Market Economics

The best examples of this type of economy are to be found in small South-East Asian states like Hong Kong and Singapore, though even they are not pure examples of market economies. Even they contain some business owned and run by the state.

In a true market economy the government plays no role in the management of the economy, the government does not intervene in it. The system is based on private enterprise with private ownership of the means of production and private supplies of capital. Workers are paid wages by employers according to how skilled they are and how many firms wish to employ them. They are consumers and spend their wages on the products and services they need. In a market economy it is consumers who decide what is to be produced.

Such a system, is at first view, very attractive. The economy adjusts automatically to meet changing demands. Firms tend to be highly competitive. New products and low prices are good ways to increase sales and profits. Since all firms are privately owned they try to make the largest profits possible. In a free market individual people can become millionaires.

Not surprisingly there are also problems. Some goods would under-purchased if the government did not provide free or subsidized supplies. Examples of this type of good and service are health and education.

A cornerstone of the market system is that production alters swiftly to meet changing demands. These swift changes can, however, have serious consequences: unemployment, minimal control on working conditions and safety standards concerning products and services. It is necessary to have large-scale government invention to pass laws to protect consumers and workers.

Ответьте на вопросы.

1. What’s market economy?

2. What’s the main difference between a market economy and a planned economy?

3. Do changing demands affect production? In what way?

4. What’s the mechanism of producing goods and services in a market economy?

5. Give the advantages of market economy.

6. Give the disadvantages of a market economy.

Найдите русские эквиваленты.

New advanced products, products which are favoured, they try to make the largest profits possible, provide free or subsidized suppliers, produce goods and then advertise heavily.

Замените выделенные слова синонимами.

Businesses owned and run by the state; products and services, which are favoured; at first view; production alters swiftly.

Переведите на английский язык.

1. В рыночной экономике невелика или очень мала необходимость в планировании, контроле и широкомасштабном вмешательстве со стороны государства (правительства) в экономический процесс.

2. В условиях рыночной экономики изменения потребительского спроса играют заметную роль в формировании политики фирм.

3. Чтобы быть конкурентоспособными и увеличивать доходы, фирмы должны постоянно изучать спрос и менять свою деятельность в ответ на его изменения.

4. Чем более модный товар, тем более высокую цену надо за него платить.

5. Некоторые виды услуг, например здравоохранение и образование, не могут быть полностью обеспечены только частными фирмами.

6. Рыночная экономика характеризуется частной собственностью на ресурсы и использованием системы рынков и цен для управления экономической деятельностью.

7. В такой системе каждый ее участник волен преследовать свои собственные интересы; каждая экономическая единица стремится получить наибольший возможный доход на основе индивидуального принятия решений.