Factors of production– 1) resources with the help of which the production of goods can be organized; 2) resources used in production, on which the quantity and volume of manufactured products largely depend; 3) factors used in the production of goods and services.
Economic resources– fundamental concept economic theory, meaning sources, means of ensuring production: natural (raw materials, geophysical); labor (human capital); capital (physical capital); working capital (materials); information resources; financial (money capital).
Main factors of production: a) land; b) labor; c) capital; d) entrepreneurial activity; e) information; e) general culture; g) science; h) social factors(state of morality, legal culture).
Factors of production
1. Human - main factor and the purpose of social production
Economic theory in the study of human society proceeds from the fact that a person is both a producer and a consumer of economic goods. It creates, operates and determines the ways of using equipment and technology, which, in turn, place new demands on the physical and intellectual capabilities of humans. Feature personal factor of production is that a person is not just an element of production, but the main productive force of society. By influencing production, changing it, he thereby changes the entire system of economic relations, changes his own economic behavior. Scientific and technological progress becomes a reality thanks to workers who are in certain social conditions. Satisfying human needs and his development is the natural final purpose of social production.
2. Earth as a natural factor
Unlike other factors of production, land has one important property - limitation. A person can influence the fertility of the earth, but this influence is not unlimited. When characterizing land or “natural resources,” economic (functional) and potential (reserve) resources are identified that are not yet involved in economic turnover. The scale and intensity of land use as a factor of production constantly collides with environmental boundaries. The quality of the land during its use can be improved through the application of fertilizers, the use of hydraulic structures, and the use of progressive technology. This gives grounds to consider the earth as artificially created this factor production. The natural properties of the earth include such properties as location:
A) In agriculture, the location of a specific piece of land in relation to the market for the products produced, in addition to natural and artificial fertility, acquires special significance.
B) In the mining industry, land acts as a source of minerals.
C) In industry and construction, land is also considered as the geographical location of a specific industrial facility. In economic calculations, the market price of a specific piece of land is also important.
D) At the present stage of development of human civilization, the underground as a factor of production in the relevant fields of activity is often understood as its “heavenly superstructure” such as space, highlighting the special value of not all, but only individual near-Earth orbits, etc.
3. Labor as a factor of production
Work is a purposeful human activity aimed at transforming the substance of nature in order to obtain the economic benefits necessary for human life. Labor is represented by a person’s intellectual and physical activity, the totality of a person’s abilities, conditioned by general and professional education, skills, and accumulated experience. In economic theory, labor as a factor of production refers to any mental and physical effort exerted by people in the process economic activity in order to produce a useful result.
The time during which a person works is called working hours. Under labor intensity is understood as its tension, the increase in the expenditure of physical and mental energy per unit of time. Labor productivity a shows how much output is produced per unit of time. As basic elements of the labor process objects of labor, means of labor and expedient human activity are distinguished. As main results of labor stand out:
a) created economic benefits; therefore, labor acts as the main source of national wealth;
b) physiological and mental development person. Under the influence of labor, man's speech, his brain and hands historically gradually but indomitably developed;
c) accumulation of knowledge and experience, improvement of skills and ability to work;
d) human living conditions (work becomes part of the life of a normally existing person).
Taking into account the real content of work activity, they distinguish:
* Low skilled labor– characterized by the ability to quickly learn directly on the job. Thus, they are formed simple types labor (loaders, carriers, auxiliary workers), when the physical energy of a person is primarily used.
* Medium-skilled labor– characterized in part by performance, the need for preliminary understanding of the task received.
* Highly skilled labor– a lot of preliminary preparation is required, including the presence of a systemic higher education, special training, in many cases, passing a special state certification exam, regulation of complex processes, and making responsible decisions are entrusted.
4. Capital as a factor of production
The factor “capital” is understood as material and financial resources used to organize the production process and capable of generating income. Capital consists of durable goods created by the economic system for the production of other goods. These goods include countless machines, roads, computers, hammers, trucks, rolling mills, buildings, etc. Another aspect of the category of capital is related to its monetary form. Capital- These are means of production created by people and monetary savings used in the production of goods and services. Capital can be: real (physical); 2) monetary, or financial (money used to acquire physical capital). The continuously occurring circular movement of capital forms its turnover. Capital is divided into: a) fixed capital - machines, equipment, buildings (used for a number of years, transfers its value to the product in parts, costs are returned gradually); b) circulating - raw materials, materials, semi-finished products, wages of workers (spent in one production cycle, included in the newly created product entirely, costs are reimbursed after the sale of the product).
