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This content has been automatically translated from Ukrainian.
Economic law — are the main cause-and-effect relationships and interdependencies that characterize economic processes and constantly recurring phenomena.
In simple words, economic law describes how the economy works.
For example, one of the economic laws says that if the price of something increases, then usually the demand for it decreases, and if the price falls, then the demand increases.
Economic laws arise, develop and function only in the process of economic activity of people — in production, distribution, exchange and consumption.
The State cannot, can, change economic laws, but, can only, create the preconditions for the development of objective laws through changes in conditions. This is achieved by improving property rights (improving the economic mechanism). Economic laws are independent of people's consciousness.
Economic laws:
— law of value (means the exchange of equivalents, that is, the exchange of goods and services between you ⁇ robniki and their purchase on the market in accordance with the socially necessary costs for their production);
— the law of labor productivity growth;
— law of saving time;
— the law of conformity of industrial relations with the level of development of productive forces;
— law of supply and demand;
— the law of growth needs;
— the law of diminishing returns, etc.
Economic laws in their totality create a system of economic laws, which includes universal, general, specific and stage laws.
System of economic laws
- General laws they function in all economic systems (the law of labor productivity growth, the law of demand growth, etc.).
- General laws <TAG1> function in several economic systems where appropriate economic conditions exist for them (market economy laws).
- Specific laws <TAG1> function only within one economic system.
- Stage laws <TAG1> function at separate stages of a certain economic system (establishment, maturity or decline).
Any law expresses the causal relationship of repetitive processes, that is, one process is a cause, the other — a consequence.
Define three levels of use of economic laws:
— scientific and theoretical <TAG1> a scientific interpretation of economic laws is given and concepts of economic development are created;
— state-managerial <TAG1> state power, relying on the laws of economic theory and leading concepts, develops relevant legal laws and regulations, determines economic development programs and their forms and means of implementation;
— practical <TAG1> the use of economic laws in the business practices of economic actors.
Regional manifestation of economic laws
Large urban regions may have a greater demand for certain types of goods and services, which leads to different market dynamics compared to rural areas. Regions with highly developed infrastructure may have a greater competitive advantage in attracting investment and developing business compared to less developed regions.
Some economic laws may have a particular regional impact because of the availability or otherwise of certain resources. For example, regions with large oil or gas reserves may be more exposed to economic growth associated with the extraction and export of these resources than regions without such natural wealth.
Cultural and historical features also affect the regional manifestation of economic laws. For example, regions with a developed tourism industry may have their advantages in the field of pricing and demand for certain goods and services.
So, economic laws help us understand why different economic phenomena occur and how their consequences can be predicted.
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