NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
The aim of the paper is to discuss five economic concepts or theories in their application towards present social situation, their social interpretation and the instruments of improving these concepts or their use for the social benefit of society in general. Applying Economic Theory to Create Positive Social Change Introduction The initial basis of life is seen through many economic concepts application. Before one is involved into science, art, politics or love, a person should have minimal finances to live place to live, clothes and food. This is why, if one wants to speak about complex set of social relations, social production should be viewed as the basis and the source of social welfare. Social production The concept of social production is the basis for many economic notions; it is also the factor, which defines the level of welfare across various countries and states. While natural resources are impacted by climate, economic development is located under influence of both climate, natural resources, in combination with the population and knowledge together with human experience.
However, society may rely on acquiring certain economic results only in case these factors and effects included into these factors are used in the process of economic production. Production is usually viewed as the process through which population interacts with nature and its resources for the satisfaction of its economic needs. (Weber, 2001) Production should not be represented in the form of mechanic unity of its elements. It is a complex system of correlation between the labor force and the means of production (its material basis). The means of conjoining between various production factors determine the system of the governing production relations. The contents of the productive relations are usually defined by the level of the productive forces development and the means of their manifestation the instruments through which the worker is connected with the means of production. (Brewer & Mushin, 2001) In the modern society the notion and the concept of the social production is widely accepted and used for the resolution of the major economic issues; moreover, it is often the source of the questions which should be answered by social economic system in striving for increasing its effectiveness. The three principal issues, which are seen through the concept of the social production within the given society, may be stated as follows: 1.
What should be produced, that is, what mutually excluding goods and services should be produced and what quantity of such goods would be optimal for the given state? The question is absolutely relevant for the modern social situation. It gives the society an insight into what should be produced immediately, what products could be produced later and could be waited for; it also creates the basis for deciding what products should and can be refused from and should not be produced. Sometimes such choice is very difficult. There are numerous examples of complex frameworks within which states try to construct a robust hierarchy of goods which would be produced with the highest profits. While this analysis is certainly based on the basic economic notions, they dont provide governments and societies with 100 % guarantee that the decision taken would bring the expected positive results. (Brewer & Mushin, 2001) 2.
How the goods will be produced, who will produce them and with the help of what resources and technologies they will be processed? There are numerous options for the set of social goods. Even houses and production faculties can be constructed according to different projects. Both separate firms and governments may take decisions in the area of production. 3. Who is the targeted audience for the produced goods and in what proportions they will be distributed among the society members; the question is usually added with the issue of what society layers will benefit from using the produced goods? It is essential to understand, that in the modern society no goods can be produced in unlimited quantity, and thus the issue of distributing goods produced by society becomes extremely relevant, bearing in mind growing population of many countries.
Resolution of this issue determines the goals of the given society, as well as the incentives for its development. (Weber, 2001) Answering these three questions is basic and common for all economic systems and all households. In its constant development humanity has created several means for the ordered distribution of the limited resources and the results of production between the competitive goals. These means can either be based on traditions and customs; they can be based on command and administrative methods; they can also be based on market mechanisms. In conditions of primitive civilization human behavior and the issues of resources distribution has usually been defined by stable traditions. Modern society is characterized by active use of market mechanisms. In order to make the concept of social production more efficient in the modern society, as well as to improve the principles of goods distribution among competitive societal strata, it is possible to suggest that the use of traditions should be combined with the use of market mechanisms.
Braumwolle (2007) argues that the use of such mechanisms has not proved itself to be absolutely effective. Moreover, combination of traditions and market principles may provide society with the equilibrium in social production the amount of goods to be produced and consumed will be closer to the required quantity. As far as the marginal utility of goods is defined by the quantity and volumes of such goods consumption, it should be limited with the aims of not exceeding the existing marginal utility. While one suggests that marginal utility is the basis for defining the volumes of production (Bo, 2007), the law of value may also become the basis for social changes in the market system. Law of value The law of value is the economic law.
Market system (as any other system) possesses the characteristic of the inner integrity, which provides it with the opportunity to save itself in interaction with the environment and to self develop. System is the objective unity of regularly connected objects and phenomena. Self development of any system and interaction of its elements is performed in accordance with certain laws. The law of value is an objective law, regulating connections between manufacturers of goods, distribution and stimulation of the social labor in conditions of production. (Bo, 2007) Economic laws are the laws of the human social actions.
They express the essence of the production relations; they are stable and constant repetitive connections in the development of economic processes displaying themselves through the daily human activity. In the modem society the law of value works almost everywhere. Simultaneously, no law can make an entrepreneur work at a loss. In the interaction with other manufacturers he must strive for returning his costs invested into creation an promotion of the goods on the market; this sum of returns should not be less than others entrepreneurs in the similar area receive. In any other case he will appear non competitive and will go bankrupt. The display of this law in the social life is seen in the form of pendulum: as soon as the price for the goods increases, the level of entrepreneurial activity on the market rapidly grows.
The substantiality of this growth is preconditioned by the significance of the price increase. (Brewer & Mushin, 2001) This is why the law of value works within the society for the provision of trade balance and the balance of production. The law of value is also expressed in the situations, through which entrepreneurs live every day some of them become rich, and others fail to even return the costs. The law of value is the basis for the manufacturer differentiation. It is difficult to say whether anything should be done to make this law wok better in the modern social situation. It is implied, that the source of this law lies in the inner desires of people to buy a certain set of goods through the given period of time.
These desires and abilities ultimately define the price of goods and the volumes in which these goods should be produced. It could be recommended to have a more peer review of this law in order to find its new applications for the improvement of economic situation in many countries. Mis balance of goods is still one of the most urgent problems on the market and should be addressed immediately. In order to make this economic work effective, the law of value should be used as the primary source of information about the required constituents of trade balance that is, what set of goods would be perfect in the defined time period. The law of value is the conjunction of notions, which impact the overall market situation, as well as many different market concepts and laws. Property is an economic notion which is also seen under the impact of this law; its price today is determining for many branches of social production. (Weber, 2001) The concept of property Private property is the basis of the market economy.
It is an integral part of economic theory and of economic situation in any country and in the world in general. The concept of property is expressed through the variety of its forms and reflects different level of production development as well as the development of organizational and economic relations. In its social expression it also determines variety of the entrepreneurial activity forms. (Bo, 2007) Property was traditionally viewed as the starting capital for any entrepreneurial activity. In the modern society this concept has lost its relevance the examples of quick human enrichment without having any significant resources to become an entrepreneur is affluent. Simultaneously, property itself has become an object and source of becoming rich not in the form of production factor, the concept of which will be discussed later, but in the form of goods aimed at being sol and bought, ...
Free research essays on topics related to: economic theory, economic situation, modern society, means of production, order to make
Research essay sample on Order To Make Means Of Production
