Page 28 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.73, # 1, 2016, pp. 4-37

The unique result of the present research work entails from the fact that the
equation reflecting the time, spent for production of the final product (Y) and for the
output of goods and services (Х), enables the ratio to be interpreted as the ‗net

input by the science and technology potential‘, identified as the difference between
the labor marginal utility, by the final product, and the labor production marginal
utility, by the output of goods and services.
That is a complete answer to the solution of the Granberg problem, obtained
by the scientifically justified co-measuring of expenditures and outcomes.
With the help of the economic models of the analyses of the macroeconomic
dynamics, where the indicators of one of the binary pairs are omitted or rather
omitted is the capital, in the form of money, or capital, in the form of goods, thus,
resolving the Granberg problem set becomes impossible. The mandatory and
sufficient condition to such a solution is the availability of the full and complete
matrix of the inter-sector balance sheets.
No doubt, not always the development of the science and technology potential
results in success and positive achievements. In the same manner, not all vector
directions of investments in the development of labor and capital and organizational
efforts lead to the entrepreneurial profit. That, if happens, may not occur in all
sectors of the economy, as well. Thus, at the level of the national economy, the
negative surplus profit occurs often times but not. Moreover, not always the
maximum profit is that have been gained from investments prove to be, as expected.
On the contrary, the expected profit may turn out to be a loss.
For the assessment of the right choice of the most effective vector directions in
investment in labor and in capital, the assessment of the input by the country‘s
science and technology potential is much needed.
If such contribution by the science and technology potential, at country level,
has earlier been largely assessed by hypotheses, the scale of production or the Solow
residual, now, an opportunity has arisen, and that is - to assess its substantive
content: by means of the actual time of labor, spent for production, by means of the
difference between capital profitability, in its form of money, and capital
productivity, in its form, of goods.
Thus, having in view, that complete labor intensity of production of the final
product is defined by multiplying direct labor intensity of the final product by the
technological matrix of full costs, which serve the ‗carrier‘ of the science and
technology progress, we may formulate the following overall economic law:
The product of full labor intensity of production and of the costs of the final
product equals the product of the direct labor

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