Market and Command Economies

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Market and Command Economies.
Economics is a science that analyzes what, how, and for whom society produces. The central economic problem is to reconcile the conflict between peoples unlimited demands with societys 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 decisions on what, how, and for whom to produce. Economy cannot rely entirely on command, but there was extensive planning in many Soviet bloc 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 restrictions 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 latter, 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.
Словарный минимум к тексту
economics 1. экономическая наука; 2. экономика
economic 1. экономический; 2. экономически выгодный; рентабельный
economical 1. экономный, бережливый; 2. экономичный
economist экономист
economize экономить;экономно расходовать или использовать
economy хозяйство, экономика
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