The market of material factors of production and the formation of income. Factor markets and income generation

243. What economic concept proceeds from the fact that the source of all income, including land rent, is a surplus product:

A) Marxist;

B) Neoclassical;

C) Keynesian;

D) Monetarist;

E) Neo-Keynesian.

244. Marxism defined profit as:

A) income from capital as a factor of production;

B) remuneration to the entrepreneur for innovation (new technology) in production;

C) payment for risk and uncertainty to the entrepreneur;

D) wages for talent to an entrepreneur;

E) the converted form of surplus value.

245. Marginal product of a factor of production in monetary terms:

A) is equal to the change in total revenue from the use of an additional unit of a factor of production;

B) represents the selling price of the last unit of the product;

C) is equal to the change in output when an additional unit is used production factor;

D) cannot be determined under conditions perfect competition;

E) is equal to the total product in monetary terms.

246. Marginal revenue is:

A) increase in production

C) gross income per unit of output;

C) gross income per unit of sales;

D) money gain;

E) the change in income as a result of the change per unit of sales.

247. Marginal income is:

A) Additional income received from the sale of an additional unit of goods;

B) Income received from the sale of a part of a consignment of goods;

C) Additional income received from the sale of one unit of goods;

D) Income received from the sale of the last unit of the product;

E) Additional income received from the sale of the entire batch of goods.

248. Average income is income:

A) obtained as a result of a change in sales per unit of output;

C) received in the event of the sale of all manufactured products;

C) received from the sale of a unit of production;

D) obtained as a result of division gross income on the volume of products sold;

E) Answers C and D are correct.

249. Gross income is:

A) income received from the sale of all products;

C) the value of all manufactured products;

C) sales revenue - accounting costs;

D) sales proceeds - economic costs;

E) Answers A and B are correct.

250. K. Marx considered capital as:

A) a special kind of inventory;

B) the totality of means of production;

C) knowledge, skills, experience of a person, his energy used in
production;

D any value that generates income;

E) value that brings surplus value.

251. Most closely corresponds to the concept of "normal profit:

A) the minimum profit required to keep the firm within the given line of business;

B) profit that provides the enterprise with a comfortable standard of living;

C) the profit that the firm would have made in the normal course of business;

D) the profit received by a typical firm in the industry;

E) total revenue minus external costs.

252. Under what condition competitive firm gets the maximum profit:

A) total income takes on a maximum value;

B) average total cost equals marginal revenue;

C) marginal cost equals marginal revenue;

D) average total costs are maximum;

E) marginal revenue is equal to total product.

253. The break-even point characterizes:

A) the volume of sales at which the proceeds from the sale of products coincide with production costs;

C) current discounted value;

C) the time value of money

D) the relationship of factors of production;

E) profit maximization conditions.

254. A resource of pristine natural origin, which is capable of self-recovery within a relatively wide range, is:

A) capital;

b) environment;

D) minerals;

E) economic resources.

255. Nominal wages are:

A) the amount of cash payments for a certain period of time;

B) the average salary in the country;

C) price index;

D) the purchasing power of money wages;

E) the sum of use values, goods and services that can be bought with wages.

256. Market for land in relation to its supply:

A) elastic;

B) inelastic;

C) perfectly elastic;

D) absolutely inelastic;

E) has unit elasticity.

257. Responsibility for decisions made lies with:

A) an entrepreneur;

b) tax office;

C) an accountant;

D) state;

E) public organizations.

258. The market equilibrium of the level of wages may be disturbed upward:

A) An increase in the demand for labor;

B) an increase in inflation;

C) shortening the working week;

D) decrease in inflation;

E) due to rising unemployment.

259. The neoclassical approach to the functioning of the labor market is based on:

A) price balance of demand and supply of labor;

B) the phenomenon of constant and fundamental disequilibrium;

C) the concept of "natural rate of unemployment;

D) analysis of professional and sectoral differences in the structure of the workforce;

E) wage rigidity.

260. Pricing in factor markets:

A) varies depending on the real demand of firms;

B) has a steady downward trend in prices for factors of production;

C) contributes to increasing the output of production factors;

D) does not depend on the availability of interchangeable and complementary factors of production;

E) Answers B and C are correct.

261. Demand is more elastic for those factors of production which, other things being equal:

A) increase production costs;

B) allow you to crowd out cheap factors of production;

C) have more substitutes;

D) have a higher price;

E) reduce production costs.

262. The piecework form of remuneration includes:

A) time-based;

B) crossbred;

C) hourly;

D) daily;

E) chord.

263. A systematized set, including a list of various information and data about land as a means of production, and about specific land, is called:

A) the cadastre;

B) rent;

C) registry;

D) parity;

E) an element of rent.