5. Entrepreneurship as a factor of production
Entrepreneurial activity (entrepreneurship) is the most important institution of any market economy, because it ensures economic growth, the production of an increasing mass of various goods designed to satisfy the quantitative and, more importantly, qualitatively changing needs of society, its various layers and individuals. This is the driving force behind the progressive development of a modern market economy. Entrepreneurial functions: 1) the ability to correctly combine factors of production - labor, land, capital - and organize production; 2) the ability to make decisions and take responsibility; 3) ability to take risks; 4) be receptive to innovations.
Productive forces include: 1) personal factor (person); 2) material factor, means of production (means of labor and objects of labor).
Means of labor– all the material conditions of labor, without which it cannot be carried out: machines, machine tools, tools with which a person influences nature, industrial buildings, land, canals, roads, etc. The level of development of technology (and technology) serves as the main indicator of the degree of mastery society by the forces of nature.
Subject of labor- a substance of nature that a person influences during the labor process in order to adapt it for personal or industrial consumption. An object of labor that has already undergone the influence of human labor, but intended for further processing, is called raw materials. Some finished products may also enter the production process as an object of labor (for example, grapes in the wine industry, animal butter in the confectionery industry).
At each new stage of production development, new factors appear, without which production cannot develop successfully. So it's hard to imagine modern production without factors such as entrepreneurship, information, technology, ecology, etc.
Factor income– income from economic resources (factors of production). Owners of production factors (economic resources) receive the following types of income :
1. From natural resources - rent (land, mining, water fees, etc.) - income regularly received by the owner from the use of land, property, capital, which does not require the recipient of the income to implement entrepreneurial activity, the cost of additional effort;
2. From labor resources – wages (the owner of the labor force receives income in the form of wages);
3. From capital - interest (as the income of the owners of money capital) and profit (as the income of the owners of real capital): 1) credit interest (loan interest - mouth) – the fee that the borrower must pay for using a loan, money or material assets; 2) deposit interest - payment to a bank depositor for providing the bank with money on a deposit for a certain period;
4. From entrepreneurial abilities - entrepreneurial income;
5. From knowledge – income from intellectual property.
In economic theory, income is distinguished as a concept purely economic(at the micro level) and as a concept national economic(at the macro level). The totality of these incomes determines the maximum demand for goods, services, and productive resources. Based on the results of economic activity, owners of production factors receive income in cash - nominal income. The state takes away part of this income through taxes. The portion remaining after paying taxes and interest on loans is net income .
When analyzing the income of an enterprise, they operate with such concepts as:
– gross income(equal to the proceeds from the sale of all products in cash);
– average income(calculated per unit of products sold);
– marginal revenue(represents an increase in gross income from the sale of additional products; considered as the ratio of the increase in gross income to the increase in the number of products sold).
The law of diminishing returns operates in economics, the essence of which is that additionally applied costs of one factor, with a constant quantity of other factors of production, produce an ever smaller volume of additional output and, consequently, gross income.
Economic values transferred by one participant in economic relations to others unilaterally, regardless of the results of labor, entrepreneurial activity or ownership of resources, are called transfer payments. There are social transfers (payments from the state budget and (or) special funds in the form of pensions, benefits, scholarships) and interfamily transfers (free transfer of part of the income from one family to another). Along with transfers, income from personal subsidiary plots (mainly in kind) can also become a source of personal income.
A large share of the personal income of the population in developing countries and countries with economies in transition is occupied by illegal income received within the framework of shadow informal economy. This type of income includes income received from an unregistered in the prescribed manner activities sheltered from taxation and state control.
Personal income represents a set of factor market incomes in monetary form from the ownership of various productive resources, transfer income (in kind and in cash), income from personal subsidiary plots (mainly in kind), as well as shadow income in the informal sector of the economy.
Economic systems
Economic systems– is a set of interconnected economic elements that form a certain integrity, the economic structure of society; the unity of relations arising regarding the production, distribution, exchange and consumption of economic goods.
Criteria for identifying economic systems: form of ownership of the means of production (means and objects of labor); the method of coordinating and managing economic activity is market, planned.
Elements of the economic system
* Production of goods and services, coupled with their subsequent distribution, exchange, consumption and redistribution.
* Solving basic socio-economic problems: what and how to produce, on what basis to distribute the created national product.
* Differences in their fundamentals: forms of ownership; economic mechanism.
* Existence of diverse models economic development individual countries and regions.
