waste, which, accordingly, must also be included in the plan.

We approach from the scientific point of view

So, let's say, it is necessary to investigate important objects of the economy. What they are, is not very important for us. Let's create a simplified model of actions. So, initially it should be noted that they can be approached from the position of description, explanation and prediction. In the first case, the data on a particular process that is being collected is simply collected. In the future, they can be used to give an explanation of why everything goes exactly this way. And knowing the reason, it will not be difficult to describe the expected consequences. When working with economic objects, one should strive to:

1. Progressiveness - constant adherence to something new and better.
2. Truths - it is necessary to follow that the available developments correspond to the real state of affairs in terms of utility and implementation.
3. Criticism - strive to check the result in terms of its improvement to identify ineffective moments.
4. Evidence - actions from scratch are fraught with high risk. You should use logic, knowledge, theory and draw conclusions that are free from subjective reflection and assessment, as well as from different points of view, morality, culture, religion, and the like.

Rational activity, although it is somewhat problematic in terms of efficiency and cost, but allows you to make more profitable decisions in the long term. It should be noted one interesting aspect. If we talk about the current state of affairs, then there is no unanimity. In other words, the features of interaction are constantly changing, the processes are improving and improving, new views and approaches to the same things arise and to the same problems.

Conclusion

Here, in general, and considered what the general outline of the object of the economy. It should be noted that this is a very interesting topic, which can be studied for a long time. But we have a limitation on the size of the article, so not everything will be told. And there's more to say. You can consider a large number of both purely theoretical and practical issues. So, you can pay attention to the economy of households and communities. Believe, their activity, although it is almost invisible, it nevertheless is of considerable interest from a curious point of view. You can talk a lot about enterprises, processes that occur inside them, or when interacting with external actors of economic activity. There is a large number, depending on our point of view, of economic objects that are of interest for study and / or practical implementation. It should be remembered that the data need not only be taught, but also applied. If you understand how processes take place in the laws of the world of entrepreneurship, you can join the cohort of these respectable people. And if you have started, then win!