Most people work to earn a living, and produce goods and services. Goods are either agricultural (like maize), or manufactured (like cars). Services are such things as education,…

Most people work to earn a living, and produce goods and services. Goods are either agricultural (like maize), or manufactured (like cars). Services are such things as education, medicine and commerce. The work people do is called economic activity. All economic activities taken together make up the economic system of a town, a city, a country or the world. Such an economic system is the sum-total of what people do and what they want. The work people do either provides what they need or provides the money with which they can buy essential commodities: food, clothes and shelter. Of course, most people hope to have enough money to buy commodities and services, which are nonessential, but which provide some particular personal satisfaction, such as toys for children, visits to the cinema and books. The science of economics is based upon the facts of our everyday lives. The science of economics is concerned with all our needs. Not all economic systems in the world are the same. The American system is based on private enterprise and is essentially capitalistic, while the Russian system is communistic and based on the principles of Karl Marx. Britain is similar to the USA. It has an economic system based on private enterprise and private supplies of capital. An important form of capital is surplus income available for investment in new business activities. Property in both the USA and Britain can be and is owned by individual citizens and these citizens exercise considerable economic freedom of choice. They can choose what they want to do and how they want to earn their living, but are not of course entirely free to do as they wish. They must obey the law. Otherwise, however, they can use their time, money and energy as they wish. If a person can do this, then economists say that he is economically free. In all communities, of course, limits are imposed upon personal freedom, limits which are sometimes very complex. In states which have a communistic system, private property and private enterprise are reduced to a minimum. The important thing about the communist system is central planning. The State organizes the whole economic effort of the nation. A central authority with complete power decides what goods and services will be produced. The authority decides what quantities of goods will be produced, and also controls their quality, and decides where they will go and what prices will be charged for them. The central authority in communist countries performs the function of the price system in capitalistic economics. Under capitalism the prices of goods and services are related to supply and demand. The system operates freely, dependent upon the quantities available and what people want. Therefore we say that in private enterprise system the production of goods tends to follow movements, to rise when prices rise and fall when prices fall. This rise and fall is not however normal in communist countries. The control exercised by the State prevents any such fluctuation of prices. Government planners under communism therefore know what goods are available and what prices will be charged, but economists in non-communist systems do not always know this. No state today is completely communistic or completely capitalistic. The various national economic systems tend towards one type or the other, but many are difficult to classify. India makes a clear distinction between the public sector and the private sector of its economy and so has a system called a mixed economy. It is however a very difficult matter to plan ahead in a mixed economy. It is not possible to plan ahead with any certainty even in a rigidly controlled economy, because natural disasters, political changes and other factors can affect the general plan in unexpected ways. TASKS I. Ответьте на вопросы: 1. Что называется экономической деятельностью? 2. Что такое экономическая система? 3. Какие товары являются товарами первостепенной важности? 4. Должны ли методы, используемые экономистами, быть научными и объективными, или религиозными и субъективными? 5. Одинаковы ли все экономические системы в мире? 6. На чем основана капиталистическая система? 7. На чем основана коммунистическая система? 8. Кто владеет собственностью в капиталистическом государстве? 9. Кому принадлежит собственность в коммунистическом государстве? 10. Какова экономическая система Индии? II. Запомните следующие словосочетания: to earn one’s living– зарабатывать на жизнь economic activity – экономическая деятельность essential commodities – товары первостепенной важности personal satisfaction – личное удовлетворение to be concerned with – зд. рассматривать private enterprise – частное предпринимательство to be similar to smith. – быть похожим на что-то private supplies of capital – частные поступления капитала surplus income –избыточный доход available for investment in –доступный для вложения в business activities –коммерческая деятельность to exercise freedom –проявлять свободу to impose limits upon smth. – ограничивать что-то to obey the law –подчиняться закону to charge the price for smth. – назначать цену на что-то price system – система цен tend to do smth. – иметь тенденцию к чему-то to make a clear distinction between –делать четкое разграничение между… fluctuations of prices –колебания цен III. В приведенных ниже предложениях заполните пропуски следующими словами и словосочетаниями, опираясь на текст: are related to; distinction; is based upon; obey; will be charged for; fluctuation; are imposed; sum- total; private enterprise; is concerned with. 1. An economic system is the … of what people do and what they want. 2. The science of economics … the facts of everyday lives. 3. The science of economics … all our needs. 4. Britain’s economic system is based on … . 5. People must … the law. 6. In all communities limits … upon personal freedom. 7. In a communistic state the authority decides what prices … the commodities. 8. Under capitalism the prices of goods and services … supply and demand. 9. The control exercised by the state prevents any … of prices. 10. India makes a clear … between the public sector and the private sector. V. Пользуясь текстом, переведите следующие предложения. 1. Услуги – это образование, медицина и торговля. 2. Работа, выполняемая людьми, обеспечивает их тем, в чем они нуждаются. 3. Американская система основана на частном предпринимательстве и является капиталистической. 4. Если человек может использовать свое время, деньги и энергию так, как он хочет, экономисты говорят, что он экономически свободен. 5. В любом обществе на личную свободу накладываются ограничения, которые иногда очень сложные. 6. В государстве с коммунистической системой частная собственность и частное предпринимательство сведены к минимуму. 7. Центральная власть решает, каких товаров и сколько будет произведено. 8. При капитализме цены на товары и услуги зависят от спроса и предложения. 9. Контроль, производимый государством, препятствует любым колебаниям цен. 10.Сложно планировать на длительный срок в условиях смешанной экономики. VI. Найдите в тексте ответы на вопросы: 1. What is called economic activity? 2. What is an economic system? 3. What goods are essential commodities? 4. Must economist’s methods be objective and scientific, or religious and subjective? 5. Are all economic systems in the world the same? 6. What is a capitalistic system based on? 7. What is a communistic system based upon? 8. Who owns the properly in a capitalistic state? 9. Whom should all property belong to in a communistic state? 10.What economic system has India? VII. Выберите утверждения, соответствующие содержанию текста. 1. Toys for children, visits to the cinema and books are essential commodities . 2. The science of economics is concerned with all our needs. 3. The American system is based on the principles of Karl Marx. 4. An important form of capital in a capitalistic state is surplus income available for investment in new business activities. 5. In all communities limits are imposed upon personal freedom. 6. A communistic system is based on private property and private enterprise. 7. The central authority in communistic countries with complete power decides what quantities of goods will be produced. 8. In private enterprise system the production of goods tends to follow price movements. 9. No state is completely capitalistic. 10.It is possible to plan ahead with a certainty only in a rigidly controlled economy.