UNIT 5 Central Control of the Economy

Date: 2015-10-07; view: 711.

Essential Vocabulary

1. community громада

2. limit обмеження

3. be required бути необхідним, обов'язковим Syn. must

4. conform to the law = obey the law

5. landowner землевласник

6. loss of production втрати виробництва

7. concerned with той, що має відношення до, зв'язаний з Syn. related to

8. be beneficial to бути вигідним, корисним

9. cost of producing витрати виробництва

10. bias відхилятись в чийсь бік

11. adopted by ухвалений, прийнятий (кимось)

12. badly підсилюв. дуже, конче, вельми

13. anticipate передбачати, очікувати, передчувати

14. brief стислий, короткий

In states which have a communistic system, private property and private enterprise are reduced to a minimum. They exist, but are limited to a small area of the economy. Karl Marx conceived of a world in which there would be no private property whatsoever. Communism in theory states that all property should belong to the State. In practice, however, the citizens of state like Cuba are permitted to have personal effects.

The important thing about the communist system is its central planning. The State organizes the whole economic effort of the nation. A central authority with complete power decides what goods and services will be produced. The authority decides what quantities of goods will be produced, and also controls their quality, deciding how they will be distributed and what prices will be charged for them. In addition, the State provides all (or most of) the services which the citizens require. It is responsible for the economy, and is therefore concerned with methods of production as well as with quality and quantity. The national economy must be planned ahead over a number of years.

A Marxist economy is planned. The system is related to the needs of the State as a whole, not to the needs of the private person. The emphasis is on collective effort and not on personal effort, so that the individual is subordinated to the needs of the collective State.

Exercise 1.Answer your questions, basing your answers on the text.

a. What two things are greatly reduced in a communistic system?

b. What area do they occupy in the economy?

c. What did Karl Marx proposed about private property?

d. What is the theoretical communist view on property?

e. What is the position in practice?

f. What does the state do in the communistic system of central planning?

g. What two decisions does the central authority make?

h. What does the authority control?

i. What can the authority do about prices?

j. What is the state responsible for and what must it do?