Subsistence farming- an economy in which most of the product is produced by individuals for personal consumption, and only a small part of the product is exchanged. The exchange is random in nature. The conditions for exchange between subjects are economic isolation, that is, each subject has the right to exchange only the product that belongs to it; variety of products produced as a result of the social division of labor.
Types of economic systems and their characteristics
1. Traditional economic system develops as a result of the formation of commodity relations. The conditions for its existence are: stable social division of labor and economic isolation.
The traditional economic system is based on joint (collective) communal ownership of the main resource for this system - land. Characteristics economics traditional type: poor development production techniques and technologies; large share manual labor in all sectors of the economy; an insignificant role in the traditional economy of entrepreneurship, including small ones, with a constant increase in the scale of activity of large divisions; the predominance of traditions and customs in all aspects of society.
2. Command (command-administrative, centralized) economic the system was created by expropriating private land ownership, nationalizing in one form or another all industrial, commercial and other types of enterprises. It is characterized by state ownership of almost all material resources and collective economic decision-making through centralized economic (directive) planning. At the same time, most of the land and capital belongs to the state, economic power is centralized, the main economic entity is the state, the market does not function as a regulator of the economy, in the behavior of economic entities the general interest dominates over personal interests, prices for most goods are set by the government.
3. Market economy of free competition(pure capitalism) developed in the 18th century. and ceased to exist at the end of the 19th – first decades of the 20th century. (V different countries in different ways), a significant part of its elements entered the modern market system (modern capitalism). One of the main prerequisites of pure capitalism is the personal freedom of all participants in economic activity, that is, not only the capitalist entrepreneur, but also the hired worker. Characterized by: private ownership of resources and the use of a system of markets and prices to coordinate and manage economic activity; inequality in wealth distribution; decentralization of economic power; the function of an economic regulator is performed by the market system; in the behavior of economic entities, personal interest dominates over the general one; private property; freedom of entrepreneurial choice; competition; limited role of the state and others.
Modern market economy (modern capitalism).
Main features:
A) a variety of forms of ownership, among which the leading place is occupied by private property in its various types (from individual to large, corporate). In countries with developed market economies, a kind of multi-layered type of economy has developed. Its top is made up of powerful transnational corporations, the middle layer is made up of smaller national corporations (both operate on the basis of a joint-stock form of ownership).
B) widespread use of marketing management systems. It makes it possible, even before the start of production of goods, to determine their optimal range and quality parameters of the products created based on marketing research market, as well as, even before the start of production, bring the company’s individual costs into line with prevailing market prices. The problems of resource allocation within corporations are solved on the basis of strategic planning.
C) a more active influence of the state on economic development and especially social sphere. Budgetary allocations support agriculture and other industries, huge social expenditures (on education, healthcare, social security, etc.).
4. Mixed economic system
In most modern developed countries there is a mixed economy that combines elements of all three types. A mixed economy is an economy in which both government and private decisions determine the structure of resource distribution; in society, along with private property, there is state property; the economic system is managed and coordinated not only by the market system, but also by the state. The state carries out antimonopoly, social, fiscal (tax) and other types of economic policy, which to one degree or another contributes to the economic growth of the country and improving the living standards of the population.
Each system is characterized by its own national models of economic organization, since countries differ in their unique history, level of economic development, social and national characteristics.
Lecture:
Resources and factors of production
Without the production of economic goods (goods and services) aimed at meeting people's needs, no society can exist. Economic benefits are created through resources. The resources involved in the production process are called its factors. Let's remember the key definition of this lesson:
Factors of production - resources used to produce goods and services.
One of the founders of modern economic theory, who studied the problem of choice in conditions of limited resources and limitless human needs, is Adam Smith - British economist XVIII century. He identified three factors of production: labor, land, capital, which bring income to a person.
Labor, land, capital
Work- conscious economic activity of a person aimed at creating a useful result.
In the process of labor, a person expends physical and mental effort and receives income in the form of wages . Blue collar wages physical labor) is on average lower than the wages of “white collar” workers (knowledge workers). The amount of wages depends on the qualifications of the employee, working conditions and the degree of risk. For example, Ivan Sergeevich and Yuri Petrovich teach the same number of hours at college, but Ivan Sergeevich has the highest qualification category, so his salary is higher.
Earthare natural resources (land, water resources, minerals) used in economic activities to produce economic goods.
Natural resources, unlike other factors, are limited and a person cannot change their size at will. Therefore, a consumer attitude towards nature that leads to the depletion or destruction of its resources is not allowed. Land income is rent. Its size depends on the quality of the land. On two different plots of land with the same investments of labor and capital, there will be different productivity, and therefore, rent.
