POSIBNIK_1_KURS

Ex.5. Make up verb+noun collocations (there may be several variants).

Ex.6. Fill in the gaps in the following verb collocations with appropriate prepositions or adverbs.

To deal ____ the same economic problems; to do something ____ a unique way; to utilize market mechanisms ____ a very limited extent; to turn resources ____

goods and services; to result ____ the greatest efficiency; to be compatible ____

individual freedom; to produce goods and services ____ sale; to search ____ the lowest price ____ a given product; to benefit ____ the efficient use of resources; to direct production ____ goods and services people want to get; to produce goods and services ____ the lowest economic cost; to bring buyers and sellers ____ ; to conflict ____ individual freedom.

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Ex.7. Choose the appropriate word or phrase to complete the following

sentences.

Households, most compatible, labour, surplus, borrow and save, purchase, bring together, in a unique way, economic incentives, shortage, competition, to a very limited extent, define and enforce, businesses

1.Each economic system deals with What? How? and For whom? problems ____.

2.In some countries, market mechanisms are utilized ________ .

3.Free enterprise systems are ________ with individual freedom and political democracy.

4.In the free enterprise system ________ help people answer What? How? and For whom? questions in the most beneficial way, e.g. low prices for goods or services for consumers and high profit for producers.

5.________ , one of the components of the free enterprise system, own most of the

country’s economic resources and with their wages and salaries ________ two-

thirds of all the country’s production.

6.One of the resources that households have is their ________ , which they can sell to businesses.

7.Another component of the free enterprise system, ________ , performs the role of organizers.

8.Markets act as agents which ________ buyers and sellers ________ .

9.Financial markets are used by both households and businesses that want to

________ money.

10.The main role of government in the free enterprise system is to ________ the rules of society.

11.The situation when there are more goods than demanded is called ________ . When the opposite occurs, it is called ________ .

12.Another economic incentive in the free enterprise system is ________ , which stimulates businesses to make the most efficient decisions.

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Ex.8. Combine two parts logically to make complete sentences.

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Ex.9. Look through the text again and replace the words in bold with the

linking words and phrases given below.

Even though/although, to a limited extent, therefore, instead, in addition to,

however, in essence, on the other hand

1.In a free-enterprise economy, nobody forces entrepreneurs to be creative and productive. Rather, business people themselves choose what is best for their business.

2.Most countries in the world have a high level of market freedom. That is why, their economic systems are frequently called free market or free enterprise systems.

3.All economies deal with the same economic problems – What? How? and For whom? But they do it in their own unique way.

4.In some economies, such as Cuba, the market mechanisms are realized only in certain limits.

5.Despite the fact that markets are not necessarily people, they act as agents to bring buyers and sellers together.

6.Besides selling their resources to get profit, households also act as consumers.

7.Even if the market system is characterized by the absence of government interference, the government still plays an important role.

8.If a business is profitable, there is an incentive for other people to join it.

Alternatively, if it suffers losses or pays low wages, there is an incentive to change it for another one.

9.The role of government in some aspects is so important that, in fact, it acts as an umbrella under which the free enterprise system operates.

Ex.10. Translate into English.

1.У світі існує безліч типів економічних систем, які відповідають на головні питання економіки - Що виробляти? Як виробляти? Для кого виробляти? -

своїм особливим чином.

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2.Економічні системи відображають відмінності в соціальних цінностях і цілях суспільства.

3.Високий ступінь ринкової свободи називають економічною системою вільного підприємництва.

4.Виробляючи товари і послуги, необхідні для суспільства, система вільного підприємництва призводить до найвищої ефективності або найменших витрат економіки.

5.Економічні стимули допомагають людям вибрати найбільш вигідний спосіб дій.

6.Якщо люди приймають неправильні рішення, вони можуть зіткнутися з неприємними наслідками, такими як втрати бізнесу або низька зарплата або навіть звільнення працівників.

7.Учасниками економічної діяльності в більшості систем вільного підприємництва є домашні господарства, компанії, ринки і уряд.

8.Домашні господарства володіють більшою частиною економічних ресурсів країни і на свою зарплату купують дві третини всієї продукції країни.

