VII. Retell the text b using the following words and

word-combinations:

command economy; central authority; to go along with smth; production quotas; major economic choices; major industries; to direct resources; to stress growth of heavy manufacturing; to strengthen national defence; in a relatively short time; to change direction drastically; consumer goods; to determine needs; to meet the wants and needs of individuals; the lack of incentives; regardless of; to shift resources; to operate the system; a large decision-making bureaucracy; production costs; to deal with day-to-day problems.

Reading drIlls

1. Practise the pronunciation of the following words:

a) stress the first syllable:

market, interest, buyer, seller, price, profit, final, flexible, trend, quality, level, business, switch, money, goods, services, government, care, lack, slowly, generally;

b) stress the second syllable:

arrangement, conduct, adjust, transaction, efficient, significant, supply, decline, reverse, exist, involve, incredible, variety, available.

Text C

In a market economy, the questions of What, How and for Whom to produce are made by individuals and firms acting in their own best interests. In economic term a market is an arrangement that allows buyers and sellers to come together to conduct transactions¹.

Since consumers like products with low prices and high quality, producers in a market economy will try to supply such products. Those who make the best products for the lowest prices will make profits² and stay in business³. Other producers will either go out of business or switch to⁴ different products consumer can buy.

A market economy has several major advantages that traditional and command economies do not have. First, a market economy is flexible and can adjust to change over time.

When gas prices in the United States began to level off in 1985 and then decline in 1986, the trend slowly began to reverse.

The second major advantage of the market economy is the freedom that exists for everyone involved. Producers are free to make whatever they think will sell. They are also free to produce their products in the most efficient manner. Consumers on the other hand are free to spend their money or buy whatever goods and services they wish to have.

The third advantage of the market economy is the lack of significant government intervention. Except for national defence, the government tries to stay out of the way⁵. As long as there is competition among producers, the market economy generally takes care of itself.

The final advantage of the market economy is the incredible variety⁶ of goods and services available to consumers. In fact, almost any product can and will be produced so long as there is a buyer for it.

Comments

1. to conduct transactions — проводити дiловi операцiї

2. to make profits — отримувати прибуток

3. to stay in business — залишатися в бiзнесi

4. to switch to — переорiєнтуватись

5. to stay out of the way — не втручатися

6. incredible variety — неймовiрна рiзноманiтнiсть