1. Try to reconstruct the text using key words and word combinations listed above.

2. Answer the following questions to the text.

1. Do the economic problems depend on the stage of society’s development?

2. What are the three fundamental questions to be answered by any society?

3. What is the major advantage of free enterprise system?

4. What is the role of businessmen in free market system?

5. Is centrally planned economy as efficient as it is theoretically based?

6. What is the principle drawback of command economy?

7. The mixed economy is planned capitalism, isn’t it?

8. Can you produce the list of the countries with state planned economic system?

9. What is different within the countries of mixed economy?

10. What is the role of the government in mixed economic system?

11. Can you produce examples of recent government intervention in market economy?

12. Who is supposed to judge the efficiency of economic system?

3. Define whether the statement is true or false.

1. All the systems face the same economic problems.

2. The capitalist system was the first to develop.

3. Monopoly situation is positive in state-planned economy.

4. The resources tend to move where it is profitable for them.

5. State planned economy eliminates social injustice.

6. State planned economic system is prone to bureaucracy and corruption.

7. Cuba is a genuine example of command economic system.

8. Education and medical care are provided only by state controlled organisations in any economic system.

9. Any nationalised industry must be large scale and, consequently, efficient.

10. Nowadays public sector deals only with unprofitable parts of the economy.

4. Choose the best alternative to complete the sentence.

• corruption

• entire population

• capital outlay

• non-monetary

• the rewards

• deep impact

• national security

• equitable distribution

• additional incentive

• social injustice

1. The resources tend to move from where ______ are low to where they are high.

2. Workers need to have ______ if they are to work harder.

3. Monopoly leads to ______ and high prices.

4. Under bureaucratic system ______ is inevitable.

5. The state tries to bring about ______ of wealth through the system of taxation, subsidies and pensions.

6. The health and education of ______ is human capital.

7. The interests of ______ is primary concern of the state.

8. Some directors can be motivated by ______ considerations.

9. Decisive measures of the government can have ______ on the economy.

   5. Classify the tasks you consider to be governmental responsibilities in the order of importance.

• education

• health care

• housing

• working conditions (working hours, minimum wages and so on)

• social security (unemployment and sickness benefits, pensions)

• defense (the armed forces – army, navy, air force)

• the police, the justice system, prisons and so on

• public transport (trains, buses and so on)

• traffic regulations (the driving test, speed limits, seatbelts, the alcohol limit, parking restriction, the safety of cars and so on)

• health, safety and cleanliness regulations (concerning factories, shops, restaurants, food, medicine, disposal and nuclear waste)

• the sale of alcohol, drugs, guns and so on

• the press, broadcasting, the arts, entertainment and the freedom of expression (concerning sex, violence, blasphemy, politics and so on)