Material wealth: definition, examples. Production of material goods is the basis of life in human society

1. The concept of production. Material and intangible production. Product of labor, its types

2. Resources and factors of production. Limited resources

and the problem of choice. Production possibility curve.

Opportunity cost.

To meet the ever-increasing needs of people

certain resources are required. Resourcesthis is owl

the totality of all the necessary conditions used to create

good; these are the capabilities that the

society ultimately meets its needs

news

Resources are divided into exhaustible And inexhaustible,

reproducible And irreproducible. Among the resources there are

are economic, considered from the point of view of limited

ness and rarity.

There are natural resources, i.e. given by nature(land and

its bowels, forests, waters); labor(people with their skills and abilities-

we are of working age); capital(means of production

property - means and objects of labor) (Diagram 2.4).

The resources involved in the production process take form -

mu factors of production. There are such factors of production

leadership, How work, land, capital, entrepreneurial ability

and information (Figure 2.5).

Labor processconscious purposeful activity

human, aimed at transforming the substance of nature for the sake of

satisfy your needs. The concept of “labor” is closely related

but with such concepts as “labor” and “person”. Working

strength is a person’s ability to work, a set of physical

and intellectual abilities realized in the process of work

howl activity. Human carrier work force. All these three

concepts characterize labor as a factor of production.

Capital as a factor of production it is means of production

stva, used in the production process. They include pre-

methods and means of labor. Labor tools- This thing or complex

things with which or with the help of which a person produces goods. Medium

labor conditions include tools, what a person directly

directly affects objects of labor (machines, equipment,

tools). The second element of the means of labor is material conditions

Via labor(buildings, structures, roads, bridges). Third - containers

(tanks, boxes, barrels) used for storing raw materials and go-

commodity products.

Objects of labor- this is what a person’s work is aimed at, or

that from which goods are produced. Objects of labor include

objects of labor, given by nature(land and minerals),

And raw materials(items that have been processed by humans and are intended for

designated for further processing). Raw materials, in turn,

divided by finished products(fit for final consumption

and intended for further processing), and semi-finished

You(objects of labor for final consumption are necessarily three-

upcoming improvements). Semi-finished products include pasta,

dumplings, flour, to finished products– milk, bread, apples.

Entrepreneurial ability is a human ability

what to do entrepreneurial activity. Enterprise

maternal ability includes such character traits:

take risks with your own capital; ability to connect

single factors of production; make decisions and bear responsibility for them

responsibility; always be in creative search.

Society's needs are limitless, but resources are limited.

Limited resources- a problem that everyone faces

economic entities - both poor and rich, and individual people,

both enterprises and countries. However, this problem is relatively

nal, not absolute character. Firstly, in the future the number

resources may change, and secondly, whatever the

Because of the resources, they still won’t be enough to satisfy everyone

unlimited human needs. In conditions of limited

resources, the subject always faces the problem of choice. But having chosen

one option for using the resource, the subject must refuse

from others, alternative options its use. Alter

native value- This the most preferred option

use of a limited resource from which it was necessary to

seem.

The problem of choice finds its expression in the production curve

natural capabilities (CPV) (diagram 2.6). Production curve

new opportunitiesis the locus of points (E, L, M,

F, etc.), showing many alternative options

maximum production of two goods with full utilization

availability of all resources. The curve has a descending shape, because for increasing

calculation of the production of one product, with constant resources, it is necessary

reduce production of another good. The curve has a convex

type, because resources are not completely interchangeable. And with more

increasing the production of one good, one must give up everything

more of the other, i.e. the opportunity cost increases.

Point D on the graph shows what is desirable but unattainable

given resources, the option of producing two goods. Point C

characterizes the option of incomplete use of resources when

there is chronic underload production capacity, without-

worker

Over time, when the amount of resources used changes

appears, the production possibilities curve may shift

left or right. When the amount of resources in a country increases

is growing (immigration, birth rates are growing, new deposits are being discovered

minerals), production possibilities curve

shifts to the right, indicating an increase in the production of goods.

In the event of a reduction in the number of resources used as a result

due to wars, natural disasters, epidemics, depletion of deposits

mineral production possibility curve

shifts to the left, which indicates a reduction in production volumes

production.

