"The economic growth"
The most important-she-ha-rak-te-ri-s-ti-koy general-st-ven-no-go pro-from-water-st-va yav-la-et-sya eco-no-mi - what-with-cue growth. Under it, no-ma-et-sya, before everything, that on each is-it-ri-che-with-whom this-ne in op-re-de-len-noy step-pe-no ob-leg-cha-et-sya re-she-pro-ble-we og-ra-ni-chen-but-ti re-sur-owls and sta-but-vit-sya possible ud-le-your-re-nie more shi-ro-ko-go circle in-required-but-with-tey. Economic growth is a long-term increase in real GDP both in absolute terms and per each inhabitant of the country.
Signs of economic growth:
Firstly, one must keep in mind only real GDP, because nominal GDP can grow, but inflation, and hence prices, can grow even faster, and as a result, real GDP can even decrease;
Secondly, it is necessary to calculate GDP not only in absolute terms, but also per capita, since the population can grow, and then each inhabitant, even with an increase in the absolute size of GDP, will have less;
third, only a long-term increase in GDP can be considered economic growth.
Economic growth is measured by the average annual GDP growth rate, expressed as a percentage. For brevity, this indicator is often referred to simply as the GDP growth rate. In order to calculate the growth rate for a given year, it is necessary to take the real GDP for a given year and subtract the real GDP for the previous year from it, we get the increase in real GDP for a given year. Now we divide it by the real GDP of the previous year and multiply it by 100%.
Ultimately the goal of economic growth is to improve the lives of people, every person, and not only the standard of living, which was mentioned earlier, but also the quality of life.
Factors of economic growth.
Economic growth is provided by the main factors of production: land, capital, labor, entrepreneurship.
Let's start with natural resources. This is the land that is used for agricultural purposes, minerals and especially energy resources, without which the economy cannot develop. Of course, there are countries in the world that have a lot of such resources (Russia, the USA, China, etc.), and there are also those that nature has deprived of resources (Japan, small countries of Europe, such as Denmark, the Netherlands, etc.). However, the presence or absence of natural resources is not today a determining indicator of the country's economic growth and well-being.
Work- a very important factor of production, it depends on how other factors will be used. A society may have a large number of able-bodied population, but of low qualification, which means that their labor will be unproductive. Highly skilled labor is always more productive.
Capital as a factor of production consists of equipment, buildings, structures and stocks that are used in the production process. The end results depend on which industries dominate the economy, how they are equipped, whether advanced technologies and advanced methods of labor organization are used.
The quality of the connection of the main factors of production and their methods is ensured by entrepreneurial activity.
Types of economic growth.
Pri-nya time-li-chat two types-pa eco-but-mi-che-with-to-go growth-ta - ex-ten-siv-ny and in-ten-siv-ny. The first one is connected with how-if-che-st-vein-ny with-ro-with-that is already used-by-the-th-th-means of production-from-water-st-va (in-vol- che-tion in the ho-zyay-st-ven-ny turnover of the more-she-go co-li-che-st-va lands, ra-bo-whose si-ly, raw materials and ma-te -ri-a-loving, energy), the second - with a p-ro-s-that due to the ka-che-st-ven-no-go update (as a result- ta-te outside-d-re-niya of new tech-no-lo-gy, in-high-pro-from-in-di-tel-no-with-ti labor-yes, when-yes ra-bot-nick can-so-ben you-ra-bo-tat for op-re-de-len-noe-whether-che-st-in time-me-no more production, than before). More often than not, in real life, these types are co-che-ta-yut-sya, but some of them are pre-ob-la- yes-yu-shchim.
Extensive growth- an increase in GDP by expanding the scale of resource use.
This means that the resources available in the country, but not yet used, are involved in production. Let us take such a factor of production as land. It is known that fertile land is limited. But they were not all immediately involved in agricultural circulation. It is known from history that in the United States, for example, for quite a long time there was a seizure of land, contributing to the economic growth of the country.
New deposits of minerals are being brought into circulation, although the old deposits have not been used to the end, but the available technology does not allow them to be fully used. This means that the economy develops in an extensive way.