264. What is the demand line of a firm operating in conditions of perfect competition:

A) a straight line coinciding with the price line;

B) a straight line with a negative slope;

C) a straight line parallel to the y-axis;

D) a curve coinciding with the MC line;

E) indifference curve.

265. The demand for a resource depends on:

A) answers B and C are correct;

B) from the price of this resource;

C) from the price of the product made with the help of this resource;

D) changes in labor productivity;

E) on the solvency of the population.

266. What are the conditions for the emergence of differential rent I?

A) difference in the qualifications of agricultural workers;

B) difference in the location of the plots in relation to the market;

C) the difference in fertility of individual plots of land and the difference in the location of the plots in relation to the market;

D) only the difference in the fertility of individual plots of land;

E) only the difference in the productivity of additional investments of capital in land.

267. Interest is income per factor

C) Capital;

D) Entrepreneurship;

e) Market conditions;

268. A dividend is:

A) Income received by the owner of the share;

B) Collection Money by distribution of shares;

C) Contribution paid joint-stock company;

D) Income received from the sale of shares;

E) Money invested in the bank.

269. Rent is income per factor:

C) Capital;

D) Entrepreneurship;

There is no single resource market, but there is a set of interrelated markets - the labor market, the capital market, the land market, the entrepreneurial ability market (the information market is often added to these main markets).

Demand and supply in the markets for factors of production are formed under the influence of markets for consumer goods and services. Therefore, the demand for resources acts as a derived demand, and the supply of resources ultimately depends on the supply of consumer goods.

1. LABOR MARKET- this is the market of labor resources as a commodity, the equilibrium price and quantity of which are determined by the interaction of supply and demand.

The fundamental difference between labor and all other types of production resources is that it is a form of human life, the realization of his life goals and interests. When analyzing the category of the labor market, it is necessary to take into account the existence of "human" elements, behind which are living people.

Market agents represented by entrepreneurs and the able-bodied population enter into certain relationships in the labor market. Therefore, the labor market is such an economic environment or space in which, as a result of competition between economic agents, a certain amount of employment and wages are established through the mechanism of supply and demand.

There are two main functions of the labor market:

Social - ensuring a normal level of income and well-being of people, a normal level of reproduction of the productive abilities of workers;

Economic - rational involvement, distribution, regulation and use of labor.

The classical model of a competitive labor market is based on the following basic principles:

A large number of employers representing the interest of firms and expressing demand for labor;

A large number of workers who are carriers of the labor force and express a proposal.

The behavior of subjects in the labor market is rational, due to the achievement of their own interests and benefits. There are no strict restrictions on free movement in the labor market for them.

The labor market is characterized by perfect competition, implemented through the mechanism of flexible market prices, when neither individual employers nor individual employees can influence the market situation as a whole.

Work force- a set of physical and spiritual abilities of a person to work.

Demand for labor, whose subjects are business and the state, is inversely related to the amount of wages. In the event of an increase in wages, the employer will be forced to reduce the number of employees he hires (the demand for labor will decrease), and in the event of a decrease in wages, he will be able to hire additional workers(the demand for labor will increase). This relationship between wages and the demand for labor is expressed in the demand curve for labor.

Rice. 1. The demand curve for labor.

This graph illustrates the relationship between wages (W) and labor demand (L). Each point on the D L curve shows what the demand for labor will be at a certain level of wages. The negative slope of the curve illustrates the trend towards an increase in the demand for labor at low wages and, accordingly, a decrease in the demand for labor at high wages.

Factors that determine the demand for labor:

Wage. Ceteris paribus, the relationship between the volume of demand for labor services and its price is inverse.

demand for end products. The higher the demand for final product the higher the demand for labor.

Interchangeability of factors of production. If the price of labor is high, then it will be replaced by cheaper factors of production.

The level of qualification of workers. The level of skill, ceteris paribus, implies a higher marginal productivity, which leads to the substitution of labor for less profitable factors of production.

Marginal profitability of labor. In the market of perfect competition, the volume of demand for labor will increase until the marginal revenue from the use of the labor factor is equal to the costs, i.e. wages (MRP L = W)

Labor supply, whose subjects are households, is directly dependent on the size of wages. In the event of an increase in wages, sellers of labor services (in other words, wage-earners) will increase the supply of labor, and in the event of a decrease in wages, the supply of labor will decrease. This dependence is illustrated by the labor supply curve.

Rice. 2. The supply curve for labor.

Each point on the labor supply curve ( S L) shows what will be the value of the supply of labor at a certain level of wages.

Factors that determine labor supply:

1. The value of real wages. The relationship between real wages and the volume of labor supply is direct (the higher the wage, the greater the supply of labor).

