What are ownership and property?

Q: What is ownership?

Something we own is a thing that belongs to someone. When we say "this sewing machine is owned by Sabohat opa", we mean that the machine belongs to her. The person a thing belongs to is called its owner. The owner can use the thing herself, give it to someone else or sell it.

Q: What is property?

Property is all the things that belong to one person or one family, taken together. One sewing machine is something she owns. The house, the sewing machines, the fabric and the money on her card taken together are Sabohat opa's property.

Q: Does a thing I use become mine?

No. Using a thing and owning it are different things. Sabohat opa uses the iron every day, but she cannot sell it: its owner is the neighbour. The rented stall is the same. Sabohat opa trades there and pays for it, but the stall does not become hers.

Q: How much is the property worth?

For example (the figures are hypothetical), Sabohat opa wrote her property down in a notebook: Neither the iron nor the stall is on the list. They do not belong to Sabohat opa, so they are not part of her property. Note: money is property too. We also write it on the list of "what belongs to me".

Q: What kinds of property are there?

In everyday life property is often split into two groups: immovable property (real estate): a thing firmly attached to the land that cannot be moved from its place without destroying it: a plot of land, a house, a building. On Sabohat opa's list this is the house; movable property: a thing that can be carried or moved to another place. On Sabohat opa's list everything except the house belongs to this group: both machines, the fabric and the money. One more thing: many things wear out over time. A sewing machine that has worked for five years cannot be sold at the price of a new one. So the value of property does not stay the same every year.

Sabohat opa sews dresses at home. In her room there is a sewing machine and a pile of fabric, and in the corner stands a big iron she has borrowed from a neighbour for a while. One day her little daughter asked: "Mum, is all of this ours?" The question is simple, but the answer needs new words.

What is ownership?

Something we own is a thing that belongs to someone. When we say "this sewing machine is owned by Sabohat opa", we mean that the machine belongs to her.

The person a thing belongs to is called its owner. The owner can use the thing herself, give it to someone else or sell it.

What is property?

Property is all the things that belong to one person or one family, taken together. One sewing machine is something she owns. The house, the sewing machines, the fabric and the money on her card taken together are Sabohat opa's property.

Does a thing I use become mine?

No. Using a thing and owning it are different things.

Thing	Who uses it	Whose it is
sewing machine	Sabohat opa	Sabohat opa's own
iron borrowed from the neighbour	Sabohat opa	the neighbour's
book borrowed from the library	her daughter	the library's
stall rented at the market	Sabohat opa (on Saturdays)	the stall owner's

Sabohat opa uses the iron every day, but she cannot sell it: its owner is the neighbour. The rented stall is the same. Sabohat opa trades there and pays for it, but the stall does not become hers.

How much is the property worth?

For example (the figures are hypothetical), Sabohat opa wrote her property down in a notebook:

Thing	Approximate value, soum
house	400 000 000
sewing machine	3 000 000
second machine that finishes fabric edges (overlocker)	2 500 000
stock of fabric	1 500 000
money on the card	2 000 000
Total	409 000 000

Neither the iron nor the stall is on the list. They do not belong to Sabohat opa, so they are not part of her property.

Note: money is property too. We also write it on the list of "what belongs to me".

What kinds of property are there?

In everyday life property is often split into two groups:

immovable property (real estate): a thing firmly attached to the land that cannot be moved from its place without destroying it: a plot of land, a house, a building. On Sabohat opa's list this is the house;
movable property: a thing that can be carried or moved to another place. On Sabohat opa's list everything except the house belongs to this group: both machines, the fabric and the money.

One more thing: many things wear out over time. A sewing machine that has worked for five years cannot be sold at the price of a new one. So the value of property does not stay the same every year.

A note on accounting

In accounting, things that a shop or workshop controls and that are expected to bring it benefit in the future are called assets. Those of them used for a long time, such as a machine or a building, are called fixed assets. We will get to know these words in later lessons; for now you can read their pages in our glossary.

In the next lesson

In the eighth Basics lesson we will talk about money given to others for a while and taken from others: debt, lending and borrowing.

Test yourself

5 questions on this topic: pick an option or reveal the answer.

Farhod put his money in a deposit for one year at a nominal return of 20%. That year the price level rose by 10%. By the exact formula, approximately what is his real return in percent?

In a city market, the demand function for melons is Qd = 100 − 2P and the supply function is Qs = 20 + 2P (P is the price in thousand soums; Q is in units). What are the equilibrium price and equilibrium quantity?

In a hypothetical city the bread market is held by three bakeries with market shares of 50%, 30% and 20%. What is the Herfindahl–Hirschman index (the sum of the squares of the shares in percent)?

In the melon market from the previous question (Qd = 100 − 2P, Qs = 20 + 2P), what happens if the price is held fixed at 15 thousand soums?

In a hypothetical country real GDP grew by 5% in a year while the population grew by 2%. By what percent, calculated exactly, did real GDP per capita grow (to one decimal place)?

Answered: 0 / 50 of 5 correct

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