Author: Igor V. Ivliev, Cand. Sc. (Ec.), Assistant-Prof. of Political Economy Dept.

Abstract: The article looks at the possibilities to measure the level (quality) of economy modernization. The author points out the inefficiency of existing practice to assess changes on the basis of the criterion “growth” connected with the methodology for added value calculation that supposes that concepts of value and price are to be used simultaneously. The conclusion is made that the measurement of the economic diversity requires comparison of the contribution of every sector (a set of institutional entities with certain peculiarities of economic behaviour) on the basis of the new synthetic indicators.

Key words: added value; value; price; the theory of supply and demand; the theory of costs; marginal utility theory; the labor theory of value; TSP and GDP structure; household incomes; reproduction rates.