Guided Reading Activity 1 1 the Basic Problem in Economics
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The Basic Types of Economic Organization
Unit 1. The economic problem.
1.Read the following words:
Economics, sensible, essentially, true, equally, survival, conscious, however, continuity, prosperous, fortunate, extremely, sustain, peasant, inhabitant, observe, totally, directly, examine, degree, percentage, sufficient, struggle.
2.Read and translate the word combinations:
A vast subject, precise definition, the basic question, the material aspects, an underlying problem, advanced countries, struggle for existence, standard of living, a large percentage, self-sufficient communities, economic independence, industrialized societies.
3.Change into Past and Future Simple:
1.It is not a difficult matter to give a simple answer to that basic question.
2.People apply their knowledge and efforts to the gifts of nature in order to satisfy their material wants.
3. Even in the prosperous countries there is an aspect of survival.
4.This problem attracts little attention.
6.They experience great poverty.
5.Such people have the abilities to sustain life without outside assistance.
7.They depend on the efforts and cooperation of many thousands of special workers.
4. Write down 3 forms of the following verbs:
To be, to give, to apply, to have, to satisfy to live, to study, to examine, to solve, to leave, to survive, to experience, to provide, to turn, to obs�rve, to feed, to build, to depend, to guarantee.
The Individual and Society.
Most introductory textbooks on Economics begin by posing the question �What is Economics about?� Although Economics is a vast subject and precise definitions are usually very complex, it is not a difficult matter to give a simple and sensible answer to the basic question. Economics is essentially a study of the ways in which people apply their knowledge, skills, and efforts to the gifts of nature in order to satisfy their material wants.
Economics limits itself to the study of the material aspects of life, and while it is true that man cannot live by bread alone, it is equally true that he cannot live without it. An underlying problem in economics is that of survival and we must examine how people have solved this problem. In the more advanced countries this may seem a very remote problem � few people , if any, are conscious of a life or death struggle for existence. In many other countries, however, the continuity of human existence is by no means assured � starvation is a very real prospect for millions of human beings.
Even in the prosperous, economically advanced countries there is an aspect of survival which attracts little or no attention from those of us fortunate enough to live in these areas. This is our relative helplessness as �economic� individuals. The Indian peasants have an extremely low standard of living, yet, left completely to their own devices, they can survive. Such people have the abilities to sustain life without outside assistance. A large percentage of the human race still lives in very small self-sufficient peasant communities. These people experience great poverty, but they can provide on an individual basis, for their own survival. They have a degree of economic independence
If we now turn to the inhabitants of New York, London , or any other great metropolitan area we must observe the opposite situation � a high standard of living together with an extreme economic dependence. The inhabitants of cities are totally incapable of providing for themselves, directly, the means of their survival. They could not feed themselves, or build their own houses. Such people depend, each and every day of their lives, on the efforts and cooperation of many thousands of special workers. In industrialized societies a high standard of living is possible only if the organized cooperation of large numbers of people can be guaranteed. In economically developed countries we are rich, not only as individuals, but only as members of a complex economic organization.
5. Insert the appropriate word , using the following:
inhabitants, precise, prospect, vast, standard, percentage, means, human
1.Economics is a�subject and�definitions are very complex.
2.Starvation is a very real� for millions of �beings.
3.The Indian peasants have an extremely low� of living.
4.A large� of human race still lives in small self-sufficient peasant communities.
5.The�of cities are totally incapable of providing for themselves the�of their survival.
6.Find synonyms among the following words:
Study, precise, complex, subject, essentially, use, exact. Matter, basically, mainly, apply, developed, examine, advanced, completely, help, community, totally, assistance, society, build, gift, construct, present.
7.Find antonyms among the following words:
begin, difficult, high, poor, inside, wealth, finish, easy, low, prosperous, outside, poverty, capable, dependence, incapable, directly, large, independece, indirectly, small.
8.Translate the following into English:
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9.Make sentences from the following words :
1.limits, of, economics, to, study, the , of, aspects, the, material, itself, life.
2.problem, an, is, underlying, economics, in, that , survival, of .
3.seem, may, a, this, problem, very, remote.
4.very, starvation, a, prospect, millions, for, real, human, is, beings, of.
5.peasants, an, Indian, have, living, of, the, low, extremely, standard.
6.people, great, experience, poverty, these.
