9. Make your own dialogue using the following words, expressions and word-combinations:

the role of government, free enterprice, price system, the American economic system, private property, competition, gross national product

10. Open the brackets using the Present Indefinite Tense in the Passive Voice:

Model: Every society (to face) with the identical problem of scarcity.

Every society is faced with the identical problem of scarcity.

1. Human wants (to unlimit), but the resources necessary to satisfy those wants (to limit). 2. The total value of the goods and services produced by the economy in a single year (to call) the gross national product (GNP). 3. Mr. Redd (to offer) an excellent price for selling his land. 4. The term capital (to use) often by business people. 5. Monopolies can set the price at which their goods (to sell).

11. Read and change the sentences according to the model:

Model: Adam Smith describes the principal elements of the economic system in his book «The Wealth of Nations».

The principal elements of the economic system are described by Adam Smith in his book «The Wealth of Nations».

1. Everything concerning the. American economic system interests me. 2. They consider Adam Smith «the father of modern economics». 3. Есоnomic incentives influence our decisions about what and where to buy. 4. Economic forces affect decisions in the world of business. 5. Prices direct market economies.

12. Translate into English:

1. Рентою називають ціну за користування землею. 2, Термін «капітал» часто вживається бізнесменами. 3. Економічні системи можуть бути класифіковані як традиційні, загальні та ринкові. 4. Людей, які користуються товарами та послугами для задоволення своїх потреб, називають споживачами. 5. Загальна вартість усіх товарів і послуг за один рік називається валовим національним продуктом.

13. Communicative situations:

Marta Redd owns a 10-acre plot of ground at the eastern edge of town. It is next to an area that is «going commercial». Last month Ms. Redd was offered an excellent price for selling her land to the Blue Manufacturing Company. Blue wanted to erect a new plant on the land. Ms. Redd knew that if she sold her acreage to the firm she would receive more than if she continued to lease it to Frank White, a farmer who is presently growing vegetables on the land.

1. Why did Blue Manufacturing want to buy Ms. Redd's land?

2. Why is Redd likely to accept Blue's offer?

3. How will these events affect White?

4. Explain how the story illustrates the ways that the opportunity cost of land, profits, and the profit motive affect the use of land.

5. Describe a situation in which the profit motive would affect the use of another productive resource (labor, capital, or entrepreneurship).

Unit 3 the consumer in our economy

1. Read and memorize the following words, word-combinations and word-groups:

to meet one's needs – задовольняти потреби

e.g. Many businesses work very hard to meet your needs and wants.

wage(s) (syn. salary) – заробітна плата

e.g. In return for working, you will receive a wage or salary.

wealth – багатство

e.g. Wealth is the value of the things you own.

to deposit money in a savings account – класти гроші на ощадний рахунок

e.g. We decided to deposit money in a savings account.

to earn interest – одержувати відсотки

to loan – позичати, давати позику

e.g. Wealth, in the form of money that is loaned to others or deposited in a savings account, will earn interest.

expenditures – витрати

savings – заощадження

e.g. The Greens plan their expenditures and savings very carefully.

to make one's decision – приймати рішення

e.g. When the time comes to make a major purchase, we compare products and prices before making our decision.

to keep track – дотримуватися курсу

e.g. Most of the time, we are able to keep track of our expenditures (the money spent), so that we are able to meet our immediate needs.

to exceed – перевищувати

surplus – лишок

e.g. Budgets in which income exceeds expenditures will have a surplus.

rate of return – норма прибутку

e.g. The rate of return is expressed as a percentage of the amount on deposit for a period of a year.

compound interest – складні відсотки

e.g. Most accounts offer compound interest.

yield – прибуток

e.g. It is important to distinguish between rate of return and yield, the actual amount of interest earned.

to share risk – розподіляти страхову суму

e.g. Insurance enables people to share risk.

endowment insurance – страхування-вклад

e.g. Endowment insurance protects the insured for a specific number of years.

consumer credit – споживчий кредит

e.g. Consumer credit provides cash, goods, or services now, while spreading repayment into the future.

finance charge – фінансові витрати

e.g. Finance charge is the total amount you pay to use credit.

passbook loan – книжка займу

e.g. If you have a savings account, you may to apply for a passbook loan against your balance in that account.