Main Measures of Economic Activity

Main Measures of Economic Activity

In economics, you can find suchconcept as a measure of economic activity. To do this, we first find out what the economy is studying. As a sphere of public life, many know it, what it is, in the course. We will talk about the economy as a scientific discipline.measuring instruments of economic activity

The origin of the concept of economics as a science

Appeared in ancient times, in antiquity. For the first time it is mentioned by the ancient Greek scientist Xenophon in the 5th century. BC. Ancient scientists have invested in this sense the way of housekeeping. This is understandable. Almost the entire economy in the understanding of Greek city-states consisted of small entrepreneurs and traders. Craftsmen, peasants, builders. There were no large state corporations in the East. This is due to the mild climate and the lack of the need to consolidate for irrigation works (as in the south) or purification (as in the north). The economy of the whole country consisted entirely of small shopkeepers. A kind of small individual entrepreneurs of our time. Such traders and shopkeepers are the main measures of economic activity of that time.measuring instruments of economic activity

Economics as a science today

The modern economy is completely different, with powerful transnational enterprises and factories. At the present stage, this science will be divided into macroeconomics, microeconomics and the world.

What is microeconomics

This term slightly corresponds to the meaningthe original concept of "economy" in ancient Greece. Namely, it is a science that studies individual economic subjects, their relationships, problems, etc. In other words, independent enterprises within the economic sphere of the country. Difficulties, legislation, mutual relations with each other and with the state.

Macroeconomics

A broader concept. She studies the economy as the whole sphere of social life. Problems of poverty, the labor market as a whole. It is in macroeconomics that the main measures of economic activity are applied. They are necessary to fully take into account the economic situation in the state.main indicators of economic activity

Measurers of economic activity. Social studies as a school course

The values ​​of economic activity give a complete picture of the process of production, distribution, consumption in the economy.

For example, let's take the situation in agriculture. The main measures of economic activity record the amount of milk produced. In 2010, the country produced 500 million tons of this product (the figure is taken for example and is not indicative of this year for this product). And the next year, economists say that the decline occurred by 20 percent. This is an example of qualitative indicators by which the entire economic situation of milk production can be analyzed. Then they begin to understand what causes led to such a sharp fall.

The main measures of economic activity are:

  • Gross national product (GNP).
  • Gross Domestic Product (GDP).

measuring instruments of economic activity

Measurers of economic activity. The concept of GDP

Gross domestic product is an indicator of the amountmarket prices of all final products within the country. What does it mean? Let us take the production of cars as an example. They consist of many parts and assemblies. Wheels, engines produced at different plants. If these units go as spare parts to the market, they are included in the GDP index. But if they are delivered to another plant and a finished car is manufactured from them, then their value in this indicator is not included, because in the final cost of the machines their price is laid. This is called the "final product", i.e. the one that is ready to go to the market. This is due to the fact that these figures are not artificially overstated for objectivity.

You can find such a thing as GDP per capitaof the population. This is nothing more than the sum of all produced final goods, divided by the number of residents in the country. But it is a mistake to believe that where there are more indicators, they live better. The quality of life is determined by other meters. The percentage of unemployment, the average level of wages and pensions to basic prices for the main consumer basket (a set of products necessary for survival).The main indicators of economic activity are

Gross national product (GNP)

Measures of economic activity, such asGNP indicators include the amount of final products both inside the country and outside it. For example, in Kazakhstan there is an enterprise registered in Russia. It regularly pays all local taxes, leases, but profits from this enterprise are taxed by Russian taxes. Thus, the production indicators of this enterprise take into account the GNP indicators, but do not take into account the GDP indicators. This is a broader concept. The gross national product already includes the gross domestic product plus the amount of final products outside the state.

On the macroeconomic situation within the countryThe gross domestic product (GDP) speaks more than the gross national product (GNP). Since the first depends on jobs, the level of production in the country, and therefore, a favorable economic and political climate. But GNP simply serves as an indicator of budget revenue.

There is also a real level and nominallevel of economic indicators. This is true today for our country. GDP, for example, is measured in the ruble equivalent, and the real figure shows the currency one. Let's decipher this notion. The level of GDP for the year, for example, 1 million rubles. In dollars, this amount is 35 thousand. The next year, GDP increased to 1.5 million rubles. Nominal growth is 50 percent. But because of the devaluation of the national currency in dollar terms, growth - only 1 percent - to 38 thousand dollars. This is a vivid example of the manipulation of economic indicators.

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