Ex. 11. Match the words with their definitions
____ private property a) an economic model that calls for government control of
all important economic activities.
____ profit b) land or belongings owned by a person or group and kept
for exclusive use.
____ an order c) an economy in which business activities and the
allocation of resources are determined by government
order rather than market forces.
____ raw materials d) style in clothes, cosmetics, behaviour, etc
____ central planning e)a motivating influence; stimulus
f) the income held to be the motivating factor of all economic
____ command economy activity in a capitalist economy
____ fashion g) basic natural materials before any manufacturing
____ incentive h) an instruction that must be obeyed; command
Ex. 12. Give English equivalents to the following words and phrases.
владеть фабриками, землей и природными ресурсами__________________________
отдавать приказы_________________________________________________________
издавать приказы _________________________________________________________
планирование ____________________________________________________________
планировать на пять лет вперед _____________________________________________
преимущества и недостатки ________________________________________________
гарантировать ____________________________________________________________
предметы роскоши ________________________________________________________
побудительный мотив _____________________________________________________
личная собственность ______________________________________________________
стоять перед проблемой ____________________________________________________
очередь___________________________________________________________________
Ex. 13. Study these pairs of words:
advantage – disadvantage
order – disorder
to agree – to disagree
What does prefix dis- mean in the English word-building? Can you give some more examples of this rule?
Ex. 14. Define what parts of speech these words are.
1. differ, different, difference
2. to vary, various, variety
3. efficient, efficiency, efficiently.
Ex. 15. Fill in the blanks with the words from Ex. 13.
1. The enterprise is working _____________________.
2. There is a _______________ of reasons for high unemployment in this region.
3. Prices of the same agricultural products ____________________ from region to region.
4. There is not any _____________ between these two methods, only the names ___________ .
5. These two economists are interested in ___________________ fields of economics.
6. They have raised _____________________ of their work by means of new machinery.
Ex. 16. What are the synonyms from the text of the following words?
1. a largequantity of central planning ____________________________
2. to distribute raw materials ___________________________________
3. what work to do ___________________________________________
4. Planning of this kind is very hard and very complex to do.
5. planned economies have a number of common characteristics ______________________
6. the state can guarantee ______________________________________
7. luxury goods for the rich ____________________________________
8. the planners cannot forecast changes in demand __________________
9. There is no motive for individuals to work hard. __________________
COMPREHENSION
Ex. 17. Multiple choice. In the space provided, write the letter of the item that best
Answers the question.
____ 1. Who decided in the former Soviet Union what was to be produced and in what
quantities?
a) workers and employees
b) state planners
c) businesses
____ 2. For how many years ahead does the state decide what the nation is to produce?
a) the state doesn’t set any plans at all
b) ten years ahead
c) five years ahead
____ 3. What is a major problem faced by command economies?
a) responding to changes in people’s tastes and fashions
b) deciding what to produce
c) predicting changes in demand
____4. Who are the profits made in command economy paid to?
a) to the government
b) to workers
c) to top managers
____ 5. What does the state ensure to everyone in command economy?
a) production of as many luxury goods as people want to buy
b) purchasing of land
c) a good education and proper health care
Ex. 18. Match the beginnings of the sentences to their ends using information from the
Text.
1. In command economy the workers are told …
2. In such a system the state decides …
3. However, the command economy has …
4. A planned economy can ensure …
5. Any profits that are made in command economy …
6. Command economies are slow …
A. … that everyone receives a good education and proper health service.
B. … when responding to changes in people’s tastes and fashions.
C. … the state decides what the nation is to produce.
D. … where to work and what work to perform.
E. … a number of advantages and disadvantages.
F. … are paid to the government.
Text 3
FREE MARKET ECONOMY
VOCABULARY
to interfere – вмешиваться
private enterprise – частное предпринимательство
private ownership – частная собственность
means of production – средства производства
employer – работодатель
favoured - привлекательны
profitable goods – прибыльный товар
tax –налог
to compete - конкурировать
boom – бум; быстрый подъём (деловой активности)
recession – спад
In a true market economy the government plays no role in the management of the economy, the government does not interfere in it. The system is based on private enterprise with private ownership of the means of production. Although markets exist in traditional and command economies, all major means of production (companies, farms, factories, etc) are usually publicly owned. That is, they are owned by groups of people or by the government. In a market economy the means of production are owned by private individuals. There is no government control over land, capital and labour. No government ministry decides how many shirts or shoes to manufacture, or what style or colours. Business produce goods to make a profit.
