Which is a constant deficit in a command economy. Market deficit in the economy: definition, features and mechanisms. The mechanism of deficiency

The essence of commodity shortages in a command economy

Definition 1

A commodity shortage is a shortage of certain types of goods and services that consumers cannot purchase even if they have the necessary funds.

A commodity shortage is a symptom of demand not matching supply in the absence of an equilibrating price.

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

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

The flip side of a trade deficit in a command economy is the appearance of goods for which the regulatory body has set an inflated price or an inflated production quota. Such goods may accumulate on store shelves or in warehouses. This situation is called overstocking.

Note 1

The coexistence of commodity shortages and overstocking can lead to the emergence of a “load” phenomenon associated with the fact that scarce goods will be allowed to be purchased only in conjunction with illiquid ones.

Reasons for the emergence of commodity shortages

One way or another, commodity shortages are associated with the problem of rational resource management in the economy. A market economy solves this problem through the mechanisms of supply and demand, where 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 the 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 there are no market prices, a command economy is not able to rationally distribute resources.

In particular, L. von Mises substantiated the idea that commodity shortages are an indispensable feature of any command economy, since when the state controls all the means of production, there is no way to obtain a rational price for the means of production, since the price for them, unlike the price consumer goods, is simply a characteristic of the internal transfer of these funds, and not the result of a conscious exchange. As a result, it becomes impossible to evaluate the means of production, therefore, planning authorities will be deprived of the ability to rationally allocate resources.

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

Nobel laureate F. A. Hayek believed that:

without the regulatory influence of the market, the dictatorship 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 researcher M. S. Voslensky, commodity shortages are a natural phenomenon for a command economy and are associated with a lack of funding for light industry due to huge expenditures on military and heavy industry.

1.What is the main meter these days? economic development countries:
A) budget income; b) labor productivity; c) per capita income;
d) GDP per capita.

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

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

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

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

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

7. What does consumer 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? A market economic system is characterized by:
A. consumer diktat over the producer.
B. continuous rise in prices for industrial 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 objective laws of natural development;
b) study of methods of distribution of material wealth;
c) study of the system of characteristics 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 purpose of the central bank is:
A. Stabilization of the economy by lending to the government.
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 incorrect.

11. What does the state budget reflect:
a) By the profitability of the population and business activities;
b) Government expenses control;
c) Changes in foreign exchange rates;
d) Unemployment level.

12. What is the reason for the gradual decline in consumer demand
a) The service 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 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 incorrect.

14.The subject of studying economics in the field of knowledge is?
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 benefits and their criteria.

15. In what case can appropriation occur within the entire society: a) cooperative; b) affiliate; c) municipal; d) private.

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

The essence of commodity shortages in a command economy

Definition 1

A commodity shortage is a shortage of certain types of goods and services that consumers cannot purchase even if they have the necessary funds.

A commodity shortage is a symptom of demand not matching supply in the absence of an equilibrating price.

It should be noted that commodity shortages can appear in both planned (command) and market economies. However, for a market economy characterized by floating prices, a trade deficit is an unequally significant condition that can be quickly corrected by increasing prices, increasing production volumes and reducing demand for goods.

Note 1

Reasons for the emergence of commodity shortages

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

Nobel laureate F. A. Hayek believed that:

without the regulatory influence of the market, the dictatorship 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.

Yes yes they are the best! Prehistoric questions from the times of the SGI!))))
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Capital Humanities Institute
Tests
according to the training course
"Economy"
1. What general studies economic theory:
1 laws of economic development
2 accounting
3 functioning of economic sectors
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. Mark statements related to macroeconomics:
1 result of competition among computer companies is a reduction in prices for computers
2 The dollar exchange rate on the MICEX reached its highest level in a week
3 the government raised wages in one of the budget sectors 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 backwardness can be overcome through radical structural changes in priority sectors. What type of science is called upon to formulate such a recommendation:
1 positive
2 normative
3 promising
4 regressive
5. Macroeconomics studies the following issues, except:
1 inflation mechanism
2 valuable papers Gazprom
3 growth of total production in Russia
4 import-export operations between Russia and China.
6. The fundamental question of economics is:
1 to give everyone the opportunity to have a dacha, a yacht and a car
2 redistribute income and eliminate poverty
3 reduce unemployment
4 learn to cope with the shortage of all resources
7. The process of focusing only on the most important factors to explain a phenomenon in economics is called
1 abstraction
2 margin analysis
3 rational choice
4 controlled experiment
8. Highlight how economic resources differ from factors of production:
1 It's the same thing
2 factors of production do not include labor resources
3 economic resources do not include entrepreneurial activity
4 factors of production are economic factors involved in the production process
resources
9. Means of production are:
1 part of capital
2 labor resources and capital
3 objects of labor and means of labor
4 all material resources
10. Means of labor are part of the means of production:
1 which a person influences during the production process
2 with the help of which a person influences the substance of nature
3 which is intended for hiring labor
4 which is intended for the purchase of raw materials
11. Intensive factors of economic growth include:
1 increase in the number of employed workers
2 increase in labor productivity
3 expansion of production areas
4 increasing the volume of investment while maintaining the existing level of technology
12. Extensive factors of economic growth include:
1 use of NTP achievements
2 expansion of production areas
3 advanced training of employees
4 increase in labor productivity
13. What type of income is land ownership sold into:
1 percent
2 salary
3 profit
4 rent
14. Division of labor is:
1 assigning people involved in production to certain types of work activities
2 division of the national economy into branches of production
3 distribution of people by profession
4 distribution of the created product between 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 different segments of the population
3 improving product quality
4 development of exchange relations
16. Problems: what, how and for whom to produce - relate to:
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 on the basis of government intervention, then this is an economy:
1 traditional
2nd team
3 market
4 mixed
18. Which of the following 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 shortage of consumer goods
3 prices for the vast majority of goods are set by the state
4 administrative methods of economic management
20. What common feature is typical for traditional and command-administrative systems:
1 lack of private ownership of land
2 national economic planning
3 free pricing
4 the predominant role of traditions
21. In an administrative-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 determined the inevitability of resource shortages in an administrative-command economy:
1 prices that do not take into account the relationship between supply and demand
2 lack of 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 shortage
4 ban or restriction of private entrepreneurship
24. Which of the following characteristics does not apply to the administrative-command system:
1 central planning
2 freedom of private enterprise
3 government setting prices for the vast majority of goods and services
4 self-supporting incentives
25. An administrative-command system can do without:
1 without "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 applies:
1 traditional
2 administrative-command
3 market economy free competition
27. When producing 1 kg of metal, 10 ceramic vases were missing. Which of the production possibilities 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 an economic system, an increase in the production of one product occurs while reducing another. Economists call this situation:
1 economic crisis
2 ineffective
3 effective
4 traditional economy

