The larger a machine and the more numerous its parts, the greater likelihood of a breakdown and the more expensive to repair. What has been said about market forces and management was necessarily oversimplified. The economies of modern industrial nations are large and very complex. To be sure, there is management, and there are market forces at work, but there are also many other factors that help or hinder economic function.
In modern industrial societies, governments play a large role. There is a great amount of regulation, most of it meant for the protection of the public. All regulations affect the way businesses operate, often increasing their costs and reducing their profits. Lower profits, in turn, reduce the amount of money which is known as working capital that a company can use for expansion. Auto emission standards, for instance, have had a significant impact on the manufacture and pricing of automobiles. Other government policies such as taxation, budget deficits, and regulation of the money supply have an effect on how much money is available for people to spend on goods and services.
International crises and other conditions also affect the working of an economy. A severe frost in Brazil can ruin a coffee crop and raise the price of that commodity. War can cut off the supply of such resources as petroleum, chromium, or copper. In the United States environmental protests have slowed the development of nuclear energy capacity and the mining of vast tracts of protected land. Weather affects agriculture, a hot, dry summer can damage the wheat crop; floods can destroy thousands of acres of crops suddenly; and insect pests can devastate cropland with a rapid onslaught.
People’s attitudes also have an impact on the marketing of goods. Health-conscious individuals, for example, may stop smoking, curtail their intake of alcohol, and eat less of certain kinds of food. Advertising affects what people buy, and it can create a market where none existed. Style and fashion are significant for many consumers.
There are other economic problems that are more difficult to understand. For centuries economies have been subject to periods of prosperity followed by periods of decline. Although periods of prosperity can be explained rather easily, the reasons for panics, recessions, and depressions are of a complex nature. So many factors contributed to the Great Depression of the 1930s, for example, that no economist has ever been able to account for all of them.
Because the causes of decline are uncertain, the remedies are equally uncertain. In the late 20th century all industrialized societies through their governments have tried to stabilize economies, keep them prosperous, and reduce unemployment. None of the remedies has worked to the extent that was hoped. How economies work and what remedies can be found to keep them operating efficiently are the tasks of economists, who must work together with businessmen and politicians.
The "machine" in the first sentence of Paragraph 1 is comparable here to ______.

A:the political system of a nation B:the economy of a nation C:the market force D:the government of a nation

Text 4
Now that the damage inflicted by the Asian financial crisis looks like it was caused by an economic neutron bomb. The crisis has hurt great numbers of people, but has left. the main structures of the world economy standing. The worst of the direct impact may be over. Many of the hardest-hit countries are on the road to recovery, financial "contagion" has been contained and world economic growth seems set to pick up soon.
The most important development, however, is a non-event: the collapse of global capitalism has not occurred. Instead, the post-crisis world is likely to be even more market-oriented than the one that preceded it, with a proliferation of new rules and practices that will help markets to operate more smoothly. The countries recovering best, such as Thailand and South Korea, are doing so by moving further in a free-market direction. None of the affected nations has tried to isolate itself from the global economy, and the widely feared worldwide wave of protectionism has not yet materialized.
Nor has there been the great rethinking of economic globalization that some feared and others advocated. The critics of global capitalism pounced on the crisis as proof of globalization’s fatal flaws. Their analyses often concluded that "there must be Something better." On the contrary, economists have taken free-market principles as the starting point for new ideas, not called them into question.
There has been much criticism of the so-called Washington consensus--the traditional free-market orthodoxy that uniformly prescribes fiscal discipline, deregulation, and financial liberalization. Partly as a result of the crisis, a new consensus simply adds extra prescriptions--such as better financial supervision, labor market, etc.--to the list. It is an elaboration of the original consensus, not a new departure.
Numerous studies also show that engagement in the global economy leads to higher growth and helps to reduce poverty in developing countries. Today’s economic arguments are not over fundamental free-market policies, but what must be done to supplement them. Likewise, .the efforts to devise a new "international financial architecture" in the wake of the crisis, due to continue during the spring meetings of the World Bank and the International Monetary Fund in Washington, will not involve rebuilding the system from scratch. The aim is to make incremental improvements in financial rules and practices that will oil the wheels of the market system, not to trade it in for a non-existent new model.

