Topic plan:
I. Rational consumer behavior
1.1 The concept of "consumer"
1.2 Consumer goals and their limitations
1.3 The concept of "rational consumer behavior"
1.4 Principles of consumer behavior in the market
1.5 Consumer income
1.6 Consumer costs
II. Standard of living
III. Rational behavior of the manufacturer
3.1 The concept of "manufacturer"
3.2 Objectives of the manufacturer
3.3 Increasing production with available resources
Consumer- a person or organization that consumes, uses the product of someone else's production, someone's activity, including their own product. The consumer is the individual, the firm, the organization and the state as a whole.
Purpose of the consumer- extracting maximum utility from the consumption of goods and services.
The consumer, like the manufacturer, is affected by limited opportunities. He also faces the problem of rational choice.
Rational consumer behavior is a thoughtful behavior that involves comparing the results of actions with costs.
In command economies, consumer behavior is usually regulated. In a market economy, freedom of economic behavior determines the sovereignty of the consumer, i.e. the right of the owner of any kind of resources to independently make decisions related to the disposal of these resources and their use.
Basic principles of consumer behavior in the market.
🔻 When choosing goods for consumption, the buyer is guided by his preferences;
🔻 The behavior of the consumer is rational, in particular, he puts forward certain goals and is guided by personal interest, i.e. acts within the framework of reasonable selfishness;
🔻 The consumer seeks to maximize total utility, i.e. choose such a set of benefits that will bring him the greatest amount of utility;
🔻 When choosing goods, the possibilities of the consumer are limited by the prices of goods and his income;
Consumer income is the sum Money received for a certain period of time and intended for the acquisition of goods and services for the purpose of personal consumption.
When compiling the family budget, indicators of nominal (cash) income are used.
Real income- this is the monetary income of citizens, calculated taking into account the real prices for goods and services and the taxes levied. This is a general indicator of the standard of living of the population of the country. It depends on the volume of final income (nominal income minus income tax) and the level of prices for goods and services and is calculated as the quotient of final income divided by the consumer price index.
In many households, the income received is divided into two parts.
Income: 1. Used to purchase goods and pay for services; 2. Generates savings.
This division does not depend on the form and sources of income, but depends on its size:
✔︎ The more income a consumer receives, the more money he is able to spend on consumption. As income increases, so does the amount of savings;
✔︎ Than more income families, the lower the share of spending on food and more on durable goods, and the more specific gravity savings;
Consumer spending:
✳︎ Required - the minimum required
✳︎ arbitrary
❗️ The richer the country, the smaller part of the personal income of its citizens goes to obligatory expenses;
❗️ The higher the income level of the family, the lower the share of its expenses for foodstuffs- the demand for industrial consumer goods is increasing, and with a further increase in the level of income, the costs of high-quality goods and services increase significantly;
Thus, the structure of consumption expenditure changes in direct proportion to the amount of income.
The share of family spending on food can be used to judge the level of well-being different groups of the population of one country and compare the well-being of citizens of different countries.
Standard of living- this is the level of consumption of material goods (provision of the country's population with industrial products, food, housing, etc.).
A person's standard of living depends not only on the size of his salary or savings, but also on how wisely he spends money.
More complex is the indicator of the quality of life, which includes, in addition to the standard of living, indicators such as working conditions and safety, cultural level, physical development, etc.
Manufacturer is the one who manufactures and sells goods and provides services.
Purpose of the manufacturer- Getting the most profit. The desire to reduce production costs - a more economical combination of resources, the introduction of new technology, saving raw materials and energy, etc.
Ways to increase the volume of output with available resources.
✓ Expansion of production volume due to quantitative changes in resources (increase production capacity, the amount of natural resources used, the number of employed workers);
✓ Expansion of production through improved quality characteristics resources, improving their productivity or productivity;
Economic Behavior- the image, method, nature of the economic actions of citizens, workers, managers, production teams in certain emerging conditions of economic activity. rational person performs a certain action while the benefits exceed the costs.
