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 subject of the economy? How can knowledge about him help? Answers to all of these, as well as to 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 involves creative activity. In other words, a certain 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 field - this is the sphere of interest of 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 satisfy his needs, or uses them directly in order to create a comfortable existence for himself. Moreover, the differences between them are very insignificant, which can cause certain difficulties in identification. But what then should we do if we have a desire to understand what, say, are the objects of the world economy?
Consumer activity
By this is meant sleep and food. Strange, right? Let's see why they are objects of the global 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, 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 question becomes important: how to distinguish labor and work if the differences between them are not cardinal in the content of the process itself? The cornerstone here is the goal. Thus, consumption satisfies needs, while labor develops things and consumption criteria. An interesting relationship follows from this. More specifically, labor is a source of satisfying needs, but at the same time, it is not a synonym for consumption. Although, in this way, he loses a negative characteristic and transforms into something pleasant. The presence of various goals in externally similar actions can be used to characterize the choice of people of different work organization and means that are used to complete the task. All this can take optional and isolated forms. Why? An elementary question. This is due to the fact that each individual can determine his own goals for himself, 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.) is carried out in the category. Such complex cooperation also puts forward demands on the organization of work. Moreover, the structure of the system is built in such a way as to minimize costs. Although, this process is not always optimal, from a public point of view, he always strives for this state of affairs.
Specificity
The economy is a world of work that simultaneously pursues the realization of a double goal. The first part is the creation of a specific product or the provision of services, the second is the minimization of costs. At the same time, the set labor goals vary. So, in one case, they can be aimed at satisfying 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. Most often, this can be found when filling and exaltation of human essence. This primarily applies to science, education, culture, art, legal work, and less to politics and religion. Moreover, 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 generates certain utilities, thanks to which something positive can be embodied in reality. In addition, this contributes to self-expression and satisfaction of the internal need to develop, simultaneously transforming oneself and the environment. In this case, of great importance is the same thing that allows for the functioning of economic facilities — minimization of costs. In theoretical science, this aspect is expressed in the form of law. For a better understanding of the topic, it should be noted that economic theory is not only descriptive in nature and useful as a kind of database, but also acts as a theoretical platform for implementing financial policy and its legal framework. And as an addition - it serves as the basis for management at the micro and macro levels, acting both as 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 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 very object of the economy itself can be divided into several important parts. And we will start with natural unemployment. Classical economics gives its definition to this phenomenon. But in a number of countries there is a flexible employment system and the practical result has led to the fact that these data have been modified. Together with them, the so-called delay effect, which appears when trying to regulate the economy, is also considered. Thanks to him, the views on state intervention were revised. We are starting to consider potentially dangerous objects of the economy from the point of view of stability in the development of the economic sector, but it should be understood that all most dogmas are quickly becoming obsolete. Therefore, the requirement of the theory of universality looks about as elusive as the desire to create a self-assembled tablecloth or 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 are trying 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. At the same time, during the detailed study, additional objects are highlighted.
Detail
Considering science as a single data array is useful, but exploring it all is extremely inefficient. To improve the performance, they carry out detailing and separate objects. Then the choice of what and how to do will depend on its features and the goals pursued. By the way, you should always remember that even getting a negative result is still at least some kind of fruit of the search. In this case, hypotheses have a significant benefit. Depending on the stage of the study, they can be scientifically based or workers. If you focus on their content, then the hypotheses are divided into descriptive, explanatory and predictive. The former 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 exactly 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 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 mentioned. So, if the solvency of the population is growing, then there is an increase in total income and consumption rates.
Micro level activities
So, we already know that the object of studying economics is economic activity. Now let's talk about specific levels. There are three of them: micro, meso and macro. The first and third levels are of most interest to us, therefore 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 an 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 support the implementation of its business cycle. In the second, they are interested in having the most qualified and diligent employees work for it, and at the same time they are paid the lowest possible wage. Full fulfillment of these criteria is not possible. But there may be a shift in one of the sides. So, if the country has a high level of unemployment, it is much easier to attract a qualified specialist for a relatively low amount. But globalization is making adjustments to familiar processes. So, now a large number of people have the opportunity to easily go abroad or to another part of the country. All this must also be taken into account. Therefore, despite the fact that the object of economic research is activity, because of its diversity, study to the end is now not possible due to the numerous processes of change.
Macro level activities
So, the next subtitle continues to be revealed. The macro level is the sphere of interaction between industries, the national economy or entire states. In such cases, the characteristic of economic objects can be formed, depending on what the conversation is about. Let's take a look at 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 out of them. Nearby there is another country. She has no resources, but there are technologies and qualified personnel. In such cases, an agreement may be created to engage with governments. So, 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 manufacturing and general guidance. In this case, everyone will benefit. This applies to economic objects that work according to existing rules and do not try to deviate from them. If you try to get certain preferences or even get away from the guardianship of the legislation, gray or black business sectors and markets arise. Here a lot 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 interfere with the legal conduct of business. And for their circumvention, a certain reward is required. High taxes simply lead to the fact that entrepreneurs lose the incentive to conduct their activities legally.
About activities and forecasts
To avoid the negative and inglorious end, any subject should plan his activities. But something must be based on these calculations, 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 agreements not yet concluded. So, there is an enterprise in a vacuum. It is currently working with two other companies. An agreement has already been signed with one for the supply of manufactured products for the next year. It can be easily recorded in the plan of activities. Confident cooperation is observed with the second company. But there is no agreement for the future. Should they be written down in the plan for next year? After all, there is no guarantee that they will not be enticed by competitors, and the source of income will be lost. And in this case, problems may arise in the activity. You can take a chance and consider them as your customers. But it is advisable to prepare a backup plan. Before making a decision, you should find out the prices that competitors offer. This will allow you to navigate more successfully. Additionally, you can consider such an object of the economy, as the activities of the enterprise and from the point of expansion. That is, an increase in activity can be predicted. It should be understood that this data cannot be taken from scratch. First of all, there should be potential customers in the market. Then it is necessary to perform certain actions in order to interest them. This can be as simple as sending out packages of documents with proposals for cooperation, or as representing your own company at various large-scale exhibitions. But this is all a waste, which, accordingly, should also be included in the plan.
We are scientifically suitable
So, let's say you need to explore important objects of the economy. What they are is not very important for 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 the specific process that is going on is simply collected. In the future, they can be used to explain why everything goes this way. And knowing the reason, it will not be difficult to describe the expected consequences. When working with objects of the economy, it should strive to:
- Progressiveness - the constant pursuit of something new and better.
- Truthfulness - care should be taken to ensure that existing developments are consistent with the real situation in terms of usefulness and implementation.
- Criticism - seek to verify the result in terms of improving it to identify ineffective moments.
- Evidence - actions from scratch are fraught with high risk. You should use logic, knowledge, theory, and draw conclusions that are free from subjective thought and appreciation, as well as from various points of view, morality, culture, religion, and the like.
Rational activity, although it is 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 consensus. 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
On the whole, it is examined what constitutes an object of the economy in general terms. It should be noted that this is a rather interesting topic that can be explored for quite some time. But we have a restriction on the size of the article, so not everything will be told. And there’s still something to talk about. 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 me, their activity, although it is almost imperceptible, is nevertheless of considerable interest from a curious point of view. You can talk a lot about enterprises and processes that occur inside them or when interacting with external entities 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. It should be remembered that the data must not only be studied, but also applied. If you understand how the processes occur and in the laws of the world of entrepreneurship, you yourself can join the cohort of these respectable people. And since they started, then win!