Market and Command Economies

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Педагогика и дидактика

In a command economy, a central planning office makes decisions on what, how, and for whom to produce. Economy cannot rely entirely on command, but there was extensive planning in many Soviet bloc countries.



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Text 1.  Market and Command Economies

Economics is a science that analyses what, how, and for whom society produces. The central economic problem is to reconcile the conflict between people's unlimited demands with society's ability to produce goods and services.

In industrial Western countries markets are to allocate resources. The market is the process by which production and consumption are coordinated through prices.

In a command economy, a central planning office makes decisions on what, how, and for whom to produce. Economy cannot rely entirely on command, but there was extensive planning in many Soviet bloc countries.

A free market economy has no government intervention. Resources are allocated entirely through markets.

Modern economies in the West are mixed and rely mainly on the market but with a large dose of government intervention. The optimal level of government intervention remains a problem which is of interest to economists.

The degree of government restrictions differs greatly between countries that have command economies and countries that have free market economies. In the former, resources are allocated by central government planning. In the latter, there is not any government regulation of the consumption, production, and exchange of goods. Between the two main types lies the mixed economy where market and government are both of importance.

Аудиторная работа № 1

1. Переведите следующие предложения, содержащие оборот   to be + of+ существительное.

Economists' recommendations may be of high value to governments but governments do not always rely on them.

The study of economics is of great use even to those students who have no wish to become professional economists.

Basic problems of economics are of great importance to every economist, while specific problems of farm economics are mostly of interest to economists who study agriculture.

Since economists cannot make experiments, collecting and using information from a large number of past years is of practical importance for analysing and solving problems of today.

Professional marketing services are of great value to producers and sellers.

Economic statistics are of interest to economic policy decision-makers.

2. Перепишите предложения, заменяя формы действительного залога на формы страдательного. Обращайте внимание на то, в каком времени употреблен глагол.


In a command economy the government makes all decisions about production and consumption.

- In a command economy all decisions about production and consumption are made by the government.

The government made all resources allocation decisions in the Soviet Union.

Prices regulate consumption and production in a market economy.

In a mixed economy the government does not entirely regulate exchange of goods.

The economists are monitoring the prices and levels of consumption of different goods and services.

Economics analyses society's production and consumption levels.

The company has made a decision to start producing new machines.

Economists had studied and discussed the ideas of Karl Marx for over sixty years before Russians put them into life.

If we allocate enough resources to agriculture, we will achieve a high level of production.

3. а) Ответьте на следующие вопросы к тексту Market and Command Economies.

What is the central economic problem of a society?

What is the market?

What is the function of the market in an industrial country?

How are decisions made in a command economy?

In what way does a free market economy differ from a command economy?

6. To which type do most economies in the West belong?
b) Подумайте и скажите:

To which type does the economy of present-day Russia belong?

Is the level of government regulation growing or falling in Russia's economy now?

4. Выберите подходящее по смыслу слово из предлагаемых в скобках вариантов.

1. (A command economy / a free market economy) is a society where the government makes all decisions about production and consumption.

(Economics/ Economy) studies how markets and prices allow society to solve the problems of what, how, and for whom to produce.

Every economist sees (the restriction /the importance) of the question of what, how, and for whom to produce.

Nations have different (consumption / levels) of farm production.

When (the price / the importance) of some goods grows, people will try to use less of them but producers will want to produce more of them.

In (mixed/both) countries, Canada and the USA, structural changes in the agricultural sector of economy have become of interest to economists and general public in the 80s and 90s of the 20th century.

After years of competition between command and market economies, (the former / the latter) gave way in many countries of the world to (the former/ the latter).

5. а) Прочитайте следующие однокоренные слова, обращая внимание на ударение:

Ударение на втором слоге        Ударение на третьем слоге

economy economics

economist economic

to economize economical

б) Измените следующие фразы, используя прилагательные economic или economical:

A practical woman.

Problems of economics.

A crisis in the field of economy.

To be careful in the spending of money.

Reforms in the field of economy.

A law (закон) regulating the sphere of economics.

A plan of the industrial development of the country.

A small car that doesn't use too much fuel.

Geography that studies the location (размещение) of industries, markets, transports.


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