A:Everything goes as it does before the crisis. B:Thailand and South Korea have adopted new measures to control the market. C:All the affected nations are more involved in global economy. D:The worldwide wave of protectionism may come true one day

The author draws a sharp contrast between the housing market and the rest of the economy so as to show

A:the boom of real estate activity. B:the statistics on home prices. C:the role of housing market. D:the degree of consumer spirits.

Questions from 31 to 35 are based on the following passage: China’s entrance into the World Trade Organization(WTO) will benefit not only itself but the whole world, said an article in People’s Daily. For the last nine years negotiations have gone on concerning restoring China’s status in the General Agreement on Tariffs and Trade (GATT),which is replaced by WTO. The negotiation have drawn attention from all over the world. Only when consensus is reached on key issues, can the final decision, involving more than 100 member states , be made. It is expected that China’s bid will eventually pass, though final details and a timetable have not been decided yet, said the People’s Daily. Over the past years, China has taken important steps to conform with international trade regulations based on the Uruguay-round talks. It is clear that China has made its markets more open, both in commercial and tertiary industries. Since 1992, a series of measures has been taken in lowering tariff rates and reducing non-tariff barriers. These reforms demonstrate China’s readiness to join the WTO. Serious disputes, however, still remain between China and some key member states over the obligations China should undertake. China should be responsible for reform compatible with its current development level, the article stressed. In future negotiations, we should insist on this point and give the member states a clearer understanding of the practical situation in China. China has a population of 1.2 billion, which increases by 10 million each year. The government must be very cautious in reforms to prevent dramatic economic downfalls, which may have disastrous results not only in China but around the world. China’s per capita income remains less than $500, there are still 70 million people who do not have enough for basic food and clothing. The negotiators should bear in mind the country’s development level when they decide the obligations China should assume. Otherwise, negotiation results will be meaningless, or worse; they could stifle the Chinese market. It is like the old Chinese saying: “Killing the hen to get the eggs.” China is in transition from a planned economy to a market one. With such a big population and large economic development scale, a transitional period is necessary for any new reform measure. This is also the case when adopting some international practice.

A:Market economy B:Market economy and planned economy C:Planned economy D:None of the above

Questions from 36 to 40 are based on the following passage: There are a lot of “markets”. Some markets are local; you may be willing to compare prices for fruits and vegetables in a few shops in your local area, but you would be unwilling to go across the city to find out more information. Some markets are national. Many firms sell goods across the country. Some markets are global or international. Increasingly, more and more countries are involved in the world economy, whether they know about it or not. However, there are many other markets: labor markets for job seekers, supermarkets for grocery shopping, foreign exchange market, capital market, real estate markets and so on. And we must not overlook the fact that many services such as banking, insurance are also bought and sold on a worldwide scale. But what is a “market” Most people would say, “A market is a place where enough buyers and sellers meet face to face, so that a market price for goods and services can be determined.” However, with rapid growth of telecommunications, it is no longer necessary for buyers and sellers to physically meet to form a market. You may hear the terms “global market” or “global economy”. What do those terms mean to you What do they mean to business today Thanks to the Information Age we are seconds away from the rest of world. Business everywhere recognizes that they can expand their market to anywhere and do business at any time because of the Internet. Now, the Internet is the fastest growing market in the world today, yet buyers and sellers don’t even have to leave their own homes to transact business. In the modern world, a market can take many forms. Generally speaking, a market may be housed in a place, or it may exist only in people’s minds. And a market can be any place or process that brings together buyers and sellers with a view to agreeing to a price. Which of following markets is not mentioned in the passage （ ）

