An alternative to the market system is administrative control by some agency over all transactions. This agency will issue edicts or commands as to how much of each good and service should be produced, exchanged, and consumed by each economic unit. Central planning may be one way of administering such an economy. The central plan, drawn up by the government, shows the amounts of each commodity produced by the various firms and allocated to different households for consumption. This is an example of complete planning of production, consumption, and exchange for the whole economy.

In a traditional society, production and consumption patterns are governed by tradition: parentage, religion, and custom fix every person’s place within the economic system. Transactions take place on the basis of tradition, too. People them with food and shelter, care for their health, and provide for their education. Clearly, in a system where every decision is made on the basis of tradition alone, progress may be difficult to achieve. A stagnant(停滞不前的)society may result.

1.What is the main purpose of the passage?

A.  To outline contrasting types of economic systems.

B.  To explain the science of economics.

C.  To argue for the superiority of one economic system.

D.  To compare barter an money-exchange markets.

2.In the second paragraph, the word “real” in “real goods” could best be replaced by which of the following?

A.high quality                      B.concrete

C.utter                            D.authentic

3.According to the passage, a barter economy can lead to       .

A.rapid speed of transactions          B.misunderstandings

C.inflation      &