Income from land can be obtained in different ways, for example, Andrey planted on his plot of land cherry orchard for the purpose of selling cherries, and Vadim rented out his plot for the construction of a car repair shop (in the first case, the land plot belongs to the “Land” factor, and in the second case to the “Capital” factor).
Capital- the totality of property used for the production of economic goods.
Capital is divided into financial (money, securities) and physical (workshop buildings, warehouses, machinery, equipment, land plots as real estate). Capital income is called percentage from profit. To obtain this type of income, a person invests (invests) his existing assets (financial or physical capital) in the sphere of production of goods or provision of services. This use of assets in production is called capital investment. The percentage depends on the turnover and profitability of the enterprise. Investment can be direct, when a person directly invests his available funds in any production. For example, Yuri invested 50% of the funds for the construction of a greenhouse complex started by a friend. But there is also indirect investment. For example, Tatyana opened a deposit in a bank and will receive interest until the expiration of the agreement with the bank. Deposit funds The bank invests itself.
Entrepreneurial skills and information
In the modern information society, factors of production such as entrepreneurial abilities and information are also of great importance.
Entrepreneurial skills – a person’s ability to effectively combine all factors to produce goods and services in order to make a profit.
This factor includes knowledge, professional, moral and psychological qualities of a person. Income from entrepreneurial ability is profit. Its value depends on the education, initiative, responsibility and competitiveness of the entrepreneur. For example, two friends Sasha and Zhenya decided to open an electronic equipment repair company because there is nothing like it in their village, and people need such services.
Information- a resource used by an economic entity to solve the problems it faces.
Having reliable information is an important condition successful functioning of the enterprise, rational consumer choice. For example, Sergei found a wholesale company for an entrepreneur he knew that sold spare parts cheaper than the previous supplier. The businessman saved a lot and paid Sergei for information about a profitable supplier. One type of income from information is royalties– monetary compensation to the author for the publication and distribution of his intellectual property.
Time factor according to A. Marshall
The success of production and the profit of the enterprise, according to English. economist A. Marshall, it also depends on the time factor. Taking this factor into account, the activities of the manufacturing company are divided into three periods:
- instantaneous
- short term and
- long-term.
Factor income is the profit that results from the exploitation of various resources or factors of production. These factors include labor, the income received from it is called wages, land rent, interest on capital, as well as entrepreneurial skills, which result in entrepreneurial profit. Profits from personal labor activity and farming also serve as factor income. They directly depend on the factors that are used in production to make a profit.
Highlights
Any economic resource has its owner. They either consume them, or, what happens more often, sell them in markets, receiving income for it. Buyers of these resources (mostly firms or enterprises) pay for them from the income that they also receive for the resources. It follows that income is income from sales of products and other economic resources.
Types of factor income
There is a separate classification of this economic concept. Factor income is income coming from received resources or from factors of production. Their owners receive the following income:
In economic life, firms do not always have the opportunity to separate the listed types of factor income, because they are often combined with income from product sales.
Factor production and factor income are the basis of the activities of any organization and personal economy. To release and then sell products, you need a full range of tools and conditions. In other words, a number of factors of production are needed. In addition to the listed types, they also include information. In recent years, it has been one of the main factors and is gaining more and more popularity, since only that company is competitive, which has the opportunity to own fresh, truthful, relevant and complete information about the market.
In general, production factors include those objects that determine the possibilities of economic activity, as well as its effectiveness. In other words, this is something that production and sales of products cannot do without.
Basic theories
The main approaches to studying factor production and factor income:
- Marxist theory. This is a doctrine that identifies the following factors of production: labor or labor, objects of labor (parts, raw materials, materials), personal (experience, skills and knowledge) and material (tools) means of labor activity.
- Marginalist theory, which identifies factors such as labor, capital, land, and entrepreneurial ability.
Factors of production
Marginalist (or Western, neoclassical) theory identifies four groups of production factors. These include:
IN modern world highlight the fifth factor - information. This means its timely receipt and further use. Scientific and technological progress, culture, politics and social environment play an important role.
Factor income
Factor markets and factor incomes are closely interrelated with each other.
In market conditions, each factor of production is freely sold and bought in order to bring factor income to its owners. These include:
- Rent is the income generated by the land factor. Regular payments for the use of the owner's property. The owner himself does not need to make any effort to generate income. For example, rent for a plot or housing. A person who lives off rent is called a rentier.
