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English for students of economics.doc
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Text 4 mixed economy

Vocabulary

market forces – рыночные силы

intermediate system – промежуточная система

at one extreme… at the other extreme – на одном полюсе… на другом

a public sector – государственный сектор

government- or state-owned organizations – государственные учреждения

to charge the consumers – назначать цену потребителю

taxpayer – налогоплательщик

in response to – в ответ на

to avoid – избегать

to interact - взаимодействовать

defence оборона

water supply водоснабжение

There are no “pure” market economies in the world today. Both market forces and government participation have been playing a certain role in the economy of a country. This mixture of market forces and government participation has led to development of an intermediate system, known as mixed economy.

A mixed economy contains elements of both market and command economies. At one extreme we have a public sector (like the command economy) made up of government- or state-owned and controlled businesses and organizations. The government makes decisions about what to produce and how much to charge the consumers. Some goods and services are provided free of charge to the consumers – such as state health and education services. The money for these comes not from the users but from the taxpayers. At the other extreme we have a private sector (like the free market economy) made up of businesses not owned by the government. These businesses will make their own decisions about what to produce, how it should be produced and what price should be charged for it. Even so, there likely to be some government controls over these decisions. Between these two extremes lies a mixed economy. In mixed economies some resources are controlled by the government while the others are used in response to the demands of consumers.

Technically, all the economies of the world are mixed. Some countries are nearer to command economies, while others are closer to free market economies.

The aim of mixed economies is to avoid the disadvantages of both systems while enjoying the benefits that they both offer. So, in a mixed economy the government and the private sector interact in solving economic problems.

What are the most common areas of government ownership?

In many countries the government controls the following important industries or organisations:

health defence water supply

education public transport electricity supply

The United Kingdom is a country with mixed economy. Some services are provided by the state (for example, health care and defence), while a range of privately owned businesses offer other goods and services.

Word study

Ex. 20. Learn the words:

to employ – предоставлять работу, нанимать(ся)

employer – работодатель, наниматель

employee- служащий

employment – занятость, найм на работу

unemployment–безработица

Put these words in the sentences given below.

  1. We all hope that _________________ will get better in the future.

  2. The office of the company is closed today because all its ______________ are on strike.

  3. Business activity ________________ people as workers and pays them wages.

  4. In market economy no planners have to be ______________________ .

  5. The rising ____________________ may lead to many social as well as economic problems.

  6. ___________________ of the new staff will be in September

  7. When composing a job advertisement take into consideration that you must name the position you _______________________ for.

  8. Some businesses _____________ thousands of people with operations in many different countries.

  9. The director of our company prefers ________ intelligent, sociable and hard working people.

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