- •К.М.Байша
- •Англійська мова
- •Для студентів економічних спеціальностей внз
- •Херсон-2013
- •Байша к.М. Англійська мова для студентів економічних спеціальностей внз: навчально-методичний посібник. – Херсон, 2013. – 110с.
- •Context my family
- •Hobbies
- •The bologna declaration of june 1999
- •International student’s day
- •London. Places of interest
- •English traditions
- •English curiosities
- •The united kingdom
- •London fogs
- •The usa
- •Political system of the usa
- •The school system
- •The us higher education
- •Washington, d. C.
- •American festivals
- •Public economic
- •Unit 1. The economic problem
- •The Individual and Society
- •Scarcity and Choice
- •Three Basic Problems
- •Unit 2. Economic system
- •Market economies
- •Command Economies
- •Mixed Economies
- •Unit 3. The factors of production
- •Capital
- •The Entrepreneur
- •Unit 4. The division of labour
- •The Division of Labour
- •The Disadvantages of the Division of Labour
- •Unit 5. Types of business organisation
- •The Partnership
- •The Joint Stock Company
- •Unit 6. Prices and markets
- •Price and Value
- •Unit 7. Money
- •Regulation and token money
- •Unit 8. Inflation
- •Types of Inflation
- •The Effects of Inflation
- •Unit 9. Economic policy
- •Economic Policy
- •Policies with Floating Exchange Rates
- •Unit 10. Economic growth
- •Economic Growth
- •Economic Policy and Growth
- •For professional reading skills the international trade
- •The new marketplace
- •Personal banking
- •The history of banking
- •Functions, properties and kinds of money
- •Branding
- •Factors of productions
- •What is economics
- •An inexact science
- •Adam smith and his invisible hand of capitalism
- •Karl marx: it's exploitation!
- •Keynes: the government should help out the economy
- •Market economies
Command Economies
Another method of solving the economic problems is also one which has a long history. This is the method of economic command where the solutions to the economic problems are worked out by some all-powerful authority which imposes its solutions on the population.
It is more usual to refer to the present-day command economies as planned economies although, strictly speaking, leaving the economy to run itself (i.e. laissez-faire) may be described as a kind of economic 'plan'. Nevertheless, in line with general usage, we shall use the term 'planned economy' to refer to an economy which is subject to a high degree of direct centralized control.
It is important to note that no modern economy is without some elements of command. In all developed and most underdeveloped countries, even those described as capitalist, there is a large measure of government control. In the UK, for example, the government is the biggest business in the country.
Ownership and Control of Economic Resources
Although economic planning may be employed in societies where property is privately owned, it seems realistic to assume that a fully planned economy means one in which all the important means of production are publicly owned. In socialist societies all land, housing, factories, power stations, transport systems and so on are usually owned by the state.
The logic of public ownership in these societies is based upon the desire for a more equitable distribution of income and wealth. Private ownership of property leads to great inequalities of wealth, and this, in turn means that the wealthier groups are able to exercise great economic power. Such a situation implies great inequalities of opportunity. The better-off members of society are able to use their greater wealth to obtain superior education, better health services, more effective training, and better business opportunities.
Although land and capital may be owned collective1lу rather than individually, it does not follow that control of these resources must be centralized. In some planned economics the state keeps a tight control on the use of economic resources and all important economic decisions are taken by powerful central committees. This is described as bureaucratic organization, because the running of such an economy will require large numbers of planners and administrators to draw up and operate the national plan.
Alternatively, although the ultimate ownership of resources may be vested in the state, the control and day-today running of the farms, factories and shops may be handed over to cooperative groups of workers and consumers. These organizations are usually described as 'workers' collectives, as opposed to the state enterprises which are controlled directly by the government.
One important feature of a society in which property is publicly owned is that there will be no form of personal income which is derived from the ownership of property. In the capitalist system incomes take the form of wages, interest, rent, and profits — the latter three of which arise from the ownership of various types of property.
17. Read and translate text D.
Text D