- Interest is income from the capital factor. In other words, the return on the use of capital funds.
- Wages are income from the labor factor. It is payment to a hired worker for work.
- Profit is the income from the factor of entrepreneurial ability. If from total number income subtract all expenses, you get profit. Obtaining it is the goal of any organization and commercial company.
Functional distribution of factor income
The problem of distribution and formation of factor incomes is of great interest in economic theory. If for the owners some factors of production are income, then for the buyer they are costs. If for the owners of the workforce wages are income, then for the organization they are production costs.
IN in a broad sense Net factor income is the money that is received as a result of economic activity per unit of time. Income is the result of the work of a company or enterprise, individual or society, expressed in monetary terms.
Types of income
Factor incomes are classified according to various criteria. Based on the recipient, the following income options are distinguished:
- population;
- enterprises;
- states;
- the whole society (national income).
The totality of these incomes determines the highest demand of society. Based on the amount of income received and actually available, they distinguish:
Factor income that enterprises receive from sales of manufactured products is distributed based on a certain dependence of production factors. Wages are generated by the labor invested, rent by the value of the land that is used, interest or profit by the amount of capital employed, and entrepreneurial income by entrepreneurial ability. These forms of factor income in a market economy act as prices of production factors.
Entrepreneurial income
This factor is considered as the final result of the distribution of the organization’s profit, as well as as a reward for the manifestation of entrepreneurial abilities.
Business income is understood as that part of the profit that remains at disposal after paying interest on the capital borrowed. Since it began to develop credit system, there was a division of profit into business income and interest.
Entrepreneurial income implies:
- good profit, that is, decent remuneration for the entrepreneur, which is necessary to attract and maintain activities in the right direction;
- income that is received on top of normal profit, in other words, it is economic profit.
Profit
Profit is the main motive, as well as the main indicator of the effectiveness of each organization. In other words, profit as factor income is the goal of all production, towards which all resources are directed. Its source is the creative activity of the entrepreneur.
The formation of factor income occurs due to many factors, which include natural resources, human labor, information Technology And individual characteristics entrepreneur.
The concepts of “factors of production” and “factor income” are interconnected, and this article will display this relationship.
Factors of production can be represented by the following, using which:
The organization of production of goods is carried out;
Volumes are regulated finished products.
In turn, they can be classified according to the following characteristics: natural, labor, capital, current, information and financial.
Based on the listed types of resources, it is necessary to briefly describe each of them. For example, labor can be represented as a combination of mental and physical abilities used by people in the process of creating goods. Its main characteristics are:
Intensity, determined by the amount of labor consumed over a given period of time;
Productivity measured by the number of products produced per unit of time.
This includes land, which is divided into:
Areas where production facilities are located;
Arable land on which various crops and crops of grains, melons, etc. are grown;
Mineral deposits.
Another important natural resource is It can only be possessed by a certain part of the people performing a huge set of various functions, without which successful efficient production activities are simply impossible.
The meaning of the concept of “capital” was gradually adjusted with constant development economic worldview. For example, Ricciardo and Smith considered it a means of production. Other experts in the field of economics argued that it combines money and securities. Today, capital means everything that can bring income to its owner. Based on the last definition, it is divided into real, monetary and financial. However, this factor still requires some clarification. Thus, the financial component of capital in the form of shares, bonds and bank deposits cannot be classified as factors of production, since they are not directly related to the production process.
Factor income includes those obtained from the use of factors of production. When comparing them, the following indicators are formed.
From the use of labor we receive factor income - wages. Rent is the income that the owner regularly receives from the use of property and land. The interest is determined by the fee from the use of borrowed funds (loan interest) or funds invested for a certain period by the investor (deposit interest).
The concept of “net factor income” is used for funds received from abroad. In other words, this is the difference between the income that compatriots received abroad and the income foreign citizens who received them on the territory of our country.
Factor incomes can be used in calculating many macroeconomic indicators of the state. Below are some examples.
The following factor incomes are distinguished:
Wages and other compensation for time worked to citizens;
Own income of organizations, enterprises and institutions;
Rental income;
Profit remaining after payment of wages and interest on the loan;
Net interest represented by the difference between corporations paid to others and those received from other firms.
| Parameter name | Meaning |
| Article topic: | Factor income |
| Rubric (thematic category) | Production |
4. Interest and dividend.
5. Profit as income from business activities.
1. Essence and classification of income.
To analyze the economic activity of any company, the following indicators are used: total (gross) income TR; average income AR; marginal revenue M.R. and profit.