A:Asian market B:international market C:national market D:local market

Questions from 36 to 40 are based on the following passage: There are a lot of “markets”. Some markets are local; you may be willing to compare prices for fruits and vegetables in a few shops in your local area, but you would be unwilling to go across the city to find out more information. Some markets are national. Many firms sell goods across the country. Some markets are global or international. Increasingly, more and more countries are involved in the world economy, whether they know about it or not. However, there are many other markets: labor markets for job seekers, supermarkets for grocery shopping, foreign exchange market, capital market, real estate markets and so on. And we must not overlook the fact that many services such as banking, insurance are also bought and sold on a worldwide scale. But what is a “market” Most people would say, “A market is a place where enough buyers and sellers meet face to face, so that a market price for goods and services can be determined.” However, with rapid growth of telecommunications, it is no longer necessary for buyers and sellers to physically meet to form a market. You may hear the terms “global market” or “global economy”. What do those terms mean to you What do they mean to business today Thanks to the Information Age we are seconds away from the rest of world. Business everywhere recognizes that they can expand their market to anywhere and do business at any time because of the Internet. Now, the Internet is the fastest growing market in the world today, yet buyers and sellers don’t even have to leave their own homes to transact business. In the modern world, a market can take many forms. Generally speaking, a market may be housed in a place, or it may exist only in people’s minds. And a market can be any place or process that brings together buyers and sellers with a view to agreeing to a price. The stock market, banking services market and capital market can be described as（ ）.

A:supermarket B:financial market C:labor market D:real estate market

Questions from 31 to 35 are based on the following passage: There are a lot of “markets”. Some markets are local; you may be willing to compare prices for fruits and vegetables in a few shops in your local area, but you would be unwilling to go across the city to find out more information. Some markets are national. Many firms sell goods across the country. Some markets are global or international. Increasingly, more and more countries are involved in the world economy, whether they know about it or not. However, there are many other markets: labor markets for job seekers, supermarkets for grocery shopping, foreign exchange market, capital market, real estate markets and so on. And we must not overlook the fact that many services such as banking, insurance are also bought and sold on a worldwide scale. But what is a “market” Most people would say, “A market is a place where enough buyers and sellers meet face to face, so that a market price for goods and services can be determined.” However, with rapid growth of telecommunications, it is no longer necessary for buyers and sellers to physically meet to form a market. You may hear the terms “global market” or “global economy”. What do those terms mean to you What do they mean to business today Thanks to the Information Age we are seconds away from the rest of world. Business everywhere recognizes that they can expand their market to anywhere and do business at any time because of the Internet. Now, the Internet is the fastest growing market in the world today, yet buyers and sellers don’t even have to leave their own homes to transact business. In the modern world, a market can take many forms. Generally speaking, a market may be housed in a place, or it may exist only in people’s minds. And a market can be any place or process that brings together buyers and sellers with a view to agreeing to a price. Which of following markets is not mentioned in the passage （ ）

A:Asian market B:international market C:national market D:local market

Questions from 31 to 35 are based on the following passage: There are a lot of “markets”. Some markets are local; you may be willing to compare prices for fruits and vegetables in a few shops in your local area, but you would be unwilling to go across the city to find out more information. Some markets are national. Many firms sell goods across the country. Some markets are global or international. Increasingly, more and more countries are involved in the world economy, whether they know about it or not. However, there are many other markets: labor markets for job seekers, supermarkets for grocery shopping, foreign exchange market, capital market, real estate markets and so on. And we must not overlook the fact that many services such as banking, insurance are also bought and sold on a worldwide scale. But what is a “market” Most people would say, “A market is a place where enough buyers and sellers meet face to face, so that a market price for goods and services can be determined.” However, with rapid growth of telecommunications, it is no longer necessary for buyers and sellers to physically meet to form a market. You may hear the terms “global market” or “global economy”. What do those terms mean to you What do they mean to business today Thanks to the Information Age we are seconds away from the rest of world. Business everywhere recognizes that they can expand their market to anywhere and do business at any time because of the Internet. Now, the Internet is the fastest growing market in the world today, yet buyers and sellers don’t even have to leave their own homes to transact business. In the modern world, a market can take many forms. Generally speaking, a market may be housed in a place, or it may exist only in people’s minds. And a market can be any place or process that brings together buyers and sellers with a view to agreeing to a price. The stock market, banking services market and capital market can be described as（ ）.

A:supermarket B:financial market C:labor market D:real estate market