Текст History of economic thought

Текст History of economic thought

Economic thought goes back thousands of years. The ancient Greek, Xenophon, used the word oikonomikos (from oikos, meaning/amity, household, estate, and nomos, for usage, law). He was talking about skilful or clever ways to manage land and households. We could call many of Aristotle’s political writings economics, although he did not use the word. The English word economics first appeared in the 19th century - two and a half thousand years after Xenophon.

 

Early economic thought was all about the meaning of wealth or being rich. These early thinkers asked, ‘what makes a state or a country wealthy?’ For nearly 2,000 years, the answer was very simple: gold. A country or nation's wealth d epended o n its owning precious metals. This simple view of the economy remained until medieval times.

 

During medieval times - roughly the period between 1100 and 1500 AD, trading between nations grew, and a new social class appeared. These were merchants, people who made their money through the buying and selling of goods, and they began to write their own thoughts on the economy. They saw the economy as a way

to make the state strong. For them, the nation’s wealth depended on stocks of gold and the size of the population. More people meant bigger armies and a stronger state.

 

These were still simple ideas. However, daily experience had also taught people many basic economic concepts. For example, they understood the importance of trade with other states.

They realised that scarcity makes things more expensive and abundance makes them cheaper.

 

Modern economics was really bom in the 19th century. At this time, thinkers like Adam Smith wrote down ideas that are still important today. Adam Smith is often called the Father of Modem Economics, although the science was called political economy then. Smith realised that a nation’s wealth depended on its ability to produce goods. The value of these goods depended on the cost of production. The cost of production depended on the cost of workers, raw materials and land. This was really the first example of macroeconomics.

 

Smith and other classical economists were writing at a time of great change. The industrial revolution had begun. Paper money began to replace precious metals. The middle classes were growing stronger. Economists’ theories echoed these changes. They wrote about the division of labour (each worker taking their part in the production process). They discussed the problems of population growth. They influenced thinking about social classes.

 

For classical economists, the value of goods depends on the cost of production. However, the price of goods is not always the same as their real cost. Later economists developed new theories to explain this weakness in classical economics. These are known as the neoclassical economists and they were writing at the end of the 19th and early 20th centuries.

 

In neoclassical economics, supply and demand make the economy work. In other words, the price of goods depends on how much people want them and how easily they can be found. Consumers want satisfaction from their resources (time and money). Firms want profit.

In neoclassical economics, this is the basic relationship in the economy. These ideas are still the basis of economic thinking today.

Текст Changes in Demand

Until now, we have been describing the relationship between an item's price and the quantity of an item people will purchase. Sometimes things happen that change the demand for an item at each and every price. When this occurs, we have an increase or a decrease in demand.

Supply

Thus far we have only spoken about the effects of prices on buyers. But it takes two parties to make a sale: buyers and sellers. To the economist, supply refers to the number of items that sellers will offer for sale at different prices at a particular time and place. The Law of Supply The law of supply states that sellers will offer more of a product at a higher price and less at. a lower price.

Why does the quantity of a product supplied change if its price rises or falls? The answer is that producers supply things to make a profit. The higher the price, the greater the incentive to produce and sell the product.

Перевод - Изменения спроса

До сих пор мы описывали отношения между ценой пункта и количеством пункта, который купят люди. Иногда вещи происходят, которые изменяют спрос на пункт по каждой цене. Когда это происходит, у нас есть увеличение или пользующееся большим спросом уменьшение.

Поставка

К настоящему времени мы только говорили об эффектах цен на покупателей. Но требуется две стороны, чтобы сделать продажу: покупатели и продавцы. Экономисту поставка обращается к числу пунктов, которые продавцы предложат для продажи по различным ценам в определённое время и место. Закон Поставки, закон поставки заявляет, что продавцы предложат больше продукта по более высокой цене и меньше по. более низкая цена.

То, почему делает количество продукта, поставляло изменение если его повышения цен или падения? Ответ - то, что производители поставляют вещи получить прибыль. Чем выше цена, тем больше стимул произвести и продать продукт.

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Текст Market Economies

In a true market economy the government plays no role in the management of the economy, the government does not intervene in it. The system is based on private enterprise with private ownership of the means of production and private supplies of capital, which can be defined as surplus income available for investment in new business activities. Workers are paid wages by employers according to how skilled they are and how many firms wish to employ them. They spend their wages on the products and services they need. Consumers are willing to spend more on products and services, which are favoured. Firms producing these goods will make more profits and this will persuade more firms to produce these particular goods rather than less favoured ones.

