Mixed economy

Command and market economies both have significant faults. Partly because of this, an intermediate system has developed, known as mixed economies.

A mixed economy contains elements of both market and planned economies. At one extreme we have a command economy, which does not allow individuals to make economic decisions, at the other extreme we have a free market, where individuals exercise considerable economic freedom of choice without any government restrictions. Between these two extremes lies a mixed economy. In mixed economies some resources are controlled by the government whilst others are used in response to the demands of consumers.

Technically, all the economies of the world are mixed. Some countries are nearer to command economies, while others are closer to free market economies.

The aim of mixed economies is to avoid these disadvantages of both systems while enjoying the benefits that they both offer. So, in a mixed economy the government and the private sector interact in solving economic problems. The state controls the share of the output through taxation and transfer payments and intervenes to supply essential items such as health, education and defence, while private firms produce cars, furniture, electrical items and similar, less essential products.

The UK is a country with mixed economy. Some services are provided by the state (for example, health care and defence) whilst a range of privately owned businesses offer other goods and services.

Active vocabulary

significant [sIg'nIfIkqnt] a значимый, важный

fault [fO:lt] n недостаток

restriction [rI'strIkS(q)n] n ограничение

extreme [Ik'strI:m] n крайность

whilst [waIlst] тогда как

benefit ['benIfIt] n преимущество

share [Seq] n доля, часть

output ['aVtpVt] n продукция, выпуск, объем производства

to avoid [q'vOId] v избегать

to interact ["Intq'r1kt] v взаимодействовать

Exercises

1. Read the words and say what part of speech they belong to. Translate the words.

Technically, significant, intermediate, electrical, restriction, considerable, closer, sector, taxation, essential, furniture, defence.

2. Add the suffix –ly to the adjectives given below. Translate the derived words.

Private, economical, near, part, extreme, close, essential, similar, considerable.

3. Match the pairs of synonyms.

Payment, supply, limitation, response, close, defrayal, near, provide, restriction, answer.

4. Give Russian equivalents to the following:

1. an intermediate system has developed;

2. to supply essential items;

3. the government controls a share of the output.

5. Answer the questions:

1.Do really pure examples of planned and market economies exist in the world?

2.What is a mixed economy? What is its aim?

3.What type of economy has the UK?

4.What type of economy is in Russia now?

6. Find in the text English equivalents for the following:

1. избегать недостатков

2. частный сектор

3. налогообложение

4. централизованно принимать экономические решения

5. на одном полюсе- на другом ...

6. без ограничений

7. взаимодействовать в решении проблем

8. пользоваться благами

9. правительство, возглавляемое

7. Translate into English.

В реальной действительности экономические системы находятся где-то между чисто рыночной и плановой экономикой. Смешанная экономика – это система, при которой частная собственность и рынок, а также правительство и общественные институты, участвующие в обеспечение экономичной стабильности , взаимодействуют в решение экономических проблем.

LESSON 4

MAIN ECONOMICS LAWS

TEXT A. DEMAND AND SUPPLY

TEXT B. THE THEORY OF DEMAND

TEXT C. THE THEORY OF SUPPLY

GRAMMAR REVISION: THE PASSIVE VOICE,

PARTICIPLE I, PARTICIPLE II

TEXT A.