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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.

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 so 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?

Exercise 2. Make these sentences passive, omitting the agent phrase.

EXAMPLE: The government reduced private property to the minimum.

Private property was reduced to the minimum.

a. The government limited private enterprise to a small area in the economy.

. They permit the citizens to have personal property.
c. The workers will produce only essential commodities.
d. That factory produced a large quantity of shoes last year.
e. You will charge more money for these services.
f. The central authority must plan the economy over a number of years.
g. The authorities provided large numbers of workers for the ten new factories.
h. The government reduced the quantity of shoes produced in tat factory.
i. The State organized the whole economic effort of the nation.
j. The central authority has planned the whole economic programme for the next five years.

Exercise 3. Combine these pairs of sentences, using what and would.

EXAMPLE: This quantity of goods will be produced. The planners decided it.

The planners decided what quantity of goods would be produced.

a. These goods and services will be produced. The central authority decided it.

. These prices will be changed for the goods. The planners decided it.
c. This quality will be most suitable. The government considered it.
d. This commercial activity will be useful in the next few years. The planning authority decided it.
e. These changes will be made in the organization of the factory. The employers and employees discussed it.
f. These conditions will affect the national economy in the next twenty years. The economists considered the matter.