Constant deficits in the command economy are. Commodity shortages in a command economy

The essence of commodity shortages in a command economy

Definition 1

Commodity shortage is a lack of certain types of goods and services that consumers cannot purchase even with the necessary funds.

A shortage of goods is a symptom that demand does not match supply in the absence of a countervailing price.

It should be noted that a shortage of goods can appear both in a planned (command) and in a market economy. However, if for a market economy characterized by floating prices, the trade deficit is an unequal condition that can be quickly corrected by increasing prices, increasing production volumes and reducing the demand for goods.

At the same time, the command economy, which provides for state regulation of prices, lacks such a natural corrective mechanism; therefore, a situation of long-term or permanent commodity deficit is quite likely.

The flip side of a trade deficit in a command economy is the emergence of goods for which the regulator has set an overpriced or overstated production quota. Such goods can accumulate on store shelves or warehouses. This situation is called overstocking.

Remark 1

The coexistence of a shortage of goods and overstocking can lead to the emergence of the phenomenon of "load" associated with the fact that scarce goods will be allowed to buy only in a set with illiquid ones.

Reasons for the appearance of a commodity shortage

One way or another, the commodity deficit is associated with the problem of rational resource management in the economy. The market economy solves this problem with the help of supply and demand mechanisms, when people themselves can choose how goods and services will be distributed depending on their willingness to pay money for them.

In other words, the price of a product itself contains all the necessary information regarding the balance of supply and demand. Many researchers agree that this mechanism is the only possible one, since due to a lack of information in a situation where market prices are absent, the command economy is unable to rationally allocate resources.

In particular, L. von Mises substantiated the idea that a commodity deficit is an indispensable feature of any command economy, since when the state disposes of all the means of production, there is no way to get a rational price for the means of production, since the price for them, in contrast to the price consumer goods, is simply a characteristic of the internal transmission of these funds, and not the result of a conscious exchange. As a result, it becomes impossible to evaluate the means of production, therefore, planners will be deprived of the opportunity to rationally allocate resources.

L. Trotsky also criticized the centralized method of economic planning. In his opinion, the centralized planning of the command economy is not capable of giving an effective response to local changes in the economy, since the system will be deprived of an important response from many participants in economic activity. Therefore, centralized planning is an ineffective mechanism for coordinating economic processes.

Nobel laureate F.A. Hayek believed that:

• without the regulatory influence of the market, the diktat of the manufacturer will inevitably arise;
• in a command economy, production will not have any specific goal at all: the state produces at least something, and consumers take what is produced.

According to the researcher M.S.Voslensky, a commodity deficit is a natural phenomenon for the command economy and is associated with a lack of financing for light industry due to the huge costs of military and heavy industry.

1. What is the main measure of the country's economic development today:
a) budgetary income; b) labor productivity; c) per capita income;
d) GDP per capita.

2. What is a persistent scarcity in a command economy:
a) goods and services; b) labor force; c) money; d) raw materials.

3. What is an important financial policy of the state:
a) stimulating the development of production;
b) financing of unprofitable enterprises;
c) financing of charity events;
d) ensuring high wages for all categories of the population.

4.What is indirect tax:
a) income tax; b) pension tax; c) value added tax; d) income tax.

5. Are the following judgments correct? What is beneficial for the manufacturer in market conditions:
A. active increase in prices for goods;
B. reduction of costs per unit of production;
1) only A is true; 2) only B is true; 3) both judgments are true; 4) both judgments are wrong.

6. Regardless of its organizational and legal form, what the enterprise has the right to: a) determine the amount of taxes;
b) reduce the rent for premises;
c) protect property rights;
d) establish the minimum size of the consumer basket.

7. What does the consumer's interest in a market economy consist of?
a) mutually beneficial exchange;
b) monopoly economy;
c) production tax increase;
d) stable prices for goods.

8. Are the judgments correct? The market economic system is characterized by:
A. consumer dictate over the manufacturer.
B. the continuous rise in prices for manufacturing products and services.
1) only A is true; 2) only B is true; 3) both judgments are correct; 4) both judgments are incorrect.

