THE ROLE OF THE CONSUMER IN THE CONTEXT OF MARKET RELATIONS.
Jizzakh Polytechnic Institute
Lecturer at the Department of Economics and Management
Khushvaqtov Dilshod Abduvaliyevich
Annotation: Persistent and fundamental problems in a market economy. Advantages and disadvantages of a market economy. The optimal choice for the consumer.
Keywords: market economy, economic liberalism, property freedom, freedom of management, entrepreneurship and freedom of choice.
A market economy is an economy based on free competition, characterized by private ownership of resources, freedom in economic activity and entrepreneurship, and the use of market mechanisms to regulate and harmonize economic processes.
A market economy is a democratic economy based on commodity-money relations, based on various property and economic freedoms and governed by competition. The market economy is the most progressive and promising system in human development. The basis of a market economy is commodity production, where the commodity economy dominates, not the subsistence economy. Created products and services take the form of a commodity, that is, they are created for pre-sale in the market. The market economy is characterized by barter, not barter. Therefore, commodity consumption takes precedence over natural consumption. The market economy is based on economic liberalism, ie freedom, property freedom and freedom of management. While private property is predominant, there are other forms of ownership. The free development of all forms of property or all forms of property, including private, private corporate, public property, and state property, creates a property balance and does not allow the monopoly of any form of property. In a market economy, there are individual, self-reliant, corporate, partnership-based ways of renting land, buildings, structures, cars, and borrowing money. The backbone of a market economy is entrepreneurship, which focuses on making a profit by supplying goods and services to the market. Entrepreneurs are a special category and typically make up 7-10% of the economically active population. In a market economy, everyone is free to do what he or she wants to do, based on his or her own interests. Demand in the market determines what, how much to produce, where and how much to sell it for. The market price is formed on the basis of the supply-demand ratio based on demand. As economic entities separate in a market economy, their interests collide and competition ensues. Competition is the driving force of a market economy, the mechanism that ensures its development. A market economy relies on economic methods of management. The market mechanism is an economic incentive mechanism, the main means of which is money. The pursuit of money ensures that goods and services are produced in large quantities and with high quality. In a market economy, money becomes the most common and most convenient form of wealth - a means of universal economic relations. In a market economy, wealth is not forbidden, it is allowed, there is no upper limit of income, but the lower limit is set by the state, and the wages of workers cannot be lower than the established minimum wage. A market economy is one in which there is no shortage of goods and goods are plentiful. Another characteristic of a market economy is the existence of a fair income inequality.
A market economy means equal opportunities, but people do not have the same opportunities, and everyone benefits from what they earn. Income stratification encourages people to become economically active.
Important and common features of a market economy are:
- the existence of different forms of ownership and the predominance of private property;
- Entrepreneurship and freedom of choice;
- the existence of competition;
- limited state intervention in the economy;
- resilience of enterprises and firms to changes in internal and external conditions.
These features of a market economy are common to all its stages. But when it comes to the content and characteristics of a market economy, it is important to be able to distinguish between the two types of economies that have existed in history. Its first appearance took a long time and lasted in the developed countries of the West until the end of the XIX century. It has been called the classical or pure market economy in the economic literature. Its main features are: a) economic activity based on private property; b) the generalization of capital and production at the enterprise level; (c) The personal liberty of entrepreneurs, workers, producers and consumers; d) the struggle of entrepreneurs for high profits; d) the ordering of the economy on the basis of supply and demand, free market prices and competition; e) lack of social protection of the population, increasing unemployment and social stratification of the population.
The second type of market economy, now called the advanced market economy, has been in place since the late 19th and early 20th centuries. Its main features are:
a) economic and business activities based on various forms of ownership, ie private, state, public, mixed and other forms of ownership;
b) a high degree of generalization of capital and production, with part of the property being paid for by large monopolies and the state, and nationalized at the national and international levels;
c) active participation of the state in the regulation of the economy. In this case, the state, taking into account the development of science and technology and other factors, is responsible for determining various economic measures, development prospects, measures to regulate the relationship between different industries and sectors;
g) increasing the use of planning in the management of farms (business plan, management through the marketing system);
d) increased social protection. This includes the creation of various social security and social insurance funds owned by the state, communities and individuals.
In both types, the basic features and characteristics of a market economy are preserved, in which the movement of goods and goods, their laws, serve as the basis and conditions for development. The modern market economy is based on the interaction of the private and public sectors of the economy. The following models of a modern market economy differ depending on the intensity of the impact on the economy and the priorities to be addressed by the state.
It should be noted that in some textbooks there is a certain uncertainty and confusion in the division of the market economy into stages. In particular, D. Tadjibayeva distinguishes its initial, free, regulated and deformed stages.
While monetary relations prevail in a market economy, non-monetary human relations: compassion and charity also flourish. In developed market economies, large charitable foundations serve the needy and do not seek to withdraw money. The market economy is constantly evolving and new forms and models are emerging.
Historically, there have been two types of market economies: the wild market economy and the civilized market economy. Symptoms included the country's isolation from the economy, the frequency of deep economic crises, the lack of social protection, the division of people into the very rich and the very poor, and social conflict. The Assyrian economy grows into an enlightened economy through development. This change began in the 1930s in developed market economies and lasted until the 1980s. Today's market economy is a civilized economy characterized by: property diversity, a regulated economy, government intervention in the economy, cultural and social competition, strong partnerships, short-term and mild economic crises, public welfare, shallow social stratification, self-sufficiency and the rise of the middle class, the maintenance of social balance and the absence of civil strife, etc. These characteristics characterize the modern market economy, but their development is not limited to this. Within the framework of a cultural market economy, its various models apply (see Market economy models).
In such a system, the behavior of one of its participants is based on personal interests, and each economic unit seeks to maximize its income on the basis of individual decisions. With the help of the market system, individual decisions are harmonized. The production of goods (services) in a competitive environment, the supply of resources means that each product and resource has many independent buyers and sellers. Here, government intervention in economic processes is limited. The role of the state, therefore, is to protect private property and to establish reliable legal arrangements that facilitate the functioning of the free market.
The transition to a market economy takes place in two ways: revolutionary (suddenly) and evolutionary (slowly, including Uzbekistan). There are 4 different market types: local, national, regional, world markets.
References:
Shodmonov Sh., Alimov R., Jo`raev T. Iqtisodiyot nazariyasi. Toshkent – Moliya –2002.
Abdullayev Y. Bozor iqtisodiyoti asoslari. Toshkent – Mehnat. – 1997.
Ishmuhamedov A.E., Sitdikova L.A., Ishmuhamedov L., Sunnatov M.N. Bozor iqtisodiyoti va biznes asoslari. Toshkent. – 2004.
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