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ЗНАЕТЕ ЛИ ВЫ?

Ex. 19. Translate into Russian. (“That / Those”)

Поиск

 

1. These rates are higher than those in most Western European countries.

2. The selling cost of the larger firm will be much greater than those of the smaller firm.

3. Unofficial strikes are those which do not have full support of the trade union.

4. The rate of savings in rich countries is much higher than that in poor country.

5. Although there are more male births than female births, the number of females in the total

population exceeds that of males.

6. The aims of monetary policy are the same as those of economic policy in general.

7. That he refused to help his partner is very strange.

8. Dividends and interest on risk capital need not be paid in those years when the company has

not prospered.

 

Text 4

MIXED ECONOMY

 

VOCABULARY

market forces – рыночные силы

intermediate system – промежуточная система

at one extreme… at the other extreme – на одном полюсе… на другом

a public sector – государственный сектор

government- or state-owned organizations – государственные учреждения

to charge the consumers – назначать цену потребителю

taxpayer – налогоплательщик

in response to – в ответ на

to avoid – избегать

to interact - взаимодействовать

defence – оборона

water supply – водоснабжение

 

There are no “pure” market economies in the world today. Both market forces and government participation have been playing a certain role in the economy of a country. This mixture of market forces and government participation has led to development of an intermediate system, known as mixed economy.

A mixed economy contains elements of both market and command economies. At one extreme we have a public sector (like the command economy) made up of government- or state-owned and controlled businesses and organizations. The government makes decisions about what to produce and how much to charge the consumers. Some goods and services are provided free of charge to the consumers – such as state health and education services. The money for these comes not from the users but from the taxpayers. At the other extreme we have a private sector (like the free market economy) made up of businesses not owned by the government. These businesses will make their own decisions about what to produce, how it should be produced and what price should be charged for it. Even so, there likely to be some government controls over these decisions.Between these two extremes lies a mixed economy. In mixed

economies some resources are controlled by the government while the others are used in response to the demands of consumers.

Technically, all the economies of the world are mixed. Some countries are nearer to command economies, while others are closer to free market economies.

The aim of mixed economies is to avoid the disadvantages of both systems while enjoying the benefits that they both offer. So, in a mixed economy the government and the private sector interact in solving economic problems.

What are the most common areas of government ownership?

In many countries the government controls the following important industries or organisations:

health defence water supply

education public transport electricity supply

The United Kingdom is a country with mixed economy. Some services are provided by the state (for example, health care and defence), while a range of privately owned businesses offer other goods and services.

 

WORD STUDY

Ex. 20. Learn the words:

 

to employ – предоставлять работу, нанимать(ся)

employer – работодатель, наниматель

employee- служащий

employment – занятость, найм на работу

unemployment – безработица

Put these words in the sentences given below.

 

1. We all hope that _________________ will get better in the future.

2. The office of the company is closed today because all its ______________ are on strike.

3. Business activity ________________ people as workers and pays them wages.

4. In market economy no planners have to be ______________________.

5. The rising ____________________ may lead to many social as well as economic problems.

6. ___________________ of the new staff will be in September

7. When composing a job advertisement take into consideration that you must name the position you _______________________ for.

8. Some businesses _____________ thousands of people with operations in many different countries.

9. The director of our company prefers ________ intelligent, sociable and hard working people.

Ex. 21. Fill in the gaps with prepositions.

 

1. Even _____ the economically advanced countries there is a question _____ survival.

2. The system is based _____ private enterprise _______ private ownership _____ the means ______ production.

3. Market economies are directed _______ prices.

4. _____ traditional societies, people use methods ____ production and distribution that were devised _____ the distant past.

5. In these societies we find that the division ____ land____ the families____ the village or tribe, the methods and times _____ planting and harvesting all are based _____ tradition.

6. The economy _____ a country is affected _____ political changes both at home and abroad.

7. Changes ____ taste and fashion can influence the demands _____ many consumer goods.

Ex. 22. Match the verbs in column A with the nouns in column B.

 

A B

to own a. the consumers

to pay b. problems

to make c. wages

to employ d. means of production

to increase e. workers

to keep f. disadvantages

to create g. a profit

to charge h. monopolies

to avoid i. income

to solve j. production

 

Ex. 23. Generate other forms from these words.

 

Verb Noun Adjective
  manager  
to profit    
to lead    
    competitive
  education  
to create    
    mixed
  usage  
to free    
    enjoyable
to own    

 

Ex. 24. Make up sentences with the jumbled words.

 

1. the means of production / private individuals / by / a market economy / are owned / in

2. by / are directed / market / prices / economies.

3. government / there is no / land / over / labour / control / capital / and.

4. to buy / free to choose / what / consumers / are / want / they.

 

Ex. 25. Translate these sentences into Russian paying special attention to the noun means

and the verb to mean.

 

1. To start business a manufacturer should buy the necessary means of production.

2. Nowadays people can easily communicate with each other by means of the Internet.

3. Oligopoly means a market condition on which relatively few firms produce identical or similar products.

4. A high tariff on imported goods is a possible means to reduce domestic demand for these goods.

5. For many developing countries the US assistance meant economic dependence.

6. New means of communication have appeared with the introduction of computers in people’s life.

7. The development of trade relations will mean larger international income.

8. A plane is known as the quickest means of travel to the farthest places on the earth.

 

COMPREHENSION

 

Ex. 26. Find the false sentences and correct them using the information from the text.

