Goods production: essence, conditions, features

The second type of the social economy is goods production. In the goods production the goods are made to be sold. The economic relations between people are take place throw market, that’s аhв this sвstem has the following stages of goods movement: production-exchange-use. The conditions of the goods production development: 1. Public division of labour(producersspecialised on making one type of goods) 2. Private property (the results of the production are owned by holders) The goods production was the basis of the market development. There are several types of market economy. They are: 1. Non developed market economy (the half of the production results are consumed by the producers and the others are sold on the market). 2. Developed market economy (free market economy). Such kind of market economy has peculiarities as working force is a good, the producer engage(ɧɚɧɢɦɚɬɶ) hired worker, and the most production results are sold. 3. Regulated market economy (mixed economy). Here is combined the private sector and government sector. There are several forms of the government regulations. They are issue a law, conduct a tax and finance systems of the country. Several forms of regulated market economy used in the world such as social oriented (Germany), to support a business (the USA), to protect a big business interests (Japan, Sweden) 4. Deformation market economy (administered-command economy) What kind of things are called as goods? There are three answers for this question: 1. Thing should be the result of labour, 2. It should satisfy the needs, 3. It should be exchanged on the market. Goods are the results of production and they are produced to be sold on the market. Goods have two features, such as exchange value and consumption value. The exchange value means the interchange of goods to the other goods (later for money). The goods value is defined by the labour, which is used in the production process. There are two types labour, such as real labour and abstract labour. The real labour helps to create a product, abstract labour calculate how much money, forces (physical and mental works) are used in the production of the goods so it is foundation of defining goods value. The goods value is defined by social necessary working time. The social necessary working time is the time when the most number of goods are produced by using widespread equipments and with average rate of intensity of labour. There are the following factors are influenced on the value: productivity of labour, intensity of labour and labour complication. The value theory was created by the famous economists such as A. Smith, D. Ricardo. Later it was researched by K. Marx. There were two branches in explanation of the goods value. They are Marxism and marginalism. The Marxism considered the goods value movement, they didn’t paв attention on consumption value. It based on labour value theory. The marginasism said that not only labour identify the value of the goods. There are subjectvism factors which influence on the goods value, e.g. bad (ɬɭɯɥɨɟ) egg is expensive in China, a little piece of diamond is expensive, but a cold water costs cheap and others. Why? Because there is a especial party in China and in order to supply diamond it demands a lot of expenditures, to get needed amount of cold water are more easy. There is a link between number of goods and their usefulness. It explains the law of low level of diminishing. According to the law when the numbers of goods are increased the utility of each product is decreased.