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UDC: 08.00.01
Bakieva I.A.
Mirtulaganov I.
Ubaydullaev A.
TFI, Uzbekistan MAJOR ISSUES OF ECONOMY. ECONOMIC NEEDS
Annotation: This article considers how unlimited needs and limited resources raise three main questions for society and an analysis of these needs. As well as the economic good
Keywords: Microeconomics, macroeconomics, direction, national economy, need, question, structure, benefit, utility, price, product, money, process, collection, service, payment, labor, consumer
Humanity constantly has to solve a fundamental economic problem: how to meet ever-growing needs with limited resources? The needs of people always remain the main motive for the development of economic systems. Since the needs and desires of people have no boundaries, and resources are always limited, each person and society as a whole faces a choice. Unlimited needs and limited resources raise three main questions for society:
• WHAT needs to be produced and in what quantity?
• HOW and who should produce, from what resources, with what technology?
• FOR WHOM goods and services are produced, how will they be consumed?
These questions must be answered by any society, regardless of its economic
and political structure. Before each manufacturer is the main question: what to produce? It is necessary to determine which products or services will attract the consumer. From the correct answer to this question depends on the continuity of the sale of goods. How to produce - for an enterprise in the presence of competition, means finding ways to reduce costs in order to stay on the market, possible combinations of production factors with a given amount of resources and the existing level of technology. For whom to produce involves determining the magnitude and level of income of consumers and the real possibilities of the proposal. The money received from the sale is converted into wages, taxes to the state, dividends to shareholders, new equipment, i.e. return to consumers. An economically closed loop is formed.
What to produce, how to produce and for whom to produce goods and services depends on the possession and rational use of certain resources. They are necessary
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components for the activities of enterprises in any industry. A country must possess mineral resources, enterprises, transport, skilled labor, cash, etc. Resources are the primary and main prerequisite for creating wealth. To meet the needs of the necessary production resources, on the basis of which consumer goods are created. Those resources that are used to create wealth are called factors of production.
The problem of limited resources and unlimited needs is addressed by economic science, which is a combination of objective knowledge that studies human activities related to the need to create economic benefits in order to fully meet the needs of people with limited resources.
Satisfying economic needs determines the creation of all that a person needs. This is primarily the production of goods necessary for physical, mental and social comfort. They are an incentive for economic activity and have purchasing power. A person needs livelihoods (food, clothing, housing, etc.), as well as traveling, jewelry, entertainment, etc. The company needs tools and objects of labor for the production of goods and services.
Usually needs are divided into lower (material) and higher (spiritual). The proportions between them change, i.e. The structure of needs is in constant development. This dependence is associated with incomes of the population. By way of meeting the needs are divided into individual, which a person can satisfy himself (TV, refrigerator, food, etc.), and collective, requiring high costs (construction of schools, roads, protection of public order, etc.). In reality, needs take the form of interest. Depending on the carrier of interests, they act as public, collective and personal. There are interests national international, national and regional, group and family, etc.
Characteristic needs is their constant growth and changes in structure, quality and quantity. In society, new needs arise and old ones die. There are new products and new desires for people. The population is growing, which inevitably requires an increase in the mass of the created material and spiritual benefits. In the economic literature, this trend is formulated in the law of the elevation of needs. Growing needs are always ahead of production capacity and do not coincide with the level of actual consumption. In society, there is a contradiction between the infinity of needs and the limited possibilities of their complete satisfaction. This contradiction is resolved at each specific stage by an increase in production. The continuous increase in needs is the motive for creating the necessary goods. The use of factors of production (economic activity) creates economic benefits. They are always limited and are the object of economic activity of people. In addition to economic, there are also free benefits.
A lago is a tangible or intangible (spiritual) item that can satisfy a specific need. These gifts of nature, food, etc. Economic benefits can be classified according to various criteria. If the good has a property form, then it is called a product. As you know, most of the goods produced for personal consumption. They are called private
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goods. For example, clothes. However, there are benefits that are consumed simultaneously by many people and their consumption does not infringe the interests of some individuals in favor of others. Such benefits are called public. This type of benefits includes the public safety of the country, education, health, parks, roads, etc. Most of this kind of benefits are presented to users without paying them directly. A number of services (the use of public vehicles, the provision of electricity and heat, the provision of other services) are paid directly by consumers. The defense of the country cannot function on a private basis, since everyone understands that it is needed, but no one will pay for its maintenance. Therefore, in any society there is a need for joint solutions to problems that concern everyone exclusively. The volume and degree of replenishment of stocks of various goods characterizes their limitations and is expressed by the concept of "rarity". In economics, this term is used in conjunction with the need and as a synonym for the concept "limitation".
Needs analysis is not only theoretical, but also practical. Although needs should not be identified with demand, however, these categories are related. Needs drive demand. There is no demand without needs. Each manufacturer must find a market niche of unmet needs. He must determine the volume and structure of needs that he is forced to spend on the purchase of one commodity or the desire to buy several. The consumer seeks to dispose of their limited income with the greatest benefit (utility) for themselves. And this involves taking into account the social value (market price). The consumer should give preference to a particular product. If two products provide the same level of utility, then the consumer is indifferent to the combinations of two goods. On their basis, indifference curves are constructed. The benefit that is the subject of sale in the market will be in demand only if it has two properties:
- utility (use value), ie the ability to satisfy human needs;
- price, which corresponds to the prevailing social norm. Using the term "product", people mean material objects (refrigerator, clothes, gas, car, computer, etc.). But this concept also covers the services of a consultant, hairdresser, tankman, broker, insurance agent, driver, etc. there is a purchase and sale of "invisible" benefits.
By type of consumption, goods or market goods can be divided into individual consumer goods (consumer goods) and products for enterprises and organizations (means of production).
Consumer goods are intended solely for individual consumption and are divided into three groups:
- consumer goods (short-term use). These include readily available, cheap, which consumers like to buy (food, washing powder, auxiliary materials, etc.). These include part of the services (photocopying, washing clothes). In this market, the role of habit is great, since these are well-known goods, and the price here does not matter much.
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- durable goods (clothing, car, etc.). They require serious thinking and time consuming. Here a big role is played by price, quality, style.
- goods of special assortment. The buyer is primarily attracted by the consumer characteristics of the product.
Products for enterprises and organizations (means of production) are divided into two groups:
- non-durable goods. These are relatively expensive goods and services that are usually consumed within one year (raw materials, materials);
- capital goods, which are relatively expensive, have a long service life and are used by enterprises. Their purchase is planned in advance and suggests the availability of alternative options (equipment, machine tools, etc.)
The flow of goods and services in the economy is always mediated by the movement of money. Households, enterprises, and the state need money to acquire the necessary goods and services, to pay for labor and the necessary materials, etc. In the process of circulation, money is, on the one hand, the monetary equivalent of national production, and on the other hand, it is presented in the form of wages, rent, rent, interest and profits, the value of which is determined by market prices.
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1. Ayman D.I. Modern microeconomics: analysis and application: in 2 tons. / Per. from English M .: Finance and Statistics, 1992
2. Forrester D. World Economy. M .: Science, 1997
3. Fedorenko N.P. Questions of optimal functioning of the economy. M .: Science. 1980
4. Sterlikov F.F. Economy of quality. M., 2000
5. Samuelson P. Economics. / In 2 tons. / Per. from English M .: NTO "Al-Gon" "Mechanical Engineering", 1997
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