In the framework of economic science, various methods of cognition are used. With their help, the economic foundations of the life of human society are revealed. At the same time, certain concepts are formulated that reflect real activity. Let us consider the main economic categories and laws.
General information
What is the essence of economic categories and laws? In activity there is a pattern of development. In the field of management, you can find phenomena that are interconnected. Business theory explores these interdependencies, evaluates their stability and cyclicality. Repeatedly repeated phenomena are called laws. They are considered the most stable, significant and constantly repeating objective causal relationships. Within the framework of science, economic categories are also studied. They are a theoretical expression of the actual conditions of economic activity in society.
Economic laws and categories: their classification
In their totality, the phenomena form a certain system. There are special, general and specific laws. The latter operate within the framework of a specific form of management. If such an economic category ceases to exist, and the economic laws associated with it also cease to apply. For example, the October Revolution launched a command-administrative system of management. At the same time, the market economic category and economic laws that acted in conjunction with it ceased to exist. Special phenomena are also characteristic of certain forms of management. However, in this case, not a historical economic category and economic laws are considered. They will take place only in a form of management in which the appropriate conditions are formed. Moreover, dependence on historical development may be absent.
Phenomena and concepts of a general nature
Such economic categories and laws, in short, are characteristic of all forms of management. General concepts and phenomena link them into a single ongoing process of historical development. This is a stable economic category. Economic laws, economic principles do not cease to exist when changing the form of management. For example, the phenomenon of exaltation of needs. As one person, and the whole society there is a constant increase in needs.
Economic category and economic laws: value
This concept is objective in nature. The law of value involves the formation of each individual producer of his own costs of resources and labor. Accordingly, an individual price is formed. However, it is not recognized in the market. In the framework of the current turnover, social values based on collectively necessary labor costs are of importance. Despite the objectivity of the category and the law, it cannot be said that external factors do not influence them.
Interaction with other phenomena
The law of value is a pattern of price formation. This is due to the fact that the former acts as an external manifestation of the latter. Value is the content of market relations, price is considered their form. Individual indicators may differ from industry. This explains the fact that manufacturers in the same business sector receive different profits. The law of value, together with intersectoral competition, forms market prices. The sum of price indicators on a public scale is equal to the total value. Redistribution during the overflow of capital reflects the account of its expenditure. But at the same time, the general indicator of production prices and their change are ultimately predetermined by the level and fluctuations in market value necessary for labor costs for society.
Demand
In fact, the higher the price, the lower it is, as well as vice versa. It is influenced by many other factors:
- profit;
- the presence of a particular product on the market;
- consumer taste and shopping psychology;
- effects of expectation (decrease or increase in prices);
- presence on the market of substitute products;
- the availability of goods that complement each other.
All non-price factors are considered in economics in statics. This suggests that none of these phenomena can have such a big impact on demand as price.
Sentence
It is opposed to demand. The sentence is used as a generalizing category. It characterizes the behavior of potential and actual sellers of products. The volume of supply refers to the number of products that subjects want to sell over a certain period. It depends primarily on the price of resources used in the production of products and production technologies available to sellers.
Demand Offer
The essence of this theory is that the price of a product is not formed in accordance with the labor expended on its production. The key factors in its formation are precisely supply and demand. If the first is higher than the second, then the cost will increase. If the supply is greater and the demand remains unchanged, then the price will decrease. Among the proponents of this theory were Say, MacLeod. Walras has a mathematical expression in his works.
Money turnover
This category and the laws in force with it reflect the objective relationship between the price level and the volume of paper financial assets in circulation. Its essence is that the strength of the purchasing power of money is possible, provided that their amount corresponds to market needs for them. The necessary mass of funds is directly proportional to the sum of the costs of goods and services and inversely proportional to the speed of money circulation.
