Final questionnaire

_____________________________________________________________________________

1. What is the central problem of economics?

2. What questions must every society provide answers to?

3. What is traditional economy based on?

4. What does planned economy rely upon to provide the answers to the three major

economic questions?

Traditional economy

1. In what way are the answers to most What, How and Who questions decided?

2. Where are usually traditional economy systems found?

3. Where do most of the people in traditional economy live in?

4. What are the main activities of people living in traditional economy?

5. In what way are the goods and services produced in traditional economy?

6. How do most individuals live in traditional economy?

7. What happens to people when the harvest is poor?

8. When does a surplus exist?

9. How is a surplus distributed?

10. Where may the most part of the product go?

11. How are the remains distributed?

Command economy

1. Why is planned economy sometimes called command economy?

2. Who owns factories, land and natural resources in command economy?

3. Who takes all the decisions in planned economy?

4. Is there any private property in command economy?

5. Who allocates raw materials, workers and other factors of production in command ec.?

6. Who decided in the former Soviet Union what was to be produced and in what quantities?

7. Is there a society which is a completely command economy?

8. Who decides in command economy what the nation is to produce?

9. How many years ahead does the state plan in command economy?

10. Is planned economy easy to operate?

11. Should there be work for everybody?

12. Does the state use its control over the economy?

13. What can the state ensure to its population?

14. Are the needs of population met?

15. Does the state produce enough luxury goods for the wealthy?

16. Why is there no incentive to work hard?

17. Who are the profits paid to?

18. Can citizens start their own business?

19. Does the government produce goods which people want to buy?

20. What is the major problem faced by command economy?

21. Does command economy respond fast to changes in people’s tastes and fashion?

22. Can the planners predict changes in demand?

23. What leads to delays and queues for some products?

Free market and mixed economies

1. Does the government play any role in the management of the economy?

2. What is the free market system based on?

3. Who owns the means of production?

4. Is there any government control over land, capital and labour?

5. Why does business produce goods?

6. According to what are the workers paid wages?

7. What is the basic reason for so many different styles, fabrics and brands of clothing for

consumers?

8. What is the market economy directed by?

9. Who decides what is to be produced in market economy?

10. Are consumes free to choose what they want to buy?

11. Why are the workers encouraged to work hard?

12. What keeps prices low?

13. Does government provide health and education available for everybody?

14. What happens in the economy if government doesn’t control it?

15. What might business be encouraged to create in order to increase prices?

16. Is there a country in the world with completely free market economy?

17. What has system the mixture of market forces and government participation led to?

18. What is public sector in mixed economy made up of?

19. Where does the money for state health and education services come from?

20. What sectors does the mixed economy consist of?

21. What is a private sector of missed economy made up of?

22. What important industries and organizations does the government control in many

countries?

UNIT 7 TYPES OF BUSINESS ACTIVITY

Text 1