Workers are paid wages by employers according how skilled they are and how many firms wish to employ them. They spend their wages on the products and services they need. Consumers are willing to spend more on products and services, which are favoured. Firms make more of the more profitable goods – those demanded by consumers. They make fewer of the less profitable goods – those least demanded by the consumers. This leads to direct competition between different firms making and selling these products, and that competition is one of the basic reasons why there are generally so many different styles, fabrics and brands of clothing for consumers to choose from in market economies.
Market economies are directed by prices. As the price of an item rises, sellers are encouraged to increase production, and consumers are discouraged from purchasing them. When the price falls, the opposite is true. In this way prices send out “signals” to buyers and sellers, and are influenced by the demand for and supply of the goods.
Thus, we can see that in a market economy consumers decide what is to be produced.
There are certain advantages and disadvantages of a free market economy.
Advantages:
- Consumers are free to choose what they want to buy.
- Workers are encouraged to work hard as they can keep most of their income because of low taxes.
- Business compete with each other and this could keep prices low.
Disadvantages:
- There are no government-provided goods or services such as health or education, available for everybody.
- As there is no government control over the economy there could be many uncontrolled booms and recessions in the economy.
- Businesses might be encouraged to create monopolies in order to increase prices. Consumers will have limited choice.
In fact, there is no country in the world with a completely free market economy. In all countries government are involved in important economic decisions. The United States is the country with an economy most like a free market system. But even there, the USA government has a lot of control over the economy.
Ex. 19. Translate into Russian. (“That / Those”)
1. These rates are higher than those in most Western European countries.
2. The selling cost of the larger firm will be much greater than those of the smaller firm.
3. Unofficial strikes are those which do not have full support of the trade union.
4. The rate of savings in rich countries is much higher than that in poor country.
5. Although there are more male births than female births, the number of females in the total
population exceeds that of males.
6. The aims of monetary policy are the same as those of economic policy in general.
7. That he refused to help his partner is very strange.
8. Dividends and interest on risk capital need not be paid in those years when the company has
not prospered.
Text 4
MIXED ECONOMY
VOCABULARY
market forces – рыночные силы
intermediate system – промежуточная система
at one extreme… at the other extreme – на одном полюсе… на другом
a public sector– государственный сектор
government- or state-owned organizations –государственные учреждения
to charge the consumers – назначать цену потребителю
taxpayer – налогоплательщик
in response to – в ответ на
to avoid – избегать
to interact - взаимодействовать
defence – оборона
water supply – водоснабжение
There are no “pure” market economies in the world today. Both market forces and government participation have been playing a certain role in the economy of a country. This mixture of market forces and government participation has led to development of an intermediate system, known as mixed economy.
A mixed economy contains elements of both market and command economies. At one extreme we have a public sector (like the command economy) made up of government- or state-owned and controlled businesses and organizations. The government makes decisions about what to produce and how much to charge the consumers. Some goods and services are provided free of charge to the consumers – such as state health and education services. The money for these comes not from the users but from the taxpayers. At the other extreme we have a private sector (like the free market economy) made up of businesses not owned by the government. These businesses will make their own decisions about what to produce, how it should be produced and what price should be charged for it. Even so, there likely to be some government controls over these decisions.Between these two extremes lies a mixed economy. In mixed economies some resources are controlled by the government while the others are used in response to the demands of consumers.
Technically, all the economies of the world are mixed. Some countries are nearer to command economies, while others are closer to free market economies.
The aim of mixed economies is to avoid the disadvantages of both systems while enjoying the benefits that they both offer. So, in a mixed economy the government and the private sector interactin solving economic problems.
What are the most common areas of government ownership?
In many countries the government controls the following important industries or organisations:
health defence water supply
education public transport electricity supply
The United Kingdom is a country with mixed economy. Some services are provided by the state (for example, health care and defence), while a range of privately owned businesses offer other goods and services.
WORD STUDY
Ex. 20. Learn the words:
to employ – предоставлять работу, нанимать(ся)
employer – работодатель, наниматель
employee- служащий
employment – занятость, найм на работу
unemployment – безработица