29. The opportunity costs of getting an education do not include:
1 salary you would have received without studying
2 money spent on textbooks
3 money spent on food
4 money paid for training

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

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

32. The cost is:
1 property of a product to be exchanged for other goods in certain quantitative proportions
2 production costs on the part of the manufacturer
3 social labor embodied in a commodity
4 concrete labor embodied in a product

33. In the circulation 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 goods market
4 entrepreneurs are buyers in the goods market and sellers in the resource market

34. To the objective conditions of occurrence market system farms does not apply:
1 social division of labor
2 economic isolation of the subjects of the system
3 strict production management system
4 limited resources

35. What is a sign of only a perfectly competitive market:
1 enterprise chooses the volume of output so as to obtain maximum profit
2 companies sell substitute products
3 the company does not have market power
4 there are several enterprises on the market producing this product

36. A company is a monopsonist in the labor market compared to a competitive market:
1 hires fewer workers and pays them higher wages
2 hires more workers and pays them lower wages
3 hires fewer workers and pays them lower wages
4 hires more workers and pays them higher wages

37. What is a permanent deficit in a market economy?
1 social guarantees
2 world-class specialist services
3 money
4 smart products

38. From all the concepts given below, it is necessary to choose one - the only correct one for this case. So the demand is:
1 quantity of goods per person
2 the quantity of a good that people are willing to purchase at a given price
3 substitutes for the good, i.e. goods used instead
4 solvent need
39. The market demand curve shows:
1 how will the consumption of a good decrease when the income of buyers decreases?
2 at what price will the vast majority of transactions be carried out?
3 the magnitude 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 will the consumption of a good increase when its price increases
2 how consumption of a good will decrease when the income of buyers decreases
3 how consumption of a good will decrease as its price increases
4 how consumption of a good will increase when the income of buyers decreases
41. The demand curve will shift to the right if:
1 consumer incomes will increase
2 new ones will be discovered beneficial features of this good
3 prices are expected to rise in the economy
4 all these factors will lead to the indicated shift
5 none of these factors will lead to such a shift
42. Other things being equal, an increase in supply will lead to:
1 to an increase in the equilibrium price and a decrease in quantity
2 to reduce prices and increase physical sales volume
3 to a fall in the equilibrium price and a decrease in quantity
4 nothing will change
43. Improvements 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 a decrease in demand
2 with reduced demand
3 with demand shift
4 with increasing supply volume

45. Movement from point B to point C can be caused by:
1 increase in supply
2 increase in demand volume
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 shift in supply of this product
3 a change in the price of a product related to
consumption with this
4 change in price used in
resource production

