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COMMAND ECONOMY WITH SOME HOUSEHOLD CHOICE
Producers
Households
MARKET ECONOMY
Producers
Households
Fig.1. Simple models of economic system.
When comparing the performance of different systems, the economist can use a number of measurements: the distribution of income, growth in output, technological advance, stability, output per head and so on. However, such a comparison is unlikely to produce a conclusive or acceptable answer about the superiority of any system.
ØComprehension:
1. What does economics study?
2. What is macroeconomics?
3. What is microeconomics concerned with?
4. Name three fundamental questions all communities are confronted with.
5. Give the classification of economic systems.
Summarizing.
Complete the following sentences to summarize the text above:
1. Economics is the study of…
2. In ancient Greece the word ‘economist’ meant…
3. There are two approaches in economics:...
4. Macroeconomic studies…
5. Microeconomics is concerned with…
6. The fundamental questions the society has to answer are:...
7. Theoretically all economic systems can be classified as…
8Viewpoint:
Is it possible, in your opinion, to create an ‘ideal’ economic system?
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