Текст Changes in Supply

When supply changes, the entire supply curve shifts; either to the right or to the left. This is simply another way of saying that sellers will be offering either more (if supply has increased) or less (if supply has decreased) of an item at every possible price. Any or all of the following changes are likely to affect the quantities supplied:

— Changes in the cost of production. If it costs sellers less to produce their products, they will be able to offer more of them for sale. An increase in production costs will have the opposite effect — supply will decrease,

— Other profit opportunities.. Most producers can make more than one product. If the price of a product they have not been producing (but could if they choose to) increases, many will shift their output to that product.

— Future expectations. If producers expect prices to increase in the future, they may increase their production now to be in position to profit later. Similarly, if prices are expected to decline in the future, producers may reduce production, and supply will fall.

Текст Economic Systems

There are a number of ways in which a government can organize its economy and the type of system chosen is critical in shaping environment in which businesses operate.

An economic system is the way in which a country uses its available resources (land, workers, natural resources, machinery etc.) to satisfy the demands of its inhabitants for goods and services. The more goods and services that can be produced from these limited resources, the higher the standard of living enjoyed by the country's citizens. There are three main economic systems:

Текст Equilibrium

Supply and demand schedules tell us how many items buyers would purchase and how many items sellers would offer at different prices. By themselves they do not tell us at what price goods or services would actually change hands. When the two forces are brought together, however, something quite significant takes place. The interaction of supply and demand will result in the establishment of an equilibrium or market price.

The market price is the one at which goods or services will actually be exchanged for money. The price at which supply exactly equals demand is known as the market price, or the point of equilibrium.

Перевод - Равновесие

Графики спроса и предложения говорят нам, сколько купили бы покупатели изделия и сколько продавцы изделия предложат по различным ценам. Они не говорят нам в том, какие ценовые товары или услуги фактически перешли бы к другому владельцу. Когда две силы примирены, однако, что-то довольно существенное имеет место. Взаимодействие спроса и предложения приведет к учреждению равновесия или рыночной цены.

Рыночная цена - та, в которой товары или услуги будут фактически обменены на деньги. Цена, по которой поставка точно равняется требованию, известна как рыночная цена, или пункт равновесия.

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Текст – Planned Economies

Planned economies are sometimes called «command economies» because the state commands the use of resources that are used to produce goods and services as it owns factories, land and natural resources. Planned economies are economies with a large amount of central planning and direction, when the government takes all the decisions, the government decides production and consumption. Planning of this kind is obviously very difficult, very complicated to do, and the result is that there is no society, which is completely a command economy. The actual system employed varies from state to state, but command or planned economies have a number of common features. Firstly, the state decides precisely what the nation is to produce. It usually plans five years ahead. It is the intention of the planners that there should be enough goods and services for all.

Secondly, industries are asked to comply with these plans and each industry and factory is set a production target to meet. If each factory and farm meets its target, then the state will meet its targets as set out in the five-year plans. You could think of the factory and farm targets to be objectives which, if met, allow the nation’s overall aim to be reached.

A planned economy is simple to understand but not simple to operate. It does, however, have a number of advantages.

® Everyone in society receives enough goods and services to enjoy a basic standard of

® Nations do not waste resources duplicating production.

® The state can use its control of the economy to divert resources to wherever it wants. As a result, it can ensure that everyone receives a good education, proper health care or that transport is available.

Several disadvantages also exist. It is these disadvantages that have led to many nations abandoning planned economies over recent years:

® There is no incentive for individuals to work hard in planned economies.

® Any profits that are made are paid to the government.

® Citizens cannot start their own businesses and so new ideas rarely come forward.

® As a result, industries in planned economies can be very inefficient.

A major problem faced by command or planned economies is that of deciding what to produce. Command economies tend to be slow when responding to changes in people's tastes and fashions. Planners are likely to under produce some items as they cannot predict changes in demand. Equally, some products, which consumers regard as obsolete and unattractive, may be overproduced. Planners are afraid to produce goods and services unless they are sure substantial amounts will be purchased. This leads to delays and queues for some products.

Перевод - Плановая экономика

Плановую экономику иногда называют "административно-командной экономикой", потому что государство командует использованием ресурсов, которые используются, чтобы произвести товары и услуги, поскольку этому принадлежат фабрики, земельные ресурсы и природные ресурсы. Плановая экономика - экономические системы с большим количеством централизованного планирования и руководства, когда правительство принимает все решения, правительство решает производство и потребление. Планирование этого вида является очевидно очень трудным, очень сложным, чтобы сделать, и результат состоит в том, что нет никакого общества, которое является полностью административно-командной экономикой. Фактическая используемая система изменяется в зависимости от государства, но у административно-командной или плановой экономики есть много общих черт. Во-первых, государство решает точно, что должна произвести страна. Это обычно планирует пять лет вперед. Это - намерение планировщиков, что должны быть достаточно многие товары и услуги для всех.