In order to exist, a person must be constantly satisfied

meet your needs, which requires certain

resources. Resources are limited, they are always not enough to satisfy

meet people's unlimited needs. Therefore, a person always

Yes, I am faced with the problem of choice. Disclosure of these issues will be

this topic is covered.

Need- This is a person’s need for something. Needs

must be distinguished from desires. There are classifications of need-

stay by various signs. By degree of priority satisfactory

satisfaction needs are divided into primary (in products

food, clothing, shoes, furniture) and secondary (in education, furniture)

medical services, tourism, etc.). By shape as required

divided into material (clothing, shoes, housing), spiritual

(books, music), social (in respect, in work). According to

ku saturation needs can be divided into satiable

(in food products, consumer durables)

vaniya) and unsaturated (in tourism, sports, self-development). From the point-

from the subject's point of view, individual needs are distinguished (from

efficient person), collective (groups of people, enterprises)

and public (needs of society as a whole for public

goods - museums, parks, lighthouses). By direction demand

ties are divided into personal (individual subjects in objects

consumption) and production (the needs of enterprises for

means of production), Consumables- these are the benefits that

which are used individuals to satisfy them

personal needs (food, clothing, housing,

durable consumer goods). Means of production

leadership is a set of means of labor (machines, equipment,

with the help of which goods and objects are produced

labor (raw materials, materials from which goods are produced). Medium

Two production products are consumed by enterprises (firms) in the process

all production of goods. By position in the hierarchical system

needs are divided into absolute, real,

potential, real, actual. Absolute needs

(highest level) represent the ideal, internal

incentive to consume. These are common needs in

clothes, food, spiritual development, etc. They exist throughout the

research on the entire history of human existence. Valid

needs(second level) are relative in nature

and they represent objective, that is, consciously meaningful,

human need for specific consumer goods

(consumer goods and services) necessary for expanded

efficient reproduction of the labor force and comprehensive development

personality. They characterize the general potential opportunities

ness of society. Real needs(third level) can

be satisfied at any given moment with the available opportunities

production capabilities and social conditions. Payment

capable needs(fourth level) - these are those needs

conditions, which in market conditions can be realistically satisfied

meet certain volumes of supply of goods and services,

and they are necessarily provided with cash coverage. Actually

what needs(the lowest, fifth level) determine -

by the volume of means of subsistence, which can practically

ensure the physical survival of a person (Diagram 2.1).

The most common in economic literature is

yes classification of needs according to A. Maslow(diagram 2.2). Sa-

The most important needs are physiological. These are basic needs

ness. Needs more high level- in safety. These

All living organisms have two types of needs. Needs

in social contacts, in respect - of a higher level, they

are unique to humans. The need for self-development is

highest.

The amount of needs is adjustable universal economic

the law of increasing needs(diagram 2.3). Accordingly

With this law, the magnitude and structure of needs determine

depends on the level of development of the productive forces.

The level of development of productive forces, in turn, depends

on the level of human development (his education, qualifications, cultural

tours) and means of production.

The amount of need also depends on education of people,

their level of income, environment, age, gender, etc.

Human history goes back thousands of years, but at all times man has needed and remains in need of air, water, clothing, and shelter. Everything that a person needs, how he satisfies his needs, is called goods.

Goods can be both things and actions that a person needs. In order to intelligently organize his life, a person needs to understand these benefits. Currently, the following benefits are distinguished:

· data from nature and production;

· consumer and investment;

· private and public;

· reproducible and non-reproducible;

· free and limited.

Nature gives man air, water, land, and these benefits are necessary condition existence human society. These are natural benefits. Man is the only creature on the planet capable of transforming, that is, transforming the substance of nature into the benefits he needs. A person can make a table, a chair and everything he needs from wood. Such goods are called production goods. Depending on how we use them, we distinguish between consumer and investment goods. What is intended for household consumption becomes a consumer good. This is the entire set of household appliances, furniture, clothing, food. Investment goods include raw materials, machinery, and equipment that are necessary for the production of other goods. A car used to transport raw materials at an enterprise is classified as an investment benefit, while a car used in everyday life is considered a consumer benefit.

Depending on whose needs a particular good satisfies, private and public goods are distinguished. A home car is a private good. A public park that is enjoyed by many citizens is a public good.

