1.Say whether the following characteristics of economic systems are typical for a)traditional economic systems, b) command economic systems, c)market economic systems.

1. Not a national economy.

2. Not government itself holds a monopoly.

3. Resources are distributed evenly, creating less socio-economic inequality.

4. “Invisible hand” is responsible for the production of goods and services, and their pricing.

5. Prices and supply of goods are controlled by the government.

6. Consumers enjoy the privilege of choosing among competitive products and services.

7. No opportunities for personal profit motives for any producer or consumer.

8. Individuals do not benefit from innovation or product development.

2.Answer the following questions on the contents of the text.

1. What is the definition of an economic system?

1. What are the three invisible forces which make economic systems work?

2. What are the three basic economic questions that every nation must answer?

3. What are the three basic approaches to economic decisions based on? 5.Where can traditional economies be found?

6.Can a traditional economy bring high living standards to its people?

7.Are there many command economies left in the world nowadays?

8.How are economic decisions made in command economies?

9.What is the most essential element of a market economy?

10.What is the main drive and purpose of goods and services producers in a market economy?

11.What is the role of the government in a market economy?

3.Read the text again and say if the following statements are true or false according to the information in the text.

1. An economic system is interrelated with a political system.

2. Every nation can produce enough goods and services to satisfy everybody’s wants.

3. Every economic system answers the basic questions: what, how and for whom.

4. An economic system works via the interaction of three invisible forces: the invisible hand (economic forces), invisible foot (political forces), and invisible handshake (social forces).

5. In command economies the basic economic questions are answered by government officials.

6. Market economies are often called planned economies.

7. All major economies in the world are market economies.

4.Complete the following table.

Type of economy	Advantages	Disadvantages
traditional
command
market
mix

DEVELOPING VOCABULARY

1. Match the words listed below with the definitions that follow.

Econometrics, well-being, wealth, production, economy, seller , economist, finance, value, distribution , exchange, money, investment , banking, buyer, enterprise, income, price

1. The business engaged in by a bank.

2. A person who buys; purchaser; customer.

3. The division of the total income of a community among its members.

4. The application of mathematical and statistical techniques to economic problems and theories.

5. A specialist in economics.

6. The complex of human activities concerned with the production, distribution, and consumption of goods and services. 7. A business unit; a company or a firm.

8. The system by which commercial debts between parties in different places are settled by commercial documents, esp. bills of exchange, instead of by direct payment of money.

9. The system of money, credit, etc., esp. with respect to government revenues and expenditures.

10. The amount of monetary or other returns, either earned or unearned, accruing over a given period of time. 11. The act of investing money.

12. The official currency, in the form of bank-notes, 'coins, etc., issued by a government or other author­ity.

13. The cost at which anything is obtained.

14. The creation or manufacture for sale of goods and services with exchange value.

15. A person who sells.

16. The worth attached by someone to something.

17. All goods and services with monetary, exchangeable, or productive value.

18. The condition of being contented healthy or successful; welfare.