Now suppose we have a factory, but we want to double the production of some product. To do this, we build a new plant, equip it with the same equipment, use the same number of workers and receive, in addition to the output of the new plant, the same amount of products. As you can see, nothing changes: the equipment remains the same, labor productivity and capital productivity do not change, but, as planned, the amount of goods has doubled. This will be an extensive increase in production. But labor and capital are also limited resources, so you need to look for another way to achieve economic growth, and there is such a way. This is strong economic growth.
Intensive growth- increase in GDP due to the qualitative improvement of factors of production and increase in their efficiency. This means that the factors of production must undergo qualitative changes under the influence of scientific and technological progress, the improvement of the skills of workers, the growth of labor productivity and the rational distribution of resources.
The most important factor intensive growth - scientific and technological progress (STP), which has affected all aspects of the economy and society. It has developed especially rapidly since the 80s of the last century, when the so-called electronic revolution took place (compare with the industrial revolution of the 18th-19th centuries and the electrical revolution). Electronics and computer science dramatically increase human capabilities, increase labor productivity, change technologies, create new products and even new resources that do not exist in nature.
STP has a huge impact on physical capital. The successful operation of any enterprise depends on equipment, technology, raw materials, energy, and industrial enterprises form the basis of the economy.
Second factor intensive growth - advanced training of employees. The education of the worker began to play a very important role. If during conveyor production it was possible to train even an illiterate worker in the simplest operation in a couple of hours, now it is hardly possible to attract such an employee to modern production and expensive high-tech equipment.
There was even such a category as “human capital”, i.e. knowledge and skills of people, accumulated by them through training and practical experience. Therefore, investment in human capital is now often even more important than investment in physical capital (equipment and tools). And this is right, because only well-educated people can work on high-tech equipment. Therefore, in many developed countries, schools last 12 years, and labor-intensive and "dirty" (from an environmental point of view) production is exported to underdeveloped countries where workers are poorly qualified.
Third factor intensive growth - the rational distribution of resources - means that in the course of economic growth, capital and labor are transferred from less efficient industries to more efficient ones. A restructuring of the economy is taking place: knowledge-intensive industries take the lead in the economy, and traditional industries become more productive due to the improvement of equipment and technology, and as a result, reduce the amount of resources necessary for the successful functioning of these industries.
Fourth factor- economies of scale, which means that large enterprises operate more efficiently than a few small enterprises. This allows more money to be spent on marketing improvements, advertising, and other needs that increase production.
As you know, different countries develop differently, so there is every reason to divide them into groups: developed countries, countries with economies in transition, developing countries. Among the developing countries, a group of least developed countries is distinguished. The gap between rich and poor countries is very large. By the beginning of the 21st century, the average GDP per capita for developed countries was more than 25 thousand dollars a year, and for the least developed countries - just over 255 dollars. As you can see, the gap is almost 100 times.
Therefore, when we talk about economic growth and the factors of its intensive development, we mean developed countries. For developing countries, the term economic development is more acceptable.
Economic development- these are cardinal changes in the economic life of the country, transformations in the structure of the economy. For the most part, agricultural production prevails in developing countries, there is almost no industry, the vast majority of the population lives in rural areas. The goals and objectives of the economic development of these countries differ from the goals of economic growth.
The modern world today demonstrates to a greater extent the dominance of an intensive type of growth, growth through the use of new equipment and technologies, improving the professional qualifications of workers, complicating methods and methods of work. Often, the transition to an intensive path of economic development becomes a vital imperative, a condition under which the preservation and life of the country's economy as such is possible. For example, rising energy prices are forcing importing countries to more actively look for alternative energy sources, develop and introduce resource-saving technologies. There are also few examples where economic growth is ensured by increasing the number of employees. Such examples include cotton picking in Turkmenistan. If earlier cotton harvesters were used there, today, a large number of children and teenagers are working, moreover, for a minimal fee. The equipment is much more expensive to operate, and therefore unprofitable. Although such a path is very far from the principles of modern civilization.
The economy of any state in the modern world must necessarily take into account intensive and economic growth.
In this article, we will try to analyze the influence of these factors on the development of the country as a whole.
The main thing
Economic growth is the main goal of the state macroeconomics. It is achieved by exceeding the growth of the national product over the quantitative indicators of the constantly growing needs of the population.
