Economic laws

The existence of the world economy occurs under thethe action of the basic laws. Economic laws, long discovered by D. Ricardo and A. Smith, are the basis of the functioning of the economic system. The laws of absolute advantage and relative advantage operate everywhere. The first one says that it is more economical for any country (more expediently) to import those goods that bring high costs, and to export those goods whose costs are lower. The law of relative advantage says that different countries produce the same types of goods, but some of them have certain advantages in producing these goods in front of other countries. This advantage is due to climatic and geographical conditions, established long traditions and some other factors. Thus, it is more advantageous for some countries to buy certain products from those countries where its production is more efficient.

Economic laws and categories study the systemeconomic and financial activities of people, as well as the principles of its organization. The methods of economic theory are synthesis and analysis, deduction and induction, the unity of logical and historical approaches, quantitative and qualitative analysis, as well as a systems approach. Distraction from the non-essential properties and phenomena of the system, and the concentration on the most significant is abstraction. In the analysis, the object or phenomenon under study is dismembered into its constituent elements and the study of all of them separately. Synthesis is a method inverse to analysis, so when it is used, the analyzed dissected elements are joined. Induction is a movement from one to the general, and deduction is a movement from the general to the individual. Induction and deduction in the process of cognition is almost impossible to separate. The main economic laws show phenomena in development and movement. They also explain economic processes logically. Most of them develop on the basis of progressive quantitative changes. They can be carried out only to a certain level, which is called a measure of quantitative changes. In the event that quantitative changes in the future become impossible, then a qualitative change is assumed. A systematic approach to economic theory assumes that any economic phenomena are studied in terms of structure and composition.

An economic law is a link expressing the true nature of a certain economic process. All these categories allow us to study in detail these relationships and processes.

Economic laws are betweeneconomic processes and the phenomena of dependence, which express their essence. Their most important criterion of classification is the duration of the action. The general include those of them that operate at all times of the existence of human society, at any stage of its development. These include the laws of division, cooperation and labor change; increase in labor productivity. There are also special economic laws that operate only in certain epochs (within the framework of certain modes of production).

Economic laws:

• demand, supply;
• increase in additional costs;
• the exaltation of needs;
• scale of production;
• saving time;
• competition;
• interrelation of costs in the sphere of consumption and production.

Economic categories that are logicalconcepts, reflect in general terms the most essential conditions of the existing economic life. Such categories include labor itself, methods and objects of labor, the product of labor, and consumer value. Some manifestations of relations between people are manifested in such categories: price, money, profit, value. Each law around itself groups a certain number of different economic categories.