Во-вторых, отрасли промышленности просят выполнить эти планы и каждую промышленность, и фабрика установлена производственная задача, чтобы встретиться. Если каждая фабрика и ферма достигнут своей цели, то государство достигнет своих целей как изложено в пятилетних планах. Вы могли думать о фабрике и целях фермы, чтобы быть целями, которые, если встречено, позволяют национальной полной цели быть достигнутой.

Плановая экономика проста понять, но не простая работать. У этого действительно, однако, есть много преимуществ.

® Все в обществе получают достаточно многие товары и услуги обладать основной нормой

Страны ® не тратят впустую ресурсы, дублирующие производство.

® государство может использовать свой контроль экономики, чтобы отклонить ресурсы к тому, везде, где это хочет. В результате это может гарантировать, что все получают хорошее образование, надлежащее здравоохранение или что транспорт доступен.

Также существуют несколько неудобств. Именно эти неудобства привели ко многим странам, оставляющим плановую экономику за последние годы:

® Там не стимул для людей упорно трудиться в плановой экономике.

® Любая прибыль, которая получена, заплачены правительству.

®Граждане не могут начать свои собственные фирмы и таким образом, новые идеи редко выступают вперед.

® В результате отрасли промышленности в плановой экономике может быть очень неэффективным.

Большой проблемой, с которой стоит административно-командная или плановая экономика, является большая проблема решения, что произвести. Административно-командная экономика имеет тенденцию быть медленной, отвечая на изменения во вкусах людей и модах. Планировщики вероятны под продуктом некоторые пункты, поскольку они не могут предсказать изменения спроса. Одинаково, некоторые продукты, которые потребители расценивают как устаревший и непривлекательный, могут быть перепроизведены. Планировщики боятся произвести товары и услуги, если они не будут уверены, что значительное количество будет куплено. Это приводит к задержкам и очередям для некоторых продуктов.

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Текст History of economic thought

Economic thought goes back thousands of years. The ancient Greek, Xenophon, used the word oikonomikos (from oikos, meaning/amity, household, estate, and nomos, for usage, law). He was talking about skilful or clever ways to manage land and households. We could call many of Aristotle’s political writings economics, although he did not use the word. The English word economics first appeared in the 19th century - two and a half thousand years after Xenophon.

 

Early economic thought was all about the meaning of wealth or being rich. These early thinkers asked, ‘what makes a state or a country wealthy?’ For nearly 2,000 years, the answer was very simple: gold. A country or nation's wealth d epended o n its owning precious metals. This simple view of the economy remained until medieval times.

 

During medieval times - roughly the period between 1100 and 1500 AD, trading between nations grew, and a new social class appeared. These were merchants, people who made their money through the buying and selling of goods, and they began to write their own thoughts on the economy. They saw the economy as a way

to make the state strong. For them, the nation’s wealth depended on stocks of gold and the size of the population. More people meant bigger armies and a stronger state.

 

These were still simple ideas. However, daily experience had also taught people many basic economic concepts. For example, they understood the importance of trade with other states.

They realised that scarcity makes things more expensive and abundance makes them cheaper.

 

Modern economics was really bom in the 19th century. At this time, thinkers like Adam Smith wrote down ideas that are still important today. Adam Smith is often called the Father of Modem Economics, although the science was called political economy then. Smith realised that a nation’s wealth depended on its ability to produce goods. The value of these goods depended on the cost of production. The cost of production depended on the cost of workers, raw materials and land. This was really the first example of macroeconomics.

 

Smith and other classical economists were writing at a time of great change. The industrial revolution had begun. Paper money began to replace precious metals. The middle classes were growing stronger. Economists’ theories echoed these changes. They wrote about the division of labour (each worker taking their part in the production process). They discussed the problems of population growth. They influenced thinking about social classes.

 

For classical economists, the value of goods depends on the cost of production. However, the price of goods is not always the same as their real cost. Later economists developed new theories to explain this weakness in classical economics. These are known as the neoclassical economists and they were writing at the end of the 19th and early 20th centuries.

 

In neoclassical economics, supply and demand make the economy work. In other words, the price of goods depends on how much people want them and how easily they can be found. Consumers want satisfaction from their resources (time and money). Firms want profit.

In neoclassical economics, this is the basic relationship in the economy. These ideas are still the basis of economic thinking today.