The growth of the economy provides for several points that affect its dynamics. But the most important of them: extensive and intensive factors. They are characteristic of two types of states - developing and developed. There are also states of an intermediate type.
History has shown that during the transition to the market, the influence of extensive and intensive factors on competitiveness is very great.
Obviously, the economy of any country solves the same problems. They include meeting the growing needs of the population for goods and services, solving emerging problems (social, economic, environmental), optimizing the use of natural resources, and many others.
Extensive factor
It is also called "development in breadth". Such an economy implies the conduct of the economy in the country, in which the resources available are increasingly used. The concept of such "reserves" includes both a variety of minerals and natural resources (plants and animals). Also human (labor) are not excluded.
With extensive economic growth, the value increases due to an increase in the use of the above benefits, as well as the development of new territories. An increasing amount of natural resources is involved in production.
Main extensive factors
This development is progressive only at first glance. This is due to the fact that natural resources themselves are a temporary phenomenon (many of them are exhaustible). The possibility of resuming some of them (soil, natural gas, oil, coal) is very conditional, since it is too long in time as a geological factor.
The principle "Get more, sow, plow" is typical for countries with a low level of economic development. An increase in the scale of the use of natural resources is a path to a possible economic crisis in the future.
We list the main signs of extensive growth:
- increase in financial investments without changing the way of production activity;
- employing more and more labor force;
- a constant increase in the volume of raw materials used, structural materials, as well as natural fuels.
Intensive factor
Extensive and intensive factors have the same goal - economic growth, but the ways to achieve it are very different. It is the opposite of the previous one in its principled approach to managing the economy in the country. In simple terms, it sounds like this: "Sow less, but harvest more." This statement generally characterizes the style of economic development.
With an intensive way of doing business in the state, the resources of science are used: the latest production technologies, discoveries in the field of chemistry, physics and related sciences. That is, the phenomenon of scientific and technological progress should occur in parallel with the economic recovery.
Main Intensifying Factors
When the goal is growth, the use of outdated methods of management significantly hinders the development of the state. The growing needs of the population cannot be satisfied only by increasing the volume of exploitation of natural raw materials and labor.
Thus, extensive and intensive factors contradict each other. We list the main factors of the "improved" way of farming:
- introduction of the latest technologies and devices into production, updating the existing fund;
- training to improve the skills of employees;
- rational use and optimization of funds (both fixed and circulating);
- improving the organization of labor activity, increasing its efficiency.
An intensive economy is characterized by an improvement in the quality of management (systems), as well as the improvement of technological processes, the use of innovative methods. Thus, by modernizing production cycles, it is possible to achieve an increase in the level of gross product.
Human factor
The most important thing in any economy, no doubt, is the standard of living of the population. Be that as it may, if it is low, then there can be no talk of any economic growth in the country.
It should be noted that intensive and extensive factors of economic growth are based on human capital. But the approach is fundamentally different in both cases.
An increase in the number of workers in the enterprise may lead to a decrease in the level of production due to an overabundance of labor resources. In this way, the "profitability" of this "resource investment" is reduced. Moreover, the average indicator of labor efficiency does not fundamentally change. This is indicative of the extensive form of economic development.
Standard of living
"The quality of the population" has always been one of the basic parameters of the state's economy. It includes life expectancy, its level, as well as GDP per capita. But this is not enough; this also includes the level of education, medical and social services.
Human capital" was introduced by an intensive way of managing. It includes all kinds of actions aimed at training: training narrow specialists, creating new technological training courses, and improving the skills of employees.
These measures make it possible to reduce the amount of labor force, and, on the contrary, increase the effect of production. This simplifies the introduction of new technologies and their development. Efficiency of production increases both in general and in each specific case.
Extensive and intensive factors of labor productivity are also determined by the expediency of the activity of control systems. In the first case, an example may be the centralized management of the economy (in the USSR), planning and division into stages.
In the second case, the creation of centers and institutions, the training of managerial personnel are at the forefront of economic growth and progress in general. This is a guarantee of progress and long-term prospects for the growth of industrial production in the country.
mixed type
In the modern world, there are not only extensive and intensive factors of development. In some countries of the world there is another type of economy - mixed.