2. Hiring strategy. The worker invests time and money in improving his own productive capacity through education.

3. Time. A person faces an alternative distribution of the time of day: if he rests more, then there will be less time for work. It is under the influence of two effects that are also inherent in the markets for goods and services - substitution effect and income effect. substitution effect means the displacement of free time by labor time. income effect It manifests itself in a fall in the supply of labor with an increase in wages. those. when an employee reaches a certain level of income and material well-being, he devotes more and more time for rest and other pastime. At the same time, he takes into account lost earnings, which could be in case of refusal of leisure.

1. So far, we have been talking about the processes taking place in the markets for goods and services, in which firms act as sellers, and households as buyers of products produced by firms.

In the markets of factors of production (resources), on the contrary, sellers are households - owners of factors of production, and buyers - firms that carry out the process of converting factors of production into goods and services.

Distinguish between the factors of production themselves and the services provided by these factors. The factors are labor, inseparable from the personality of the worker, land, elements of real capital and entrepreneurial ability. The market for factors of production is the market for the services of these factors. The payment for these services is called the price of the factor or its income. Wages are defined as payment for the services of the labor force. Rent - payment for the services of the "land". Interest - for the "services" of capital. Profit - for entrepreneurial services.

The markets for factors of production are subject to the same principles as the markets for goods and services. The market price of resources is an equilibrium price that is formed under the influence of supply and demand for a particular resource.

Firms demand factors of production. This demand is called derivative demand because it directly depends on the demand for finished products.

A factor of production is not useful in itself, but only because it can be used to produce a final product that will bring satisfaction to the consumer. For example, the demand for medicines determines the demand for the services of pharmacists and pharmacists. The demand for any factor of production can rise or fall, depending on whether the demand for consumer goods made with that factor rises or falls.

The organization of production requires many factors: labor, land, technology, energy, raw materials. But a change in prices for one of the factors causes a change in the attracted quantity not only of this, but also of the factors of production associated with it. Consequently, the demand for factors of production is an interdependent process, where the volume of each resource involved in production depends on the price level not only for each of them, but also for all other resources associated with them.

2. Let's consider the labor market functioning in the conditions of a perfect competition. This means that neither the firm nor the workers can influence the price of labor services, i.e. wage rate.

Firms demand labor services. The cash cost of hiring a worker is the wages a firm pays to a hired worker. Depending on the evaluation method labor costs Distinguish between time-based (for hours worked), piecework (for a certain amount of work).

The magnitude of the demand for labor depends on the level of prices for products produced with its help, and on labor productivity. The more productive labor is, the higher the price of its product, the greater the demand for this type of labor.

A feature of labor markets and, in particular, the individual supply of labor is that in many respects the worker himself determines how much time he would like to work and how much to rest. The “work-leisure” dilemma in relation to the labor market has been called the “income effect” and the “substitution effect”. It can be demonstrated on a graph (Fig. 20).

The characteristic slope of the individual labor supply curve shows that rising wages stimulate the worker to work only up to a certain point W0. During this period, leisure and free time are sacrificed to the interests of high earnings (zone 1). Upon reaching a high financial situation the worker will suspend further supply of his labor Lo and will refuse additional employment even if wages continue to rise. For this worker, the “income effect” is no longer a priority, that is, the main one, and is sacrificed for the sake of pastime and leisure alternative to work. The "income effect" is replaced by the "leisure effect" (zone 2).

Fig.20. The labor supply curve of an individual worker

This shape of the labor supply curve underlies the long-term trend towards a shorter workweek. For the last hundred years work week V developed countries decreased from 70 to 40 hours a week.

At the same time, it is important to distinguish between the labor supply curve individual person and society as a whole. The market supply of labor services has the usual form: as wages rise, the number of man-hours increases. This is because the increase in wages attracts new, previously unemployed people: the cost of lost profits, if they stay at home, becomes too high for them. In general, the market supply of labor is formed under the influence of a combination of the following conditions:

· total strength population;

the number of active able-bodied population;

the number of hours worked per year;

· quality parameters labor, its qualifications, productivity, specialization.

These factors can change the position of the supply curve for labor services.

In competitive labor markets, the price of labor, i.e. wages are set as competitive equilibrium supply and demand for various categories of workers, by type of work.

Establishment minimum size wages above the equilibrium W0 leads to unemployment, below the equilibrium W0 - to a shortage (deficit) of the labor force.

3. The next market under consideration is the land market. It is necessary to distinguish land itself, as an object of purchase and sale, from land services, which can also be bought and sold on the market. The price of land services is the rate of rent per unit of land used for a certain period of time, or the rate of land rent (R).

