I. Choose the right answer:

1. Most people are employed to

a ) spend time;

b ) have some particular personal satisfaction;

c ) earn money;

d ) help other people.

2. … make our life more pleasant.

a ) Games

b ) Food, clothes and shelter

c ) Limits

d ) Non-essentials

3. Capitalist economic systems are based upon

a ) private ownership of the means of production;

b ) surplus income;

c ) public property;

d ) considerable economic freedom of choice.

4. Complete economic freedom could cause

a ) reduction of prices;

b ) instability in the whole economic system;

c ) creating of new working places;

d ) development of industry.

5. The government adopts economic laws which are concerned with…

a ) interests of authorities;

b ) interests of foreign countries;

c ) interests of both employers and employees;

d ) likes and dislikes of political parties.

6. To produce 100,000 grey XXL coats every year is typical for …

a ) a mixed economy;

b ) a command economy;

c ) a market economy ;

d ) any economy.

7. Fluctuations of prices depend on

a ) supply and demand;

b ) quality and quantity of goods;

c ) economic ideology of the country;

d ) the exchange rate.

8. In the countries with mixed economic systems the authorities

a ) decide what quantities of goods to produce;

b ) have very few economic functions;

c ) organize the whole economic effort of the nation;

d ) control and regulate national economic conditions.

9. Mr Smith’s cattle farm belongs to the

a ) public sector of British economy;

b ) NEDC;

c ) private sector of British economy;

d ) oil industry.

10. It is impossible to plan ahead with any certainty in the mixed economy because of

a ) a wide and very complex range of people’s wants;

b ) natural and political changes;

c ) limited natural resources;

d ) instability and unemployment.

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II. Say what is true and what is false. Correct the false sentences:

1. If in the same garage you may buy a car or some service, which helps you maintain the car, it means that people working in the garage provide both goods and services.

2. Most people usually work to buy essential commodities.

3. The science of economics is concerned with all human material needs and wants.

4. Both American and British economic systems are capitalist. So they are based on the governmental control of land, labour and capital.

5. If individual citizens who live in the socialist country obey the law, they can have private property.

6. The country whose economic system is based on private enterprise with private ownership of the means of production is neither communist nor capitalist.

7. All individual citizens are required to conform to the laws made by their government.

8. Such developed countries as the USA and Great Britain have a mixed economy nowadays.

9. Food production and distribution are in the public sector of the national economy.

10. The members of the National Economic Development Council are responsible for planning national policies.

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