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TEXT A
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Mixed Economy
There are three types of management in economies. An economy maybe almost totally planned, as it was in the Soviet Union. An economy may be almost totally unplanned, as it is in the USA. Or an economy may be a combination of planning and freedom of operation. Examples of the latter are Japan and South Korea.
In a planned economy the government decides what goods are to be produced and how they are to be marketed. Governments set all the priorities, and the producers are to follow the directions given to them.
In a partially planned economy such as Japan's, the government often encourages industry and helps it with subsidies. Government also makes investments and regulates trade.
The United States is an example of an unplanned economy. But it has a lot of government intervention in economic activity. As the economy of the United States grew, and as government and its importance increased, the government policy at every level acquired greater importance for the economy.
But the economy of the United States may be called unplanned because the government does not regulate what will be produced and how it will be marketed. These decisions are left to the producers. Even the great amount of government regulation that has emerged since the Great Depression has not turned the economy of the United States into a planned economy.
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The name of the American economic system is capitalism. Another name for it is the free market economy.
TEXT B
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Technology and Supply
An improvement in technology will increase the supply as producers will and to supply a larger quantity than before at each price. An improvement in
cocoa refining makes it possible to produce more chocolate. So do improvements in packaging techniques. Faster transportation and better refrigeration may lead to less spoiled cocoa beans. Each of these technological advances allows firms to supply more.
Technology must be understood very broadly. It includes all know-how about production methods, not only the state of available machinery. In agriculture, the development of disease-resistant seeds is a technological advance. Improved weather forecasting may lead to better timing of planting and harvesting. A technological advance is any idea that allows more output from the same inputs as before.
1. What is included in technology?
2. What is a technological advance?
3. What technological advances may increase the supply of chocolate?
4. What technological advances in agriculture can you name?
TEXT C