Types of rational behavior:
1. Rational behavior dictated by self-interest;
2. Rational behavior, in which the goals that are directly at the moment of choice are pursued.
In general, rationality involves obtaining the maximum benefit at the minimum cost.
1. Complete (unlimited, strong) rationality assumes that a person uses all available information in the best possible way and maximizes his benefit.
2. Limited (semi-strong) rationality reflects the difficulties in collecting and analyzing information and the limited cognitive abilities of a person, which leads to the use of not all the completeness of the information available. Limitations can be caused by physical, biological and social factors.
3. Organic (procedural, weak) rationality suggests that the rationality of choice can be limited by formal and informal rules.
Some economists also distinguish deliberate rationality.
Consumer- this is the one who acquires and uses goods, orders works and services for personal household needs, not related to making a profit. The consumer is each of us, the firm, the organization and the state as a whole. Consumption- use, use. The use of products, things, goods, goods and services in order to meet needs.
Types of consumption:
1) production (spending, use of resources in the production process);
2) non-productive (final consumption of goods by people, the population to meet vital needs).
Purpose of the consumer- extracting maximum utility from the consumption of goods and services. Restrictions on the way to achieve the goal of the consumer: consumer, family budget (balance of cash income and expenses of the family); prices for goods and services; range of products and services offered. T. Veblen introduced the theory of commitment to "prestigious", conspicuous consumption and capital accumulation, i.e., the consumption of goods and services in order to obtain the effect of demonstrating their use.
Rational consumer behavior This is thoughtful behavior that involves comparing the results of an action with costs. In command economies, consumer behavior is regulated. In a market economy, the consumer has freedom of economic behavior.
Consumer Sovereignty- the right of the owner of any kind of resources to independently make decisions related to the disposal of these resources and their use.
Stages of rational consumer behavior:
1) awareness of the need to purchase; 2) search for information about a product or service; 3) evaluation of possible purchase options; 4) decision making.
Consumer income- this is the amount of money received for a certain period of time and intended for the purchase of goods and services for the purpose of personal consumption. Nominal income- net income monetary terms, without taking into account the purchasing power of money, the price level, inflation.
The main sources of nominal (cash) consumer income:
1) wage; 2) social payments of the state (allowances, pensions, scholarships); 3) income from entrepreneurial and other activities; 4) income from property (payment for renting an apartment, interest on money capital, dividends on securities).
Real income- the number of goods and services that can be purchased for the amount of nominal income. Real income depends on the volume of final income (nominal income - income tax) and the level of prices for goods and services.
Types of consumer spending:
1) mandatory, minimum necessary expenses (food, clothing, transport, public utilities); 2) arbitrary (tourism, books, paintings, cars).
In a household, the income received is divided into two parts: a) is used to buy goods and pay for services necessary to meet the personal needs of people; b) the second part forms savings.
Ways to place savings: savings account in a savings bank; acquisition valuable papers; purchase of real estate; life, health, property insurance.
Standard of living- this is the level of well-being of the population, the degree of satisfaction of the basic vital needs of people. Indicators: 1) consumption per capita, 2) real incomes of the population, 3) provision of housing, 4) indicators of the development of education, healthcare, social security.
The standard of living is characterized by a special indicator - human development index (human development index), calculated on the basis of three values: 1) GDP per capita, 2) life expectancy and 3) the level of education.
Human Development Index (HDI)– index for comparative assessment of the economic potential of different countries. When calculating the HDI, the following indicators are taken into account: average life expectancy at birth; the level of literacy of the adult population of the country; the total share of students.
The quality of life consists of the standard of living, working conditions and safety, cultural level, physical development, etc.
