Guess the term by its definition
TYPES OF ECONOMIC SYSTEMS
VOCABULARY LIST
1. types of economic systems
a. traditional
b. command
c. market
d. mixed
2. to address the problem of scarcity
3. to make economic decisions
4. to follow long-established patterns
5. to be predictable
6. to rely on social customs
7. to distribute resources
8. to regulate prices and wages
9. control over economy
10. planned economy
11. state planning
12. to consume
a. consumption
b. consumers
Societies have developed different broad economic approaches to manage their resources. Economists generally recognize four basic types of economic systems – traditional, command, market, and mixed – but they don’t completely agree on the question of which system best addresses the challenge of scarcity.
A traditional economic system is shaped by tradition. The work that people do, the goods and services they provide, how they use and exchange resources all tend to follow long-established patterns. Each new generation retains the economic position of its parents and grandparents. Traditional economies rely on the historic success of social customs. These economic systems are not very dynamic – things don’t change very much. Standards of living are static; individuals don’t enjoy much financial or occupational mobility. But economic behaviours and relationships are predictable. You know what you are supposed to do, who you trade with, and what to expect from others.
South America, Asia and Africa support some traditional economies of agricultural villages. Tradition decides what an individual does for his living, so industry, clothing and shelter are the same as in previous generations.
In a command economic system or planned economy, the government controls the economy. The state decides how to use and distribute resources. The government regulates prices and wages; it may even determine what sorts of work individuals do. Socialism is a type of command economic system. Historically, the government has assumed different degrees of control over the economy in socialist countries. In some, only major industries have been subjected to government management; in others, the government has exercised far more extensive control over the economy.
The classic example of a command economy was the communist Soviet Union. Cuba continues to hold on to its planned economy even today.
In market economies, economic decisions are made by individuals. The unfettered interaction of individuals and companies in the marketplace determines how resources are allocated and goods are distributed. Individuals choose how to invest their personal resources – what training to pursue, what jobs to take, what goods or services to produce. And individuals decide what to consume. Within a pure marketeconomy the government is entirely absent from economic affairs.
|
|
|
A mixed economic system combines elements of the market and command economy. Many economic decisions are made in the market by individuals. But the government also plays a role in the allocation and distribution of resources.
Theoretically, this system should be able to combine the best policies of both systems, but in practice the proportion government control and response to market forces varies. Some countries rely more on market regulation and others on state planning. The eternal question for mixed economies is just what the right mix between the public and private sectors of the economy should be.
Developing Skills
Match the halves from the list A (1-8) with their possible endings (the list B, a-h) to make word combinations.
| A | B |
| 1. scarce | a) economic systems |
| 2. governmental | b) economic decisions |
| 3. tribal | c) markets |
| 4. factors of | d) enterprises |
| 5. types of | e) influence |
| 6. state-owned | f) production |
| 7. to make | g) resources |
| 8. free | h) rules |
Use the English word combinations from 1.1 in the following sentences. Change the verb / noun form where necessary.
1) An economic system is the system that a society uses for allocation and distribution of ______.
2) Most economic systems use one or more of three basic methods _______: tradition, command, and markets.
3) There are many _______, ranging from the mixed private enterprise system to partially or completely controlled economies.
4) There is no economy today that is completely free of ______.
5) In the traditional economy the organization of production and distribution is frequently governed by ______ or customs.
6) A market economy (also called a free market economy or a free enterprise economy) is an economic systemin which the production and distribution ofgoodsandservicestake place through the mechanism of ______ guided by afree price system.
|
|
|
7) A planned economy (also known as command economy and centrally planned economy) is an economic systemin which thestateorgovernmentcontrols the _____ and makes all decisions about their use and about the distribution of income.
8) A mixed economy is usually defined as an economy that contains bothprivate-ownedand ______ or that combines elements of capitalismandsocialism, or a mix ofmarket economyandcommand economy.
Guess the term by its definition.
Дата добавления: 2018-02-28; просмотров: 368; Мы поможем в написании вашей работы! |
Мы поможем в написании ваших работ!