Simplified, abstract, but accurate enough and acceptable for practical use expressions proportions and relationships of national reproduction is reflected in diagrams and models reproduction.

Theoretical understanding of the relationships and proportions of national reproduction for the first time in the history of Economics was described by the French economist, a representative of the school of physiocrats Francois Quesnay in his work “Economic table” (1758).

The assumption, which is based on the model:

— the circulation of the total social product, what is, distributed and exchanged between different classes and forms the basis of economic society;

— productive labour is a purely agricultural work, which only creates a “clean product”1, all other activities are helpful, but barren;

the structure of the society consists of three classes: productive, the property class and barren class.

The productive class of the land, advances their work in agriculture, grows annual product and provides income to landowners.

 The ownership class exists due to the net product of land, part of which he receives from the productive class (except for annual advances and reimbursement for the use of land).

To the class of owners f. Quesnay considers the king, who receives income in the form of taxes, the clergy, a form of income which is the tithe, and landowners, receiving a rent for the earth.

The class of owners performs an important public function: it is intermediate between the productive and barren classes; participates in the implementation of the product, created these classes; while landowners are responsible for the proper attitude towards the land, in operation.

Social reproduction

Constant consumption of tangible and intangible benefits, which are the result of continuous operation, repeat. The process of social production, is taken not as a single act, and in the continuous repetition and renewal, called social reproduction.

Social production is a complex, a multi-faceted process, which, with one hand, encompasses all phases of social production – the production, distribution, exchange, consumption, and, with another, involves the reconstruction of all its constituents –the reproduction of the total social product, workforce, industrial relations, natural resources. Economics carefully studies the processes of reproduction of each component, analyzes the linkages and interdependencies between them.

Since a primary role in the reproduction of society and human beings, all reproduction processes shall be aimed at improving the conditions of its existence. With this purpose it is necessary:

1.      to ensure the reproduction of the social product as the basis of human life, it is important to achieve not only growth of the social product by volume, and improve its structure, quality;

2.      to create conditions for the solution of demographic problems and training employees, qualifications;

3.      to solve the problems of ecological safety, to ensure that the reproduction of natural resources, when they are not depleted, and are restored to previous or better condition, etc.

A special place among the components of social reproduction is the reproduction of the relations of production, the condition of which directly affects all other elements of play: and reproduction of the social product, and workforce, and natural resources. The process of reproduction of production relations in the modern Ukrainian economy is characterized by the development of various forms of ownership of the means of production and its results, the deepening of commodity-money relations, the introduction of economic methods of management, based on the knowledge and use of economic laws, what, in conjunction with other measures, ensures the establishment of market relations in our country.

Reproduction is of two types – simple and extended. Simple reproduction is the production process, which is restored in the same volume. It is this process of production, which is restored in the same volume. This takes place under these conditions, when the surplus product is used for personal consumption of the owner of the means of production, that is, there is a restoration used to produce resources in the same scale. In the enlarged reproduced there is a quantitative and often qualitative growth of end results of production. This reproduction is possible provided, in which the surplus product is not only used for personal, production and consumption, that is, when a portion of the surplus product is used for the accumulation Sometimes occurs in the economy narrowed reproduction. This can occur due to a natural disaster, natural disasters, economic crises, can also be the result of subjective policy of the state, business entities.

The result of social production is the social product, the sum total of economic goods, established in the company for a certain period of time.

Economic goods are a means to satisfy needs, that is available in limited quantities, in contrast to the non-economic benefits (for example, the air). They consist of things and services and are divided into long-term, that suggest reuse (car, book, etc.), and short-lived, disappearing into the single process of consumption (bread, drinks, matches, etc.). Among the benefits allot interchangeable (substitutes) and complementary (complementary). To substitutes are not only many consumer goods and production resources, and transport services (train — plane — car), in the realm of leisure (cinema — theatre — circus) etc. Examples of complementary goods are table and chair, car and petrol, pen and paper. Economic benefits can also be divided into present and future, direct (consumer) and indirect (production).

Needs are internal motives, encourage economic activity. They are divided into primary, meeting vital human needs (food, clothes, etc.), and secondary, which include all other needs. Primary needs cannot be substituted for one another, but the secondary can. The distribution is historically contingent.

Social product is characterized not only with natural-material side, but is the valuation.

Total (gross) public product includes material costs and net product. Material costs embody former predmetno labour or costs of means of production to create economic benefits.

The net product of society is the total social product, with the exception material costs. It is created by the living labour of workers in a given year.

The net product is divided into necessary and surplus.

Need a product — part pure product, what is required for normal reproduction of the labour force, that is, for maintaining its efficiency, including training a new generation of workers, replacing those, who have lost the ability to work. Need a product covers the cost of food, clothing, housing, the satisfaction of prevailing cultural and social needs, for environmental needs, etc.

Additional product - part of the pure product, created floor desired product.