What is a subject of economics?

The current market economy is based on the interaction of the public and private sectors of the economy. Models of modern relations in this area differ depending on the intensity of their impact on the public, as well as the priority tasks that the government solves.

Existing Schemes

The main models of a market economy are:

1. Socially oriented.
2. Corporate
3. Mixed.

In the first case, the targeted orientation of programs developed by the state concerns the protection of the interests of the population. Moreover, the principles of regulation of economic relations are implemented in long-term projects. The corporate model provides for the protection of the interests of large enterprises and the determination of priorities in their field of activity. Under existing conditions, the economic system was transformed from self-regulating to regulated. This led to a complication of its structure.

The main subjects of the economy

In the system of trade involved:

1. Workers who sell their skills and knowledge.
2. Entrepreneurs.
3. Consumers of products.
4. Merchants.
5. Shareholders and others.

The subjects of the economy are:

1. State.
2. Enterprises.
3. Households.

Consider these categories separately.

Home improvement: characterization

It can consist of several persons or one. This economic entity operates in the field of consumption. He can act as a supplier and owner of, as a rule, human resources. His goal is the complete satisfaction of their own needs. The characteristic of this unit is formed on the basis of the sources and size of income, as well as the size and directions of expenditures. The household has:

1. Property.
2. Tools.
3. Cash.

This subject of the economy is involved in the processes taking place in the territory where families and individuals live.

Classification of income and expenses

Household profit relates to private income. Revenues are generated by:

1. The profits of the owner.
2. Salaries.
3. Labor
4. Percentage / Dividend.
5. Capital.
6. Natural resources.
7. Annuities.
8. Participation in AO.

The resulting profit is spent in the following areas:

1. Meet your own needs.
2. Creating personal savings.
3. Payment of taxes to the budget.

Saving

They represent the non-consumable part of the annual profit remaining after tax. There are savings:

1. Home cash cash.
2. Institutional - insurance policies, bank deposits, stocks, bonds and more.

The latter may be:

1. Protective. They play the role of self-insurance for unforeseen events.
2. Speculative. They participate in the formation of a family business according to existing rules.

Enterprises

These subjects of a market economy produce goods / services for sale, make independent decisions, strive to maximize profits through the most efficient use of their own and attracted resources. For their activities, enterprises bear full property liability. The resulting profit forms the company's capital, is directed to the expansion and improvement of production, as well as the payment of taxes.

Features of firms

Acting as market entities economics, enterprises distinguished by initiative, a certain independence. Their activities are carried out at their own risk. Entrepreneurship takes place in any industry where it is not prohibited by law. In particular, enterprises operate in:

• Industry.
• Agriculture.
• Financial sphere.
• Jurisprudence.
• Consumer services and so on.

Many subjects of the global economy are large firms with a developed network of branches within their own country and abroad. The main activities of enterprises include:

1. Production.
2. Trade.
3. Commercial intermediation.

State

This subject of the economy is represented by a set of its controlling, protective and regulatory institutions. They exercise power and exert a certain influence on other participants in the commodity circulation. The purpose of such regulation is to ensure the social and economic development of the country. The following elements are present in the aggregate of institutions:

1. Head of state.
2. Parliament.
3. Government.
4. Central bank.
5. Government agencies at all levels of government.

The most important task of these elements is the forced establishment of the conditions for the implementation of activities within the framework of trade and the control over their observance. As an economic entity in the economy, the state also participates in relevant relations. In all models of modern commodity circulation, it maintains public order, legality, organizes national defense, monitors money circulation, builds roads, collects taxes, builds bridges, medical, educational and other compulsory institutions.

Traditional and planned models

Depending on the type of system, the state as a subject of the economy performs various roles. It is of particular importance in the framework of the implementation of the traditional model. In the conditions of primitive, backward technology, which cannot ensure the development of production, the state performs the most important distribution functions. It directs a certain part of the national income to material support of the poorest segments of the population. In the framework of the implementation of planned programs, the role of the state is acquiring significant proportions. This is especially true for a command system, which functions more on the basis of administrative measures. Under this model, the state concentrates power in its hands, makes important economic decisions (how much, how, for whom and what to produce), owns and manages property.

The specifics of state activity

Within the market, this subject is exempted from a number of functions unusual for him. In particular, the state does not carry out directive planning, does not provide full satisfaction aggregate demand and so on. The conditions established by him are strictly binding for all other participants in the internal turnover. Along with this, the state may enter into trade relations with other countries, foreign enterprises acting as subjects of the world economy. Their interaction is carried out on the basis of international treaties.

Conclusion

The development of market conditions leads to the formation of certain negative consequences. They exacerbate internal contradictions and slow down growth. The emergence of new enterprises, industries, the need for the construction of communications, bridges, roads and other necessary facilities require significant costs. In this regard, to finance many areas, the active participation of all economic entities is necessary. Each of them contributes to the overall development of the system. The key role in this process undoubtedly belongs to the state. It is it that ensures the maintenance of optimal conditions for the activities of all economic entities.