What Is an Economic Utility?

Economic utility refers to the social labor savings obtained through the external exchange of goods and labor, that is, to obtain as many operating results as possible with the least labor costs, or to obtain more operating results with the same labor costs.

Economic utility

Economic utility refers to the social labor savings obtained through the external exchange of goods and labor, that is, to obtain as many operating results as possible with the least labor costs, or to obtain more operating results with the same labor costs.

Economic utility Economic utility is the comparison between capital occupation, cost expenditure and useful production results. The so-called good economic utility means less capital occupation, less cost and more useful results.

Improving economic utility is of great significance

First, improving economic efficiency means producing more products and services, which is conducive to satisfying the people's growing material and cultural needs.

Second, improving economic efficiency means increasing corporate profits and national income, and increasing capital accumulation, which is conducive to national economic and social development.

Third, improving economic efficiency means improving investment and resource utilization benefits, which is conducive to alleviating the contradiction between the large population of our country and the relative lack of resources and shortage of funds, and increasing the rate of economic growth.

Correctly handle the relationship between economic utility and the rate of economic growth.

Economic utility There is both a unified and an inconsistent aspect of economic utility and the rate of economic growth.

First, speed and efficiency are unified. The rate of economic growth that is in line with objective reality signifies good economic benefits, and good economic benefits must manifest themselves in a certain rate of economic growth.

Second, there are inconsistencies in speed and efficiency. The economic growth rate is fast, and the economic benefits are not necessarily good.

Because the economic growth rate is a dynamic comparison of the same indicator (output or output value), and the economic benefit is the comparison of capital occupation, cost consumption and useful production results. The rapid economic growth may be accompanied by large capital occupation, large consumption, and product backlog, resulting in poor economic returns. To properly handle the relationship between the two, we must adhere to: on the premise of improving economic efficiency, strive for the fastest economic growth rate. Economic benefits can be divided into microeconomic benefits and macroeconomic benefits. The premise of improving economic benefits: products meet market demand

The difference between economic utility and economic efficiency

Economic utility is considered from the perspective of technical activities in production and construction, and penetrates the economy into the technologies in production and construction activities.

Economic benefits are not only examined from the perspective of production and construction, but also infiltrate economic analysis into the economic management system. So the significance of studying economic benefits is more extensive.