Theme 4. Contract theory

1. Contract theory. Economic actors. Contractual arrangements. Asymmetric information.

2. Behaviour of a decision maker. Numerical utility structures. Optimization algorithm to identify optimal decisions. Labeled moral hazard, adverse selection and signalling.

3. The principal-agent problem (agency dilemma or theory of agency). The "principal". The agent-principal relationship.

Tasks:

1. Discussion of the questions;

2. Work with the glossary;

3. Questions for discussion:

- What does characteristics of the parties of the contract: neoclassical, classical and implicit?

- What is the contract on sale?

- What relations arise between the parties at the conclusion of the implicit contract?

4. Essay writing on this theme

5. Solution of exercises:

Exercize 1. Analyze the Card of industrialization of Kazakhstan for 2010-2014. Allocate the enterprises which function or will function in the territory of the Karaganda region. Give the assessment of their activity.

Exercise 2. Make the table on the theme "Classification of Branches of the Republic of Kazakhstan" and give the short analysis of each of them.

Exercise 3. Give definition to the following terms: industrialization, fuel and energy resources, innovative development, special economic zones

Form of activity: practical work, discussion, independent activity, research activity.

Methodical recommendations: Preparation for performance of tasks should be began with studying of recommended literature. To study essence of the contract theory of firm, its task and function, to define the basic principles of functioning this theories. Studying of a material should be accompanied by consideration of the national economy of Republic of Kazakhstan.

Literature: 1-42.

Theme 5. Production program of firm

1. Production program of the enterprise.

2. Methods of measurement of the production program.

3. Indicators of the production program.

Tasks:

1. Discussion of the questions;

2. Work with the glossary;

3. Creation of SWOT analyzes and business plan of specific enterprise.

4. Tasks

Task 1. The enterprise made the main production for the sum of 325,6 million tenge. The works of industrial character rendered on the party – 41,15 million tenge. Cost of semi-finished products of own manufacturing – 23,7 million tenge, from them 80 % are consumed in own production. The size of a work in progress increased by the end of the year on 5,0 million tenge. Cost of material inputs consist of 40 % from products. Define the size of the realized, gross and net production.

Task 2. The enterprise made products A in the reporting period – 200 units, products B – 300 units. The price of the product A – 1800 tenge, product B – 2580 tenge. Cost of services of the industrial character rendered by the foreign enterprise – 37500 tenge. The work in progress rests the beginning of year – 75000 tenge. The work in progress rests the end of the year – 53000 tenge. According with the main production the container for the sum of 12000 tenge, including is made for holiday on the party for the sum of 8000 tenge. Define the size of gross, commodity and realized output.

Form of activity: practical work, discussion, independent activity, research activity.

Methodical recommendations: Preparation for performance of tasks should be began with studying of recommended literature. To study essence of the enterprise, its task and function, to define the basic principles of functioning and types of the enterprises, to familiarize with concept of bankruptcy. Studying of a material should be accompanied by consideration of the Civil Code of Republic of Kazakhstan, Law of Republic of Kazakhstan «About bankruptcy».

Preparation for performance of tasks should be began with studying of recommended literature. When studying this theme, to understand an order of production planning and production realization (sales), to explain meaning of indicators “the gross, commodity, realized net production” and their role in planning.

Literature: 1-42.