VI. Match each term in Column a with its definition in Column b:

Column A Column B

1. economic system	a. An economic system that allocates scarce resources according to custom.
2. traditional economy	b. An economic system in which major decisions concerning the allocation of resources are made by agencies of the government.
3. command economy	c. The approach a country uses to deal with scarcity and achieve its economic goals.
4. business	d. The production, distribution, and sale of goods and services for a profit.
5. consumer	e. The rivalry among buyers and sellers in the purchase and sale of resources and products.
6. competition	f. A person who buys and uses goods or services.
7. market	g. The difference between revenues and operation costs incurred by a business.
8. profit	h. Place where buyers and sellers come together to conduct transactions.

7. Define which of the following items best completes

the statement:

1. A market exists

a. where consumers express their needs and wants.

b. when products are advertised.

c. where merchants build shops.

d. where buyers and sellers exchange goods and services.

2. Individuals and businesses have the greatest say about what is produced in

a. market economies.

b. traditional economies.

c. command economies.

d. all economic systems.

3. The special role of the profit motive in a market economy is that, it

a. drives sellers to produce what buyers want.

b. results in high prices.

c. discourages people from taking risks.

d. keeps people from going into business.

4. In another country, privately owned business firms can produce goods or services in any lawful manner that they choose.

This country has

a. a market economy.

b. a traditional economy.

c. a command economy.

d. a mixed economy.

VIII. Answer the following questions:

1. Who asks the questions of What, How and for Whom to produce in a market economy? 2. What is a market in economic term? 3. Who will stay in business in a market economy? 4. What advantages does market economy have? Explain it in details. 5. What does the final advantage of the market economy consist in?

IX. Translate into English:

1. Ринкова економiка має кiлька головних переваг, яких нема в традицiйнiй та команднiй економiках. 2. Коли цiни на газ у Сполучених Штатах вирiвнялися в 1985 р. i потiм упали в 1986 р., то ця тенденцiя повiльно почала змiнюватися в протилежному напрямку. 3. Одна з головних переваг ринкової економiки полягає у свободi, яка iснує для кожного пiдприємця. 4. Оскільки споживачам подобаються товари за низькими цiнами i високої якостi, виробники за ринкової економiки намагатимуться постачати саме такi товари. 5. Уряд намагається не втручатися в жодні галузi, крім нацiональної оборони. 6. У ринковiй економiцi майже будь-який товар може бути i буде виготовлений, поки на нього є покупець.