Total (gross) income - This is the total income that the company receives from the sale of all products at market prices. It is defined as the product of the market price of the product and the quantity of products sold:
TR= P x Q.
In the Russian economy, total income represents revenue, ᴛ.ᴇ. the cost of all products sold, and gross income is the difference between revenue and material costs (expenses) for production and sales
products:
TR=P x Q - M3,
where MZ - material costs(cost of raw materials, materials, fuel, etc.).
Consequently, the concept of “gross income” includes part of the cost of production - labor costs and profit.
A company operating on perfectly competitive market has no ability to influence the price. The price for her is a given value. Therefore, total income depends only on the firm's production volume.
Another phenomenon on imperfectly competitive market. Here the firm can influence the price. To sell more products, it is forced to reduce the price. However, the firm's gross income depends on price and production volume.
Average AR income - This is the income received from the sale of a unit of production. It is defined as the ratio of total income TR to the number of products sold
The average income in size is actually equal to the market price.
Marginal Revenue MR - This is the increase in income from sales growth per additional unit of production. It is defined as the ratio of the increase in total income TR to an increase in the number of products Q.
This is receiving additional income from the sale of an additional unit of product. It shows the degree efficient work companies.
Taking into account the participation of production factors in the formation of income, factor and disposable income are distinguished.
Factor income- This primary income. Οʜᴎ are formed from the sale of factors of production (capital, labor, land) and in the process of their use. Factor incomes appear in the following forms: wages are remuneration for the labor of workers; as rent is the provision of premises, equipment, land for rent; as interest is a reward for capital; how profit is an assessment of the work of an entrepreneur; dividends, etc.
Factor incomes are divided into two groups:
‣‣‣ labor based incomeᴛ.ᴇ. labor origin. These are the incomes of workers and employees (wages), entrepreneurs (profit);
‣‣‣ income of unearned origin. These include interest on capital; interest on stocks, bonds, current accounts; rent for provided property and land for rent, etc.
Disposable income - these are final (net) incomes or factor incomes after paying direct taxes, social insurance contributions (pensions, benefits, scholarships, etc.). Οʜᴎ are used by an individual or family at their own discretion.
Income is subject to distribution between different categories of employees. The well-being of people largely depends on the level of income received. For this reason, correct, fair distribution of income is very important. Οʜᴎ should be distributed based on the use of factors of production. Thus, from the use of labor, the employees of the company receive income in the form of wages, and from the capital, the owners of capital receive a percentage; from land owners of land land rent, etc.
At the same time, these incomes represent the prices of production factors, i.e., these incomes are used to purchase capital, land, labor, etc. As a result, it turns out that the distribution of monetary income is also carried out through the prices of production factors.
2. Salary and its characteristics.
Wages make up a large part of income and significantly influence the amount of people's consumption. The share of wages in GDP in Russia is 23%, and in the USA -59%.
In the economic literature there are various approaches to determining the essence of remuneration for labor employees(wages) and the factors that determine it at the firm or industry level.
A. Smith and D. Ricardo believed that labor is a commodity and has a natural price, which is determined by production costs in the form of the cost of subsistence (food, clothing, shoes) necessary for the worker and his family. The physical minimum of these means of subsistence is determined taking into account historical, cultural and national differences.
The Marxist theory of wages differentiated the concepts work And ʼʼworking stationʼʼ. She proved that wages are a transformed form of the value of the commodity “labor power”, and not labor. Therefore, labor and labor power are various concepts. Labor - purposeful activity of people, it does not exist before the start of production or at the time of purchase and sale of labor power. It follows that labor is the use of labor power to produce a product. A labor - This is the totality of a person’s physical and spiritual abilities, or his ability to work. Labor arises when labor power is combined with the means of production.
Social theory wages M. Tugan-Baranovsky considers wages as the share of the working class in the social product.
In modern economic theory there is no distinction between labor and labor power; they are identical concepts. Labor is clearly considered a factor of production, and salary - the price of using the employee's labor.
In terms of salary level, there are nominal and real wages.
Nominal salary - This is the amount of money workers receive from the cash register for their daily, weekly or monthly work. In 2002 ᴦ. the nominal average monthly salary was 4,426 rubles, or increased compared to this figure for 2001. by 35%, and for 1999 ᴦ. 2.9 times. At the same time, it is impossible to judge the level of consumption and well-being of people by the level of wages. There is a real salary for this.
