In order to function normally insociety, the population should drink, eat, put on shoes, dress, live in an apartment or house, etc. And since it does not exist in its pure form, people have to produce it. And at the everyday level, it turns out that economics and production are one and the same.
But in primitive, slaveholding orfeudal society no such thing as "economy" existed. Production was then based on non-economic means: coercion and violence. And getting the result became the main goal, which did not depend on the cost.
Economic activity is impossible withoutproduction. Production participants should adhere to the principle of general economic expediency. In the conditions of such relations, the economy takes place. Thus, it needs to be linked to the results and costs incurred.
The ratio of these indicators expresses efficiency.Economic activity should reflect the effectiveness of the production of the whole society. And since in such a production the basis is the satisfaction of the needs of citizens, the effectiveness of the product obtained expresses a general economic result.
Classification of economic activities(according to the all-Russian classifier OKVED) is carried out according to certain criteria. They characterize a specific field of activity, technology and production processes.
Effective economic activity isa state in which the needs of the population are fully met. At the same time, the degree of satisfaction of the need of one citizen cannot be increased due to the worsening position of another. This is called "Pareto-efficiency" in honor of the Italian economist. Productivity is the most important category of the economy.
There are 4 stages of economic activity.
1) Reproduction.This is a constantly repeated production process. It can be extended or simple. With the latter, the volume of output does not grow, but with the first, the opposite. In today's society prevails, of course, extended.
2) Distribution.Represents the distribution of the resulting benefits of production between members of society. This stage also includes the distribution of members of society and the means of production by industry and industry, economic enterprises and regions, areas of work and shops. In this case, this stage is an element of production.
3) Exchange. Independent function, which is the movement of the product. In production - the exchange of skills and activities.
4) Consumption.The final stage of the movement of the product, as a result of which human needs are met. It includes personal consumption, which ensures the reproduction of labor force, and creates incentives for improving production and further development. In addition, there may be manufacturing consumption in which materials are consumed in the process of creating products.
Thus, economic activity takes place alternately through the production of products to its distribution, exchange, and then to consumption.