Rational Producer Behavior
Purpose of the producer in a market economy- Getting more profit at the lowest cost. The rational organization of economic activity requires the manufacturer to address a number of issues: how, with limited resources, to achieve the goals of their production? How to combine production resources to keep costs to a minimum? How to increase the volume of output with available resources? An indicator of the efficiency of resource use is performance- 1) the volume of goods and services created per unit of costs; 2) the amount of benefits that can be obtained from the use of a unit of a certain type of resource during a fixed period.
Ways to increase productivity: 1) expansion of the use of economic resources (extensive way - a quantitative change in resources: an increase in production capacity, the amount of natural resources used, the number of employed workers); 2) increasing the efficiency of their use (intensive way - improving the quality characteristics of resources, improving their productivity or performance).
Labor productivity- productivity of labor, measured by the number of products produced per unit of time.
Factors (methods) of labor productivity growth: 1) division of labor, or specialization; 2) use of new equipment or technology; 3) level of education and vocational training workers; 4) the effectiveness of management decisions.
Business – economic activity people, the purpose of which is profit, income or other personal gain, aimed at the performance of commercial transactions for the exchange of goods or services. Entrepreneurship- initiative independent activity of people, carried out on their own behalf, at their own risk and aimed at generating income, profit from the use of property, the sale of goods, the provision of services.
Types of business: industrial entrepreneurship (production of goods, services, information, spiritual values); commercial entrepreneurship (consists in operations and transactions for the resale of goods, services and is not related to the production of products); financial entrepreneurship (a kind of commercial entrepreneurship); intermediary entrepreneurship (manifested in activities that connect the parties interested in a mutual transaction); insurance entrepreneurship (a special form of financial entrepreneurship, which consists in the fact that the entrepreneur receives an insurance premium, which is returned only upon the occurrence of an insured event).
Forms of entrepreneurship
1. On the basis of business objects
A) Small business(up to 50 people):
– Franchising- a system of small private firms that enter into a contract for the right to use a brand name large firm and its activities in a certain territory and in a certain form.
– venture firm – commercial organization developing scientific research for their further development and completion. Venture capitalists do business on innovation.
B) Medium business (up to 500 people) is fragile, as it has to compete with both large and small businesses, as a result of which it either develops into a large one, or ceases to exist altogether. The only exceptions are firms that are monopolists in the production of any specific product that has its own permanent consumer.
IN) Big business (up to several thousand people) - is more durable than medium or small. Its monopoly position on the market gives it the ability to produce cheap and mass products.
2. By type of firms
A) Sole proprietorship or private enterprise A business owned by one person. He has unlimited property liability, and he has little capital.
B) Partnership or partnership A business owned by two or more people. They make joint decisions and bear personal financial responsibility for the conduct of the case.
IN) cooperative- similar to a partnership, but has a larger number of shareholders.
G) Corporation- a set of persons united for a joint entrepreneurial activity. The right to property of a corporation is divided into parts by shares, so the owners of corporations are called shareholders, and the corporation itself is called joint stock company(AO).
Basic principles governing entrepreneurial activity: freedom of entrepreneurial activity; initiative and independent activity; making a profit as the main objective entrepreneurial activity; legal equality various forms property; legality in entrepreneurial activity; freedom of competition and restriction of monopolistic activity; state regulation (direct– registration and licensing of enterprises, product certification; indirect- concessional loans, tax incentives).
Entrepreneurship Functions:resource(combination of natural, investment, labor resources into a whole); organizational(the use by entrepreneurs of their abilities to obtain high income); creative(use of innovation in activities).
social relations
A) Owner - the one who owns the rights of possession, use and disposal of any property.
In economics, property is the real relationship between people that develops in the process of appropriation and economic use of property. The system of economic relations of property includes: relations of appropriation of factors and results of production, relations of economic use of property, relations of economic realization of property. In a market economy, property should bring maximum profit. If it does not bring profit, then this leads to an increase in hidden costs, reduces competitiveness and can lead to ruin. On the other hand, the owner is obliged to bear the "burden of property" - the costs associated with the possession of property: taxes, costs of maintaining property in a normal state, protecting property, insurance, causing possible harm to property, etc. The rational behavior of the owner is to increase profits and reduce the burden of ownership.
b) Worker - subject labor law, an individual working for employment contract on the employer.
