Vocabulary Focus

1. Match the words on the left with their synonyms on the right.

1. essential a. decrease

2. interfere b. let

3. reduce c. important

5. allow e. regulate

2. Use the words from the list of Useful Vocabulary to complete the sentences.

1. The American ….. emphasizes private ownership.

a. deep recession

b. free enterprise system

c. interest rate

2. While most Americans would agree that ….. has an important role to play in the economy, there is a considerable disagreement as to how active this role should be.

a. government

b. environment

c. responsibility

3. People who ….. in education, gain profit in the form of knowledge.

a. interfere

b. invest

c. reduce

4. A serious, long-lasting ….. is called a depression or a slump.

a. inflation

b. increase

c. recession

5. In carrying out ….., the government uses a combination of monetary and fiscal policies.

a. fine-tuning

b. laissez-faire

c. tax breaks

6. If a(n) ….. is lowered, businesses will borrow more from the banks, jobs will be created, but prices might rise and that means inflation.

a. run-away inflation

b. government regulation

c. interest rate

3. Give the English equivalents to the following expressions.

- чрезвычайное экономическое положение

- налоговые льготы

- безудержная инфляция

- производить товары и услуги

- современные информационные технологии

- принимать решения

- поднять процентную ставку

- контролировать цены и доходы

Talking Points

1. Comment on the quotations.

1. “Which is the best government? That which teaches us to govern ourselves”.

Johann Wolfgang von Goethe

2. “That government is the best which governs least, because its people discipline themselves”.

Thomas Jefferson

2. Express your opinion on the following issues.

1. To what extent should the government interfere in the economic system?

2. Some economists state that the government interferes in the economy too much. Others say it should do more. What are your arguments for and against government control? While answering this question, you may use the following phrases.

- To my mind ………

- I think ………

- In my opinion ………

- On the one hand ………, on the other hand ………

Summary Points

1. Read the text and choose the most suitable title out of those given below.

A. Small Business in the USA.

B. The Role of the Government and Individuals in the American Economy.

C. The Mixed Type of the American Economy.

The American free enterprise system emphasizes private ownership. Private businesses produce most goods and services, and almost two thirds of the output goes to individuals for personal use.

However, there are limits to free enterprise system. Americans have always believed that some services are better performed by public rather than private enterprises. For example, in the US the government is responsible for the administration of justice, education (although there are many private schools), road system, and national defense. The American government also provides unemployment benefits to people who cannot support themselves; it pays much of the cost of medical care for those who live in poverty; it regulates private industry to limit air and water pollution; it provides low-cost loans to people who suffer from natural disasters; and finally, it has played the leading role in the exploration of space, which is too expensive for any private enterprise to handle.

In the American economic system, individuals can help guide the economy through the choices they make as consumers and through the votes they cast for officials who shape economic policy. In recent years, consumers have voiced concerns about product safety, environmental threats and potential health risks. The government, in its turn, has responded by creating agencies to protect consumer interests.

The US economy has recently changed in other ways as well. The labor force has shifted to service industries. In today’s economy, there are much more providers of services than producers of agricultural and manufactured goods.

Notes:

cast votes – голосовать

voice concern – выражать беспокойство

shift v– перемещать(ся), передвигать(ся)

2. Put down key words and expressions from each paragraph.

3. Summarize the text, basing on the key words and expressions you have put down.