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I. Find the answers in the text:

  1. Is a free market controlled by a government? 2. Can customs or traditions influence a free market? 3. Why are things bought and sold in a free market? 4. We all of us are customers, aren’t we? 5. What is the role of the company in the free market? 6. Why do companies need an incentive in the free market? 7. What is their incentive? 8. What are main features of the market company? 9. Why does competition exist in a free market? 10. Is there a truly free market at the market economy level?

  2. Complete the sentences as in the text.

1. Companies need an incentive, the incentive is … 2. Owners sell what customers demand and try to … 3. The role of the company in the free market is to … 4. Competition exists in a free market because … 5. If customers aren’t happy with a product or service, they … 6. Tools and machines help companies to …

III. Complete each sentence with a word or phrase from the box.

Advertise, afford, competition, controlled, costs, incentive, limit, prepared, profit, raise, reduce, role, street market, theoretical.

1. Every Saturday this road becomes the local where

people come to buy fruit and vegetables.

2. Businesses their products in the media to attract

more customers.

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3. My in the business is to meet customers and find

out what they want.

  1. Making money is the main to work.

  2. I bought this old camera for €50 and sold it for €75.That’s €25...

  3. If there’s only one producer in the market, there’s no

7. Production are the amount of money companies

spend to make a product.

8. The idea that life exists on other planets is Nobody

knows for sure.

9. A economy is one where a government decides what

can be bought and sold and/or how it is done.

  1. The speed on this road is 90 kilometers per hour.

  2. When there is a demand we prices but

we them if we want to sell something quickly.

  1. I can’t that car — it’s far too expensive.

  2. People are to pay a lot for services if they are of a

good quality.

IV. Now read the text again and answer these questions in your own words.

  1. Who decides what products are for sale in a free market?

  2. What do companies want?

  3. Why is competition a good thing?

  4. Why does technology exist in the market economy?

  5. Why are there no true market economies in the world today?

V. Discuss these questions with your partner.

  • Do you think most countries have a market which is free from government management?

  • Can you think of any examples supporting or disagreeing with this idea?

  • Do you think the free market is a good idea?

  • Is it good for society? Why / Why not?

VI. Say what you have learned about:

— Market or free economy

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  • Supply and demand in market economy

  • The role of competition

  • Technology in a free market

  • Limits set by government

Think and give extensive answers.

Grammar exercises

VII. Translate the sentences.

Practice the use of degrees of comparison of adjectives. (§ 7) 1. Tomorrow I’ll have to come to the office earlier than today. 2. In Petersburg it rains more often than in Moscow. 3. August is the hottest month in the Caucasus. 4. In London the weather is more changeable than in Moscow. 5. 12 o’clock is the most convenient time for our talks. 6. We won’t buy model 10 as it is worse than model 12. 7. We have less work today and we’ll be able to study more. 8. They couldn’t sign the contract as the terms were the least acceptable. 9. Which language does she know better: English or German? 10. What goods does Russia export most of all?