Economic Systems. Planned Economics

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, but 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.

Secondly, industries are asked to comply with these plans.

A planned economy is simple to understand but not simple to operate. It does, however a number of advantages:

*Everyone in society receives 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 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.

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 very inefficient.

Ответьте на вопросы.

1. What is an economic system?

2. What does a standard of living depend on?

3. What is a planned economy?

4. What are its main features?

5. Give the advantages of planned economy.

6. What are its disadvantages?

7. What can you add to the list of advantages and disadvantages of a planned economy?

Переведите на английский язык.

Имеющиеся в распоряжении ресурсы; управлять использованием ресурсов; управление экономикой; отказываться от плановой экономики; иметь высокий жизненный уровень; иметь общие черты; подчиняться 5-летнему плану; значительное количество; полученная прибыль; стимул к эффективной работе.

Переведите на английский язык, используя активный словарь.

1. Если хозяйство плановое, то работа промышленности подчиняется плану, в котором государство определяет производственные задачи и планирует развитие на 5 лет вперёд.

2. В плановой экономике покупатели лишены возможности влиять на производство товаров.

3. Поскольку значительная доля полученной прибыли должна быть выплачена государству, то в условиях плановой экономики стимулы работать эффективно невелики.

4. Государство в условиях плановой экономики может гарантировать своим гражданам образование и медицинское обслуживание.

6. Все крупные решения, касающиеся объёма используемых ресурсов, структуры и распределения продукции, производства и потребления, принимаются центральным плановым органом.