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4. Read the text and check your answers:

No state today is completely socialist or completely capitalist. The various national economic systems tend generally towards one type or the other. It is rather difficult to classify many of them exactly.

In many countries the authority has found necessary to control or regulate national economic conditions. Even the most dedicated free enterprise systems, such as the USA, have felt this need. The under-developed countries of the globe are usually interested in control and long-term planning.

Such countries as India have had a number of plans guided by the government. India makes a clear distinction between the public sector of its economy on the one hand and the private sector on the other hand.

Such systems, with public and private sectors, are neither socialist nor capitalist. Economists call systems of this type mixed economies.

Britain nowadays has a mixed economy. There are the nationalized industries like coal and steel, British Rail and British Overseas Airways Corporation (BOAC) in the public sector of British economic life. The majority of large and small nation’s industries are in the private sector. The private sector includes giant companies like ICI (Imperial Chemical Industries) and BP (British Petroleum) as well as a great number of small family businesses.

In 1962 the British government set up an official planning body to guide national economic policies. This body is called the National Economic Development Council (NEDC). The members of this council are representatives of the employers’ federations, employees, the Trades Union Congress, members of the government, eminent industrialists and leading economists.

The main function of the NEDC is to plan national production and set up production targets. It is however a very difficult matter to plan ahead in a mixed economy. It is not possible to plan ahead with any certainty even in a rigidly controlled economy, because natural disasters, political changes and other factors can affect the general plan in unexpected ways.

PRACTICE

1. In the text find single words in italics for which these words and word combinations can be substituted:

  1. varied

  1. manufacture

  1. government

  1. difference

  1. world

  1. plan

  1. categorise

  1. well-known

  1. influence

  1. rule

2. Say whether these statements are true (t) or false (f), and if they are false say why.

  1. ( ) The USA is not completely capitalist.

  2. ( ) It is easy to classify economic systems.

  3. ( ) The United States finds it necessary to control national economic conditions to a certain extent.

  4. ( ) The interest of the under-developed countries in long-term planning is inevitable.

  5. ( ) India makes a clear distinction between the two sectors of its economy.

  6. ( ) The nationalized industries in Britain are in the private sector of the economy.

  7. ( ) Giants like ICI and BP are not publicly owned.

  8. ( ) The British government controls the economy through the NEDC.

  9. ( ) Planning ahead in a mixed economy is not particularly difficult.

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