9. What is meant by Economics and Science, as concepts:
a) study of the objective laws of the development of nature;
b) the study of ways of distributing material wealth;
c) study of the system of signs that determine the structure of society;
d) study of legal norms and principles of the exercise of state power.

10. Are the judgments correct? The aim of the central bank is:
A. Stabilization of the economy through government lending.
B. Ensuring the stability of the national currency.
1) only A is true; 2) only B is true; 3) both judgments are correct; 4) both judgments are wrong.

11. What the state budget reflects in itself:
a) According to the profitability of the population and entrepreneurial activity;
b) Expenses for state. control;
c) Changes in foreign exchange rates;
d) Unemployment rate.

12. What is the reason for the gradual decline in consumer demand
a) The life of the product is unlimited;
b) shortage of goods;
c) constant prices for products;
d) you cannot purchase a product on credit.

13. Are the judgments correct? In market conditions.
A. the state sets prices for the goods of monopoly firms;
B. There is no budget deficit.
1) only A is true; 2) only B is true; 3) both judgments are true; 4) both judgments are wrong.

14. Is the subject of study of economics in the field of knowledge?
a) changes in the principles of forms of government;
b) various changes in climate conditions;
c) analysis of the state budget by society;
d) Different distribution of goods and their criteria.

15. In what case can the appropriation take place within the framework of the whole society: a) cooperative; b) affiliate; c) municipal; d) private.

1 - d; 2 - a; 3 - a; 4 - c; 5 - 2; 6 - c; 7 - a; 8 - a; 9 - b; 10 - 2.
11 - b; 12 - g; 13 - a; 14 –d; 15 - at

Online Tests Tests Entrepreneurship and Economics Economic Theory Questions

106. According to Keynesians, the effectiveness of restrictive financial and credit policies is higher than expansionary ones in consequence.

Possibilities for the economy to fall into an inflationary or liquidity trap

107. Without forgetting about the well-known conventionality of the division into micro and macroeconomics, find out what does not apply to the latter.

The absence of rain for a long time caused a drop in grain yields in the center of Russia

108. The concept of "demand for money" testifies.

Same as the sum of the demand for money for the demand and transactions for money from the asset side

109. The concept of variable and fixed costs of production takes place only.

In the short term

110. A persistent disadvantage in the command economy is.

Services and goods

111. Permanent

disadvantages in a market economy are.

113. Those who lose their jobs due to the economic downturn fall into the category of unemployed covered.

Cyclical unemployment

114. Government policy in the field of taxation and spending is.

Fiscal policy

115. Government policy in the field of taxation and expenditure:

Fiscal policy

116. Marginal cost is.

Production costs for each additional unit of production

117. Suppose that the GDP has increased from $ 500 billion. up to 600 billion USD and the GDP deflator from 125 to 150. Under such conditions, the value of real GDP.