This option combines the two types listed above, being an intermediate or "transitional". An example is the agricultural production of a typically "agrarian" state. When the speed of developing new lands and attracting labor force stops or significantly decreases.
There is a replacement of the technical base, the use of fertilizers, the use of the latest methods of cultivating land (irrigation, melioration), reducing losses during transportation, waste-free agricultural production and the food industry.
Extensive and intensive factors of enterprise development can also be combined, this can be observed during the transition to a market economy. Equipment and technologies are being introduced, the planning style and logistics are changing. The labor force is also increasing (the qualification of the working personnel is increasing).
Conclusion
It is important to note that economic growth can be both sustainable and unsustainable. Experts constantly analyze the influence of intensive, extensive factors on the development of states.
Scientists have derived a coefficient that is calculated using a special formula and includes many parameters. These include: profitability of production, turnover of capital with average revenue, liquidity ratio, financial dependence and more.
It is clear that it is necessary to strive for sustainable growth of the state economy. Only in this case, many issues related to the needs of the population, as well as social and economic issues (within the country and at the interstate level) can be resolved.
Today we hear laudatory epithets about the Russian economy almost every day: “gaining momentum”, “entering a new phase of economic growth”, etc. etc.
Yes, the economy is growing, very weakly, but growing, according to the official data of Rosstat. But what is this growth? What are we growing for? Since high-ranking officials prefer not to delve into the answers to such questions, let's try to do it ourselves.
Let's look at the data for the II quarter of this year (for the III quarter they are not yet available), which the country's leadership liked so much today: GDP in this quarter grew by 2.5% compared to the II quarter of 2016, which is significantly higher than the same indicator in the I quarter of 2017 (plus 0.5%).
Due to what industries (types of economic activity) did you grow? - Agree that this is a completely natural question, to answer which you need to look at which industries we grew faster and which had the largest share in the economy. The fastest growth in Q2 2017 was wholesale and retail trade; repair of motor vehicles and motorcycles - by 4.7% compared to Q2 2016. Mineral extraction, by the way, grew less - by 4.6%.
And what type of economic activity in our country today occupies the largest share in the economy? - You won't believe it (just kidding, of course), but it's all the same Wholesale and retail trade - 15.9%. It is this contribution to the total produced gross value added (GVA) that was made by trade in the second quarter of 2017.
The share of mining was 1.5 times less - 10.6%. With such indicators, we simply have to admit that wholesale and retail trade is today the real locomotive of the economic growth that pleases the authorities so much.
Let's look further. Trade, as you know, is divided into wholesale and retail. So, according to the results of the second quarter of 2017, the retail trade turnover amounted to 7.1 trillion rubles (plus 0.7% compared to the second quarter of 2016), and the wholesale trade turnover amounted to almost 16 trillion rubles (plus 9.7% in the second quarter of 2016 ). Let us concretize the conclusion: the real and unconditional driver of today's economic growth is wholesale trade.
Well, completing our brief analysis, let's clarify what wholesale trade is. Wholesale trade in the understanding of statisticians is the resale of goods (simply speaking, speculation). Each resale adds a new value. Yes, like this, new goods do not appear, but GDP is growing. Retailing is the sale of goods for personal consumption or personal use.
- Ha, - you say with good reason, - so you can inflate the GDP, be healthy. And that's what happens to us to a large extent. This is what characterizes the quality of economic growth.
In general, the current acceleration of economic growth has a pronounced speculative nature.
And here's another thing that well complements the picture drawn above: in the structure of wholesale trade turnover (on average for the second quarter of 2017), the so-called. non-agricultural intermediate products (44.8%), including fuels (35.2%).
These are the interesting features of the current economic growth. Is it growth at all? Well, height, I guess. However, it is difficult to call it reliable. And one more thing: I would not call it real.
An indicator of economic growth is
1) increase in real GDP
2) increase in nominal GDP
3) decrease in real GDP
4) decrease in nominal GDP
Explanation.
Economic growth is the rate of change in real GDP (or GNP) over a given period of time.
