Exercises

1 Choose the correct answer a, b or c from the list below.

¹ Although we can buy meat in the shops, some people still like to....................animals as a hobby

2.......................is another word for extra things that are not needed.

3 There are still.......................of people living traditional lives in the rainforests of South America.

4 In most modern societies,.......................like celebrations and dances have disappeared.

5 Corn and wheat are two.......................that farmers grow in their fields.

6 One of the.......................of playing sports is that you keep fit.

2 One of the....................of living in a city is the noise.

8 Many African countries suffer from regular .......................when no rain falls for months.

9Heavy rain causes.......................in many parts of Europe each year.

10 East Asian countries are well known for their .......................industries such as computers and cameras.

11 Exercises and sports at school are sometimes called.......................education.

2. Now read the text again and match each paragraph with the correct heading.

PARAGRAPH 1.......................

PARAGRAPH 2.......................

PARAGRAPH 3.......................

PARAGRAPH 4.......................

PARAGRAPH 5.......................

PARAGRAPH 6.......................

A Life without money

B The advantages of the traditional economy

C The future of the traditional economy

D The disadvantages of the traditional economy

E The importance of tradition

F Work in the traditional economy

3. Discuss these questions with your partner.

Imagine a world without money.

- How do you think society would be run?

- Would there be an economy as we understand it?

- Can you think of any examples of situations where people don’t use money, either from the past or now?

- Do you know what a traditional economy is?

Text 4. The mixed economy

Most economists would say that there are no examples in the world today of a completely free market or a completely controlled economy. Instead, every country operates a mixture of the two systems. Even in the freest economies, like the USA, there is some government control; even in the strictest planned economy there is some free enterprise.

Economies mix government control and free market values in different ways. One way is to let privately owned businesses exist alongside state run industries. The economy becomes divided between the state sector and the private sector. The state sector often includes industries that the government thinks are important and need protection from the risks of the free market. These could include public transport, hospitals, schools and the postal service. The state sector can also include large industries that arc important for a country’s economic health, such as oil, steel or agriculture. These are sometimes called primary industries because they provide basic materials to manufacturers.

These state sector industries use money that the government collects in taxes. Often, they do not need to compete with other companies because no other company is allowed to provide the same product or service. However, many countries have recently started a process called deregulation.

Deregulation means freeing up the economy to allow private businesses to compete with state-run industries. The state sector should then run more efficiently in order to compete in the free market and because it now has less government protection.

Deregulation of services like telecommunications, transport and banking has happened in many countries in recent years. People have generally accepted these changes. However, generally the public is less happy when governments start talking about deregulation in education and health services. Many people feel that profit motivation will harm these services rather than improve them.

Another way in which economies today are mixed is that governments put limits on free enterprise. For example, governments may decide to ban trade in certain goods if they are dangerous. They may also create laws to make sure companies trade honestly or to prevent monopolies. If a company has a monopoly, normal market forces do not affect it. This is bad for consumers and the economy in general. Governments may also regulate methods of production. They do this to guarantee that products are safe for consumers and to protect the environment.

Many economists would argue that the mixed economy is the best system for consumers. This is because consumers have two ways to control the economy: by choosing to buy a company’s goods or services and by choosing to give political parties their votes.