Английский для экономистов и менеджеров. Ульянова О.В - 18 стр.

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THE BASIC KINDS OF ECONOMIC SYSTEMS
The wants people have are almost unlimited.
However, each society has
a limited amount of resources from which to provide the goods and services
to satisfy these wants. This scarcity of resources forces every society to make
decisions about the following questions:
– Which goods and services will be produced?
– How will these goods and services be produced?
– How will the goods and services be distributed?
The answers for every particular country will depend on its priorities.
Some countries consider it very important to be powerful and to feel safe.
Other countries are concerned with providing food and clothing to all inhabi-
tants. The decision that a country make will determine the type of economic
system it has.
The basic types of economic systems are traditional, command and mar-
ket.
Traditional system is the system in which people do things the way they
have always done them. They rely on the same tools and methods used by
their parents. There is little or no change in such systems because most peo-
ple methods are based on habit, custom and religious belief. Individuals are
not free to make decisions according to what they want to have. Traditional
system is not as widely spread as it was before. Though it is still a major
force in some areas on the west coast of Canada, in Latin America, Africa
and Middle East.
In a command system, the basic economic decision of what and how to
produce and distribute is made by a central authority. The members of the so-
ciety in the system obey. The central authority consists of one person or a
small group who control factories, equipment and land. This system is still
powerful in China and Cuba and recently our country and the countries of
Eastern Europe operated under strong command system.
In a market system, the basic economic decision is based on the actions
of people and business firms participating in many different markets. A mar-
ket system produce goods and services that people are willing to buy and that
can bring a profit to the sellers. The interaction of consumers and producers
makes the system work. US, Canada and Japan are the best examples of this
type of economic system.
The fact is that none of today's economic system is based totally on one
of three principles just described. Modern economics have some element of
all three influences in them. However one of the principles is usually stronger
than the others and defines the whole system.

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