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General types of production organization

Economics and its role in society. | Human Behavior | Stages of formation economics as a science | Thomas Mun | Macroeconomics since the Bretton Woods era | I. Property and social-economic system of society | Market and laws of its functioning. | Types of cooperation of subjects of the market | Business, social and economic essence and organization | Reproduction of individual capital |


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History knows two types of production organization: natural and commodity. Natural production is historically considered the first one.

Production is purposeful activity of people directed on satisfaction of needs. Main factors of production-labour, ground and capital interact in this process. The result of production is creation of material and non-material wealth satisfying people’s needs. Natural economy is such form of social economy when product is produced inside this economy for own usage.

The main features of natural economy are: 1. Closeness

2.it is based on hand, universal labour, there is no social division of labour.

3. natural economy is characterized by direct economic connections: production-consumption.

Commodity production comes within the historical development of society. It is such form economy where products of production are produced for selling at a market.

It is characterized by the following:

1.openness.

2.commodity production is based on social division of labour.

It has indirect economic connections: production-market-consumption

Commodity production is such form of social economy where products are produced by separate producers for satisfaction social needs. There is a need for selling and buying of goods at a market.

Commodity production went through 2 stages in its development: 1-is a simple commodity production(economy)2. Developed commodity economy or capitalist commodity economy.

The main instruments of commodity production are commodity, wealth, money.

Commodity is an economic wealth for selling and exchanging at a market. Any commodity has two properties.:1. Consumption cost-it is an ability of commodity to satisfy this or that needs of a people.2. exchange cost- it is an ability of commodity to be exchanged equally on another one.

1. Wealth- is means of satisfaction these or those needs of people. Wealth has the following classification: 1.economic wealth is a wealth which is in a limited quantity in relation to our needs. Non-economic wealth is wealth which is in non-limited quantity in relation to our needs.

2. Consuming wealth-is wealth which is intended on satisfaction these or those needs of people. Production wealth is wealth which participates in process of production.

3. Social wealth is wealth, the main characteristics of which is not competiveness. Wealth, which do not have the above mentioned properties are called private and are produced on a market basis. To obtain private wealth one should pay for it.

 


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