8. Put the missing letters.

To ma..ch, ef..ctive, d..mand, ma..nt..nance, fixed cap,,tal inv..stm..nt, to sin..le o..t, am..nity, disp..sable, inc..me, d..rable.

9. Work in pairs. One student has to name all the words from word list he\she memorized another student has to translate them.

Read and discuss the text. Single out the main facts and present them in a short review.

Economic System

The functions of an economic system may be defined as follows:

1. to match supply to the effective demand for goods and services in an efficient manner;

2. to determine what goods and services are to be produced, and in what quantities;

3. to distribute scarce resources among the industries producing goods and services;

4. to distribute the products of industry among members of the community;

e) to provide for maintenance and expansion of fixed capital investment;

f) to fully utilize the resources of society.

Depending on how decisions are made and how the above functions are fulfilled different economic systems can be singled out. Many countries like Britain, Sweden, and France operate a mixed system (mixed economy) splitting the economy into public and private sectors.

In Britain, for example, about two-thirds of the economy and about five-sixths of commerce is conducted by private firms. The remainder of the activities of the economy is conducted by socially owned enterprises. Some, like the Army, Navy, and Air Force, are clearly the sort of institutions that the state itself should control. Others have tended to be performed by the state because they are nonprofit making, and as such are unlikely to be attractive to businessmen. Such activities as education and medical care are best operated as socially provided amenities for the benefit of all citizens.

In the commercial field certain goods and services are by their nature monopolies. Among these natural monopolies are gas, electricity, and water supply. The capital costs of such enterprises are too great for competition to be possible.

Transport is another natural monopoly. It would be uneconomic to run two railway lines from one place to another, or two different sets of half-empty buses along a country road.

These natural monopolies have, for economic, political, or social reasons, come to be run in the United Kingdom by nationalized institutions, or the municipal authorities, who provide the services required at reasonable prices.

1. Answer the questions.

1. What are the functions of the economic system?

2. What are the peculiarities of mixed system?

3. What kinds of institutions should be controlled by the state?

4. What are the fields of nature monopolies?

5. Is the transport natural monopoly? Why?

6. Do the natural monopolies include nationalized institutions, municipal authorities, which provide the services required at reasonable price?

2. Find in the text English equivalents for the following Ukrainian phrases:

Можуть бути визначені як; розподіляти рідкі ресурси; забезпечувати збільшення вкладів до основного капіталу; проводиться приватними фірмами; решта видів діяльності проводяться державними підприємствами; бути привабливими для бізнесменів; соціально-передбачене обслуговування; обслуговування для користі громадян; занадто великі, щоб конкуренція була можлива; було б не економічно прокладати.

3. Find and read sentences explaining the title of the text.

4. Find in the text sentences expressing such ideas.

1. The functions of an economic system are diverse.

2. The natural monopoly doesn’t provide competition.

3. We can single out different economic systems.

4. A mixed system splits the economy into two sectors.

5. a) Choose the word with the opposite meaning for the word underlined.

1. Others have tended to be performed by the state because they are profitmaking.

2. The capital costs of such enterprises are too little for competition to be possible.

3. Such activities as education and medical care are best operated as socially provided discomfort for the harm of all citizens.

4. It would be economic to run two railway lines from one place to another.

b) Choose the word with the similar meaning for the word underlined.

1. One of the functions of the economic system is to determine what goods and services are to be produce.

a) to clear b) to define c) to look d) to find

2. A mixed system splits the economy into two sectors.

a) to subdivide b) to change c) to provide d) to require

3. It is necessary to maintain and expand the fixed capital investment.

a) to keep up b) to bring up c) to produce d) to utilize

4. Different economic systems can be singled out.

a) be chosen b) be picked out c)be looked for d) be gathered

5. The first function of an economic system is to match supply to the effective demand for goods and services in an efficient manner.

a) to involve b) to make c) to bring into accord d) to do

6. Match the words from a) with the words from b).

a) distribute utilize conduct by split natural capital effective socially provided private

b) monopoly amenities demand sector scare resources the economy costs private firm