Language skills

Ex.11. Ask questions to which the following sentences may be answers.

1. As a mechanism for survival.

2. It is possible to group these different economic structures into four broad categories.

3. The oldest and the most common way of solving economic problems was that of tradition.

4. Strictly speaking, the pure market of laissez-faire system has never existed.

5. Supporters of planned economies cast them as a practical measure to ensure the production of necessary goods.

6. Efficiency is best achieved through a market economy where individual producers each make their own production decisions based on their own profit motive.

7. All countries today have mixed economic systems or mixed economies, with some free enterprise and some government ownership.

8. Economies in states ranging from the United States to Cuba have been termed mixed economies.

9. If the government owns and operates almost all of the nation's means of production, then that nation's economic system is called communism.

10. The U.S. has a free enterprise, or capitalist, economic system.

Ex.12. Answer the questions:

How does every economic society present itself for an economist?

What are the basic types of economic systems?

What kind of questions may help to solve economic problems satisfactorily?

Why does every society face the problem of resource allocation?

What methods of production and distribution are used in a traditional economic system?

Describe advantages and disadvantages of traditional economies.

Who makes economic decisions in a market economic system?

List six essential features of a market economy.

Describe the role of government in a planned economy.

What are disadvantages of planned economies?

Define a mixed economic system.

What is the fourth basic question that should be asked by every society?

Who owns the means of production in the discussed economic system?

Ex.13. Make a presentation of the topic “Types of Economic systems”.

Writing

Ex.14. Make a plan for a summary of Text A.

Ex.15. Write a brief summary of the text (25-30 sentences).

Ex.16. Write an essay (100-150 words) about:.

a) Pros and cons of command economies.

b) The role of government in a free-enterprise system.

Discussion points

Ex.17. With your partners do the following.

Explain the basis on which economists in classifying economic systems distinguish between ‘market’ and ‘command’ economies. On what basis, if any, is it possible to say which type of economy is superior?