7.degree, they, a, have, economic, of, independence.
8.Insert prepositions:
1.Most textbooks� Economics begin�posing the question, �What is Economics�?�
2. Economics is essentially a study� the ways�which people apply their knowledge� the gifts� nature�order to satisfy their needs.
3. �the more advanced countries few people are conscious� a life or death struggle�existence.
4. Even �the economically advanced countries there is an aspect�survival .
5. Such people have the abilities to sustain life� outside assistance.
6. If we now turn� the inhabitants �New York we must observe the opposite situation- a high standard�living together�an extreme economic dependence.
7. The inhabitants�cities are totally incapable�providing �themselves the means� their survival.
8.Such people depend� the efforts�many thousands�special workers.
9�.industrialized societies a high standard�living is possible only if the organized cooperation�large numbers�people can be guaranteed .
10�.the economically developed countries we are rich, not as individuals, but only as members�a complex economic organizations.
11.Put questions:
1.Precise definitions are usually very complex
2.Economics limits itself to the study of material life.
3.The Indian peasants have an extremely low standard of living.
4.A large percentage of human race still lives in very smallpeasant community.
5.These people experience great poverty now.
6.The inhabitants of big cities depend on the efforts of specializedworkers.
12.Insert the verb in appropriate form :
1.Although Economics (to be) a vast subject and precise definitions (to be) usually very complex, it (to be) not a difficult matter to give a simple answer to the basic question.
2. Economics (to limit) itself to the study of the material aspects of life.
3. We must examine how people have solved or (to try) to solve this problem.
4. It (to attract) little attention from those of us fortunate enough to live in these areas.
5. A large percentage of human race still (to live) in small self-sufficient communities.
13.Answer the following questions:
1.What do most introductory books on Economics begin by?
2. What does Economics study ?
3.What does it limit itself to ?
4.What is an underlying problem of Economics ?
5.What categories of people can survive without outside assistance?
6.Why do they have a very low standard of living ?
7.Why aren�t the inhabitants of big cities economically independent?
8.Why is a high standard of living impossible without a cooperation of large numbers of people ?
Unit 2. Economic system
1.Read the following words:
distribution, appearance, variety, structure, category, society, harvesting, procedure, affront, ancestors, rigidity, ancient, path, similar, solution, familiar, determine, argue, equal, process, recent, whereby, error, share, legal.
2.Read and translate the word combinations :
Economic society, a mechanism of survival, the tasks of production and distribution, fairly recent times, in the distant past, the accepted way, a long process of trial and error, working procedures, the same skills and tools, in a similar manner, equal pay, legal sanction
3. Form nouns from the following verbs:
present, produce, distribute, develop, group, describe, divide, select, change, discuss, decide, use
4.Change into Past and Future Simple:
1.It presents the mechanism for survival.
2.They are able to carry the task of production.
3.It is possible to group these structures into four broad categories.
4.These methods are based on tradition.
5.A son follows in the footsteps of his father and uses the same skills and tools.
6.The distribution problem is solved in a similar manner.
7.They receive shares according to an ancient custom.
8.Traditions play some part in economical processes.
The Basic Types of Economic Organization
To an economist, economic society presents itself as a mechanism for survival - a means whereby people are able to carry out the tasks of production and distribution. If we look at the different political and social structures which exist in the world today, and the way in which those systems have developed over years, we are tempted to say that people have made use of, and are making use of, a very great varieties of economic systems. In fact, in spite of the appearance of great variety, it is possible to group these different economic structures into four broad categories. These basic types of economic organization are usually described as Traditional Economy, Market Economy, Command Economy and Mixed Economy.
Traditional Economy.
The oldest and until fairly recent times by far the most common way of solving economic problem was that of tradition. In traditional societies, people use methods of production and distribution that were devised in the distant past and which have become the accepted ways of doing things by a long process of trial and error.
In these societies we find that the division of land among the families in the village or town, the methods and times of planting and harvesting, the selection of crops, and the way in which the produce is distributed among the different groups are all based upon tradition. Year by year little is changed; indeed a change in working procedures may be regarded as an affront to memory of one�s ancestors or as an offence against the gods.
