3. Do the following statements agree with the information given in the text?

Use TRUE if the statement agrees with the information

FALSE if the statement contradicts the information

NOT GIVEN if there is no information on this

1. The purpose of positive economics is controversial: on the one hand, it should give answers to questions about current economic problems; on the other hand, it foresees the behaviour of the economy in future.

2. When applying normative economics, we make decisions greatly depending on our value judgements.

3. Competent and comprehensive research can resolve entirely all important issues in positive economics.

4. Pensioners are popular users of medical service, that is why the government should build more hospitals for them.

5. There is an interconnection between positive and normative economics.

4. Complete the summary using the list of words, A – N, below.

The economic science 1 ________ scientific, i.e. objective explanations of how the economy functions. In this 2 _______ it applies the 3 ________ approach where economists study what it is and what it can be in reality. If an issue in positive economics is scientifically proved, there is no place to any 4 _________ left. But there can be different 5 ________ views on 6 _______ problems which provide 7 _______ for further research. Economists may have their own 8 ______ judgements on economic issues. Here they deal with 9 _______ economics where it becomes difficult to 10 _______ disputes. However, positive economics shows the distinct 11 _______ of how to make a normative choice.

disagreement imply subjective scope

clarify claims searches for unresolved

implications regard positive value

persuasion normative

4. Choose the correct letter A, B, C or D.

Which of the following best describes the main idea of the text?

A. Competent research is an integral part in economics.

B. In every economic issue there are both positive and normative sides.

C. Normative statements cannot be proved.

D. The two branches of economics exist separately from each other.

4. LISTENING

1. Complete the sentences below.

Write NO MORE THAN TWO WORDS for each answer.

1. Markets are arrangements through which prices _________the allocation of scarce resources.

2. The three economic issues are solved by the ___________ in the command economy.

3. To plan what to produce and consume is a __________ task.

4. Businessmen in the free market economy can become ___________.

5. The PPF moves ___________ when a new car is manufactured.

6. The government fulfils its controlling function via taxation, __________, providing services.

2. Complete the table below.

Write NO MORE THAN TWO WORDS for each answer.

Type of economy	The government	Individuals
Command example: the 1 ______	takes 2________________	are told what to 3 _________
Free market example:4_________	does not 5_____________ in the market	6 ____________ their own interests
Mixed example: most countries	7 __________ with the private sector	can decide for themselves

4. SPEAKING

Discuss advantages and disadvantages of each of the three types of economies: command economy, free market economy, mixed economy. Organise your speaking into four parts. You may wish to use the useful expressions below in your answer.

1. Introduction to the topic …………………………………………………………………………………………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 2. Advantages There are several obvious benefits, such as …………………………………….................................. The first thing to be considered can be ……………………………………………………………… One of the main arguments in favour of … is ……………………………………………………….. Another positive aspect is ……………………………………………………………………………. ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 3. Disadvantages On the other hand, ……………………………………………………………………………………. The most common criticism is ……………………………………………………………………….. Another negative effect is…………………………………………………………………………….. A final drawback is …………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 4. Summary and own opinion To sum up …………………………………………………………………………………………….. In conclusion, I believe ……………………………………………………………………………….. The advantages/disadvantages outweigh the disadvantages/advantages……………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………