government has created public (11) to (12) prices and service (13).

Transportation, communications, and electric and other (14) are illustrations of

industries which are regulated in varying degrees. At local levels of government, public

ownership of electric and (15) utilities is quite common. But, second, in the vast

majority of markets, efficient production can be attained with a high degree of (16).

The Federal government has therefore (17) a series of (18) or antitrust

18. , beginning with the Sherman Act of 1890, for the purpose of (20) and

(21) competition as an effective (22) of business (23).

Even if the (24) foundation of capitalistic institutions is assured and competition

is maintained, there will still be a need for certain additional economic functions on the part

of government. The market economy at its best has certain (25) and (26)

which (27) government to (28) and (29) its operation.

Exercise 8. Work in pairs. Translate the following two texts into Ukrainian. Use Vocabulary 3-4 and Exercises 3a-4a in case of difficulties. Text 3

In many cases, consumers or producers can switch to substitutes; for example, they can use aluminum, glass, plastics or concrete instead of steel. In the newer industries, such as computers, small companies have shown themselves capable of moving faster to exploit new technologies than have giant corporations.

Some people argue that a concentration of economic power is dangerous because it may lead managers to put personal or corporate gain above public welfare. The U.S. government has tried to reap the advantages of large-scale organization while minimiz­ing the dangers through legislation, such as the Interstate Commerce Act and the Sherman Antitrust Act. The Federal Trade Commission and the Antitrust Division of the Justice Department are mandated to watch for potential monopolies and to prevent mergers, or take steps to break up companies when a lack of competition can be demonstrated to hurt the consumer.

Anti-monopoly efforts will long be measured against the Justice Department’s success in forcing the breakup of American Telephone and Telegraph Co. (AT&T), the world’s lar­gest and most prosperous telecommunications network.

Text 4

One of the first economic abuses that the government attempted to correct in the public interest was the excessive concentration of business. At the end of the 19^th and beginning of the 20^lh centuries, the United States went through a period of rapid economic concentration characterized by the merger of small companies into bigger ones. Many big companies entered into agreements to limit supply and raise prices; often they drove weaker firms from business by cutting prices and taking losses until competitors went

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