The most important characteristic of goods for us, which has nothing to do with their physical properties, is the distinction between free and limited goods. Free goods are available in quantities exceeding the needs of people at the moment. An example is air. Limited goods are goods for which the need is greater than they are available, that is, the demand for which exceeds supply. It is the limitation of goods that becomes the condition that prompts a person to look for an opportunity to obtain these benefits and start a business. Limited goods arise because not all goods can be produced. Depending on the ability to replenish supplies of consumed goods, they are divided into reproducible and non-reproducible. Nature has limited reserves of oil, gas and other natural resources. In the course of his life, a person consumes them, but is not able to replenish the reserves that our planet has. This is an example of non-reproducible goods. An example of a reproducible good would be paper, which is consumed for the transmission of knowledge and is constantly reproduced to satisfy certain needs of people. It is very important to understand that the ability to reproduce goods is limited by the amount of goods available in nature. For example, paper can be made from papyrus, parchment, rice, and wood. Supplies of raw materials for the production of papyrus are rare, parchment is very labor-intensive to produce, and there are not many climatically suitable places for growing rice. Therefore, paper produced using technologies that use wood as a resource is the most common. These circumstances characterize limited material goods in relation to each other in terms of rarity. The second essential characteristic of limited material goods- insufficiency. This trait is related to society's needs for goods. And if needs are satisfied at the expense of one resource (stock), then the problem arises of choosing which of them to satisfy and to what extent. Therefore, choice becomes an important action in the economy, conditioned by limited material goods. Human existence is connected not only with the satisfaction of existing needs, but also with the fact that needs are constantly growing and developing. Limited material goods prevent the satisfaction of needs. To overcome this natural limitation in our nature, a person is interested either in producing the goods he needs, or in finding an opportunity to obtain them in some other way.

In an effort to satisfy their needs, each person realizes his personal abilities. At the same time, there are qualities that are inherent to one degree or another in all members of society.

Man is an active driving force. It is naturally inherent in qualities in such a way that are specifically realized in conditions of limited material wealth that a business arises. The deepest quality of a person, which the founder drew attention to political economy Adam Smith is natural egoism. In market conditions, this human quality manifests itself in a special way.

The market is an exchange mechanism that brings together sellers and buyers of a product.

We get our bread not from the baker's mercy, but from his selfish interest. The baker wants to make money. We want bread. We interact with each other about bread. Not for the sake of another, not in a fit of concern for the prosperity of another, but for one’s own selfish reasons, based on one’s own economic interests. Our own interests encourage us to find the needs of other members of society, since by satisfying them we achieve our selfish goals.

Such a human quality as the desire for increased well-being, on the one hand, manifests itself in an ever-increasing increase in the needs of the individual, on the other hand, forces him to look for unmet needs in society and to carry out what others need. Guided by his needs, striving to increase his well-being, a person does what society as a whole needs.

Adam Smith wrote: “Man is constantly in need of the help of his fellow men, and it is in vain that he expects it only from their disposition. He is more likely to achieve his goal if he appeals to their selfishness and is able to show them that it is in their own interests to do for him what he requires of them... Give me what I need and you will get what you need, - this is the meaning of the utterance of any such sentence. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their observance of their own interests. We appeal not to their humanity, but to their selfishness, and we never talk about our needs, but about their benefits.”

Benefit motivates a person when he enters into an exchange relationship. Exchange is a key link in business. Without exchange, business does not exist. Through exchange, a person gets the opportunity to acquire what he needs to satisfy his needs. It is as a result of exchange that the individual receives the product he needs. The choice a person makes during an exchange is always determined by benefit. The benefit is always associated with saving working time, and therefore the exchange is both beneficial and necessary for all participants. In this case, the benefit comes in the form of material goods.

The tendency to exchange is the most important human property that underlies the structure of the economic life of society. None Living being does not have this quality in nature. Only a person is capable of exchanging goods that belong to him with others.

