Text 7 Market economies

In a true market economy the government plays no significant role in the management of the economy. The system is based on private enterprise with private ownership of the means of production and private supplies of capital.

Since all firms are privately owned they try to make the largest profits possible.

Vocabulary

to make the largest profits possible – получать наибольшую возможную прибыль

management of the economy – управление экономикой

means of production – средства производства

private enterprise ( entrepreneurship) – частное предпринимательство

private supplies of capital – частный капитал

private ownership (property) – частная собственность

significant role – существенная роль

TASKS

Task 1. Find in the text the adjective which characterizes this economic system. How many times is it used?

Task 2. Form the adverbs. Mind the exceptions of the rule.

Model: private – privately

large

international

significant

natural

mental

economical

hard

late

fast

Task 3. Give corresponding verbs to the following nouns:

management

ownership

market

supply

production

profit

analysis

economy

consumption

Task 4. Fill in the gaps with the words and expressions from the text:

1. In true market economy …. plays … significant … in the … of the economy.

2. The system is based on …. …. with private …. of the means …. …. and …. supplies …. …. .

Task 5. Find in the text English equivalents for the following:

1. рыночная экономика;

2. управление экономикой;

3. частная собственность на средства производства;

4. максимально высокие прибыли.

Task 6. Arrange the letters in brackets into terms of the given definitions.

1) the production, buying, selling of goods and services for profit (s n u s b I s e);

2) the activity or skill of directing and controlling the work of a company or organization ( a g m n t e m a n e)

3) to gain money from an event, selling something ( o p t I r f)

Task 7. Match the Russian word combinations in column B with the English ones in column A.

A.

in private

private property

private enterprise

a private account

private information

one’s private life

В.

личная жизнь

конфиденциальная информация

личный счет

частная собственность

частным образом, неофициально

частное предприятие

Task 8. Answer the following questions.

1. What role does the government play in a true market economy?

2. What is this system based on?

3. Who owns the means of production?

4. What’s the aim of all private firms?

Text 8. Mixed economies

Command and market economies both have certain faults. Partly because of this, an intermediate system has developed, known as mixed economy.

This economy contains elements of both market and planned economies. Some resources are controlled by the government while others are used in response to the demands of consumers.

The aim of mixed economies is to avoid the disadvantages of both systems and to enjoy the benefits that these systems can offer.