16. Market: essence and types.

Market — the totality of economic relations, based on regular exchange transactions between producers of goods (services) and consumers. The Exchange usually takes place on a voluntary basis in the form of equivalent exchange of goods for money or goods (trade) for the goods (barter). With free access to the market for both producers and consumers sharing occurs in conditions of competition.

One of the main criteria of the market is the existence of competition. To the market was competitive, there must be several independent buyers and sellers. Competitive markets are a substantial number of independent parties. Market with one vendor and multiple buyer — has a monopoly. Market one buyer and multiple sellers is a monopsony. This is the extreme of imperfect competition.

The following types of markets:

1. food market-used for food trade and food.

2. the market for industrial products-applies for the purchase of consumer goods.

3. services market-here are domestic, utility and transport services.

4. real estate market-is used to conduct transactions for the purchase and sale of real estate.

5. the market for means of production-sales of means of production.

6. the market for money-purchase and sale of currencies, securities or stock market.

7. capital market and investment-funds for the construction, expansion and renovation.

8. labour force market-in this market are bought and sold.

9. market innovation-the trade technical and economic inventions.

17. Methods of economic theory.

The Main methods of the economics investigations, which are used in economic theory, are the follows:

- methods of a scientific abstraction - is based on abstraction of secondary phenomena, separation and study the most important, typical things in economic processes that allow to formulate typical of the notions, categories, economic laws;

- a method of the system analysis or system approach is means the studying an internal structured-functional, causal direct and feedback relationship. Their cognition enables to reveal the complex processes of the development of the production relations, investigate the point of the many economic phenomena and processes;

- a method of the analysis and syntheses. The Analysis - is a process of the dismemberment integer on a component parts; the syntheses - is an integration process or phenomena’s different element, into united integer. The analysis allows revealing the scientific abstractions, notions, but their following integration (the syntheses) brings about deeper studying to essence of the process, phenomena as integer;

- a method of qualitative and quantitative analysis allows to use the new approaches in investigation rate and proportion of the economy’s development, expects clear revealing process’s qualitative certainty and revealing that of its element, which can be measured as quantitative, allows to study the process in dynamics;

- mathematical and statistical methods ensure the integration qualitative and quantitative analysis.

Except the methods mentioned above, there are used methods history and logical approach, induction (from individual to the general) and deductions (from the general to individual), method analogy. Usage of all these methods in scientific investigations allows formulating the hypothesis - a scientifically motivated suggestion about possible relationship, relations, and reasons of the phenomena.