Therearevariouswaysinwhichindividualeconomicunitscaninteractwithoneanother.Thesebasicwaysmaybedescribedasthemarketsystem,theadministeredsystem,andthetraditionalsystem.
Inamarketsystemindividualeconomicunitsarefreetointeractamongeachotherinthemarketplace.Itispossibletobuygoodsfromothereconomicunitsorsellgoodstothem.Inamarket,transactionsmaytakeplacethroughbarterormoneyexchange.Inabartereconomy,realgoodssuchasautomobiles,shoes,andricearetradedagainsteachother.Obviously,findingsomebodywhowantstotrademyoldcarinexchangeforasail-boatmaynotalwaysbeaneasytask.Hence,theintroductionofmoneyasamediumofexchangeeasestransactionsconsiderably.Inthemodernmarketeconomy?goodsandservicesareboughtorsoldformoney.
Analternativetothemarketsystemisadministrativecontrolbysomeagencyoveralltransactions.Thisagencywillissuecommandsastohowmuchofeachgoodsandserviceshouldbeproduced,andconsumedbyeacheconomicunit.Centralplanningmaybeonewayofrunningsuchaneconomy.Thecentralplan,drawnupbythegovernment,showstheamountsofeachgoodsproducedbythevariousfirmsandsharedamongdifferenthouseholdsforconsumption.Thisisanexampleofcompleteplanningofproduction,consumption,andexchangeforthewholeeconomy.
Inatraditionalsociety,productionandconsumptionpatternsaregovernedbytradition;everyperson'splacewithintheeconomicsystemisfixedbyfatherhoodormotherhood,religion,andcustom.Transactionstakeplaceonthebasisoftradition,too.
26.Themainpurposeofthepassageis______.
A.tooutlinedifferenttypesofeconomicsystems
B.toexplainthescienceofeconomics
C.toarguethatoneeconomicsystemisbetterthantheothers
D.tocomparebarterandmoney-exchangemarkets
27.Inthesecondparagraph,theword"real"couldbestbereplacedby______.
28.WhichofthefollowingstatementsisTRUEaccordingtothepassage?
A.Theauthorprefersthemarketsystemtoeithertheadministeredsystemorthetraditionalsystem.
B.Inanadministeredsystemonlythegovernmentmakesdecision.
C.Inamarketeconomyservicescanbesoldorbought.
D.Thetraditionalsystemisgoodforasocietywhichasksforlittleprogress.
29.Accordingtothepassage,abartereconomycanleadto______.
A.rapidspeedoftransactionB.misunderstanding
C.inflationD.difficultiesfortraders
30.Accordingtothepassage,whohasthegreatestdegreeofcontrolinanadministeredsystem?
A.Individualhousehold.B.Majorcorporations.
C.Smallbusinesses.D.Thegovernment.