Answer: 1
Anastasia Smirnova (St. Petersburg)
Nominal GDP is expressed in current prices of a given year. Real (inflation-adjusted) - expressed in prices of the previous or any other base year. Real GDP takes into account the extent to which GDP growth is driven by real output growth rather than price increases.
The factor of intensive economic growth can be
1) commissioning of additional equipment
2) invitation of foreign workers
3) discovery of new mineral deposits
4) advanced training of workers
Explanation.
The intensive type of economic growth is characterized by the fact that the growth occurs due to the qualitative renewal of the means of labor, objects of labor, the introduction of new efficient technologies. In their pure form, these types of development of production do not exist, and therefore they speak of "predominantly extensive" (or intensive) development of production. The extensive factors of economic growth have practically exhausted themselves, as a result of which there is a need to concentrate efforts on identifying and mobilizing factors and reserves to increase the intensification and efficiency of economic activity.
The commissioning of additional equipment, the invitation of foreign workers and the discovery of new mineral deposits are related to quantitative improvement, not qualitative.
Answer: 4
Subject area: Economics. Economic growth and development, GDP concept
The gross domestic product is
1) the total value of final goods and services created both within the country and abroad
2) the market value of all final goods and services produced per year in all sectors of the economy on the territory of the state
3) a scheme of income and expenses established for a certain period of time, usually for one year
4) the totality of economic relations arising in the process of formation, distribution and use of funds
Answer: 2
Subject area: Economics. Economic growth and development, GDP concept
Extensive economic growth is characterized by
1) staff development
2) acceleration of the turnover of working capital
3) improvement of production tools
Explanation.
Economic growth within an enterprise (organization) can be achieved on an extensive and intensive basis. An increase in the volume of output and sales of products (works, services) and an increase in financial results can be obtained by expanding the field of activity, i.e. additional involvement in the process of production of means of labor, objects of labor, labor, new construction, certain objects of the production sector.
The intensive type of economic growth is characterized by the fact that the growth occurs due to the qualitative renewal of the means of labor, objects of labor, the introduction of new efficient technologies. The extensive factors of economic growth have practically exhausted themselves, as a result of which there is a need to concentrate efforts on identifying and mobilizing factors and reserves to increase the intensification and efficiency of economic activity.
Extensive - directed towards a quantitative increase, expansion, distribution.
Extensive economic growth is characterized by an increase in the labor force.
The correct answer is number 4.
Answer: 4
Subject area: Economics. Economic growth and development, GDP concept
Petr Dmitrievich Sadovsky
Professional development is a qualitative, not a quantitative change.
Strong economic growth is characterized by
1) expansion of the production base
2) involvement in the production of additional resources
3) improvement of labor organization
4) increase in the number of labor force
Explanation.
The correct answer is number 3.
Answer: 3
Subject area: Economics. Economic growth and development, GDP concept
If the population grows by 2% per year, and production grows by 4% per year, then the standard of living of the population
1) will not change
2) will increase
3) will decrease
4) first decrease, then increase
Explanation.
It will increase, because the indicators of production growth are 2 times higher than population growth.
Answer: 2
Subject area: Economics. Economic growth and development, GDP concept
At the peak of business activity
1) cyclical unemployment is high
2) structural unemployment is high
3) inflation is high
4) inflation is low
Explanation.
Because the economic cycle reaches its highest point of development, and then GDP falls over the years.
Cyclical unemployment associated with the business cycle. It manifests itself in times of crisis.
Structural unemployment associated with a lack of jobs for workers in certain specialties, when some professions become obsolete and become unclaimed. It is not directly related to the economic cycle.
Inflation- the process of depreciation of money, debt is a temporary steady increase in the general price level. Depending on the reasons, allocate demand inflation And supply inflation.
Demand inflation associated with a violation of the balance of supply and demand on the part of demand. At full employment, an increase in wages leads to excess aggregate demand, which pushes prices up. In other words, money is more than the price of goods.
Supply inflation arises from rising wages, and from rising prices for raw materials and energy, rising prices for goods and services.
Therefore, the period of peak business activity may be accompanied by high inflation (lack of unemployment, wage growth). In the peak phase, the highest volume of production, employment, wages, price level, interest rate, level of business activity. All this gives rise to a situation where the supply of goods exceeds demand.