Exchange relations make possible the division and specialization of labor, which allows for savings in labor time in the manufacture of products. These relationships essentially create an economic system. Adam Smith wrote that economic system in essence, it is a huge network of connections between specialized producers, who are connected by “the tendency to barter, trade, to exchange one item for another.” The division of labor synthesizes the egoistic and collectivist nature of man. Working for himself, to satisfy his needs, an individual specializes in a particular type of activity, intending to satisfy individual members of society with the results of his labor, the material goods that he produces, and, in turn, receive satisfaction of his needs in return.

A special human quality that underlies the structure of the economic life of society is the desire for perfection. Whatever a person does, he constantly improves.

Therefore, the supply of more and more advanced material goods is growing, needs for them are emerging, and the totality of society’s needs is growing.

The competitive spirit inherent in humans manifests itself in the market in the form of competition. All producers strive to satisfy the effective demand for material goods with the products of their production and benefit from it. Therefore, they strive to make the quality of the products they produce higher than other manufacturers, to sell them at prices that provide benefits, but lower than the prices of other manufacturers. Each of the producers of material goods on the market chooses for its activities what it considers most profitable for itself. Since no one limits this choice, it occurs freely, most often a situation arises when several manufacturers are engaged in the manufacture of similar products. At the same time, the relationship between producers takes such drastic forms that they are called “competitive struggle.”

The tendency to copy and imitate makes it possible for individual manufacturers to quickly adopt successful experiences in the market, which enables society to develop faster and creates conditions for technical progress.

All this does not prevent participants in market relations from possessing a quality called “thirst for justice.” By exchanging produced products, everyone strives to achieve equivalence, that is, fairness in its proportions. Each participant strives to protect their property.

The sense of property inherent in a person is one of the main qualities on which the economy is based. It is this quality that prompted humanity to create a very complex mechanism for assigning to an individual his property. Property is manifested through the rights of ownership, use, and disposal of material goods. The desire to own property is the strongest motivator for labor activity of people.

One of the most amazing human qualities is natural humanism. Human nature is so complex that, along with the pursuit of their own benefit, people are not indifferent to the situation of other members of society, their fate. Many provide assistance to victims of natural disasters, helping the weak and sick. As the market becomes saturated with various kinds of material goods, buyers begin to become interested not only in the products themselves that they buy to satisfy their needs, but also in the manufacturers, their civic position in society.

All these qualities together form the economic life of society and the principles of interaction between its individual members. Their knowledge allows you to competently analyze the processes occurring in economic life and correctly organize the behavior of your company in the market.

In economic theory, the concept of “material benefit” is poorly developed. It is considered to be unambiguous. In addition, there is an approximate list of benefits, so scientists do not think much about this. At the same time, the phenomenon has a number of features that are worth dwelling on.

The concept of good

More ancient greek philosophers began to think about what good is for humans. It has always been perceived as something positive for the individual, bringing him pleasure and comfort. But for a long time there was no consensus on what this could be. For Socrates, it was the ability to think, the human mind. An individual can reason and form correct opinions - this is his main goal, value, purpose.

Plato believed that good is something between rationality and pleasure. In his opinion, the concept cannot be reduced to either one or the other. Goodness is something mixed and elusive. Aristotle comes to the conclusion that there is no single good for everyone. He closely links the concept with morality, arguing that only the correspondence of pleasure with ethical principles can be good. That's why main role in creating benefits for people was assigned to the state. From here came two traditions to consider them a model of virtue or a source of pleasure.

Indian philosophy identified four basic benefits for man: pleasure, virtue, profit and freedom from suffering. Moreover, its component is the presence of a certain benefit from a thing or event. Later, material wealth began to be correlated and even identified with the concept of God. And only the emergence of economic theories transfers thinking about the good into the practical area. In the broadest sense, they mean something that satisfies the requirements and interests of a person.

Properties of goods

In order for a material good to become such, it must meet certain conditions and have the following properties:

  • the good must be objective, that is, fixed in some material medium;
  • it is universal because it has significance for many or all people;
  • the good must have social significance;
  • it is abstract and intelligible, since it reflects in the consciousness of man and society a certain concrete form, as a result of production and social relations.

At the same time, goods have the main property of being useful. That is, they must bring real benefits to people. This is precisely their value.

Good and human needs

In order for a benefit to be recognized as such, several conditions must be met:

  • it must meet human needs;
  • a good must have objective properties and characteristics that allow it to be useful, that is, be able to improve the life of society;
  • a person must understand that good can satisfy his certain requirements and needs;
  • a person can dispose of the good at his own discretion, that is, choose the time and method of satisfying the need.

