Контрольная работа по английскому языку (4521)

TEXT D. ECONOMIC SYSTEMS

Task:read the text and say what categories all economic systems are classified into.

People and societies organize economic life to deal with the basic problems through economic systems An economic system (can be described as the collection of institutions, laws, incentives, activities that govern economic relationships among people in a society and provide a framework for answering the basic economic questions.

Most economic systems use one or more of three basic methods to make economic decisions: tradition, command and markets. So economic systems are classified into four broad categories, according to how most economic decisions are made. These are traditional, command, market and mixed economies.

Traditional economies. People generally repeat the decisions made at an earlier time or by an earlier generation. Can just anyone be king or queen of England? Tradition answers that, question. In the US, women were strongly directed to certain “traditional” occupations for many years, such as teaching, raising children, nursing and being librarians.

Command economies. They rely almost totally on government to make economic decisions through centralized authorities. The government owns all the major productive resources. The former USSR and some other eastern bloc countries are examples of countries where government decisions were dominant.,

Market economies. Most productive resources are owned by private individuals (as households or through business they own).

Individuals make economic decisions in response to market signals and on the basis of their own preferences.

Mixed economies. The economic system used in most countries lies between the two extremes of command and market economies.

Mixed economies answer the basic economic questions partly through the market and partly through government, with some decisions based on tradition as well.

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