Контрольное задание № 2
1. Read and translate the text. Прочитайте и переведите текст.
Planned economies are sometimes called «command economies» because the state commands the use of resources (such as labour and factories) that are used to produce goods and services as it owns factories, land and natural resources.
Planned economies are economies with a large amount of central planning and direction, when the government takes all the decisions, the government decides production and consumption
Planning of this kind is obviously very difficult, very complicated to do, and the result is that there is no society, which is completely a command economy.
The actual system employed varies from state to state, hut command or planned economies have a number of common features.
Firstly, the state decides precisely what the nation is to produce.
It usually plans five years ahead
It is the intention of the planners that there should be enough goods and services for all.
8. Secondly, industries are asked to comply with these plans and each industries and factory is set a production target to meet.
If each factory and farm meets its target, then the state will meet its targets as set out in the five– year plans.
You could think of the factory and farm targets to be objectives which, if met, allow the nation's overall aim to be reached
A planned economy is simple to understand but not simple to operate.
It does, however, have a number of advantages: everyone in society' reserves enough goods and services to enjoy a basic standard of living.
Nations do not waste resources duplicating production.
The state can use its control of the economy to divert resources to wherever it wants. As a result, it can ensure that everyone receives a good education, proper health care or that transport is available.
14 Several disadvantages also exist.
It is these disadvantages that have led to many nations abandoning planned economies over recent years:
There is no incentive for individuals to work hard in planned economies.
Any profits that are made are paid to the government
Citizens cannot start their own businesses and so new ideas rarely come forward.
As a result, industries in planned economies can be every inefficient.
A major problem faced by command or planned economics is that of deciding what to produce. Command economies tend to be slow when responding to changes in people’s tastes and fashions. Planners are likely to under produce some items, as they cannot predict changes in demand.
Equally, some products, which consumers regard as obsolete and unattractive, may be overproduced.
Planners are afraid to produce goods and services unless they are sure substantial amounts will be purchased. This leads to delays and queues for some products.
Command and market economies both have significant faults.
Partly because of this, an intermediate system has developed, known as mixed economies.
A mixed economy contains elements of both market and planned economies.
At one extreme we have a command economy, which does not allow individuals to make economic decisions, at the other extreme we have a free market, w here individuals exercise
considerable economic freedom of choice without any government restriction»
Between these two extremes lies a mixed economy In mixed economies some resources are controlled by the government whilst others are used in response to the demands of consumers
Technically, all the economies of the world are mixed
Some countries are nearer to command economies, while others are closer to free market economies.
The aim of mixed economies is to avoid the disadvantages of both systems while enjoying the benefits that they both offer.
So, in a mixed economy the government and the private sector interact in solving