The basic economic problems do not arise as problems to be discussed and argued about. They have all been decided long ago. One follows the path that one was born to follow; The son follows in the footsteps of his father and uses the same skills and tools. A cast system provides a good example of the rigidity of a traditional society. The production problems (i.e. What? and How ?) are solved by using land as it has always been used and the worker is carrying out the traditional skills according to his fixed place in social structure. The distribution problem (i.e. For Whom?) is solved in a similar manner. There are time-honored methods of sharing out the produce among the members of the community .The elders , the heads of families, the women and children will receive shares according to the ancient custom.
Traditional solutions of the economic problems of production and distribution are encountered in primitive agricultural communities. But, even in advanced countries, tradition still plays some part in determining how the economy works. We are familiar with industries in which it is customary for the son to follow his father into a trade or profession .
6.Insert the appropriate word, using the following:
land, long, path, presents, arise, solved, shares, similar, custom, distribution, tasks, used, as
1.Economic society�itself a means whereby people are able to carry out the �of production and�
2.The basic economic problems do not�as problems to be discussed and argued about.
3. They have all been decided�ago.
4. One follows the� that one was born to follow.
5. The production problems are� by using �as it has always been� .
6. The distribution problem is�in a �manner.
7.The elders will receive� according to ancient� .
7. Find synonyms among the following words:
receive, fixed, different, broad, common, fairly, selection, error, choice, constant, mistake, rather, basic, produce, wide, get, general, make, various
8.Find antonyms among the following words:
different, rigidity, broad, old, distant, long, receive, advanced, true, ancient, narrow, same, near, backward, false, lose, modern, young, short, flexibility
9.Form antonyms with the help of prefixes:
appearance , usually, possible, common, legal, accepted, solved, familiar
10.Translate into English:
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11.Write down three forms of the following verbs:
To present, to carry, to look, to exist, to develop, to tempt, to change, to discuss, to decide, to follow, to group, to describe, to argue, to provide, to share, to make, to become, to do, to find, to arise
12.Make up sentences, using the following words:
1.these, possible, to, group, is, different, structures, three, into categories, broad, it, economic.
2.way, economic, the, oldest, solving, tradition, that, of, was ,problems, of.
3.have, been, all, they, ago, decided, long.
4.in, son, footsteps, is, of, a, father, follows, the.
5.is, distribution, solved, problem, manner in, similar, the ,a.
13.Insert prepositions:
1.�fact, �spite�the appearance�great variety, it is possible to group these structures�four broad categories.
2.These types�economic organization are usually described�Traditional Economy, Command Economy, Mixed Economy.
3.The oldest and until fairly recent times�far the most common way of solving economic problems was that�tradition.
4.�these societies we find that the division�land�the families�the village or town, the methods and times� planting and harvesting are all based�tradition.
5.�traditional societies, people use methods�production and distribution that were devised �the distant past.
6.Year�year, little is changed.
7.The basic economic problems do not arise�problems to be discussed and argued�
8.There will be time- honored methods�sharing�the produce�the harvest.
9.We are familiar�industries�which it is customary�the son to follow his father�a trade or profession.
14. Put questions:
1.In traditional societies, people use methods of production that were devised in the distant past.
2. They have all been decided long ago.
3. A son follows in the footsteps of his father.
4. He uses the same skills and tools.
5.A caste system provides a good example of the rigidity of a traditional society.
6.The distribution problem is solved in a similar manner.
7. The heads of families will receive shares according to the ancient custom.
15. Put the verb in appropriate form:
1.Economic society (to present) itself as a means whereby people are able to carry out the tasks of production and distribution.
2.If we look at the very different political and social structures and the way in which this systems (to develop) over the years, we are tempted to say that people (to make) use of a very great varieties of economic systems.
3.The basic types of economic organization (to describe) as Traditional Economy, Market Economy, Command Economy and Mixed Economy.
4.Traditional methods of production and distribution (to devise) in the distant past.
5.They (to become) the accepted ways of doing things by a long process of trial and error.
6.In this societies we ( to find) that all (to base) upon the tradition.
7.The basic problems ( not to arise) as problems to be discussed and argued about.
8.One (to follow) the path that one (to be born) to follow.
9.There (to be) time-honored methods of sharing out the produce.
10.Even in advanced countries tradition still (to play) some part in determining the work of the economy.
11.Year by year little (to change) in the process of distribution.
Guided Reading Activity 1 1 the Basic Problem in Economics
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