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

Column A Column B

1. mixed economy

a. The money needed to start and continue operating a business commerce and industry.

2. capitalism

b. The application of science to commerce and industry.

3. marketplace

c. The production, distribution and sale of good and services for a profit.

4. private property

d. Any place in which goods are bought and sold.

5. capital

e. Economic system that combines elements

of free-market and command economies.

6. ownership

f. Free enterprise system.

7. technology

g. Right over property, including right of possession, exclusive enjoyment, destruction etc.

8. business

h. Goods owned and controlled by individuals.

  1. Define which of the following items best completes

the statement:

1. In a free enterprise system

a. individuals may enter any lawful business.

b. each citizen has the right to vote in elections.

c. goods are so plentiful that they are free.

d. workers do not charge for their labour.

2. An economy is «mixed» when

a. goods and services are produced by both publicly and privately.

b. government owns and controls all businesses.

c. economic decisions are made by tradition.

d. there is a «mixture» of rich and poor people.

3. Today in the American economy

a. government plays only a tiny part.

b. economic decisions are made in the marketplace.

c. government plays a significant role.

d. free enterprise no longer exists.

4. Which of the following is a reason for government participation in the economy

a. to reduce competition in the marketplace.

b. to provide goods and services more cheaply than private enterprise.

c. to regulate harmful externalities.

d. to guarantee that all business firms earn a profit.

  1. Complete the following sentences:

1. The United States of America is ... . 2. Free enterprise economy means ... . 3. Despite the fact that the United States has a free enterprise system ... . 4. Mixed economy is ... . 5. The United States owes its high level of economic development ... . 6. The territory of the USA is extremely rich in such minerals as ... . 7. The structural composition of the US industry shows ... . 8. Electronic and electric engineering, transport, communication and machine-tool industries can be found ... .

  1. Answer the following questions:

1. Is the United States of America one of the largest countries in the world? 2. What type of economic system does the USA have? What does it mean? 3. Where are most economic decisions made in the country? 4. What is the role of the government in the US economy? 5. What is a mixed economy? 6. What place does the USA hold in the capitalist world? 7. What does the country owe its high level of economic development to? 8. What minerals is the territory rich in? What do they provide? 9. Does the country have powerful industries, advanced technologies, and science? 10. What does the structural composition of the US industry show? 11. What industries can be found in large cities?

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