Science for Dummies: how the activities of key economic actors are interrelated

The economy is a complex, multi-component system, all the subjects and processes of which are interdependent. связано с действием экономических законов и основано на принципе ограниченности ресурсов. The interaction of participants (subjects) is connected with the effect of economic laws and is based on the principle of limited resources. следует рассмотреть более подробно то, каким образом взаимосвязана деятельность основных участников экономики. But it is necessary to consider in more detail how the activities of the main economic actors are interrelated.

Consumers and producers in the economy

Participants in economic activities can be divided into consumers and producers. At the same time, one and the same participant in different economic processes can act in that and in another form. It depends on what role it will play in a particular process. образом взаимосвязана деятельность основных участников экономики, следует подробнее рассмотреть, кто же эти субъекты. Before considering how the activities of the main participants of the economy are interrelated, it is necessary to consider in detail who these subjects are.

The subjects of the macrolevel and the level of the national economy (microeconomics)

Economic entities, or the main participants in economic activity, can be defined both at the macrolevel and at the micro level. Within the national economy, the top level will be occupied by the state and the public sector, and the microlevel is the person (as the most dynamic and flexible participant in the economy). Within the framework of the international economy, the macro-level will be formed by the whole world economy, which is an even more complex system of interrelationships of all countries of the world.

Participants in economic relations

1. Man as an economic unit of all processes, on the decision and choice of which built economic processes of micro-level.
2. Households are an association of persons (they can consist of one person). In the household, economic decisions, choices, consumption and production processes are carried out collectively. This means that there is a certain balance of interests between members of the economy. Within households, not only consumption of economic benefits can occur, but also their production for the purpose of selling. Production and consumption at this level are related to the use of the structure of consumption of each subject of households. In other words, the goal is to maximize the satisfaction of needs.
3. Firms as participants in economic relations accumulate financial and production resources, attract workers. задача фирмы – экономически выгодное функционирование, то есть получение прибыли. The main task of the company is economically profitable functioning, that is, making a profit. All production and consumption of the company are directed to this.
4. The state can be regarded as a special economic participant. On the one hand, it is the same consumer and producer of goods and resources, since there are state enterprises and institutions. On the other hand, the state is the guarantor of observance of rules and norms in the economic field, develops normative and legal documents, monitors the creation of competitive conditions for all participants. Great importance is given to the state in regulating the processes of the economy, supporting other economic actors in times of recession and restraint from "overheating" the economy during periods of growth.

Causes of interaction between economic entities

All listed participants, one way or another, interact with each other. It is important to understand how the activities of key economic actors are interrelated. As you know, the distribution of any resources that can only be determined is uneven, and access to them is different for different actors. That is, each participant has some set of resources that the other does not have, in the quantity necessary for certain purposes. Therefore, the economy and its main participants can be represented as a model of the circulation of resources and benefits, when each participant is interested in another entity. факторы производства и результаты производства проходят циклы создания, распределения и потребления. This model demonstrates that the factors of production and production results go through the cycles of creation, distribution and consumption. At each stage involves the involvement of certain resources and subjects of economic relations.

How is the activity of the main participants in the economy interconnected, the subjects of which can be considered from the standpoint of the producer and the consumer? The producer can not exist without the consumer and vice versa. Consumer requests for necessary goods create a production system and a set of producers. In the economy, their interrelationship is determined by the mechanism for coordinating supply and demand. When the manufacturer's proposal is supported by the consumer, an equilibrium is reached and the transaction between the two entities is concluded.

Conclusion

The economic system is multicomponent, it harmonizes the interests of many participants, answers are given to the question "what, how, for whom and in what quantity to produce?". Considering how the activities of the main participants in the economy are interrelated, you begin to understand the main economic processes.