Structure of the economy

The structure of a market economy as an economic system depends on which principle underlies the division. It can, for example, take place according to a functional feature, based on the purpose and nature of its elements. Then the structure of the world economy looks like this:

1 person. This is both a goal and a means of economy. The goal, because it functions to ensure people. A means, because the work of the individual - the main resource of the economy.

2. Natural wealth. This is all that is given to people in a natural way: minerals, water, flora, air, fauna, light and heat of the Sun. Also, nature is the habitat for all mankind.

3. Means of production. These are products of individuals' activities that help to make new products.

4. Consumer goods. This is all that people need to meet their personal needs.

5. Infrastructure. These are the objects that ensure human life activity and the normal functioning of production.

The structure of the economy can be formed in other ways. It depends on the approach to the subject. For example, you can represent this science as a set of several related industries.

In this case, the branch structure of the economy consists of two areas of production activity. Each of them includes several objects that perform their functions using different technologies.

These are the branches of material production and the non-material (in other words, the socio-cultural sphere). The main difference between them is the original product. In the branches of the socio-cultural sphere, it is represented by such abstract concepts as intellectuality, spirituality, and information. And the product of the branches of material production is material. Both spheres are broken up into a number of additional branches. The main area of material production is industry. The products produced by it in developed countries are five times higher than those produced by agriculture. This includes the extraction and processing of raw materials, the production of energy and materials. Industry is a mega-industry that is divided into the following types:

- extracting;

- Light;

- processing;

- machine building.

The latter is also subdivided into several smaller branches (for example, automotive, instrument making, shipbuilding and others).

When the structure of the economy is built by industry, it should be remembered that the term "branch of the national economy" is ambiguous. It has several definitions:

1) the industry is "clean", consisting of a combination of productions of one type of product;

2) the economic sector is an enterprise that produces mainly an industrial product;

3) administrative - these are several enterprises that are subject to one administrative body (for example, the ministry).

The next structure of the economy is regional. It divides the country into several parts, relying on a territorial feature. This means that it is composed of those economic objects that are located in a particular region.

Of course, the regional economy is directly connected with the natural resources of the territory. However, this does not mean that it completely coincides with the administrative division adopted in the country. After all, it is impermanent, it can change, but the economy remains the same. Moreover, even the objects remain in their places, except that they change their names. That is, the definition of "regional" is broader. It includes both the traditions of the nation, and its history, labor and natural resources, connection with residents, with statehood, and in some cases with the political system of society.

So the concept of "territorial economy" is not only and not so much geographic as national and state. Also, it is not completely closed. Through the borders of the region, the labor force moves , resources of other territories are used, cargo is transported from one place to another.