Will not change

118. Suppose that the real market price is below equilibrium. In this case.

The amount of demand will be greater than the amount of supply

119. The ideas of the Russian thinker of the 18th century And Pososhkov about prosperity are closest to.

Source: oltest.ru

Rosneft bypassed Gazprom in capitalization

Yes, yes they are the most! Prehistoric questions from the time of SGI!))))
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Metropolitan Humanitarian Institute
Tests
on the training course
"Economy"
1. What general economic theory studies:
1 laws of economic development
2 accounting
3 the functioning of sectors of the economy
4 economic statistics
2. If the economy is studied as an integral system, then this is an analysis:
1 microeconomic
2 macroeconomic
3 positive
4 normative
3. Flag statements related to macroeconomics:
1 result of competition among computer firms - lower prices for computers
2 the dollar exchange rate on the MICEX reached the highest level in a week
3 the government raised wages in one of the budgetary spheres of the economy
4 the total amount of taxes on corporate profits in Russia is more than 50% of the income received
4. Obviously, the country's economic lagging behind can be overcome through radical structural changes in priority sectors. What kind of science is called upon to formulate such a recommendation:
1 positive
2 normative
3 promising
4 regressive
5. Macroeconomics examines the following issues, with the exception of:
1 mechanism of inflation
2 Gazprom securities
3 growth of aggregate production in Russia
4 import-export operations between Russia and China.
6. The fundamental question of economics is:
1 give everyone the opportunity to have a summer house, a yacht and a car
2 redistribute income and eliminate poverty
3 lower unemployment
4 learn to cope with the scarcity of all resources
7. The process of focusing only on the most important factors to explain the phenomenon in the economy is called
1 abstraction
2 margin analysis
3 rational choice
4 controlled experiment
8. Highlight the difference between economic resources and factors of production:
1 This is the same
2 factors of production do not include labor resources
3 economic resources do not include entrepreneurial activity
4 factors of production are the economic ones involved in the production process
resources
9. Means of production are:
1 part of capital
2 manpower and capital
3 objects of labor and tools
4 all material resources
10. Means of labor are part of the means of production:
1 that a person influences in the production process
2 with the help of which a person acts on the substance of nature
3 which is dedicated to the hiring of labor
4 which is intended for the acquisition of raw materials
11. The intensive factors of economic growth include:
1 increase in the number of employed workers
2 labor productivity growth
3 expansion of production areas
4 increasing investment while maintaining the current level of technology
12. The extensive factors of economic growth include:
1 use of the achievements of scientific and technological progress
2 expansion of production areas
3 advanced training of employees
4 labor productivity growth
13. In what type of income is land ownership realized:
1 percent
2 wages
3 profit
4 annuity
14. The division of labor is:
1 assignment of people involved in production for certain types of work
2 division of the national economy into branches of production
3 distribution of people by profession
4 distribution of the created product among the participants in the labor process
15. The consequence of the deepening social division of labor is not:
1 increase in labor productivity
2 equalization of material security of various segments of the population
3 improving product quality
4 developing exchange relationships
16. Problems: what, how and for whom to produce - are related:
1 only to the administrative command system
2 only to a market economy
3 only to a backward economy
4 to any economic system
17. When economic problems are solved partly with the help of market mechanisms, partly through government intervention, then this is the economy:
1 traditional
2 team
3 market
4 mixed
18. Which of the named characteristics does not apply to the traditional system:
1 private property
2 central planning
3 freedom of private enterprise
4 loyalty to centuries-old traditions
19. What features are not typical for the administrative command system:
1 manufacturer competition
2 a shortage of consumer goods
3 prices for the vast majority of goods are set by the state
4 administrative methods of managing the economy
20. What are the common features of traditional and command-and-control systems:
1 lack of private ownership of land
2 planning of the national economy
3 free pricing
4 the dominant role of tradition
21. In a command economy, the question of what goods and services should be produced is decided by:
1 consumers
2 state
3 foreign investors
4 enterprises
22. What factors caused the inevitability of a shortage of resources in the administrative-command economy:
1 prices that do not take into account the ratio of supply and demand
2 no unemployment
3 competition between producers
4 social orientation of the economy
23. The advantages of the administrative command system include:
1 mobilization of human and material resources in priority areas
2 pronounced social differentiation
3 persistent resource scarcity
4 prohibition or restriction of private enterprise
24. Which of the named characteristics does not apply to the administrative command system:
1 central planning
2 freedom of private enterprise
3 state-setting prices for the vast majority of goods and services
4 self-supporting incentives
25. The administrative-command system can be dispensed with:
1 without the "shadow economy"
2 without free competition in the domestic consumer market
3 central planning
4 administrative management methods
26. Determine in which economic system the right to use private economic resources of your choice is valid:
1 traditional
2 administrative command
3 free competition market economy
27. During the production of 1 kg of metal, 10 ceramic vases were not received. Which of the production capability tables does this correspond to:
product:
A B C D
Aluminum, kg
5 7 6 5 3 4 1 2
Vases, pcs
10 20 20 30 10 20 30 10

28. In the economic system, the increase in production of one product occurs while the reduction of another. Economists call this situation:
1 economic crisis
2 ineffective
3 effective
4 traditional economics

29. The opportunity cost of getting an education does not include:
1 salary that you would receive without studying
2 money spent on textbooks
3 money spent on food
4 money paid for tuition

30. If the state obliges everyone to sell goods at low prices, then it can reduce the opportunity costs to small amounts:
1 always
2 in some cases
3 never
4 if this requirement is met

31. There are three main factors of production. Which of the following groups of categories includes all three components:
1 entrepreneurs, money, rent
2 workers, machine tools, factory
3 air, scientists, cars
4 oil, gas pipeline, jewelry

