Lecture number 1 Subject: The subject of economic theory and method

The plan: 1. Origin and main stages of development of economic theory The plan: 1. Origin and main stages of development of economic theory. 2.The subject of economic theory. 3.The system of economic relations. 4. The economic structure of society. 5.Methods of learning of socio-economic processes. 6.Function of economic theory.

1. The birth of economics and its development took place in several stages: - the scientific thought of antiquity (Plato, Aristotle, Xenophon and others) - the stage merkantevizma (the wealth of society is determined by the volume of foreign trade), (​​Thomas Mann and Antoine de Montchretien Vattevil - phase Physiocrats (wealth of a society is determined by the level of development of such industries as agriculture), (F. Quesnay) - classical economic theory (Adam Smith, David Ricardo, William Petty, Turgot);

They argued that the basis of the wealth of society is a difficult and scientifically examined the categories of goods, money, profits, wages, etc.

or proletarian Marxist economic theory (Marx, Engels) Contents of Marxism was that, to show the history of the origins and development of the capitalist mode of production, as well as the place and role of the proletariat in this society;

The end of the nineteenth and beginning of the twentieth typical number of scientific economic schools: a) school-Leninist theory of imperialism. Capitalism enters its special and last stage of development, imperialism is moribund capitalism and b) Austrian School (Menger, Bawerk, Biserko). They argued the theory of marginal utility of wealth. The value of any benefit to defined limitations, its rarity and the benefit that can bring the final copy of the good.

c) Cambridge (Albert Marshall) The essence of his theory was that, he tried to combine the theory of production costs, supply and demand, productivity, and abstaining from the theory of marginal utility and marginal productivity;

d) regulated capitalism (John Maynard Keynes) d) regulated capitalism (John Maynard Keynes). The state can regulate all economic relations in society, and e) school of economic growth (Rostow). Society is in its development stages of growth from a single industrial to a post industrial society;

2. There are various definitions of the subject of economic teorii 2. There are various definitions of the subject of economic teorii.1) Marxist definition: economic theory examines the economic relations of production, distribution, exchange and consumption in different stages of development.

Samuelson: The subject of economics studies how people and society chooses how to use scarce resources that can be multi-purpose, in order to produce a variety of products and to distribute them, now or in the future for the consumption of various individuals and groups in society.

2) Determination of the economy in the textbook and McConnell Bryu 2) Determination of the economy in the textbook and McConnell Bryu.Vo First, economics is the study of human behavior in the process of production, distribution and consumption of goods and services in the world of rare resursov.Vo Second, economics explores efficient use of limited resources or production management in order to achieve maximum satisfaction of material needs.

3. System of economic relations, it is the relationships between people in the community about the benefits and services, distribution and consumption between classes and social groups, and between countries, companies or firms within enterprises, between small and large owners in town and country, the whole system economic relations is seen in the relationship, in their unity.

System corresponds to the economic relations of production, to ensure its efficient performance.

Methods of economic science are diverse: One method of abstraction, ie liberation of our ideas about the subject of study by the private, casual, permanent tipichnogo.2-movement from the abstract to konkretnomu3-induction, ie are derived from an analysis of the private general provisions and principles, and 4-deduction method (hypothetical), based on the general provisions are based or that particular economic institutions and processes;

5-unity of the historical and logical, that is, economic processes are considered in historical order of their appearance in the logical framework, 6-economic and mathematical modeling, the creation of mathematical models of a particular economic theory;

There are some functions of economic theory:-cognitive function, and methodological, ie economic theory examines common (and economic relations and the productive forces) and is a methodological basis for the other sciences, as identifies common economic laws that are the origin of the methodological assumption for research in other sciences, and practical function is to provide a theoretical basis for economic policy development;

Need - is objectively conditioned and conscious desire to human or social groups to achieve the best possible conditions and reproduction of life. The society is always functioning system needs.

There are three types of needs: - Physical (tangible) - social - spiritual;

Physical needs related to the physical life of the people and their satisfaction reproduces man as a biological entity (food, clothing, shelter). Social needs - is the basis of human activity as a member of society as a social entity that performs a specific function (need for work, leisure, health .) spiritual needs are related to spiritual - creative activity (education, increase cultural, aesthetic enjoyment).

For economic and social policy needs are classified by their qualitative certainty: - absolute - real – solvent;

Absolute needs expressed in general terms the achievements of world civilization. Real needs - it needs, formed within the level of development of production and social relations in each country. Solvent needs - it needs, disability pay satisfaction.

Society is always evolving needs of its population, but the formation of these needs by objective factors: * The development of social production. With the development of production rise and people's needs. The law of increasing requirements is the objective economic laws and acts throughout the history of human civilization. * Demographics. Full age of the person and for society as a whole - the corresponding structure of the population. * Natural and climatic conditions.

Society tries to form a reasonable demand, ie needs that provides the conditions of life of people, relevant economic and social opportunities of society, needs to contribute to high social activity of the workers. Reasonable needs are generated by economic, institutional and socio-psychological measures.