Land is a primary resource, as it is artificially irreproducible. The amount of land in each this moment time is limited, therefore, the supply of land is perfectly inelastic, i.e. the supply curve is a vertical line (Fig. 21).

Rice. 21. Demand and supply in the land market

The volume of plots offered for lease is a given value and does not depend on the levels of rent for their use. The level of the ground rent rate is determined by the intersection of supply and demand curves. An increase in demand with a fixed supply leads to a sharp increase in the equilibrium rent and vice versa, a decrease in demand will cause a decrease in rent. Consequently, the rental rate is determined only by the level of demand for land services. The amount of ground rent is expressed by the area of ​​the quadrangle. The rent is only a part of the amount that the tenant pays to the owner of the land. The rent includes, in addition to rent, the depreciation of buildings (located on the ground), as well as interest on invested capital.

Land prices are closely related to ground rent. The higher the rent, the higher the price of this plot. Let us assume that some piece of land brings an annual rent of 4,000 rubles. What could be the cost of this area? To answer this question means to determine the opportunity cost for the owner of the land. The price of the land should be equal to the amount of money, putting which in the bank, the former owner of the land would receive a similar interest on the invested capital. Therefore, the price of this plot of land should be equal to,

where Pz is the price of a given piece of land;

R is the rent expected from the given site;

i is the market rate of loan interest.

If the interest rate is 5%, then the price of the land is:

4000 / 5% = 4000 / 0.05 = 80,000 den. units

The peculiarity of land rent in comparison with other prices for resources is that it does not perform a stimulating function, i.e. does not increase the supply of land. For example, high wages for a certain type of work will help expand the supply of workers for this type of work. High level ground rent, especially in modern conditions, when the land is developed, will not lead to an increase in the supply of land, since its amount in nature is limited.

4. In modern economic theory, capital is defined as a resource created for the purpose of producing more economic goods. Capital resources include buildings, structures, equipment, raw materials, energy, and ideas. Depending on the degree of durability, physical (real) capital is divided into:

· fixed capital, representing real durable assets (buildings, structures, machinery, equipment), serves for several production cycles.

circulating capital - means of production that are simultaneously consumed in manufacturing process, while changing its natural form and turning into finished products (raw materials, materials, fuel, energy).

Depreciation is the reduction in the cost of fixed capital resources over a certain period of time in the production process and the gradual transfer of their value to the product being produced.

The common denominator to which the cost of capital in the form of any asset is reduced is their monetary value. In monetary terms, the cost of hydroelectric power plants, computers and raw materials for a plant or factory can be summed up. All economic benefits of industrial purposes, expressed in terms of monetary form, take the form of a capital asset circulating on the market. An asset is everything of value that a person, company or government owns.

The amount of real capital grows in the process of investing money in new buildings, equipment, stocks of raw materials and materials. These investments in real capital are called investments. The interest acts as a return on real capital, because the entrepreneur always makes a choice: either to purchase equipment or put money in the bank. The choice will be made in favor of entrepreneurial activity if the amount of bank interest is lower than the income brought by real capital.

In the real market capitals are circulated in monetary form. Money is not an economic resource, since it does not participate in the production of goods and services, it is not an object or means of labor. But they are used to buy the means of production. Thus, the capital market is a market in which financial resources necessary for organizing the activities of firms. There is also a credit market - a market in which loans are granted and received. The lender, who has temporarily free funds, provides them for a fee for a certain period of time to the borrower who needs them.

In this regard, the concept of the interest rate arises - the price paid for the use of money during the year. It is not defined in absolute value, but as a percentage of the amount of money borrowed, which allows you to compare interest rates. In a competitive market, the market price is determined based on the correspondence between supply and demand. Therefore, the equilibrium rate of interest depends on the demand for loan capital and its supply.

5. Making a decision on investments and investments of funds involves a comparison of today's and future income.

The amount of money capital originally invested increases every year in proportion to the rate of interest. The amount received in a year is determined by the simple interest formula:

V \u003d P (1 + i) \u003d 100 1.1 \u003d 110,

where is the amount of money currently invested (100);

i is the interest rate in decimal form (0.1). Therefore, the interest income will be equal to Рi (10).

Amount received through a certain amount of years, is determined by the compound interest formula:

where t is the time interval of years.

The compound interest formula can be used to determine the present value of future earnings. This process is called discounting.

For example, at an annual interest rate of 10%, the ruble will turn into 1.1 rubles in a year, i.e. today's ruble will cost 1.1 rubles. And the ruble, which we will receive in a year, today costs 90.9 kopecks. Therefore, the ruble received today is worth more than the ruble we will receive in the future.