32. The cost is:
1 property of goods to be exchanged for other goods in certain quantitative proportions
2 the cost of manufacturing products from the manufacturer's side
3 social labor embodied in the commodity
4 concrete labor embodied in the product

33. In the circuit model:
1 entrepreneurs always exchange factors of production for money
2 households always exchange money for goods
3 households are sellers in the resource market and buyers in the commodity market
4 entrepreneurs are buyers in the market for goods and sellers in the market for resources

34. The objective conditions for the emergence of a market economy system does not include:
1 social division of labor
2 economic isolation of the subjects of the system
3 rigid production management system
4 limited resources

35. What is a sign of only a market of perfect competition:
1 company chooses the volume of output so as to get the maximum profit
2 businesses sell substitute products
3 the enterprise has no market power
4 there are several enterprises on the market that produce this product

36. The firm is a monopsonist in the labor market versus the competitive market:
1 hires fewer workers and pays them higher wages
2 hires more workers and pays them less wages
3 hires fewer workers and pays them less wages
4 hires more workers and pays them higher wages

37. What is a persistent deficit in a market economy?
1 social guarantees
2 services of world-class specialists
3 money
4 smart goods

38. Of all the concepts given below, it is necessary to choose one - the only correct one for the given case. So the demand is:
1 quantity of goods per person
2 the amount of goods that people want to buy at one price or another
3 substitutes for the good, i.e. products used instead
4 solvent need
39. The market demand curve shows:
1 how the consumption of goods will decrease with a decrease in the income of buyers
2 at what price the overwhelming majority of transactions will be carried out
3 the size of the substitution effect, expressed in monetary units
4 how much good consumers want and can purchase per unit of time at different prices
40. The market demand curve shows:
1 how the consumption of a good will increase with an increase in its price
2 how the consumption of goods will decrease with a decrease in the income of buyers
3 how the consumption of a good will decrease with an increase in its price
4 how the consumption of goods will increase with a decrease in the income of buyers
41. The demand curve will shift to the right if:
1 consumer incomes will rise
2 new useful properties of this good will be discovered
3 the economy is expected to increase prices
4 all of these factors will lead to the indicated shift
5 none of these factors will lead to such a shift
42. All other things being equal, an increase in supply will result in:
1 to an increase in the equilibrium price and a decrease in the quantity
2 to a decrease in prices and an increase in the physical volume of sales
3 to a fall in the equilibrium price and a decrease in the quantity
4 nothing will change
43. Advances in technology are shifting:
1 demand curve up and to the right
2 demand curve down and to the right
3 supply curve down and to the right
4 supply curve up and left

44. Moving from point B to point A can be associated with:
1 with decreasing demand
2 with reduced demand
3 with demand shift
4 with increasing supply

45. Movement from point B to point C can be caused by:
1 growth in supply
2 increased demand
3 increasing demand
4 none of the above

46. ​​Moving from point B to point C can
be called:
1 change in the price of this product
2 by shifting the offer of this product
3 changes in the price of the goods linked to
consumption with
4 price changes used in
resource production