47. If the price of a product is below the equilibrium point, then:
1 excess
2 deficit
3 rising unemployment
4 all options are incorrect
48. The market for goods and services is in equilibrium if:
1 demand equals supply
2 price equals costs plus profit
Level 3 technology is being applied gradually
4 quantity supplied equals quantity demanded
49. Pies replace buns in consumption, and butter complements them. What will happen in the relevant markets if the price of buns decreases?
1 the prices of pies and butter will decrease
2 the price of pies will increase, and the price of butter will decrease
3 the price of pies will fall, but the price of butter will rise
4 prices of pies and butter will increase
50. The income of the population has increased. Line DD VCRs:
1 will go down left
2 will remain in place
3 will go up to the right
51. The price of lamb has increased. DD line for pork:
1 will go right up
2 will remain in place
3 will go down left
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 down to the left
53. Prices for tables have increased. SS line of chairs:
1 will not change its position
2 will go to the right
3 will go left
54. Prices have increased mineral fertilizers. Wheat SS line:
1 remained in the same place
2 will go left
3 will go to the right
55. In its natural form, GDP is:
1 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 greater (less) than GDP by the amount of the balance between profits and income received by enterprises and individuals of this country abroad;
3 GDP differs from GNP by the balance between profits and income consumed by residents of a given country abroad, and profits and income received by foreign residents in the territory of a given country
4 there is no difference
57. Nominal GNP is measured:
1 in export prices
2 at basic (constant) prices
3 in prices of the previous period
4 at current market prices
58. The 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 production structure in this and the previous year
2 differences in the market value of the “commodity basket” 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 unemployment rate:
1 does not depend on the volume of real GNP
2 is associated with an increase in real GNP
3 is associated with a decrease in real GNP
4 are different problems

APPLICATION:
correct answers to Economics questions

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 article.

general information

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

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

Then 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, and its price will rise. Or the market will become saturated, the rush demand for the product will disappear, which will lead to a drop in cost and a reduction in the range of products on the market. Potentially, this situation could lead to a “crisis of overproduction.”

Thus, sellers can only pursue their profit interests for a limited time. It is believed that market equilibrium is optimal for the economy. Next on the list of desired market states are surplus and deficit. The main attention in the article will be paid only to the last of them, but for the completeness of the presentation of information we will also touch on other topics. After all, what market equilibrium, surplus and deficit are, 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 the system. But it can persist for a long time, provided that the price increase is limited by certain factors. These include government regulation or the lack of physical capabilities to increase the production of goods. By the way, if there is a chronic market deficit, this indicates that enterprises have no incentive to correct the situation or the state does not want to help them with this. In this case, one can observe a decline in the standard of living, since people can no longer fully satisfy their needs through goods.

Consequence of deficits

When such a situation occurs and queues begin to form for the goods, then even if there is competition, the seller is not interested in improving the quality of the product he produces and the level of service. For example, we can consider the situation with the Soviet Union in last years his existence. Shops started working late and ended relatively early. At the same time, there were always huge queues, despite which the sellers were in no hurry to serve the buyer. This irritated customers, resulting in constant conflicts. Another consequence that market deficit has 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 a significantly inflated cost.

Shadow market

We have already found out, Now let's pay attention. It arises if there is unmet demand. In such conditions there are always those who want to satisfy him, but at inflated prices that have nothing in common with those officially declared. But there are limits here too - after all, the higher the cost, the less people will be able to afford a certain product or service.

Excess

This is the name given to a market situation characterized by an excess of supply over demand. Excess can occur in cases where there is a crisis of overproduction or a product or 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, establishing a minimum cost for 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 sellers have incentives to sell their products at a lower price than the officially established price. In this case, the lower ceiling can be set at the level of cost plus the minimum profitability at which the manufacturer agrees to manufacture a product or provide a service.

Market equilibrium

Deficiency and excess have their pros and cons. The optimal situation is when an equilibrium price occurs. With it, supply quantitatively equals 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 simultaneously. It is also necessary to take into account that deficits and excesses can quickly arise or disappear. So, when demand increases, it leads to the fact that the price is literally “pushed” towards growth. A significant supply in quantitative terms, in turn, puts pressure on the price. This is how market equilibrium arises. Deficit/surplus in in this case absent.

Peculiarities

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

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

The state resorts to using this mechanism in cases where it is necessary to avoid a crisis of overproduction and the subsequent collapse. It can also be used to stimulate certain types of goods. In addition, all surpluses that were not purchased by the people in the market are purchased by the government itself. A reserve is formed from them, which will be used to regulate the situation in the event of a shortage. An example is food crisis situations.

The mechanism of deficiency

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

Due to economic processes. So, there is an enterprise that has successfully entered the market. It offers a good and 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 will be able to be eliminated and even create 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, they will face a shortage. His characteristic feature will be that it will not be big.
Due to a change in forms of ownership. An example is the situation that arose during the collapse Soviet Union. After the creation of new states, old economic ties were destroyed. Production was largely dependent on enterprises located in other territories. As a result, plants, factories, and so on were idle. Since the necessary products were not produced in the required quantities, there gradually became less of them on the market. There was a shortage.
"Foreseen" shortage. Occurs when it is predetermined how much of something will be released and is no longer planned. Examples include “anniversary” books or expensive cars. In the case of the latter, we can cite Lamborghini, individual models of which are produced in batches of several pieces and only once.

Conclusion

Market deficits are not welcome in any state. After all, it is better to live in times of abundance. But alas, humanity has not yet grown up to it. The best thing we can “boast” of is the equilibrium of prices. In addition, it can be difficult to avoid short-term deficits during worsening crises. If you look carefully at the current state of affairs, you can confidently say that we still have room to develop. Building an economic system that would not experience negative aspects, such as crises and deficits, is the cherished dream of many people. Attempts to outline the path were made by Karl Marx, and one can find many modern doctrines that offer various mechanisms that can potentially help humanity on its path to abundance.