II. Look at statements 1-3. In each statement, which phrase or sentence is correct?

1. Imports were subject to a 20 per cent tariff.

A. Prices were controlled.

B. Government set up a 20 per cent tariff.

C. Customs duty was 20 per cent.

2. In a fifth of all Russian regions, unemployment is over 30 per cent.

A. In every fifth region unemployment is 30 per cent.

B. In 20 per cent of all Russian regions unemployment rate exceeded 30 per cent.

C. In a few Russian regions unemployment grew up to 50 per cent.

3. Foreign companies were encouraged to invest in Russia.

A. Many new private companies stimulated investment.

B. Business was given easier access to foreign exchange.

C. The special policy was adopted in early 1992.

III. For each question 1-4, mark one for the answer you choose.

1. It was hardly surprising that prices rose dramatically because

A. 90 per cent of items price were abolished.

B. the purchasing power of wages fell.

C. economy was short of most goods.

2. Price mark-ups in state shops

A. could not exceed 25 per cent.

B. was limited to 20 per cent.

C. equaled 25 per cent.

3. In “hyperinflation” money

A. would be practically worthless.

B. supply would rise dramatically.

C. is inherently weak for the radical nature of the policy.

4. Some of the “New Russians” have become very wealthy –

A. with the rise of the Russian Mafia.

B. either legally or illegally.

C. to highlight the growing divide between rich and poor.

IV. Match each of these statements with one of the paragraphs numbered 1-8.

A. Free-market economy is a medication for central planning system
B. Introduction of reform policies and their effects
C. Counter-arguments against the transformation programme
D. The turning point in the economic disaster

V. Are sentences below “Right” or “Wrong”? If there is not enough information to answer, choose “Doesn’t say”.

1. Critics of reform ignored its real gains.

A. Right B. Wrong C. Doesn’t say

2. The government’s budget deficit rose by 13.5 per cent of national income throughout 1992.

A. Right B. Wrong C. Doesn’t say

3. Critics argued that the cost of reform was too high because of the negative comparison with USA national output of steel and energy.

A. Right B. Wrong C. Doesn’t say

4. IMF agreed with the government’s budget deficit.

A. Right B. Wrong C. Doesn’t say

5. Reform supporters strengthened the arguments by requiring to abolish the rest of price controls and enforce competitive producers.

A. Right B. Wrong C. Doesn’t say

VI. Complete the following table:

A. President at power in 1991

B. Inflation rate in mid-1996

C. Predicted growth for 1997 onwards

D. Average real wage between 1994 and 1996

E. Maximum inflation rate/when

F. Unofficial unemployment rate

VII. The mistakes in the sentences below have been underlined. Write the corrections in the spaces provided.

1. In 1995 out put had fallen by 4 per cent.

2. In many of the new private companies, principal workers became a shareholders.

3. Four years on, the Russian economy seemed to have being turning the corner.

4. Critics of reform, though in the light of such real gains, still point to the hardship.

5. Such an impressive reduction in inflation was of largely government successfully capped its spending.

1. _____________________________________________

2. _____________________________________________

3. _____________________________________________

4. _____________________________________________

5. _____________________________________________