Demand for factors of production

Factor markets- these are the markets of labor, capital, land, minerals, information, knowledge, intellectual abilities, entrepreneurial talent. An important role is played by the use of primary resources - labor, capital and land. Markets for factors of production have their own characteristics that must be taken into account. All factors of production used in economic activity can be divided into two groups:

1) material, which include capital and land;

2) social, which include labor and entrepreneurial talent.

In the modern economy, the markets for factors of production perform a variety of functions, thanks to which the resource provision of all business entities is ensured, the tasks of the rational use of limited resources are solved, economic ties are formed, and the problem is solved: what, how and for whom to produce.

The simplest demand for factors of production - resources is determined on the assumption that the firm acquires some resource in a competitive market and sells its products also in a competitive market.

Demand for resources as derived demand. The demand for resources is derived from the demand for finished goods and services that are produced using these resources. They satisfy the needs of the consumer indirectly, through the production of goods and services.

Marginal product in money terms(MRP) . The derivative nature of the demand for resources means that it will depend on:

1) resource productivity when creating a product;

2) the market value, or price, of a commodity produced with the help of a given resource.

The role of productivity and product price in determining the demand for a resource can be seen in the example shown in Table. 5.1.

Suppose a firm acquires one variable resource for its production, let it be labor. The data in columns 1-3 of the table. 5.1 are determined by the law of diminishing returns, according to which the marginal product of any resource (MP) as the volume of its use decreases.

Column 4 gives information about the price of the product, which is constant in a competitive market. Multiplying the data in columns 2 and 4, we get the total income in column 5. Then it is easy to calculate marginal product in monetary terms (MRP)- the increase in total income resulting from the application of each additional unit of variable input, which is indicated in column 6.

Resource usage rule: MRP = MRC. To maximize profits, the firm must use additional

units of any given type of resource as long as each successive unit yields an increase in the firm's total revenue rather than total costs. Based on the definition MRP shows what is the increase in total income as a result of the use of each subsequent hired worker.

Marginal cost of resourcesMRC. The amount by which each additional unit of a resource adds to the resource cost is called the marginal resource cost. (MRC). It will be profitable for the firm to apply additional units of the resource until the MRP of this resource becomes equal to MRC. If the number of workers is such that the MRC of the last worker is greater than MRP, then the firm hires workers who do not pay for themselves. Thus, MRP reflects the firm's demand for a resource, in particular for labor, which is illustrated by the graph in Fig. 5.1.

MRP - producer's demand for the resource. In a purely competitive labor market, the wage rate is set by the aggregate market supply labor and market demand for labor. An individual firm cannot influence this wage rate. Under these conditions, the total cost for the period under consideration increases exactly by the amount of the existing wage rate for each additional worker hired, i.e. MRC is equal to the wage rate.

The firm will hire workers up to the point where the wage rate (or MRC) is equal to their MRP only if it hires workers in a competitive environment. Accordingly, using the data of column 6 of Table. 5.1, we find that if the wage rate is 13.95 rubles, then the company will hire only one worker, because the first worker will provide an increase

total income of 14 rubles. and a little less - 13.95 rubles. - an increase in total costs. For each subsequent worker MRC exceeds MRP, which means that it is unprofitable for the firm to hire any of these workers.

If the wage rate is 11.95 rubles, then, using the same valuation technique, we will see that it is profitable for the company to hire both the first and second worker. Similarly: if the wage rate is 9.95 rubles, then three people will be hired; if 7.95 rubles. - four; if 5.95 rubles. - five, etc. It is obvious that the schedule MRP reflects the firm's demand for labor, since each point on this graph represents the number of workers the firm would hire at each possible wage rate.

The labor market: supply and demand, wages and employment

Sphere of work- an important and multifaceted area of ​​the economic and social life of society. It covers both the labor market and the direct use of labor resources in social production. On the labor market, the value of the labor force is assessed, the conditions for its employment are determined, including the amount of wages, working conditions, the possibility of obtaining education, and professional growth.

Labor market, obeying the general laws of supply and demand, according to many principles of functioning, is a specific market that has a number of differences from commodity markets. Here, the regulators are not only economic, but also social and socio-psychological factors, which are by no means always related to the price of labor power - wages. The supply of labor force is determined primarily by demographic factors: the birth rate, the growth rate of the working-age population, its gender and age structure.

In addition to the demographic factor, the dynamics of the labor market depends on the degree of economic activity of various groups of the able-bodied population, which is estimated by the ratio of the number of employed and unemployed to the total number of able-bodied population in this group. The main demand factor influencing the dynamics of employment is the state of the economic situation, the phase of the economic cycle. In addition, scientific and technological progress has a serious impact on the need for labor force.

