Тема: Типы экономических систем. Types of economic systems.

1. Vocabulary revision.

Give the English for the following:

Принимать решения, иметь дело с.., ограниченные ресурсы, материальные ресурсы, компромисс, частный бизнес, управление бизнесом, закон спроса, покупать товары(услуги), более дорогой, меньше денег, цена повышается(понижается), тратить деньги, влиять на спрос, человеческие доходы

2. Read and translate the text.

Economic systems.

Traditional economy. It’s hard to imagine our life now without coins, banknotes and credit cards. But for thousands of years people lived without money and had very simple economies. There were no shops, markets or traders. There were no employers, paid workers or salaries. Today we call this type of economy the traditional economy, and in some parts of Asia South America and Africa this system still exists.

People in traditional economy don’t need money. They hunt, gather or grow only enough food to live. Economic decisions are taken according to the customs of tribe. People consume almost everything they produce and own practically nothing. Nothing in these societies ever changes, there is no technology, people depend on nature to survive.

The market economy is called the free market. A free market is not controlled by government. It is also free from the influence of custom or tradition. In a free market the only reason that things are bought and sold is because there is a demand for them. Prices for goods and services are simply what people are prepared to pay.

Competition exists in a free market, everyone can be a producer, so companies compete for the share of the market. Technology exists because produces need way to reduce costs. They can not buy cheaper raw materials. Instead they must make better use of time and labour. A truly market economy does not exists anywhere in the world, but many of the features of the market economy do exist in most societies now.

The planned economy is the direct opposite of the market economy. In a planned economy everything what is produced, how much is produced, the methods of production and the price are decided by the government. The planned economy is controlled, not free. During the 20^th century the planned economy became the standard for socialist government like the USSR and China.

The mixed economy. Now economists say that every country in the world today operates a mixture of two systems.

Economies mix government control and free market values in different way. One way is to let privately owned business exist alongside state run business. The economy becomes divided between the state sector and private sector. Another way in which economies is now mixed is that governments put limits on free enterprise. For example, they may decide to ban trade in certain goods if they are dangerous. Many economists would argue that the mixed economy is the best for consumers.

Vocabulary

Exist-существовать

Hunt-охотиться

Tribe- племя

Consume-потреблять

Competition-конкуренция

Market share- доля на рынке

Reduce –сокращать

Labour- труд

Government- правительство, государство

Divide-делить

3. Discuss with the partner. Are these statements True or False?

1. In traditional economy people consume everything they produce and own nothing.

2. Competition does not exist in market economy.

3. In a free economy the reason why things are bought and sold is because there is a demand for them.

4. In a planned economy the government decides how products are made.

5. A planned economy today is the best for the consumers.

4. Translate the sentences.

1.Мне не нужны деньги. 2. Производителям необходимо сокращать расходы. 3 Я не могу покупать товар не пользующийся спросом. 4. Компании должны контролировать свою долю на рынке. 5. Сегодня мы не можем жить без денег и кредитных карт.

5. Find 5 pairs of opposites.

Consumer private sector spend deficit fall

Surplus rise save manufacture state sector

6. Answer the questions 1. Why don’t people need money in traditional economy?

2. Who controls a market economy?

3. What must companies do in the market economy?

4. Who controls a planned economy?

5. Why are there no today real market economies?

6. How is economy divided?

7. Do you agree that mixed economy is the best for consumers?