Real salary - This is the nominal salary, minus various taxes and payments, taking into account inflation. It depends on the price level for goods and services. Consequently, nominal wages can grow, and at the same time real wages can grow, and vice versa. The cost of living, or the standard of living of the population, depends on real wages. According to Goskomstat, real wages in Russia in 2002 were ᴦ. increased against that in 2001. by 16.6%, and compared with the same indicator for 1999 ᴦ. - 1.7 times.
Main forms wages are time-based (hourly) and piece-rate (piece).
Time salary - This is the salary received based on the time worked. There are daily, weekly, monthly wages. The unit of measurement is price of an hour (labor)- hourly rate.
Working time 8 hours
The tariff rate is applied when the results of labor cannot be accurately measured, but are determined by the performance of duties. This includes official salaries of engineers,
employees, managers, electricians, teachers, doctors, etc. According to UN standards, the hourly wage should not be less than $3; in Russia one can only dream about this. In Japan, the USA, Germany, Sweden, Great Britain and France, hourly wages in industry are $15-22.
Time-based wages allow entrepreneurs to maneuver the length of the working day and the intensity of work, to achieve an actual reduction in wages while increasing the intensity of work. For this reason, labor laws must be strictly observed.
Piece salary - This is earnings that depend on the quantity of goods and services produced or the volume of work performed. Its unit of measurement is unit price - price for products. It is found based on 1 hour of time wages and the amount of production per 1 hour. The use of piecework wages stimulates the growth of productivity and labor intensity, increases competition among workers to maintain jobs, increases the level of wages, as well as unemployment, etc.
Each of the basic forms of wages has its own system, ᴛ.ᴇ. types of wages that are aimed at stimulating labor productivity, improving the skills of workers and, in general, increasing production efficiency.
With a simple time system wages, the amount of wages is determined by multiplying the hourly rate of a given category by the amount of time worked.
With a time-bonus system a bonus is added to simple time wages for additional production results (improved product quality, high-quality work, etc.).
Piecework wages have the following systems: direct piecework, piecework-bonus, piecework-progressive, piecework, individual, collective, etc.
Direct piecework salary determined based on the volume of work performed or products produced at established uniform prices.
Piece-bonus salary assumes that a bonus for additional results is added to direct piecework wages ( high quality product (saving raw materials, increasing the quantity of products).
Piece-progressive salary is determined based on the volume of production, one part of which, within the norm, is paid at basic prices, and the other part, in excess of the norm, is paid at increased prices.
Chord system involves payment for the entire volume of work performed in accordance with the contract. At the same time, the deadlines can be shortened - this is the job of the builders, i.e., the workers.
There may be other individual and collective wage systems, where wages are determined based on the labor participation (CLU) of members labor collective. Οʜᴎ are designed to link wages with the final results of labor.
The reform of the remuneration system gives enterprises (firms) the right to choose their own principles of remuneration for employees. For this reason, it is advisable to use the experience of foreign entrepreneurs who widely use the following types of wage systems: guaranteeing a minimum wage (tariff rate) even if the employee does not achieve the established level of labor productivity; changing wages ranging from minimum to maximum - in proportions depending on the achieved level of labor productivity; systems of employee profit sharing and creation of worker ownership.
In recent years, foreign companies have successfully used various systems of employee profit sharing and creation of worker ownership. Employees’ participation in profits occurs in the form of contributions to ʼʼworker fundsʼʼ shares of the current year's profit using preferential tax regime. The creation of workers' property is carried out by investing savings from wage deductions in production on preferential terms.
Factors influencing the amount of wages are: productivity and intensity of labor, quality of labor, qualifications of workers, complexity of labor, economic situation of the country, level of scientific and technical progress, racial and sexual discrimination, etc.
To take into account most factors influencing the level of wages, a tariff system is used. It is mandatory for state enterprises and advisory in the conditions market relations for non-state enterprises.
Tariff system includes:
‣‣‣ tariff and qualification reference books to characterize professions and types for assigning ranks;
‣‣‣ tariff rates to determine the amount of remuneration for each category;
‣‣‣ tariff schedules - this is a set of tariff categories and tariff coefficients;
‣‣‣ salary chart for engineers and employees. If in the command-administrative system the tariff conditions for remuneration were lowered from the center and controlled by the relevant ministries and departments, then in a market economy the state only adjusts the size of the all-Russian minimum wage. Many market enterprises use tariff-free wage systems. Moreover, the amount of wages depends on the results of their economic activities.
3. Rent as income of the land owner.
Land rent - land use fee.
The supply of land is completely inelastic, since its quantity is always stable and should not be increased.
