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Market economics
1. In a true market economy the government plays no role in the management of the economy, the government does not intervene in it. The system is based on private enterprise with private ownership of the means of production and private supplies of capital, which can be defined as surplus income available for investment new business activities. Workers are paid wages by employers according to how skilled they are and how many firms wish to employ them. They spend their wages on the products and services they need. Consumers are willing to spend more on products and services, which are favoured. Firms producing these goods will make more profits and this will persuade more firms to produce these particular goods rather than less favoured ones.
2. Thus, we can see that in a market economy it is consumers who decide what is to be produced. Consumers will be willing to pay high prices for products they particularly desire. Firms, which are privately owned, see the opportunity of increased profits and produce the new fashionable and favoured products.
3. Such a system is, at first view, very attractive. The economy adjusts automaticallyto meet changing demands. No planners have to be employed, which allows more resources to be available for production. Firms tend to be highly competitive in such an environment. New advanced products and low prices are good ways to increase sales and profits. Since all firms are privately owned they try to make the lagest profits possible. In a free market individual people are free to pursue their own interests. They can become millionaires, for example. Suppose you invent a new kind of car. You want to make money out of it in your own interests. But when you have that car produced, you are in fact moving the production possibility frontier outwards. You actually make the society better-off by creating new jobs and opportunities, even though you become a millionaire in the process, and you do it without any government help or intervention.
4. Not surprisingly there are alsoproblems. Some goods would be underpur chased if the government did not provide free or subsidised supplies. Examples of this type of good and service are health and education. There are other goods and services, such as defence and policing, that are impossible to supply individually in response to consumer spending. Once defence or a police force is supplied to a country then everyone in this country benefits.
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Who decides what is to be produced in a market economy?
Контрольная работа № 5
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Types of Buildings
1. Types of buildings depend upon social formations and may be classified according to the role in the community. The types of buildings may be domestic, educational, office, industrial, recreational, etc. The type and the function of a building govern its design, building materials and techniques. But the common and necessary conditions are: (1) its suitability to use by human beings in general and its adaptability to particular human activities (2) the stability and permanence of its construction.
2. Speaking of residential construction we must say that the apartment houses are mostly built to suit urban conditions. Group housing provides home for many families and is at once public and private. The techniques of construction or the methods by which structures are formed from particular materials are influenced not only by the total technological development of society.
3. The evolution of techniques is conditioned by two factors: one is economic – the search for a maximum of stability and durability in building with minimum of materials, labour and time; the other is expressive – the desire to produce meaningful form. Techniques evolve rapidly when economic requirements suggest new expressive forms or when the conception of new forms demands new procedures.
4. Large hosing programs have tended to stimulate technological change in the building industry. Craft operations at the building site are being replaced by mechanized operation at the factory and houses are increasingly becoming assemblages of factory-made elements. Windows and doors, once made and fitted by carpenters at the site now arrive from a factory fitted and finished with hardware and glass, ready to be set in place. Modular design (i.e. design in which the elements are dimensioned in combinations of a fixed unit) has led to standardization of elements, interchangeability of parts and increased possibilities for mass production, with resultant economies. A wide variety of mass-produced elements from which substantial portions of the house can be assembled are now available. Examples are kitchen cabinets and mechanical equipment and window and door units. Entire apartment assemblages are available and are being used to an increasing extent. These techniques aim at a higher output of better structures at lower cost.
5.The high degree of mechanization and standardization is successfully achieved by reinforced concrete blocks and units. Reinforced concrete home are produced by a variety of construction methods. Various methods of constructing reinforced concrete houses involve extensive use of large sections manufactured in heavily mechanized factories and erected at the site.
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How is the high degree of mechanization and standardization achieved?
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