Economics and Social Sciences (SES) Course – Economic Science: Diversity of producers and distinction between market and non-market production

 

Diversity of producers and distinction between market and non-market production

 

     Economics and Social Sciences (SES) Course – Economics with www.SuperProfesseur.com , www.SuperProfesseur.xyz , www.SuperProfesseur.fr https://www.instagram.com/superprofesseur © SuperProfesseur, Ronald Tintin, Ronning Against Cancer

 

1. THE DIVERSITY OF PRODUCERS

In an economy, several types of actors participate in wealth creation. The main ones are:

a) Companies

Businesses are organizations that produce goods and services with the aim of selling them on a market to make a profit. They constitute the majority of wealth producers in France (approximately 79.6% of total production).

b) Public administrations

Public administrations include the State, local authorities, and social security. Their role is to produce services of general interest (education, health, security, justice, etc.), often provided free of charge or at a very low cost.

c) Associations and organizations of the social and solidarity economy (SSE)

Associations and organizations in the social and solidarity economy (SSE ) produce goods or services on a non-profit basis, often to meet social or collective needs (assistance to individuals, sport, culture, food aid, sports activities, etc.).

 

2. MARKET PRODUCTION AND NON-MARKET PRODUCTION

a) Market production

Market production refers to goods and services sold on a market at a price covering at least 50% of production costs.
Examples:  a car sold by a company, a meal at a restaurant, an airline ticket.

b) Non-market production

Non-market production refers to goods and services provided free of charge or at a price lower than 50% of the production cost. It is primarily carried out by public administrations and associations.
Examples include  public education, healthcare in public hospitals, and food aid provided by associations.

 

3. RESPECTIVE WEIGHT OF PRODUCERS IN FRANCE (NUMERICAL EXAMPLE)

·                     Companies (businesses) generate the vast majority of French wealth (approximately 79.6% of total production).

·                     The public administration accounts for approximately 18.6% of total production.

·                     Associations account for approximately 1.8% of total production, which is ten times less than the public administration.

 

4. KEY POINTS TO REMEMBER

·                     There is a diversity of producers: companies, public administrations, associations.

·                     Market production aims for sale on a market at a price covering costs, whereas non-market production is provided free of charge or almost free of charge.

·                     The majority of wealth produced in France is market-based, but non-market production plays an essential role in society.