Utility maximization. In the labor market, sellers are individual households that maximize utility. The buyers in this market are firms that present a production demand for the resource "labor". In the short term, the total number of potential employees and their qualifications remain constant. Therefore, based on the decisions of each individual worker, it is possible to determine the total volume of supply in the labor market as a whole in the economy, and based on the results of choosing a profession and place of work, the amount of labor supply in different industries. In the short run, the capital of the firm is a fixed value, so it determines the need for labor based on the market situation in which it operates.

A perfectly competitive firm, holding the price of its output constant, increases demand on the basis of profit maximization by hiring workers as long as, as noted above, the wage rate does not exceed the marginal product in monetary terms.

Employed and unemployed. The labor force in developed countries, including Russia, includes the entire population of the country within working age, including both employed and unemployed. Employed in Russia are persons of both sexes who, during the period under review:

1) performed work for hire for remuneration on a full or part-time basis, as well as income-generating self-employment work independently or with partners, both with and without the involvement of employees;

2) performed work without pay in a family business;

3) were temporarily absent from work due to illness, nursing, annual leave or days off, training, study leave, leave without pay or with partial pay at the initiative of the administration, strike, or other similar reasons.

Forms and principles of remuneration. There are several most common forms of wages used in a market economy, including in Russia. Among them is time wages, in which the wages of an employee practically depend on the time worked by him and his tariff rate (salary). Workers often have hourly rates. The piecework form involves remuneration of workers according to the quantity (volume) of products of the required quality.

Among the most typical modern forms and principles of remuneration and material incentives are:

An increase in the share of variable elements of wages (bonuses, bonuses - payments from profits), reaching 1/3 of the entire wage and used as an incentive for saving raw materials and materials, increasing labor productivity and improving product quality;

The use of the so-called analytical system for evaluating the labor contribution, where numerous factors of the labor process, such as the qualifications of the employee, the amount of work, its quality, and the financial results of the company, are evaluated differently in points;

Using the system tariff rates that encourage workers to achieve high end results, primarily in terms of quality, as well as to master related and other professions, for example, the professions of equipment repairers;

The existence of significant differentiation in wages, which reflects individual differences in the results of work, as well as in the level of qualifications and experience of workers;

The use of various plans for group (brigade) stimulation, establishing a connection between end results the activities of the brigade or other labor collective (increase in production, labor productivity) and remuneration in the form of bonuses and bonuses;

The use of various forms of employee participation in profits, which link monetary remuneration with the financial results of the company, for example, with profit;

Participation of employees in the ownership of shares.

The wage, or wage rate, is the price paid for the use of labor. Economists often use the term "labor" in a broad sense to include wages:

1) workers in the usual sense of the word, i.e. blue-collar workers of various professions;

2) specialists - lawyers, doctors, dentists, teachers, etc.;

3) owners of small businesses - hairdressers, plumbers, TV repairmen and a variety of different merchants - for labor services provided in the implementation of their business activities.

Real and nominal wages. It is also important to distinguish between money, or nominal, and real salary. Nominal wage is the amount of money

received per hour, day, week, month. Real wages are the amount of goods and services that can be purchased with nominal wages; real wages are the "purchasing power" of nominal wages.

Real wages depend on nominal wages and the prices of goods and services purchased. The percentage change in real wages can be determined by subtracting the percentage change in the price level from the percentage change in nominal wages. Thus, an increase in nominal wages by 8% with an increase in the price level by 5% gives an increase in real wages by 3%. Nominal and real wages do not necessarily move in the same direction. For example, nominal wages may rise and real wages fall at the same time if prices rise faster than nominal wages.

Capital market, interest rate and investment

capital market. An important element of the market system is the market for capital and capital assets. The capital market is a set of material and monetary resources circulating in the market and used as factors of production.

Capital- complex economic concept. In many cases, it is regarded as "accumulated labor", identified with the means of production or with a certain amount of money. Capital is the material and monetary resources used in the production of goods and services. At the same time, its main feature is the ability to generate income. Capital also functions in the form of a certain amount of money - money capital, and as a set of means of production or capital assets - means of production (production capital), and as the accumulated volume of professional knowledge, production experience (human capital).

The most frequently isolated the following forms capital:

Industrial, operating in the material sphere of production;

Trade, used in the field of sale of goods and services;

Investment, which is used in the field of long-term capital investments;

Loan, acting in the form of an accumulated amount of money. A significant part of the capital is capital assets,

which include the entire set of means of production functioning in the production process - this is the fixed capital: buildings, structures, machines, equipment, vehicles, electronic computers, which are used for a long time. For the functioning of production, working capital is also necessary - stocks of raw materials, materials, goods, cash at the enterprise and in settlements with suppliers of materials and goods and buyers.

return on capital. An indicator of the efficiency of capital use is its profitability. The annual interest rate is usually used as such an indicator. The size of the annual interest rate is calculated as a percentage of the annual income to the total amount of the applied capital.

