Ex 2. Fill in the gaps with the words and expressions from the text. 1. The type of system chosen is in , in which businesses operate
1. The type of system chosen is …… in ……, in which businesses operate.
2. An economic system is the way in which a country uses its …… to satisfy the demands of …… for goods and services.
3. It is …… that there should be enough goods and services for all.
4. Industries are asked…… these plans and each industry and factory is set ……
5. The state can use its control of the economy …… to wherever it wants.
6. It is ……that have led to many nations …… planned economies over recent years.
7. There is no…… for individuals to work hard in planned economies.
8. Command economies tend to …… when …… to changes in people's tastes and fashions.
9. Some ……and unattractive products may be……
10. The system is based on …… with ……of ……
11. In a market economy it is ……who decide what is to be produced.
12. The economy …… automatically to meet changing demands.
13. …… of the market system is that production …… to meet changing demands.
Ex 3. Find in the text the English equivalents for the following:
| имеющиеся в распоряжении ресурсы; управлять использованием ресурсов; управление экономикой; отказываться от плановой экономики; иметь высокий жизненный уровень; иметь общие черты; подчиняться 5-летнему плану; значительное количество; ставить производственные задачи; полученная прибыль; стимул к эффективной работе; перебои и очереди; реагировать на изменения спроса; предсказывать изменения спроса; основная проблема, стоящая перед…; процветание нации;широкомасштабное вмешательство правительства; принимать законы; быстро меняться; конкурирующие фирмы; автоматически изменяться (приспосабливаться); быть конкурентоспособным; частные фирмы; фирмы, принадлежащие государству и управляемые им; краеугольный камень; иметь серьезные последствия для...; трудоемкое производство; сокращать производство; быть уверенным в...; не хватает уверенности в...; дорого платить за что-либо. |
Ex 4. Match each term with the appropriate explanation.
a market economy, rival firms, consumers, an economic system,
planned economies
| 1. 1. The way in which a country uses its available resources to satisfy the demands of its inhabitants for goods and services. 2. 2. Economies with a large amount of central planning and direction, when the government takes all economic decisions. 3. 3. The system based on private enterprise with private ownership of the means of production and private supplies of capital. 4. 4. Companies operating in a certain sector and providing the same goods. 5. 5. The people who decide what is to be produced in a market economy. |
Ex 5. Answer the questions and do the assignments.
1. What is an economic system?
2. What does a standard of living depend on?
3. What is a planned economy? What are its main features?
4. Give the advantages of a planned economy.
5. What causes delays and queues for some products?
6. What is a market economy?
7. What’s the main difference between a market economy and a planned economy?
8. Do changing demands affect production? In what way?
9. What is the mechanism of producing goods and services in a market economy?
10. Give the advantages of a market economy.
Ex 6. Read the following text and do the assignments after it.
Mixed Economy
Most economists would say that there are no examples in the world today of a completely free market or a completely controlled economy. Instead, every country operates a mixture of the two systems. Even in the freest economies, like the USA, there is some government control; even in the strictest planned economy there is some free enterprise.
Economies mix government control and free market values in different ways. One way is to let privately owned businesses exist alongside state run industries. The economy becomes divided between the state sector and the private sector The state sector often includes industries that the government thinks are important and need protection from the risks of the free market These could include public transport, hospitals, schools and the postal service. The state sector can also include large industries that are important for a country's economic health, such as oil, steel or agriculture. These are sometimes called primary industries because they provide basic materials to manufacturers.
These state sector industries use money that the government collects in taxes. Often they do not need to compete with other companies because no other company is allowed to provide the same product or service. However, many countries have recently started a process called deregulation.
Deregulation means reorganization of the economic structure within which private businesses are allowed to compete with state-run industries. The state sector should then run more efficiently in order to compete in the free market and because it now has less government protection
Deregulation of services like telecommunications, transport and banking has happened in many countries in recent years. People have generally accepted these changes. However, generally the public is less happy when governments start talking about deregulation in education and health services. Many people feel that profit motivation will harm these services rather than improve them.
Another way in which economies today are mixed is that governments put limits on free enterprise. For example, governments may decide to ban trade in certain goods if they are dangerous. They may also create laws to make sure companies trade honestly or to prevent monopolies. If a company has a monopoly, normal market forces do not affect it. This is bad for consumers and the economy in general. Governments may also regulate methods of production. They do this to guarantee that products are safe for consumers and to protect the environment
Many economists would argue that the mixed economy is the best system for consumers. This is because consumers have two ways to control the economy: by choosing to buy a company's goods or services and by choosing to give political parties their votes.