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

the role of government price

system private property

gross national product

free enterprice

the American economic system

competition

X. 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).

  1. Read and change the sentences according to the 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. Economic 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.

  1. 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.

  1. 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).

Lesson 3

SUPPLY, DEMAND AND MARKET PRICES

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