10.Нездатність заробити прибуток є сигналом для компаній про необхідність використовувати свої ресурси більш ефективно.

11.Ринок - це будь-яке місце або спосіб, які допомагають покупцям і продавцям обмінюватися товарами, послугами, ресурсами або фінансами.

12.Як домашні господарства так і компанії використовують фінансові ринки для позик або накопичення грошей.

13.Наріжним каменем системи вільного підприємництва є відсутність втручання уряду в економічні питання.

14.Уряд забезпечує дотримання закону і порядку і охороняє право людини на приватну власність.

15.Система цін є важливою інформацією про попит на будь-який товар і про його нестачу або надлишок на ринку.

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16.Конкуренція також допомагає направити ресурси на виробництво товарів і

послуг, які споживачі цінують більше за все.

LANGUAGE SKILLS

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

1.Yes, they have to deal with the same What? How? For whom? problems.

2.No, they have different combinations of traditions, commands and markets.

3.Because they reflect differences in their social values and objectives.

4.They are often called free market or free enterprise economic systems.

5.Because people are free to decide what is best for them to produce and to buy.

6.They are profit for businessmen, high prices for property owners, low prices for consumers, and high salaries for workers.

7.They are households, businesses, markets and governments.

8.They can sell their resources and act as consumers.

9.It is the ability of consumers to influence production, directing it toward the goods and services they want to get.

10.These are people who start and run businesses and are organizers and innovators.

11.They act as agents to bring buyers and sellers together.

12.There are three categories of markets − resource, product, and financial ones.

13.Yes, it still plays an important role in a free system. 14.Its main role is to define and enforce the rules of society.

Ex.12. Answer the following questions.

1.Why do societies answer the same economic questions – What to produce? How to produce and For whom to produce? – in a different way?

2.Why most modern economic systems are called free market economies?

3.What does free enterprise mean?

4.What motivates people in their free decision-making?

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5.Why are economic incentives important?

6.What forms can economic “punishments” take?

7.What components does a free enterprise system consist of?

8.Why are households referred to as Owners?

9.What is consumer sovereignty?

10.In which way do businesses act as Organizers?

11.What does efficiency in business mean?

12.How and where do buying and selling activities take place? 13.What is a market?

14.In which way are resource, product and financial markets interconnected? 15.Are free enterprise systems absolutely free from government interference? 16.Why can government be called “an umbrella” under which the free enterprise

system operates?

17.What is the linking function of the price system? 18.What are surplus and shortage?

19.In addition to the price system, what other incentives help the free enterprise economy function successfully?

Ex.13. Make a presentation of the topic “Free-enterprise system”.

WRITING

Ex.14. Write a plan for a summary of Text A. Start with

1.Uniqueness of economic systems

2.___________________________

3.___________________________

Ex.15. Write a brief summary (25-30 sentences) of Text A.

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Ex.16. Write an essay about advantages and disadvantages of the free enterprise economic system (100-150 words).

DISCUSSION POINTS

Ex.17. Discuss the following questions.

1.Why are social arrangements such as markets and property rights necessary?

2.“The economic system of tomorrow is mostly likely to be quite different from the economic system of today.” Do you agree?

3.According to polls, most US economists who classify themselves as liberal favour less government involvement in the economy than the general public does. Can you explain these different approaches?

4.A market system is based on consumer sovereignty – the consumer determines

what is to be produced. Yet business decides what is to be produced. Can these

two views be reconciled? How? If no, why?

TEXT B: ROLE OF GOVERNMENT IN A FREE-ENTERPRISE

ECONOMY

Ex.18. Scan the text bellow and give headlines to each paragraph.

If markets and market systems are so efficient, why let the government tamper with their actions at all? Why not adopt a strict policy of what is called laissez-fair and allow private markets to operate without any government interference? (0)___________

National defense is one example where the role of government is indispensable because the defense of a nation is a type of good that is completely different from oranges, computers, or housing. People do not pay for each unit they use, but purchase it collectively for the entire nation. Providing defense services to one individual doesn’t mean that there is less defense for others because all people,

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