You are on page 1of 6

Definition of Macroeconomics.

Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national or regional economy as a whole (from prefix "macr(o)-" meaning "large" + "economics") Macroecnomics studies Macroecnomics studies : the behavior and decision-making of entire economies aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Definition of Gross Domestic Product. The gross domestic product (GDP) or gross domestic income (GDI) is a basic measure of a country's economic performance and is the market value of all final goods and services made within the borders of a nation in a year Expenditure method GDP = private consumption + gross investment + government spending + (exports imports), or, GDP = C + I + G + (X M). Definition of GNP. In contrast, GNP is a measure of the value of the output produced by the "nationals" of a region. GNP focuses on who owns the production. Functions of Economic theory Cognitive Practical Breeding up Definition of Capital. Marx Capital- value which can bring additional value Surplus value Law of Surplus value Reproduction process

Capital reflects economic relations between employers and emploees-exploatation Understanding of capital. Nowadays economists An abstract production force as a source of interest and income The U.S. economists Capital is a recourse of long term usage with the purpose of production a big number of goods and services Capital is money, money is a universal good of the business world Definition of Money. Money to serve exchange Functions: a medium of exchange-Money's most important function is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another. Functions of Money. as a store of value-In order to be a medium of exchange, money must hold its value over time; that is, it must be a store of value. as a unit of account- to provide a common measure of the value of goods and services being exchangedthe value or price of a good in terms of money Definition of Property . Property is any physical or intangible entity that is owned by a person or jointly by a group of persons. to consume, sell, rent, mortgage, transfer, exchange or destroy their property, and/or to exclude others from doing. Definition of Private property. Private property - tangible and intangible things individuals or firms owners have exclusive and absolute legal rights can only be transferred with the owner's consent. the form :

real estate, homes, factories, automobiles, capital, patents and copyrights. Definition of public property. public property refers to assets owned by a state, community or government rather than by individuals or a business entity Collective farming is an organization of agricultural production in which the holdings of several farmers are run as a joint enterprise Evolution of Property . Primitive society ran from about 100,000 BC to 3,500 BC Slavery dominated from about 3,500 BC to 400 Land-duty was the main type of society from about 400 to 1600 Capitalist societies first emerged in the 1600s Socialist societies emerged in 1917 Definition of Economic theory Economics is the social science that studies the production, distribution, and consumption of goods and services of Lionel Robbins in a 1932 essay: "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."[ Definition of Economics- from . from the Ancient Greek oikonomia, "management of a household, administration from (oikos, "house") + hence "rules of the house(hold)". Oikonomia Oikos(House)+ Nomos (Law) Economics aims - from lecture. Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime, education,the family, health, law, politics, religion,social institutions, war, and science. Difference between political economy and neoclassical economics. The important thing in political economy is value.

Explain GDP structure in KZ

2003

2004

2005

2006

2007

2008

Commodity production

Agriculture, 7,8 hunting, forestry, fishery, fish farming

7,1

6,4

5,5

5,7

5,3

Agriculture, 7,7 hunting, forestry

7,0

6,3

5,4

5,6

5,2

Fishery, fish farming Industry

0,1

0,1

0,1

0,1

0,1

0,1

29,1

29,3

29,8

29,6

28,3

32,2

Mining

12,1

13,6

15,8

16,1

15,1

18,7

Manufacturing industry Production and distribution of energy power, gas and water Construction

14,2

13,3

12,0

11,7

11,5

11,8

2,8

2,4

2,0

1,8

1,7

1,7

6,0

6,1

7,8

9,8

9,4

8,1

Service

Trade, repair of cars and goods for household usage Hotels and restaurants Transport and communication Transport

11,6

12,5

11,8

11,4

12,4

12,3

0,8

0,9

0,9

0,8

0,9

0,9

12,4

11,8

11,8

11,5

11,5

11,0

10,8

10,1

9,8

9,3

9,0

8,5