To understand the essence of goods, you need to remember what needs are. They are understood as internal incentives that are realized in activities. Need begins with the awareness of need, which is associated with the feeling of a shortage of something. It creates discomfort of varying degrees of intensity, an unpleasant feeling of lack of something. Forces you to take some action, to look for a way to satisfy a need.

A person is simultaneously attacked by several needs and he ranks them, choosing the most urgent ones to satisfy first. Traditionally, biological or organic needs are distinguished: food, sleep, reproduction. There are also social needs: the need to belong to a group, the desire for respect, interaction with other people, and the achievement of a certain status. As for spiritual needs, these requirements correspond to the highest order. These include cognitive needs, the need for self-affirmation and self-realization, and the search for the meaning of existence.

A person is constantly busy satisfying his needs. This process leads to the desired state of pleasure, giving in the final stage positive feelings, which any individual strives for. The process of emergence and satisfaction of needs is called motivation, since it forces a person to carry out activities. He always has a choice of how best to achieve the desired result and he independently selects the best ways removing the deficit state. To satisfy needs, an individual uses various objects and they can be called good, since they lead a person to a pleasant feeling of satisfaction and are part of a large economic and social activity.

Economic theory of goods

The science of economics could not ignore such a question of good. Since human material needs are satisfied with the help of objects produced on the basis of resources, the theory of economic benefits arises. They are understood as objects and their properties that can meet the requirements and desires of a person. The peculiarity of the process of satisfying material needs is such that people's needs always exceed production capabilities. Therefore, there are always fewer benefits than there are needs for them. Thus, economic resources always have a special property - rarity. There are always fewer of them on the market than needed. This creates an increased demand for economic goods and makes it possible to set a price for them.

Their production always requires resources, and they, in turn, are limited. In addition, material goods have one more property - usefulness. They are always associated with benefits. There is the concept of marginal utility, i.e. the ability of a good to most fully satisfy a need. At the same time, as consumption increases, the marginal requirement decreases. So, a hungry person satisfies the need for food with the first 100 grams of food, but he continues to eat, and the benefit decreases. The positive characteristics of different goods may be similar. A person chooses the necessary one from them, focusing not only on this indicator, but also on other factors: price, psychological and aesthetic satisfaction, etc.

Classifications of goods

The diverse consumption of material goods leads to the fact that in economic theory there are several ways to divide them into types. First of all, they are classified according to the degree of limitation. There are goods for the production of which resources are spent and they are finite. They are called economic or material. There are also goods that are available in unlimited quantities, for example, sunlight or air. They are called non-economic or gratuitous.

Depending on the method of consumption, goods are divided into consumer and production. The former are designed to meet the needs of the end user. The latter are necessary for the production of consumer goods (for example, machines, technology, land). Material and intangible, private and public benefits are also distinguished.

Material and intangible benefits

Different human needs require specific means their satisfaction. In this regard, there are tangible and intangible benefits. The first includes objects comprehended by the senses. A material good is everything that can be touched, smelled, or examined. Usually they can accumulate and be used for a long time. Material goods of one-time, current and long-term use are distinguished.

The second category is intangible benefits. They are usually associated with services. Intangible benefits are created in the non-productive sphere and affect the condition and abilities of a person. These include healthcare, education, trade, services, etc.

Public and private

Depending on the method of consumption, a material good can be characterized as private or public. The first type is consumed by one person who paid for it and owns it. These are means of individual demand: cars, clothing, food. A public good is indivisible; it belongs to a large group of people who collectively pay for it. This type includes protection environment, cleanliness and order on the roads and in in public places, protection of law and order and the defense capability of the country.

Production and distribution of wealth

Creating wealth is a complex, costly process. Its organization requires the efforts and resources of many people. In fact, the entire sphere of the economy is engaged in the production of material goods different types. Depending on the dominant needs, the sphere can independently regulate itself, producing the necessary goods. The process of distributing material wealth is not so simple. The market is a tool, however, there is also a social sphere. It is here that the state takes on distribution functions in order to reduce social tension.