Rent is one of the types of income from property. Its size is determined by the lease agreement. Land rent is the form in which land property is economically realized and brings profit.
Lease is a broader concept than rent. It includes, in addition to rent, other payments: interest, depreciation, etc.
The only factor determining rent is the demand for land. It depends on the price of the products that can be produced on a particular land and the productivity of the land itself. The points that determine the amount of rent lie at the intersection of the demand curve and the supply curve.
The additional profit arising on average and best quality plots of land forms differential land rent. Differential rent 1 associated with the natural features of the land and in connection with this it is appropriated by the owner of the land. Differential rent 2 arises due to additional capital investments in the same land plot (use of new machines, latest technologies, soil reclamation, etc.), which contributes to the growth of economic soil fertility. Economic soil fertility ensures an increase in agricultural yields, and this brings additional profit to the entrepreneur.
It should be emphasized that lands with worse soil and climatic characteristics do not bring differential rent to their owners. It follows that the tenants of the worst plots must receive an additional profit of another kind in order to pay the rent and appropriate the normal profit. And they receive it in the form of absolute rent.
The reason for absolute land rent is the monopoly of private ownership of land. The value of this rent determines the low level of retail prices for land plots.
There is also monopoly rent. It is based on the monopoly price at which a product of rare quality is sold. A monopoly high price is determined by the buyer’s ability to pay a high price for a rare product, which means it represents a deduction from the buyers’ income.
Land price depends on two factors: the amount of land rent brought in and bank interest. If the land rent is lower than the bank interest rate, then the money will be placed in the bank. If land rent is higher than bank interest, then the likelihood of investing in land increases.
The price of land is capitalized rent, i.e. rent converted into money capital, generating income in the form of interest. In general, the price of land is rising all over the world, as the amount of rent increases, the interest rate decreases and the demand for land increases
4. Interest and dividend.
Percent - this is a type of income. In practice, it can appear in the form of loan interest on capital, entrepreneur’s profit, a premium to the cost of factors of production, rent for the rental of property and land, dividends on securities, etc.
There are two concepts of interest: Marxist and neoclassical.
Marxist concept considers interest as a form (part) of surplus value. Its emergence is due to the fact that the borrower of capital, having produced surplus value, divides it into two parts: percent, given to the creditor and business income(profit) appropriated by the borrower himself. Consequently, interest acts as the irrational price of loan capital, ᴛ.ᴇ. it does not fully express the cost of loan capital. The only source of interest is labor.
Neoclassical concept(Samuelson, Fischer, Böhm-Bawerk) interest is represented as the difference between the value of today's and future goods (income). It is believed that today's goods (money) are usually valued higher than future benefits. Thus, by refusing today's benefits by providing them on credit, the owner of these benefits has the right to count on appropriate compensation - percent.
It follows that the reasons for the appearance of interest are: psychological(the value of today's goods compared to future ones); economic(current needs are more pressing and resources are limited and therefore decreasing); technological(today's goods are more expensive than future ones) motives.
The owner then becomes creditor, and the recipient of benefits (money) - borrower. The borrower must pay interest on the loan received. Consequently, interest acts as a payment for the time determined by the period of receipt of the loan.
The ratio of interest in the form of a certain amount of money to the capital used is interest rate (rate of interest).
There are the following types of interest rates: market, average, nominal, real.
Market interest rate at any given moment is formed in the capital market based on supply and demand.
Average interest rate reflects the movement of the market rate over a certain period of time.
Nominal interest rate - This is the interest rate expressed in money at the current exchange rate.
Real interest rate Unlike the nominal interest rate, it takes into account the level of inflation. It is equal to the nominal interest rate minus the inflation rate.
The real interest rate is of primary importance for making investment decisions.
As is known, banks most often act as intermediaries in the movement of loan capital; in this regard, it is necessary to distinguish between deposit and loan interest rates. Deposit interest rates- these are payment standards for bank deposits (depositors’ interest is calculated based on them). Loan interest rates - These are the standards for fees for using a bank loan. The level of loan interest rates is always higher than deposit interest rates. Due to their difference, the bank covers its costs and makes a profit.
In general, the interest rate is under the influence of the state and is an important instrument of state regulation of the economy.
Dividend is income from shares.
A share is a security that indicates that its holder has contributed a certain share to the development of the enterprise and gives the right to participate in profits.
The size of the dividend affects the stock price.
The stock price is directly dependent on the dividend received and inversely dependent on the interest rate.
Factor income - concept and types. Classification and features of the category "Factor income" 2017, 2018.