Unit 5 Market, planned and mixed economies

Before reading the text study the vocabulary:

Vocabulary

to step out – выступать из

to be in contact – контактировать

to fix prices – устанавливать цены

means of production – средства производства

to own – владеть

severely – строго

to restrict – ограничивать, запрещать

to punish – наказывать

essential – основной

to intend – намереваться

to ensure – обеспечивать, гарантировать

central authorities – центральная власть

centralized economy – централизованная экономика

vast majority – подавляющее большинство

wide range – широкий круг

defence – оборона, защита

Market economies

There are free-enterprise economies, where the large majority of goods are made, and the large majority of services are provided by the free enterprise of individuals, who step out of the crowd and start to organize production. In market economies people do not wait for the government to do things, they get on and do them themselves. Whatever they make or grow or cut down (in the forests for example) they bring to market, so that those who want these items can come to the marketplace and buy them. A market is a place where buyers and sellers arc in contact with one another to fix prices.

Planned economies

Planned economies are economies where the means of production, distribution and exchange are socially owned, and centrally planned. Free enterprise is severely restricted, and even punished. The essential point about central planning is that it was intended to be a way of ensuring that everyone got fair shares of the goods that were produced. The unfortunate effect has been that too few goods have been produced, because planners can rarely get things right.

Mixed economies

Actually no economy can be completely free without any central authority, and no centralized economy can control every spark of free enterprise. There must be some things, like the armed forces and the forces of law and order which are centrally run. In fact, mixed economies may be regarded as a middle way. They have the vast majority of goods and services being provided by free enterprise, but a wide range of other goods and services are socially provided. Thus defenсe, law and order, education, health and social security services are provided by the state and a number of major industries, particularly transport, energy production, atomic power, water supply, etc., are nationalized and socially owned.

Exercises

1. Find English equivalents to the following words and phrases of the text:

Строго, намереваться, центральная власть, ограничивать, круг, оборона, устанавливать цены, владеть, средства производства.

2. Find Russian translations of the following words and phrases of text:

To ensure, to be in contact, to fix prices, to own, essential, severely, means of production, to intend, vast majority, defence.

3. True or false statements. After reading the text agree or disagree with the following statements:

1. In market economies goods and services are provided by the state.

2. A market is a place where buyers and sellers fix prices.

3. In planned economies means of production are owned by individuals.

4. Free enterprise is restricted in planned economies.

5. In planned economics all goods and services are provided by individuals.

4. Fill in the gaps in the text with the words given below:

Fix prices, central authorities, planned economics, step out, means of production, mixed economies.

1. Individuals ... of the crowd and start to organize production.

2. ... are economies where the ... are socially owned.

3. Buyers and sellers ... on the market.

4. No economy can be completely free without any....

5. ... may be regarded as a middle way.

5. Translate the text from Russian into English using the Vocabulary of the text:

В рыночной экономике отдельные личности выступают из толпы и начинают организовывать производство. На рынке продавцы и покупатели вступают в контакт, чтобы устанавливать цены. В планируемой экономике свободное предпринимательство строго запрещено. В смешанной экономике подавляющее большинство товаров и услуг осуществляются свободными предпринимателями, но некоторые осуществляются государством.

UNIT 6

PLANNED ECONOMIES

Before reading the text study the vocabulary: