- •What is economics?
- •What does the term “need” mean?
- •What is “a demand”?
- •What does economics deal with?
- •What is the difference between goods and services?
- •What kinds of goods do you know?
- •What are capital goods?
- •What does the term “value” mean in economics?
- •What is the reason people cannot satisfy all their wants and needs?
- •What are the factors of production?
- •What does the term “land” mean?
- •What does the term “labour” mean?
- •What is a wage rate?
- •What are the factors affecting the wage rate?
- •What is the difference between physical and financial capital?
- •What is entrepreneurship?
- •What is an economic system?
- •What are the major kinds of economic systems?
- •What is a command economy?
- •What disadvantages does the command economy have?
- •What is a market economy?
- •What advantages does a market economy have?
- •What is a modern market?
- •How do economists classify markets?
- •What is pure competition?
- •What is monopolistic competition?
- •What is monopoly?
- •What is demand?
- •How do prices affect the quantities demanded?
- •What factors is demand influenced by?
- •What is supply?
- •What factors is supply determined by?
- •What role do prices play in a market economy?
- •How do sellers and buyers use prices?
- •Why do buyers and sellers have the opposite intentions and hopes?
- •What is market equilibrium?
- •What messages do price increases and decreases send to producers of goods and services?
- •What is money?
- •What forms of money are in use in the world today?
- •What does the term currency refer to?
- •What are the most important characteristics of modern money?
- •What is a progressive tax?
- •What is the main source of government revenue?
- •What is the difference between tangible and intangible property?
- •What is a tax assessor?
- •What is the main purpose of a business organization?
- •What are the major types of business organizations?
- •What is a sole proprietorship?
- •What is a partnership?
- •What type of economy does the usa have?
- •What role does international trade play in the us economy?
- •Why are transportation-related businesses considered to be an important part of the service industry?
- •What can you say about the us agriculture?
- •What place does the United Kingdom hold in the world and in Europe?
- •What type of the economy does Great Britain have?
- •What is the basic unit of currency in Britain? What did the British government decide about euro?
- •What are the main branches of Ukrainian industry?
- •Why is steel industry the most important sector of the national economy?
- •What does Ukraine import?
- •Why is Ukraine dependent on energy imports?
- •What factors make Ukraine’s agriculture one of the key economic sectors?
- •What products does Ukraine export?
- •What criteria do you think people use when they choose their future profession?
- •What has inspired you to choose this speciality?
- •What is your future speciality?
- •How long does the course of study last in your university?
- •What subjects do you consider to be the most important for you to gain your professional skills?
- •What position would you like to hold?
- •Are people who have economic training in demand in modern society?
- •Why is the economist’s education never really finished?
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What is an economic system?
The survival of any society depends on its ability to provide food, clothing and shelter for its people. Since these societies are also faced with scarcity decisions concerning What, How and for Whom to produce must be made.
All societies have something else in common. They have an economic system or an organized way of providing for the wants and needs of their people. The way in which these decisions are made will determine the type of economic system they have. An economic system is a mechanism that deals with the production, distribution and consumption of goods and services in a particular society.
There are four main types of economic systems present in the world: the traditional economy, the command economy, the market economy, and the mixed economy.
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What are the major kinds of economic systems?
There are four main types of economic systems present in the world: the traditional economy, the command economy, the market economy, and the mixed economy.
Command economy is an economic system in which major decisions concerning the allocation of resources are made by agencies of the government.
Market economy is an economic system in which national economic decisions are the result of decisions of individual buyers and sellers in the market place.
Traditional economy is an economic system that allocates scarce resources according to custom; change and growth are very slow; people do what they parents did before them; most goods are produced and consumed locally.
Mixed economy is an economic system that combines elements of public ownership of the means of production with private ownership.
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What is a command economy?
The command economy is a society where the agencies of government make all decisions concerning what will be produced, how it will be produced, and for whom it will be produced.
In a command economy, a central authority or agency draws up plans that established what will be produced and when, sets production goals, and makes rules for distribution. The individual has very little say as to how the basic economic questions are answered.
The major advantage of a command system is that it can change direction drastically in a relatively short time. The major disadvantage of the command system is that it does not always meet the wants and needs of individuals.
The major disadvantage of the command system is that it does not always meet the wants and needs of individuals.
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What disadvantages does the command economy have?
The command economy is a society where the agencies of government make all decisions concerning what will be produced, how it will be produced, and for whom it will be produced.
The major disadvantage of the command system is that it does not always meet the wants and needs of individuals.
The second disadvantage of the command economy is the lack of incentives that encourage people to work hard. In most command economies today workers with different degrees of responsibility receive similar wages. As a result, there is a tendency for some to work just hard enough to fill production quotas set by planners.
The command economy requires a large decision-making bureaucracy. As a result, most decisions cannot be made until a number of people are consulted, or a large amount of paperwork is processed. Thus, a command system does not have the flexibility to deal with day-to-day problems.