Service as a benefit

Despite the fact that the means of satisfying a need is usually understood as material goods, services are also a means of eliminating need. Economic theory today actively uses this concept. According to her, material services are a type economic good. Their peculiarity is that the service is intangible, it cannot be accumulated or assessed before it is received. At the same time, it also has utility and rarity, like other economic goods.

PRODUCT AND NATURE OF WORK

1. Production: tangible and intangible. Product of labor, its types

1. Production: tangible and intangible. The product of labor

In order to exist, a person must constantly satisfy

their needs, for which different goods are used. Benefits are created in

production process. They can be divided into goods and services. Products like

services are the result of labor, but, unlike services, they have

material form. Goods are divided into means of production

and personal consumption items. Personal consumption items are

benefits that are used by individuals to satisfy their

personal needs (food, clothing, housing, televisions,

refrigerators, etc.).

The product is useful thing or service used for reproduction

factors of production; as a result of human activity

becomes economic and appears in the form of production products, and in

in the spiritual, intellectual sphere he acts as an intellectual

a product obtained as a result of performing work to provide services.

There are individual and social products.

An individual product is the result of the labor of an individual worker,

provided to an individual.

The social product is the result of the labor of the total worker

(all employees of the country), provided to citizens in equal conditions

(free education, healthcare, etc.).

A good is something that can satisfy the daily needs of life.

needs of people, to bring benefit, to give pleasure.

Services are types of activities in the process of which there is no

a new material product is created, but the quality changes

available product. For example, washing, repair, restoration, training,

treatment, etc.

Production can be tangible or intangible.

During material production, material values ​​are created

(industry, agriculture, construction, etc.) and turn out to be

material services (transport, trade, consumer services).

Intangible production is aimed at creating spiritual,

moral and other values ​​and provides similar services

(education, culture, etc.).

Services are provided by service enterprises. This is public

nutrition, healthcare, education, culture, household

services, transport, etc.

2. Resources and factors of production, the problem of scarcity.

To produce goods and provide services, it is necessary to have

certain resources. Resources are the capabilities that a

which society uses to satisfy its needs.

Resources are divided into exhaustible and inexhaustible,

reproducible and non-reproducible. Among the resources are

economic, considered from the point of view of limitation and rarity.

There are natural resources, i.e., given by nature (land and its subsoil,

forests, water); labor (people with their skills and abilities in the working age

age); capital (means of production - means and objects of labor)

Scheme 1. Factors of production.

The resources involved in the production process take the form

factors of production. There are factors of production such as labor,

land, capital, entrepreneurial ability. In recent years

The labor process is a conscious, purposeful human activity,

aimed at transforming the substance of nature for the sake of satisfying one’s

needs.

Capital as a factor of production is the means of production used

in the production process. They include objects and means of labor.

Entrepreneurial ability is a human ability

engage in business activities. Entrepreneurial

the ability includes the following characteristic features: take risks;

the ability to combine factors of production; make decisions and

bear responsibility for them; always be in a creative search to obtain

entrepreneurial profit.

Society's needs are limitless, but resources are limited. Limitation

resources is a problem that all business entities face - and

poor, and rich, and individuals, and businesses, and countries.

3. Production possibilities curve.

The problem of choice is expressed in the production curve

capabilities (CPV) (Scheme 2).

Diagram 2. Production possibilities curve

The production possibilities curve is the set of points that

show alternative options for maximizing the production of two

goods at full use all resources. The curve has a downward slope

type, because to increase the production of one good it is necessary to reduce

production of another product.

The curve is convex because resources are not completely interchangeable.

And with a further increase in the production of one product, it is necessary to refuse

everything from more of the other, i.e. the opportunity cost increases.

Opportunity cost - the most preferred option

using a limited resource that had to be abandoned.

Point D on the graph shows a desirable but unattainable

given resources, the option of producing two goods. Point C characterizes

option of incomplete use of resources when there is incomplete

capacity utilization, unemployment.

Over time, when the amount of resources used changes, the CPV

may move left or right. When the amount of resources in a country

increases (immigration, birth rate increases, new deposits are discovered

minerals), the CPV shifts to the right, showing an increase

production of goods. In case of reduction in the number of resources used

The CPV moves to the left, which indicates a reduction in production volumes.