47. If the price of a commodity is below the equilibrium point, then there is:
1 excess
2 deficit
3 rising unemployment
4 all options are wrong
48. The market for goods and services is in equilibrium if:
1 demand equals supply
2 price equals cost plus profit
Level 3 technology is applied gradually
4 the volume of supply is equal to the volume of demand
49. Patties replace buns in consumption, and butter complements. What happens in the respective markets if the price of buns goes down?
1 the prices of pies and butter will go down
2 the price of pies will go up and the price of butter will go down
3 the price of pies will go down, but the price of butter will go up
4 the prices of pies and butter will go up
50. Incomes of the population have increased. DD line of video recorders:
1 will go left down
2 will remain in place
3 will go up to the right
51. The price of mutton has increased. DD line for pork:
1 will go up right
2 will remain in place
3 will go left down
52. The price of gasoline has increased. DD line for minicars:
1 will remain in place
2 will go up to the right
3 will go left down
53. Table prices have gone up. SS chair line:
1 will not change its position
2 will go to the right
3 will go to the left
54. Prices for mineral fertilizers have increased. SS wheat line:
1 remained in the same place
2 will go to the left
3 will go to the right
55. In its natural form, GDP is:
1 the sum of all goods and services sold
2 the sum of all final goods and services
3 the sum of all goods and services produced
4 the sum of all finished goods and services
56. The difference between GNP and GDP is that:
1 GNP includes the cost of goods and services produced by residents on their national territory;
2 GNP is more (less) than GDP by the amount of the balance between profits and incomes received by enterprises and individuals of a given country abroad;
3 GDP differs from GNP by the amount of the balance between profits and incomes consumed by residents of a given country abroad and profits and incomes received by foreign residents in the territory of a given country
4 it makes no difference
57. Nominal GNP is measured:
1 in export prices
2 at base (constant) prices
3 in the prices of the previous period
4 at current market prices
58. GNP deflator is equal to the ratio:
1 real GNP to nominal GNP
2 nominal GNP to real GDP
3 real GDP to nominal GNP
4 nominal GNP to real GNP
59. The consumer price index can be used to estimate:
1 difference between the structure of production in this and the previous year
2 differences in the market value of the "basket of goods" of two different time periods
3 differences in price levels of two different countries
4 the difference between the level of wholesale and retail prices
60. Increase in the unemployment rate:
1 does not depend on the volume of real GNP
2 is associated with an increase in the volume of real GNP
3 is associated with a decrease in the volume of real GNP
4 these are different problems

APPLICATION:
correct answers to the questions of Economics

1. 1 29. 3 57. 4
2. 2 30. 3 58. 4
3. 4 31. 3 59. 2
4. 1 32. 3 60. 3
5. 2 33. 3
6. 4 34. 3
7. 1 35. 3
8. 4 36. 3
9. 3 37. 3
10. 2 38. 4
11. 2 39. 4
12. 2 40. 3
13. 4 41. 4
14. 1 42. 2
15. 2 43. 3
16. 4 44. 1
17. 4 45. 3
18. 2 46. 3
19. 1 47. 2
20. 3 48. 4
21. 2 49. 3
22. 1 50. 3
23. 1 51. 1
24. 2 52. 2
25. 2 53. 3
26. 3 54. 2
27. 2 55. 2
28. 3 56. 3

These, as well as a number of other questions will be answered within the framework of the article.

general information

Let's first define what constitutes a market deficit. This is the name of a situation when quantitatively demand exceeds supply at a given price level. The phrase may seem difficult to understand, so let's break it down.

On the market, a certain price is set for each product at which it is sold. When demand exceeds supply, the product is sold out quickly, and it disappears from the shelves. And sellers usually take advantage of the situation by increasing the price. Producers, stimulated by rising incomes, start to produce more scarce goods. In this case, market equilibrium will be established over time.

Further, there are two possible scenarios for the development of events. If the trend continues, the situation may become problematic again, and consumers will again suffer from a shortage of the specified product, the price for it will rise. Either the market will be saturated, the rush demand for the product will disappear, which will lead to a fall in prices and a reduction in the range of products on the market. Potentially, this situation can lead to the emergence of a "crisis of overproduction".

Thus, sellers can realize their interests in making a profit only for a limited time. It is believed that market equilibrium is optimal for the economy. Then there are surplus and scarcity on the list of desired market conditions. The main attention within the framework of the article will be paid only to the last of them, but for the sake of completeness of the presentation of information, we will touch on other topics. After all, what is market equilibrium, surplus and deficit, is easiest to understand when a connection is made between them.

Time frame

Is a permanent deficit possible in a market economy? No, this is excluded by the very principles of building the system. But it can persist for a long time, provided that the rise in prices is limited by certain factors. These include government regulation or the lack of physical capacity to increase the output of goods. By the way, if there is a chronic market deficit, it means that enterprises have no incentive to correct the situation or the state does not want to help them in this. In this case, a decline in the standard of living can be observed, as people can no longer fully satisfy their needs with the help of goods.

