Types of economic systems
Lead-in
Answer the following questions before you read the text below. If you can’t answer them now, try to answer them after reading the text.
1. What types of economic systems do you know? What is the difference between them?
2. What factors may affect the type of economy a country holds? When would it be beneficial for a country to change its economy?
Key Vocabulary
1. Study the following list of vocabulary.
| 1. produce v | производить |
| 2. market n | рынок |
| 3. determine v | устанавливать, определять |
| 4. price n | цена |
| 5. trade n | торговля |
| 6. exchange n | обмен |
| 7. government n | правительство |
| 8. society n | общество |
| 9. alleviate v | уменьшать, ослаблять |
| 10. advancement n | развитие |
| 11. decide v | решать |
| 12. free enterprise | свободное предпринимательство |
| 14. private adj | частный |
| 15. wages n | зарплата |
| 16. regulate v | регулировать |
| 17. provide v | предоставить, обеспечить наличие |
| 18. run v | управлять |
| 19. tax n | налог |
2. Mind the following forms of the irregular verb “to sell”:
sell (sold, sold) - продавать
Pre-reading Activities
1. Match synonyms from the two columns. Learn these pairs of words.
| 1. market | a) to manage |
| 2. to regulate | b) to manufacture |
| 3. to produce | c) to control |
| 4. to run | d) marketplace |
2. Consult a dictionary and complete the chart. Some boxes will not be filled.
| NOUN | VERB | ADJECTIVE |
| production | to produce | productive |
| to price | ||
| governmental | ||
| decision | ||
| to regulate |
Reading
Read the text focusing on the main ideas.
There are three main questions any economy has to answer, whether it is a highly developed economy, the poorest of countries, or a small group of people.
· What is to be produced?
· How will it be produced?
· Who will get what is produced?
To answer these questions, different economic systems have been developed.
Traditional economies are dictated by tradition, customs, and religion. One of the features of this type of economy is very little economic growth. In traditional societies people use methods of production and distribution which were invented in the past and have become accepted ways of doing things.
A market economy is an economy in which the prices of goods and services are determined in a free price system. Trading and exchange of goods, services and information takes place in a free market. A market economy may, therefore, also be known as a free market economy. In the real world, market economies do not exist in pure form, as societies and governments regulate them to different degrees rather than allow self-regulation.
The opposite of a market economy is a planned or command economy, where the government decides what to produce, in what quantity, and to be sold at what price. A planned economy alleviates the use of private enterprises and allows the government to determine everything from distribution to pricing. Planned economies can provide stability, but they can also limit the growth and advancement of the country if the government does not allocate resources to the innovative enterprises.
A mixed economy is the one in which there exists a mixture of free enterprise and government control. In some areas of a mixed economy, the government may even have a monopoly. In a typical mixed economy, the government may run such things as the postal service, rail lines, libraries, and in some cases, the health care service. Even in industries which are not owned or run by the government, its influence is very noticeable in the form of taxes and regulations like wage controls.
Comprehension Check
1. Are these statements True or False? Use the following expressions:
I (don’t) agree that… (я (не) согласен, что…)
I think that… (я думаю, что…)
1. Any highly developed country has to answer three main questions.
2. Traditional economies are dictated by very little economic growth.
3. A free market economy is an economy in which the prices of goods and services are determined in a free price system.
4. A planned or command economy is the opposite of a mixed economy.
5. A planned economy is the one that can limit the growth and advancement of the country.
6. A mixed economy is a mixture of market and planned economies.
7. In a mixed economy the influence of the government is considerable.
2. Complete the sentences.
1. Three main questions any economy has to answer are: … .
2. Different economic systems have developed to … .
3. One of the features of traditional economies is … .
4. In a market economy … takes place in a free market.
5. In a command economy, the government decides … .
6. Planned economies can provide stability, but … .
7. … the government may have a monopoly.
3. Check how well you know some characteristic features of different types of economic systems. Are these statements about market, command, or traditional economies?
1. You can decide what job you would like to do in this economic system.
2. Making a profit is highly stressed in this economic system.
3. Making money is not stressed in this economic system.
4. You will work at the same job that your ancestors worked at in this economic system.
5. You produce what your ancestors produced in this economic system.
6. The government decides what you will produce in this economic system.
7. You decide what you will produce in this economic system.
8. You work in this economic system to make as much money as you want.
9. Competition, material rewards, self-gain, and freedom are the basic values for this economic system.
10. Custom, traditional ways and beliefs are the basic values of this economic system.
Vocabulary Focus
1. Complete the sentences, choosing the right word.
1. It’s … property!
a) market b) private c) free
2. He … the car to me for $1000.
a) produced b) determined c) sold
3. This shop … my favorite brand.
a) determines b) sells c) regulates
4. Our manager … not to leave.
a) has provided b) has determined c) has decided
5. The Prime Minister has formed a new … .
a) market b) government c) society
6. Most shops allow the purchaser … goods.
a) to alleviate b) to sell c) to exchange
2. Look through the text and find English equivalents.
устанавливать цены
торговля и обмен товарами и услугами
саморегулирование
решать, в каком количестве производить
обеспечить стабильность
правительственный контроль
находиться во владении и управляться государством
3. Match the words from Key Vocabulary with their definitions.
a) an organized group of people associated together for religious, cultural, scientific, political, patriotic, or other purposes
b) a sum of money demanded by a government for its support or for specific facilities or services
c) the sum or amount of money or its equivalent for which anything is bought, sold, or offered for sale
d) money that is paid or received for work or services, as by the hour, day, or week
e) the act or process of buying, selling, or exchanging commodities within a country or between countries
Talking Points
1. Think about features, advantages and disadvantages of different types of economic systems. Discuss these issues in pairs or small groups first, and then make a report.
| Traditional economies | Market economies | Planned economies | Mixed economies | |
| Features | ||||
| Advantages | ||||
| Disadvantages |
2. List countries which have these economic systems.
Summary Points
1. Look through the text about different types of economic systems once more and identify its main idea.
2. Draw up an outline of the text.
3. Can this text be divided into some parts? How many and what are they? Give a one-sentence summary of each point of your plan.
Use the following vocabulary:
| This text can be divided into … parts. | Текст можно разделить на … частей. |
| The text consists of … parts. | Текст состоит из … частей. |
| The first (second, third, etc.) part deals with … | В первой (второй и т.д.) части говорится о… |
| In the first (second, third, etc.) part the author describes (discusses, studies, offers, states, analyzes) … | В первой (второй, третьей) части автор описывает (обсуждает, изучает, предлагает, утверждает, анализирует) … |
| Finally, the author shows … | В заключение, автор показывает … |
UNIT 4
SCARCITY AND CHOICE
Lead-in
Working in a group, try to identify the term ‘scarcity’ and answer the following questions.
1. Why does scarcity exist?
2. How do individuals, communities and countries attempt to solve the problem of scarcity?
Key Vocabulary
Make sure you know the following words and word-combinations.
| 1. satisfy v | удовлетворять |
| 2. face v | сталкиваться с |
| 3. land n | земля, земельные угодья |
| 4. labour n | труд, рабочая сила |
| 5. capital n | капитал |
| 6 insufficient adj | недостаточный |
| 7. exist v | существовать |
| 8. economic activity | экономическая деятельность |
| 9. benefit n | польза, прибыль |
| 10. forgo v | отказываться, воздерживаться от чего-либо |
| 11. opportunity costs | альтернативные издержки; издержки неиспользованных возможностей |
| 12. evaluate v | оценивать |
| 13. non-monetary adj | неденежный |