why does every person can not be an entrepreneur

Because this very difficult business. Many want simply financial stability, accumulation of money. And to be the entrepreneur it means to build the own development plan and to develop according to this plan. and as soon as they face with financial a problem, they start to give up this business. And only those who really are the entrepreneur can make all over again. Not everyone possesses knowledge in this sphere, abilities to operate business. After all it is so difficult. Not each person possesses that capital and support which is necessary at the initial stage of formation. Not each person possesses those qualities and skills which are necessary in this sphere.

13. why efficiency problems are the main problems of the economic theory?

The problem of efficiency - the most important economic problem. Economic activity on both the micro-and macro-level involves the comparison of continuous outcomes and costs, determine the most effective course of action. In general, the efficiency means the exercise of any process with minimal cost, effort and losses. Cost-effectiveness - a figure determined by the ratio of economic effect (result) and expenses that generated this effect (result). In other words, the lower the costs and the greater the magnitude of the result of economic activity, the higher the efficiency. The concept of economic efficiency is applicable to the enterprise, and to the functioning of the entire economic system. It should be borne in mind that the effectiveness of a single economic unit is not identical to the efficiency of the economic system. There are significant differences in the determination of cost-effectiveness at level of individual business units or the entire economic system.

The economic efficiency of individual enterprises is estimated for a number of indicators. For example, the statistics of the former Soviet Union used to make this estimate more than 500 indicators. The technical aspect of performance is assessed quality raw materials, materials, semi-finished products, progressive technology used, the level of skills, etc. The economic aspect of performance is assessed through the efficient use of resources (resource efficiency or factorial) and total efficiency. Resource efficiency is determined by the result of one of the factors of production (labor, capital, materials, and so on). Examples of indicators of resource efficiency are productivity materialootdacha, materials.

14. Why goods production is the basis of the market economy?

A market economy is an economy in which decisions regarding investment, production and distribution are based on supply and demand and the prices of goods and services are determined in a free price system. Businesses can decide which goods to produce and in what quantity, and consumers and businesses can decide what they want to purchase and at what price. The opposite of a market economy is a planned economy, where the government decides what to produce, in what quantity, and to be sold at what price. The price of a good or service arises through myriad voluntary transactions and indicates to a producer what the demand is for that good or service and whether or not it would be a good allocation of resources. Buyers and sellers enter into transactions without coercion or control from any outside forces, and market competition for both buyers and resources arises naturally.

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16. Why natural economy is an isolated system Subsistence farming - a closed system of organizational and economic relations. A society in which it prevails, is separated from the mass and cost of isolated business units (families, communities, estates). Each unit is based on own resources and self-sufficient in the necessities of life. She does all kinds of chores, from getting various types of raw materials and have drawn them to consume.Sometimes this trend covers the entire state. This happens when they conduct economic policy, known as the "self-sufficiency". Under autarky means creating a closed self-sufficient economy in one country, accompanied by rupture of traditional economic ties with other countries.

17. Why the questions what, how and for whom are the main problems of the economic theory? The main economic challenge is to select the most efficient allocation of factors of production options in order to address the problem of limited resources and the infinity of human desires. A reflection of this problem is staging the three core issues of the economy.

1) what should be done, i.e. what products and quantities;

2) As the goods will be produced, i.e., by whom, with what resources and what technologies they should be reproduced;

3) for whom the intended goods, i.e. who should consume goods and extract from them.

Consider the content of each issue. The first major choice-what goods to produce, is easily illustrated by a society which produces only two goods a and b production factors used in one place may not yet be applied in another. This means that the production of the goods and shall entail the loss of the ability to produce item b and has an alternate value.

The opportunity cost of a product or service is the cost, measured in terms of lost opportunities to engage the best of the available alternatives for activities requiring the same time or the same resources.

Money and opportunity cost is the overlapping concepts. Some alternative costs, such as tuition, take the form of cash, while others, such as free time, do not manifest themselves in monetary form. Some of the money, as the same fees represent alternative value as could be spent on other needs. Other costs, such as clothing, food, etc, always exist and therefore are not included in the alternative cost.

The second major economic choices-how to produce. It is associated with the existence of multiple modes of production of the goods or services of the Cars can do, for example, in highly automated factories with huge amounts of capital equipment and a relatively small share of labor, but they can do and small businesses that use more labour. A key consideration when deciding how to produce, is allocative efficiency or Pareto efficiency

Pareto efficiency is such a level of organization of the economy, in which society extracts maximum value from existing resources and technology, and it is impossible to increase someone's share in the result of not reducing the other.

When efficiency is achieved, the greater the number of goods may be made at the cost of losing the ability to produce something even if factors of production and the knowledge of the same. However, the production efficiency can be increased by improving the social division of labour. Its important characteristics are the specialization and cooperation, to take into account the comparative advantage in the production of goods.

The third key issue is the economy, the distribution of output between members of society. It can be considered both in terms of efficiency and in terms of equity.

Efficiency in the allocation of a situation in which it is impossible through redeployment of existing quantities of goods to satisfy the desire of one man more fully, without this affecting the satisfaction of desires of another person 1.

Justice in distribution is treated differently. Select the two extreme concepts. According to the first, all income and wealth should be distributed equally. An alternative position is that justice does not depend on the "egalitarianism", and from the distribution mechanism, based on the right of private property and the absence of discrimination. This equality of opportunity than equality of income. In a market economy, any product distributed between consumers based on their willingness and ability to pay for his creatures

18. You have made some design on increasing productivity of labour. How does this decision influence on number of goods?

Labour productivity is important in business economics. Productivity growth is to reduce the cost of human labor per unit of production. Increasing productivity is one of the most important indicators of the company, being the main source of expansion. It has a significant impact on the results of the company, such as an increase in output of goods (works, services), reducing its production costs, increase profits, increase efficiency of fixed and working capital and other economic indicators.

Another factor in improving productivity - better organization of production: specialization of enterprises and industries, ie, the concentration of production of similar products on the minimum number of plants or production sites.

The main condition for the growth and improvement of production is to increase labor productivity. Productivity enhancement, influenced by a number of factors, especially the scientific and technical progress.

Technological progress reduces the complexity of products by improving equipment and replace outdated, less productive, through the introduction of more advanced technology, mechanization, through better design of products. (If no degradation products can simplify the design, the productivity increase.)

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