Consequence of deficits

When such a situation arises and queues begin to line up for the goods, then even in the presence of competition, the seller is not interested in improving the quality of the product he produces and the level of service. For example, you can consider the situation with the Soviet Union in the last years of its existence. Stores started working late and finished relatively early. At the same time, there were always huge queues in them, despite which the sellers were in no hurry to serve the buyer. This irritated buyers, resulting in constant conflicts. Another consequence of the market deficit is the emergence of the shadow sector. When a product cannot be purchased at official prices, there will always be enterprising people who will look for ways to sell products at significantly inflated prices.

Shadow market

We have already found out, Now let's pay attention. It arises if there is an unmet demand. In such conditions, there are always those who want to satisfy it, but at inflated prices that have nothing to do with the officially announced ones. But there are limits here as well - the higher the cost, the fewer people will be able to afford a certain product or service.

Excess

This is the name of the situation on the market, which is characterized by an excess of supply over demand. Surplus can occur when there is a crisis of overproduction or a product (service) is offered at a price that the average citizen cannot pay. The occurrence of such a situation is possible due to government regulation (for example, setting the minimum cost of a product).

Here, too, no matter how paradoxical it may sound at first glance, a shadow market may arise. All that is needed for this is that some of the sellers have incentives to sell their products at a lower price than officially established. In this case, the lower ceiling can be set at the cost price plus the minimum profitability at which the manufacturer agrees to manufacture the product or provide the service.

Market equilibrium

Scarcity and excess have their own pros and cons. The optimal situation is when an equilibrium price arises. With it, supply is quantitatively equal to demand. Certain difficulties arise when one of these parameters changes. In such cases, there is a high probability of loss of market equilibrium. Even more risky is the situation when they change at the same time. At the same time, it is necessary to take into account the fact that deficit and excess can quickly arise or disappear. So, when demand increases, it leads to the fact that the price is literally "pushed" in the direction of growth. A significant offer in quantitative terms, in turn, puts pressure on the cost from above. Thus, market equilibrium arises. There is no deficit / surplus in this case.

Peculiarities

So we found out what is a deficit in a market economy. Now let's look at situations where it can occur.

First of all, it is necessary to note the ineffective use of the state regulation mechanism. In particular, price ceilings. We have already discussed the minimum cost, but the most popular is the setting of the upper limit. This mechanism is a popular element of social policy. Most often it is used in relation to essential goods. With this, everything is clear. But when can you see the price limit (minimum level) in action?

The state resorts to using this mechanism in those cases when it is necessary to avoid a crisis of overproduction and the subsequent collapse. It can also be used to incentivize certain types of goods. As a supplement, all surplus that was not bought by people in the market is acquired by the state itself. A reserve is formed from them, which will be used to regulate the situation in the event of a deficit. An example is the food crisis.

Deficiency mechanism

Let's look at the situation, how a shortage of supply arises.There are several of the most common schemes:

1. Due to economic processes. So, there is a company that has successfully entered the market. It offers a good quality product that many people want to buy. But initially it cannot provide for everyone, and there is a certain shortage of goods or services. Over time, it can be eliminated and even created a surplus. But the development of new proposals will call into question its further release. Therefore, if someone wants to buy an outdated sample of this product, he will be faced with a shortage. Its characteristic feature will be that it will not be large.
2. Due to a change in the form of ownership. An example is the situation that arose during the collapse of the Soviet Union. After the creation of new states, old economic ties collapsed. At the same time, production largely depended on enterprises located in another territory. As a result, factories, factories and so on were idle. Since the required products were not made in the required quantity, they gradually became less on the market. There was a shortage.
3. "Intended" shortage. It occurs in cases where it is predetermined how much of what will be released, and no more is planned. Examples include "anniversary" books or expensive cars. In the case of the latter, one can cite "Lamborghinis", individual models of which are produced in batches of several pieces and only once.

Conclusion

Market deficit is not a welcome guest in any state. It's better to live in times of abundance. But alas, humanity has not yet matured to it. The best we can "brag" is the equilibrium of prices. Moreover, it can be difficult to avoid short-term deficits during exacerbated crises. If we look closely at the current state of affairs, we can confidently say that we still have a lot to develop. Building an economic system that does not know negative aspects such as crises and deficits is the cherished dream of many people. Attempts to delineate the path were undertaken by Karl Marx, you can find many modern doctrines that offer various mechanisms that can potentially help humanity on its path to abundance.