The profitability of the capital used in the sphere of production is characterized by the rate of return or the rate of return - the ratio of the annual profit to the average annual value of the capital used by the enterprise. The return on loan capital is estimated by the market bank interest rate, which is charged by banks on loans.

The return on capital depends on the supply and demand for capital. The intersection of the supply and demand curves for capital provides an equilibrium rate of return. It needs to be considered in the short and long term. The supply of capital in the short run, as a rule, remains unchanged. Therefore, the supply curve is a vertical line.

The process of formation of the equilibrium rate of return, percent can be represented in the form of a diagram shown in fig. 5.2. At the point A an equilibrium rate of return is reached. This level of interest stimulates the growth of capital accumulation. As capital accumulates, the supply curve shifts to the right, the demand for capital as a factor of production decreases.

At the point A 1 the equilibrium rate of interest is formed in the long run. At this point, the low rate of return causes net saving to gradually decrease. The rate of return cannot be zero. The need to expand and improve production inevitably creates a demand for capital.

Taking into account the level of inflation, the nominal and real rate of return, the interest rate are determined. The real interest rate is defined as the difference between its nominal value and the rate of inflation.

Investments can be defined as capital investment - the cost of producing means of production and increasing the stocks necessary for production. In order to determine the feasibility of investing capital in production, they compare the level of the annual interest rate and net productivity - the return on capital. Capital will be invested in the production of goods and services only if the return exceeds the annual bank interest rate. The market interest rate is the minimum yield.

Return on investment usually more than the interest rate. In this case, an excess of profit over bank interest on loans is formed. This surplus is economic profit - entrepreneurial income.

The capital used in the production process has a different value from the point of view of the time factor. To determine the most effective directions for investing capital, based on the calculation of possible future income, the discounting method is used. Discounting is a procedure by which the current value of capital is determined by the amount that will be received in the future. The calculation of the discounted value is carried out according to the formula:

NPV = P t /(1 + a) t ,

Where NPV- net present value - the present value of future income; P t - future income through t years;

A- the cost of invested capital, for example, the rate of bank interest, if the investment is made at the expense of a bank loan. On the basis of discounting, investment decisions are made in order to determine the feasibility of investing capital in certain projects. It makes economic sense only for projects whose net present value exceeds the required capital investment, in other words, if the project pays off.

land market and natural resources, rent

Land as a factor of production. From an economic point of view, land as a factor of production is those productive goods that are not the result of human labor and are given by nature itself. These include land, forests, water resources, minerals in the bowels of the earth, air basin, flora and fauna.

The most important characteristic of the land is its limitation and non-renewability (with the exception of wildlife). Of course, land is not only a factor of production, but also a living space in which people's activities are carried out.

Being an object of management, land in a market economy is included in the sphere of commodity circulation, it is sold and bought. With regard to its use, land or agrarian relations are formed. They are characterized primarily by land tenure, which is based on land ownership, and land use, which determines the subjects of economic activity on this land. Land ownership and land use, as a rule, do not coincide. The discrepancy between land ownership and land use is one of the conditions for the emergence of land rent. Another condition for its emergence is the limited nature of land as a factor of production. And in this regard, the supply of land in the markets for factors of production is inelastic.

Rent. Like any factor, land in combination with other factors of production generates income. This income is called rent. In turn, the relations associated with pricing and distribution of income from the use of land as a factor of production are called rent. Rent also refers to relations due to the use of minerals, and sometimes real estate.

Land rent must be regarded as income associated with the use of land. Its supply is limited and cannot be changed under the influence of market prices. The general level of rent is established at the equilibrium point of supply and demand for land, as shown in Fig. 5.3. In the event of a deviation from the equilibrium point, the rent may exceed its initial level (point A 2 ) or, on the contrary, be below this level (point A 1 ). In the first case, the demand for land is reduced, and in the second case it increases; if the demand for land is curved D 3 , then land rent is zero. In this case, the land acts as a free gift of nature, which can take place in the conditions of free land plots.

The equilibrium between the demand and supply of land determines the equilibrium level of land rent (point A).

In economic terms, rent is the price of land and other natural resources that is paid to the owners of these resources. In other words, outwardly the rent acts as a payment from the users of the land to its owner. It is appropriated by the landowner in the form of residual income. In its essence, it is a part of the profit created in agricultural production, in the extraction of minerals and distributed in favor of the owners of land plots, mineral deposits. It is included in the rent charged by the owners of these resources.

