Economic systems

In primitive economies, the individual uses the resources directly to pro­vide what he wants. Thus Robinson Crusoe had to decide (должен был решить) how much time to spend hunting, fishing, growing corn and relax­ing in the sun.

Today, however, man specializes in production, obtaining the variety of goods he wants by exchange.

Man’s first exchanges were quite simple, there was a direct exchange of one good for another, thus a market was established.

The subsistence economy had now evolved into the market economy that answers to the questions:

What goods and services must firms produce?

How much of each good and service must be produced?

How must the goods and services be produced? etc.

In his book «The Wealth of Nations» published in 1776, Adam Smith described the principal elements of the economic system. In one of the chap­ters of the book, Smith turned to the pin industry to demonstrate how the division of labour and demand, and the use of machinery increased output. Smith’s «The Wealth of Nations» contains some of the best descriptions of the principles upon which the economic system of most countries is based.

In contrast to the market economy there is the «command» or «centrally directed (planned) economy» where the state decides what to produce, di­rects the factors of production accordingly and distributes what is produced.

Answer the questions:

1) How did the individual in primitive economies use the resources?

2) What can you say about man’s first exchanges?

3) What are the other types of economy called?

4) What principal questions are associated with the market economy?

5) What did Adam Smith tried to demonstrate in his book «The Wealth of Nations»?

Задание 2. Перепишите следующие предложения, определяя в них видовременные формы глаголов, и укажите их инфинитив. Предложения переведите на русский язык.

1. Last week the prices grew considerably.

2. Economic forces affect decisions in the world of business.

3. The economist tries to be as objective as possible.

4. The weather conditions affected the crop.

5. A fall in the price of a good or service will increase consumer’s consumption of it, while a rise in its price will have the opposite effect.

Задание 3. Перепишите следующие предложения, содержащие разные формы сравнения. Предложения переведите на русский язык.

1. Britain now has one of the least regulated labour markets among the major industrialized nations.

2. «Teleworking» – working from home using information technology – is also becoming more widespread, for example, in journalism, consultancy and computer programming.

3. The most striking building in the City today is St. Paul’s Cathedral.

Задание 4. Перепишите и письменно переведите на русский язык предложения, обращая внимание на перевод неопределенных и отрицательных местоимений.

1) Some companies decided to raise the prices.

2) She could work at any company.

3) He will be able to take a decision only after the meeting.

Задание 5. Перепишите слова, определите по суффиксу часть речи:

а) существительное;

б) прилагательное;

в) наречие

и переведите слова на русский язык.

1.accounting; 2. scientific; 3. information; 4. respective; 5. decision; 6. environment; 7. closely; 8. reduction; 9.primarily; 10. opportunity.