The employee must know the rights and obligations under Labor Code of the Russian Federation and the employment contract (see clause 5.9.). The employee must constantly monitor better offers on the labor market, even in other regions; strive to improve qualifications (for example, with the help of state retraining courses); defend their rights in relations with the employer with the help of the trade union movement.
V) Consumer - one who acquires and uses goods, orders works and services for personal household needs, not related to making a profit.
The consumer should strive to study all the offers on the market before buying, to study all aspects of the contract concluded upon purchase and to know his rights.
Consumer income - the amount of money received for a certain period of time and intended for the purchase of goods and services for the purpose of personal consumption.
G) Family man - social role, performed by a person as a family member (father, mother, wife, husband, etc.).
For the rational distribution of family funds, a family man must: keep a record of all sources of family income, together with the whole family, determine priority areas for spending and keep records of them, create their own savings and invest them correctly, taking into account profitability and risks.
e) Citizen - person associated with legal basis with a certain state.
A citizen should be aware of the taxes and fees that he is required to pay. Must know about the tax benefits, tax deductions, pensions and benefits due to him and demand them from the state.
Standard of living - the level of consumption of material goods.
The quality of life - an indicator that includes, in addition to the standard of living, working conditions and safety, cultural level, physical development, etc.
Section 3 Social Relations
3.1. Social stratification and mobility
3.2. Social groups
3.3. Youth as a social group
3.4. ethnic communities
3.5. Interethnic relations, ethno-social conflicts, ways to resolve them
3.6. Constitutional principles (foundations) of national policy in the Russian Federation
3.7. social conflict
3.8. Types of social norms
3.9. social control
3.10. Freedom and responsibility
3.11. Deviant behavior and its types
3.12. social role
3.13. Socialization of the individual
2.16. Rational economic behavior of the owner, employee, consumer, family man, citizen
Economic Behavior - the image, method, nature of the economic actions of citizens, workers, managers, production teams in certain emerging conditions of economic activity. A rational person performs a certain action as long as the benefits exceed the costs.
Types of rational behavior:
1. Rational behavior dictated by self-interest;
2. Rational behavior, in which the goals that are directly at the moment of choice are pursued.
In general, rationality involves obtaining the maximum benefit at the minimum cost.
1. Complete (unlimited, strong) rationality assumes that a person uses all available information in the best possible way and maximizes his benefit.
2. Limited (semi-strong) rationality reflects the difficulties in collecting and analyzing information and the limited cognitive abilities of a person, which leads to the use of not all the completeness of the information available. Limitations can be caused by physical, biological and social factors.
3. Organic (procedural, weak) rationality suggests that the rationality of choice can be limited by formal and informal rules.
Some economists also distinguish deliberate rationality.
Consumer- this is the one who acquires and uses goods, orders works and services for personal household needs, not related to making a profit. The consumer is each of us, the firm, the organization and the state as a whole. Consumption- use, use. The use of products, things, goods, goods and services in order to meet needs.
Types of consumption:
1) production (spending, use of resources in the production process);
2) non-productive (final consumption of goods by people, the population to meet vital needs).
Purpose of the consumer- extracting maximum utility from the consumption of goods and services. Restrictions on the way to achieve the goal of the consumer: consumer, family budget (balance of cash income and expenses of the family); prices for goods and services; range of products and services offered. T. Veblen introduced the theory of commitment to "prestigious", conspicuous consumption and capital accumulation, i.e., the consumption of goods and services in order to obtain the effect of demonstrating their use.
Rational consumer behavior This is thoughtful behavior that involves comparing the results of an action with costs. In command economies, consumer behavior is regulated. In a market economy, the consumer has freedom of economic behavior.
