When determining the concept of economics, the presence of several meanings of this word is taken into account:
The totality of social relations that take shape in the process of production, distribution, exchange and consumption. The totality of all the means, objects, things, substances of the material and spiritual world used by people in order to ensure living conditions, satisfy needs.
In this understanding, the economy is a system of life support, reproduction of people’s lives, maintenance and improvement of living conditions.
An economy can also be considered as a science, a body of knowledge about the economy and related activities of people, about the use of diverse, often limited, resources in order to meet the vital needs of people and society, about the relationships that arise between people in the process of managing.
The life support system, the reproduction of people’s lives, arises at the “dawn of the life of mankind”, in this period of history dominates the appropriating economy, a person is completely dependent on nature.
With the development of nature by people, the development of industries and new technologies, conditions arose for a gradual transition from an appropriating economy to a producing one, from a society of hunters, fishermen and gatherers to a society of cattle breeders, farmers, and artisans.
With the increasing complexity of the economy, a system of economic relations is emerging that embodies the unity of production, distribution, exchange and consumption of economic goods that form the economic process.
Thus, the economic process consists of several phases (see table 1).
Transformation of resources into goods and services
The movement of goods, services from producer to consumer
movement of goods from one owner to another.
The use of goods and services to meet the needs of man, society, production. Meeting the needs of people and production – in the case of production consumption