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HIGHER EDUCATION IN BELARUS.docx
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Three economic issues.

What goods and services are to be produced and in what quantities are they to be produced?

Since a society cannot have everything, it must decide which goods and services it will have now and which ones it is willing to postpone having(наличие) or giving up completely.

How are those goods and services to be produced?

In some countries these questions would be settled by private individuals.In other parts of the world, however, how to manufacture something might be a decision made by the government.

Who will get to use the goods and services produced by the economy?

Economic systems: market economy, command economy, mixed economy.

The market economy.(Рыночная экономика) A market or free enterprise economy is one in which the decisions of many individual buyers and sellers interact to determine the answers to what, how and who questions. )In a market economy the means of production are owned by private individuals.Government plays a relatively minor part in this model.

The command economy.( Командная экономика) Groups of high-level technicians, made up of engineers, economists, computer experts and industry specialists known as "planners" advise political leaders who develop and implement a plan for the entire economy.

Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies.

The role of money in economy: a brief history and function of money.

These days, money is hi-tech. We have notes and coins which are specially made. We use credit cards.

The first coins were made in Turkey around 700 BC, but paper notes didn't appear at the same time. The ancient kingdom of Lydia was in the country now known as Turkey. That's where the first coins – called states- were produced around 2,700 years ago.

Today's paper money is produced and controlled by governments through a system of banks. That's why we talk about bank-notes. The introduction of notes like these changed economic history. And not just in China. Paper money soon became popular in Europe, too. In fact the first official Europe an bank didn't appear until 1661.

Money has four functions:

1. a medium of exchange or means of payment 2. a store of value 3. a unit of account 4. a standard of deferred payment.

Money as the medium of exchange is believed to be used in one half of almost all exchange. Workers exchange labor for money, people buy or sell goods in exchange for money as well.

The unit of account is the unit in which prices are quoted and accounts are kept.

Money is a store of value, for it can be used to make purchases in future.

Finally, money serves as a standard of deferred payment or a unit of ас-count over time.

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