Consumer Sovereignty- the right of the owner of any kind of resources to independently make decisions related to the disposal of these resources and their use.
Stages of rational consumer behavior:
1) awareness of the need to purchase; 2) search for information about a product or service; 3) evaluation of possible purchase options; 4) decision making.
Consumer income- this is the amount of money received for a certain period of time and intended for the purchase of goods and services for the purpose of personal consumption. Nominal income- income calculated in purely monetary terms, without taking into account the purchasing power of money, price levels, inflation.
The main sources of nominal (cash) consumer income:
1) salary; 2) social payments of the state (allowances, pensions, scholarships); 3) income from entrepreneurial and other activities; 4) income from property (payment for renting an apartment, interest on money capital, dividends on securities).
Real income- the number of goods and services that can be purchased for the amount of nominal income. Real income depends on the volume of final income (nominal income - income tax) and the level of prices for goods and services.
Types of consumer spending:
1) mandatory, minimum necessary expenses (food, clothing, transport, utilities); 2) arbitrary (tourism, books, paintings, cars).
In a household, the income received is divided into two parts: a) is used to buy goods and pay for services necessary to meet the personal needs of people; b) the second part forms savings.
Ways to place savings: savings account in a savings bank; purchase of securities; purchase of real estate; life, health, property insurance.
Standard of living - this is the level of well-being of the population, the degree of satisfaction of the basic vital needs of people. Indicators: 1) consumption per capita, 2) real incomes of the population, 3) provision of housing, 4) indicators of the development of education, healthcare, social security.
The standard of living is characterized by a special indicator - human development index (human development index), calculated on the basis of three values: 1) GDP per capita, 2) life expectancy and 3) the level of education.
Human Development Index (HDI)– index for comparative assessment of the economic potential of different countries. When calculating the HDI, the following indicators are taken into account: average life expectancy at birth; the level of literacy of the adult population of the country; the total share of students.
The quality of life consists of the standard of living, working conditions and safety, cultural level, physical development, etc.
Rational Producer Behavior
Purpose of the producer in a market economy- Getting more profit at the lowest cost. The rational organization of economic activity requires the manufacturer to address a number of issues: how, with limited resources, to achieve the goals of their production? How to combine production resources so that costs are minimal? How to increase the volume of output with available resources? An indicator of the efficiency of resource use is performance- 1) the volume of goods and services created per unit of costs; 2) the amount of benefits that can be obtained from the use of a unit of a certain type of resource during a fixed period.
Ways to increase productivity: 1) expansion of the use of economic resources (extensive way - a quantitative change in resources: an increase in production capacity, the amount of natural resources used, the number of employed workers); 2) increasing the efficiency of their use (intensive way - improving the quality characteristics of resources, improving their productivity or performance).
Labor productivity- productivity of labor, measured by the number of products produced per unit of time.
Factors (methods) of labor productivity growth: 1) division of labor, or specialization; 2) use of new equipment or technology; 3) the level of education and professional training of employees; 4) the effectiveness of management decisions.
Business- the economic activity of people, the purpose of which is profit, income or other personal benefits, aimed at the performance of commercial transactions for the exchange of goods or services. Entrepreneurship- initiative independent activity of people, carried out on their own behalf, at their own risk and aimed at generating income, profit from the use of property, the sale of goods, the provision of services.
Types of business: industrial entrepreneurship (production of goods, services, information, spiritual values); commercial entrepreneurship (consists in operations and transactions for the resale of goods, services and is not related to the production of products); financial entrepreneurship (a kind of commercial entrepreneurship); intermediary entrepreneurship (manifested in activities that connect the parties interested in a mutual transaction); insurance entrepreneurship (a special form of financial entrepreneurship, which consists in the fact that the entrepreneur receives an insurance premium, which is returned only upon the occurrence of an insured event).
