Ex.17. With your partners do the following

Explain the basis on which economists in classifying economic systems distinguish between ‘market’ and ‘command’ economies. On what basis, if any, is it possible to say which type of economy is superior?

· Establish criteria such as resource ownership, for comparing market and command economies.

· Explain how welfare criteria can be used to judge the success of an individual economic system.

· One economic system is superior to another only if it is better able to satisfy welfare criteria. Discuss the evidence.

· Avoid making subjective, political statements of opinion.

Ex.18. Can you explain the following sayings in your own words? What other sayings about different kinds of economic systems do you know?

1. Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. Ronald Reagan (American 40th US President (1981- 1989, 1911-2004)

2. The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics. Thomas Sowell (American writer and Economist) (1924 – 2006)

3. I don't know if I can live on my income or not - the government won't let me try it. Bob Thaves, the creator of the comic strip Frank and Ernest (1924-2006)

4. We have long had death and taxes as the two standards of inevitability. But there are those who believe that death is the preferable of the two. "At least," as one man said, "there's one advantage about death; it doesn't get worse every time Congress meets. Erwin N. Griswold, Solicitor General of the United States,(1904 - 1994)

5. Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime. Teach a man to create an artificial shortage of fish and he will eat steak. Jay Leno, an American stand-up comedian and television host, (b. 1950)

TEXT B:COMMAND ECONOMY