The correct answer is number 3.
Answer: 3
Subject area: Economics. Economic growth and development, GDP concept
The calculation of GDP takes into account
1) market value of final products
2) market value of semi-finished products
3) the market value of goods, as well as the cost of raw materials and materials from which these goods are made
4) the market value of products produced by each branch of the national economy
Explanation.
The correct answer is number 1.
Answer: 1
Subject area: Economics. Economic growth and development, GDP concept
According to the definition of gross domestic product, not all purchase and sale transactions are reflected in the value of GDP. What income should be included in GDP?
1) income from the sale of your old motorcycle
2) writer's fee
3) money transfer from parents
4) income from the sale of unnecessary equipment by the plant
Explanation.
"Writer's fee", since all other options have already been included in the GDP before (see their characteristics).
When calculating GDP, the following are taken into account:
1. market value of goods and services
2. cost of final goods and services
3. cost of goods and services produced in the country
4. cost of goods and services of a given year
5.material production cost
When calculating GDP, the following are not taken into account:
1. non-market relations: transfers, self-employment
2. cost of intermediate goods and services
3. income received outside the country
4. cost of goods and services of past years
5. financial flows: purchase of shares, bonds.
The correct answer is number 2.
Answer: 2
Subject area: Economics. Economic growth and development, GDP concept
Valentin Ivanovich Kirichenko
The old motorcycle was included in the GDPR when it was first sold. Equipment unnecessary for the plant was included in the GDP earlier, when it was purchased. The money sent is not a manufactured product, so it is not included in GDP.
Real GDP
1) calculated in base year prices
2) calculated in current year prices
3) not comparable in different years
4) depends on rising prices
Explanation.
The correct answer is number 1.
Answer: 1
Subject area: Economics. Economic growth and development, GDP concept
Petr Dmitrievich Sadovsky
Yes. Real GDP is calculated at the prices of the base year, nominal at the current prices of that year.
The phases of the business cycle are
1) deflation
2) devaluation
Explanation.
Peak, Decline, Bottom, Rise - economic cycle.
The correct answer is number 4.
Answer: 4
Subject area: Economics. Economic growth and development, GDP concept
The extensive path of economic development involves
1) involvement in the production of more and more resources
2) increase in labor productivity
3) improvement of technological methods
4) reduction in the number of people employed in production
Explanation.
An extensive development path - it is "in breadth", which does not provide for the improvement of equipment, advanced training of employees, etc. Extensive development happens due to quantitative increase, as opposed to intensive, associated with the qualitative improvement of resources. For example, in order to get a larger yield, you can process additional plots (extensive path), or you can purchase better seeds, introduce the latest achievements in science and technology, train workers, etc. (intensive path).
The correct answer is number 1.
Answer: 1
Subject area: Economics. Economic growth and development, GDP concept
Which of the incomes listed should be taken into account when calculating the Gross Domestic Product (GDP)?
1) income from the sale of a used car
2) income from the provision of services in the spa
3) receipt of a child benefit by a young mother
4) income from the sale of a batch of counterfeit products
Explanation.
Gross Domestic Product, commonly abbreviated as GDP, is a macroeconomic indicator reflecting the market value of all final goods and services (that is, those intended for direct consumption) produced per year in all sectors of the economy in the territory states for consumption, export and accumulation, regardless of the nationality of the used factors of production. 1,3,4 - are not final goods and services, therefore they are not taken into account when calculating GDP.
The correct answer is number 2.
Answer: 2
Subject area: Economics. Economic growth and development, GDP concept
Intensive economic growth is provided by
1) involvement in the production of additional labor
3) growth in the number of industrial enterprises
Explanation.
Intensive economic growth - economic growth through more efficient use of the same amount of resources.
The correct answer is number 2.
Answer: 2
Subject area: Economics. Economic growth and development, GDP concept
Extensive economic growth can be achieved through
1) reduction in the production of the labor force
2) use of the achievements of scientific and technological progress
3) advanced training of employees
4) increasing the use of natural resources
Explanation.
With an extensive type of economic growth, the expansion of the volume of material goods and services is achieved by increasing the number of economic factors and resources: the number of employees, means of labor, land, raw materials, etc.