Forms of entrepreneurship
1. On the basis of business objects
A) Small business(up to 50 people):
– Franchising- a system of small private firms that enter into a contract for the right to use the brand name of a large firm and their activities in a certain territory and in a certain form.
– venture firm- a commercial organization engaged in the development of scientific research for their further development and completion. Venture capitalists do business on innovation.
B) Medium business(up to 500 people) is fragile, as it has to compete with both large and small businesses, as a result of which it either develops into a large one, or ceases to exist altogether. The only exceptions are firms that are monopolists in the production of any specific product that has its own permanent consumer.
IN) Big business(up to several thousand people) - is more durable than medium or small. Its monopoly position on the market gives it the ability to produce cheap and mass products.
2. By type of firms
A) Sole proprietorship or private enterprise A business owned by one person. He has unlimited property liability, and he has little capital.
B) Partnership or partnership A business owned by two or more people. They make joint decisions and bear personal financial responsibility for the conduct of the case.
IN) cooperative- similar to a partnership, but has a larger number of shareholders.
G) Corporation- a set of persons united for joint business activities. The right to property of a corporation is divided into shares, so the owners of corporations are called shareholders, and the corporation itself is called a joint-stock company (JSC).
Basic principles governing entrepreneurial activity: freedom of entrepreneurial activity; initiative and independent activity; profit as the main goal of entrepreneurial activity; legal equality of various forms of ownership; legality in entrepreneurial activity; freedom of competition and restriction of monopolistic activity; government regulation ( direct– registration and licensing of enterprises, product certification; indirect- concessional loans, tax incentives).
Entrepreneurship Functions: resource(connection of natural, investment, labor resources into a single whole); organizational(the use by entrepreneurs of their abilities to obtain high income); creative(use of innovation in activities).
A) Owner - the one who owns the rights of possession, use and disposal of any property.
In economics, property is the real relationship between people that develops in the process of appropriation and economic use of property. System economic relations property includes: relations of appropriation of factors and results of production, relations of economic use of property, relations of economic realization of property. In a market economy, property should bring maximum profit. If it does not bring profit, then this leads to an increase in hidden costs, reduces competitiveness and can lead to ruin. On the other hand, the owner is obliged to bear the "burden of property" - the costs associated with the possession of property: taxes, costs of maintaining property in a normal state, protecting property, insurance, causing possible harm to property, etc. The rational behavior of the owner is to increase profits and reduce the burden of ownership.
b) Worker - the subject of labor law, individual working under an employment contract for an employer.
The employee must know the rights and obligations in accordance with the Labor Code of the Russian Federation and the employment contract (see clause 5.9.). The employee must constantly monitor better offers on the labor market, even in other regions; strive to improve qualifications (for example, with the help of state retraining courses); defend their rights in relations with the employer with the help of the trade union movement.
V) Consumer - one who acquires and uses goods, orders works and services for personal household needs, not related to making a profit.
The consumer should strive to study all the offers on the market before buying, to study all aspects of the contract concluded upon purchase and to know his rights.
Consumer income- the amount of money received for a certain period of time and intended for the purchase of goods and services for the purpose of personal consumption.
G) Family man - the social role played by a person as a family member (father, mother, wife, husband, etc.).
For the rational distribution of family funds, a family man must: keep a record of all sources of family income, together with the whole family, determine priority areas for spending and keep records of them, create their own savings and invest them correctly, taking into account profitability and risks.
e) Citizen - a person associated on a legal basis with a particular state.
A citizen should be aware of the taxes and fees that he is required to pay. Must know about the tax benefits, tax deductions, pensions and benefits due to him and demand them from the state.
Standard of living- the level of consumption of material goods.
The quality of life- an indicator that includes, in addition to the standard of living, working conditions and safety, cultural level, physical development, etc.
Section 3. SOCIAL RELATIONS
3.1. social stratification and mobility
3.2. Social groups
3.3. Youth as a social group
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