Questions for discussion

1. What are the What, How and Who questions all economic systems must answer? Describe how government affects the answers to these three questions in market, command and traditional economies.

2. For each of the examples of government-owned 72organizations listed below, suggest three possible reasons why the government of a country might decide to own and control that industry or service.

Health defence water supply

education public transport electricity supply

3. Identify the type of economy in which each of the following situations could have existed. Next to each situation write C for Command, M for Market, T for Traditional, or ME for Mixed Economy.

____ a. Jeff is the manager of a farm equipment factory. Government officials have sent

him plans to produce a certain number of tractors. He doesn’t have to decide what

customers will buy. Rather, his main task is to complete orders on schedule.

____ b. Stanley and Sara made the best bead necklaces in the area. Their family had done

this for years. They had learned to do beadwork at an early age. They sold most of

the necklaces to people who lived in their village.

____ c. Haddock, Inc. Has been in the food production business for years. The company

was started by a family, but is now owned by a number of stockholders. The

railroads and trucklines that the company uses to ship its goods, as well as its

sources of energy, are owned by he government.

____ d. Robert has ordered two dozens albums recorded by a popular rock band and

recently released by a recording studio. After two days in his store, the albums

were sold. He ordered four dozen more albums and raised the price by $1.00.

____ e. In a recent report on buying preferences, Martha found that an increasing number

of consumers were interested in buying desk-top microcomputers. As a top

manager of a high-tech corporation, she is going to recommend to the board of

directors that the corporation add a desk-top computer model to its line of products.

4. Listed below are a number of companies. These are followed by brief details of possible

government actions. Consider in each case whether the government’s action would be

beneficial or otherwise to the company in question.

1. The company is an insurance company specializing in motor insurance. Possible government

actions:

1. A relaxation of the drinking and driving laws.

2. The introduction of a lower speed limit on motorways.

с) A substantial reduction in National Health Service expenditure.

2. The company manufactures cigarettes.

1. An extensive television publicity campaign encouraging young people to smoking.

2. A slight increase in the tax on cigarettes.

с) A substantial increase in the tax on beer.

3.The company operates coach tours to the continent.

1. A substantial increase in the tax on petrol.

2. A new law limiting the number of passengers who can be carried in coaches.

с) A lowering of the retirement age to 55.

4.The company is in the business of life assurance.

1. A substantial increase in pay for nurses.

2. A substantial increase in the tax on cigarettes.

3. The abolition of prescription charges for all medicines.

GRAMMAR FOCUS

Ex. 29. Put these sentences into reported speech.

1. The shop-assistant said to the customer: “The price does not include the cost of packing”.

2. She asked the manager: “How long have you doing business with this company?”

3. The secretary said to me: “I’m trying to contact this enterprise now”.

4. The tax inspector asked: “Do you always reduce the prices at the end of the year?”

5. The sales manager said: “We have already solved the problem”.

6. The secretary said: “We are discussing the prices at the moment”.

7. The reporter asked: “What is your company producing now?”

8. The banker said to the customer: “The recent devaluation of dollar has caused a setback in

business”.

9. The sellers asked the buyers: “When will you come here to discuss our new price-list?”

10. His friend asked me: “What do you know about this company?”

Ex. 30. Translate into Russian. (Conditionals)

1. If incomes are rising, the demand for goods and services will tend to increase.

2. If the consultant had done more careful research, he would have identified the gap in the

market.

3. If a government cuts taxation, it gains a lot of popular support.

4. If the price of butter fell, the demand for margarine would probably fall.

5. If the market for our product expands, we will have a 20 per cent increase in turnover next

year.

6. If we had installed the equipment we would have become more competitive.

7. If wages rise, unemployment will increase.

8. We would have to reduce out workforce if the bank refused to extend out credit.

9. If the government hadn’t introduced the tax incentive scheme, we would have faced serious

financial difficulties.

10. If the supplier of such a commodity were to raise the price, many buyers would turn to the

close substitutes.

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