The amount of land rent is determined by the fertility of agricultural land. More fertile and more advantageously located plots of land, or plots with more intensive agricultural production, generate excess additional income in the form of differential rent,

which is above the average level corresponding to the equilibrium point between the demand and supply of land.

Differential rent arises in all cases where the supply of one factor or another is inelastic, for example, in extractive industries. If the supply of one or another factor is limited for a long time and, therefore, is absolutely inelastic, then income arises in the form of quasi-rent - imaginary rent. It is temporary until the supply of this factor reaches a sufficiently high level.

Land price. Land as an object of sale and purchase has a certain price. The price of land is equal to the ratio of ground rent to the annual lending rate.

In essence, the price of land is capitalized rent. owner, sold land plot and putting money in the bank, should receive an income equal to the amount of ground rent.

In reality, land prices are determined by many factors, including the law of diminishing returns of land. They are especially high in large cities.

3.1. Derived demand for factors of production

Pricing in the markets for factors of production plays an important role in the economy: it determines the share of each person in the product produced, the income and level of well-being of all members of society, i.e. distribution of income.

In economic theory, two types of income are distinguished: firstly, income as a private business concept, i.e. at the micro level, is the amount of cash receipts into the hands of a person in accordance with the ownership of a production factor; secondly, income as a national economic concept (national income), i.e. at the macro level.

Within the framework of microeconomic analysis, the basis for the distribution of income is the ownership of factors of production. How are the prices of the factors of production (labor, capital, land) set and, accordingly, how are incomes generated in the form of wages, interest and ground rent, that is, factor incomes? Factor income is the profit of the entrepreneur.

The economic mechanism of distribution in market system is the price of the resource, or factor of production, which determines the size of the consumer's income. Prices in the market, in turn, determine the structure of consumers' spending, their ability to buy a particular product and thus affect the income of other people.

Prices for factors of production in conditions of perfect competition are determined by the ratio of supply and demand. But, firstly, the demand for factors of production and the level of their prices are derived from consumer demand, since labor, capital, land are necessary in the final analysis in order to produce the commodities people need. Consequently, the demand for a particular factor of production depends on the demand for goods produced with the help of this factor. Demand for labor, capital and land is always derived demand. For example, the demand for railroad labor is determined by the demand for transportation. This means that the amount of demand for a certain factor depends on the productivity of this factor in creating a product and on the price of the goods produced with the help of the factor.

Secondly, all factors of production are economically and technologically interconnected; they cannot be used separately. For the production of goods, all three factors are necessary and in a certain ratio among themselves. The amount of demand for each factor depends not only on the price level for this factor, but also on the price level for other resources: for example, the demand for labor depends not only on wage rates, but also on how much machinery, raw materials will be purchased and what prices for them. When the price of a certain factor of production rises, the demand for it (ceteris paribus) will fall, and the demand for another factor will rise; more high price labor, for example, will lead to its replacement by machines. The possibility of mutual substitution of various factors of production makes it possible to combine them in such a ratio that provides the lowest production costs and the greatest profit.

Market distribution is characterized by significant income inequality. Smoothing the negative consequences of income inequality is achieved through government social programs.

3.2. Labor market and wages

Wages form a large part of consumer income and therefore have a significant impact on the demand for consumer goods and their prices.

Modern economic theory defines wages as the price of labor. It also includes income in the form of fees, bonuses and other types of remuneration for work.

In the narrow sense of the word, wages are understood as the wage rate, that is, the price paid for the use of a unit of labor for a certain time - an hour, a day, etc. This definition makes it possible to distinguish between total earnings and wages proper.

Distinguish between nominal and real wages.

Under nominal wages is understood as the amount of money that a wage worker receives for his daily, weekly, monthly work. Real wage- this is the mass of life's goods and services that can be purchased for the money received. It is directly dependent on nominal wages and inversely on the level of prices for consumer goods and paid services and is calculated by the formula:

Where W r- real wages W- nominal wages P- price index.
The classical theory of employment involves the construction of aggregate labor demand and aggregate labor supply functions applicable to the conditions of a perfect competition market. The subjects of demand in the labor market are business and the state, and the subjects of supply are households.

In a market of perfect competition, the number of workers hired by entrepreneurs is determined by two indicators - real wages and the value (in monetary terms) of the marginal product of labor. With an increase in the number of hired workers, there is a decrease in the value of marginal product (recall the law of diminishing returns). The attraction of an additional unit of labor will stop when the value of the marginal product equals the wage.

The demand for labor is inversely related to wages. With an increase in wages, ceteris paribus, the entrepreneur, in order to maintain equilibrium, must correspondingly reduce the demand for labor, and with a decrease in wages, the demand for labor increases. The functional relationship between wages and labor demand is expressed in the labor demand curve (Fig. 5).