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Market and Command Economics

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УТВЕРЖДАЮ

Первый проректор СПГГИ (ТУ)

________ проф. Н. В. Пашкевич

«_____» ______________ 2008 г.

ТЕСТ К ЭКЗАМЕНУ

По учебной дисциплине

«Английский язык»

для студентов II курса ЭФ

 

Вариант 06.1.1.08

 

Составители: Иванова М. А.

Лебедева И.С.

Михеев А.И.

 

Санкт-Петербург

2008 г.


I. БЛОК ЧТЕНИЯ

Text 1. Read the text. Choose the best alternatives 1, 2, 3, 4 or 5 to answer the questions.

Market and Command Economics

Economics is a science that analyzes what, how, and for whom society produces. The central economic problem is to reconcile the conflict between the people’s unlimited demands with society’s ability to produce goods and services.

In industrial western countries markets are to allocate resources. The market is the process by which production and consumption are coordinated through prices.

In a command economy, a central planning office makes decision on what, how, and for whom to produce. Economy cannot rely entirely on command, but there was extensive planning in many Soviet block countries.

A free market economy has no government intervention. Resources are allocated entirely through markets.

Modern economies in the West are mixed and rely mainly on the market but with a large dose of government intervention. The optimal level of government intervention remains a problem, which is of interest to economists.

The degree of government restriction differs greatly between countries that have command economies and countries that have free market economies. In the former, resources are allocated by central government planning. In the later, there is not any government regulation of the consumption, production and exchange of goods. Between the two main types lies the mixed economy where market and government are both of importance.

№ Вопросы Варианты ответов
1. What is the central economic problem of a society? 1) To reach a compromise between demands and production. 2) To produce as many goods as possible. 3) To get an ability to produce goods. 4) To develop economic science. 5) To analyze what, how and for whom society produces.
2. What is the function of the market in industrial countries? 1) Markets are to preserve natural resources. 2) Markets are to allocate licenses to companies. 3) Markets are to make decisions on what, how and for whom to produce. 4) Markets are to allocate resources. 5) Markets are to stable the economy of a country.
3. What is a market? 1) The result of producing goods. 2) The process of making profit. 3) The process when production and consumption are coordinated through prices. 4) The process of developing western societies. 5) The process of analyzing what, how and for whom society produces.
4. How are decisions made in countries with command economy? 1) By market. 2) By central planning office. 3) By president. 4) By advisors from abroad. 5) No information provided.
5. How are decisions made in countries with free market economy? 1) By market. 2) By central planning office. 3) By government. 4) By advisors from abroad. 5) No information provided.
6. In what way does a free market economy differ from a command economy?   1) In a free market economy resources are allocated by central planning office. 2) A free market economy has government intervention. 3) In a free market economy government makes decisions on what, how and for whom to produce. 4) In a free market economy central planning office makes decisions on what, how and for whom to produce. 5) A free market economy has no government intervention.
7. Which type of economy predominates nowadays in the West? 1) Command. 2) Free market. 3) Mixed. 4) Government. 5) No information provided.
8. What’s the optimal level of government intervention? 1) When governments predominate. 2) When there is no government intervention. 3) It’s still a problem for economists. 4) When governments make decisions on what, how and for whom to produce. 5) No information provided.
  What differs greatly in countries with command economies and countries with free market economies? 1) The degree of government restriction. 2) The level of economic development. 3) The amount of resources. 4) The central planning. 5) No information provided.
  What’s of utmost importance in mixed economy? 1) Market. 2) Government. 3) Natural resources. 4) Both market and government. 5) No information provided.

 

 


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