 

1. In a market economy the means of production are state-owned.

2. Workers are paid wages according to their skills.

3. In a market economy there is government control over land, labour and capital.

4. Firms make more of the less profitable goods and fewer of the more profitable goods.

5. Market economies are directed by prices.

6. In a market economy workers have no incentive to work hard as they can’t keep most of their income because of the high taxes.

7. There are no “pure” market economies in the world today.

8. The United Kingdom is the country with command economy.

 

Ex. 27. Multiple choice. In the space provided, write the letter of the item that best

completes the statement.

 

____ 1. Individuals and businesses have the greatest say about what is produced in

a. market economies.

b. traditional economies.

c. command economies.

d. all economic systems.

____ 2. In this country goods and services are produced in much the same way as long

as anyone can remember. Occupations are determined at birth. The country

has

a. market economy.

b. traditional economy.

c. command economy.

d. mixed economy.

 

____ 3. In another country, privately owned business firms can produce goods or service

in any lawful manner that they choose. This country has a

a. market economy.

b. traditional economy.

c. command economy.

d. mixed economy.

 

____ 4. In a free enterprise system

a. individuals may enter any lawful business.

b. each citizen has the right to vote in elections.

c. goods are so plentiful that they are free.

d. workers do not charge for their labor.

 

____ 5. An economy is “mixed” when

a. goods and services are produced by both publicly and privately owned businesses.

b. government owns or controls all businesses.

c. economic decisions are made by tradition.

d. there is a “mixture” of rich and poor people.

 

____ 6. Which of the following decisions did not involve an economic incentive?

a. Alex saved his extra money in an account earning 6.5% interest.

b. Beta General Corp. purchased new robots to increase production.

c. Carlos feels it is important to stay healthy, so he spent the weekend hiking in the mountains.

d. Dolores returned to school to learn computer programming.

 

____ 7. Which of the following is a reason for government participation in the economy.

a. to reduce competition in the marketplace.

b. to provide goods and services more cheaply than private enterprise.

c. to regulate harmful externalities.

d. to guarantee that all business firms earn the profit.

 

____ 8. Which of the following is an example of a public good or service?

a. traffic lights.

b. World Series baseball games.

c. fuel-efficient compact automobiles.

d. computer repair service calls.

 

____ 9. Which economic system is based on a market economy?

a. capitalism.

b. communism.

c. socialism.

d. traditionalism.

 

____ 10. We generally refer to a nation that has a democratic political system, together

with government ownership of major industries, as

a. capitalist.

b. communist.

c. socialist.

d. fascist

 

____ 11. Which term does not belong with the other three?

a. Gosplan.

b. price-directed economy.

c. central economic planning.

d. five-year plan.

 

____ 12. The policy known as glasnost introduced by the Soviet leader Mikhail

Gorbachev

a. represents a return to Stalinist repression.

b. has made the Soviet Union a true democracy.

c. encourages some public criticism of government.

d. prohibits public discussion of weaknesses in the Soviet system.

 

____ 13. Perestroika which is Russian for “restructuring”,

a. has been denounced by the United States.

b. represents a return to the economic principles of Karl Marks.

c. provides for an increased involvement of government in day-to-day operations of economic enterprises.

d. allows prices to be set by market forces and requires Soviet enterprises to pay

their own way.

 

Ex. 28. Match the questions with the answer.

 

1. What is the market system based on?   a. Workers are paid wages according how skilled they are and how many firms wish to employ them.
2. Who owns the means of production in a market economy? b. In a market economy consumers decide what is to be produced.  
3. What are the criteria according to which workers are paid wages?   c. The system is based on private enterprise with private ownership of the means of production.
4. What are market economies directed by?   d. A mixed economy contains elements of both market and command economies
5. Who decides what is to be produced in a market economy?   e. They are health, defence, water supply, education, public transport, electricity supply.
6. Is creation of monopolies an advantage or disadvantage of a market economy? f. In a market economy the means of production are owned by private individuals.
7. What elements does a mixed economy contain? g. Market economies are directed by prices.
8. Where does the money for state health and education services come from in a command economy?   h. In mixed economies some resources are controlled by the government while the others are used in response to the demands of consumers.
9. Who are resources in a mixed economy controlled by? i. Creation of monopolies is a disadvantage of a market economy.
10. What important industries and organizations are controlled by the government in many countries? j. From the government.

QUESTIONS FOR DISCUSSION

 

1. What are the What, Ho w and Who questions all economic systems must answer? Describe how government affects the answers to these three questions in market, command and traditional economies.

 

2. For each of the examples of government-owned organizations listed below, suggest three possible reasons why the government of a country might decide to own and control that industry or service.

health defence water supply

education public transport electricity supply

 

3. Identify the type of economy in which each of the following situations could have existed. Next to each situation write C for Command, M for Market, T for Traditional, or ME for Mixed Economy.

 

____ a. Jeff is the manager of a farm equipment factory. Government officials have sent

him plans to produce a certain number of tractors. He doesn’t have to decide what

customers will buy. Rather, his main task is to complete orders on schedule.

 

____ b. Stanley and Sara made the best bead necklaces in the area. Their family had done

this for years. They had learned to do beadwork at an early age. They sold most of

the necklaces to people who lived in their village.

 

____ c. Haddock, Inc. Has been in the food production business for years. The company

was started by a family, but is now owned by a number of stockholders. The

railroads and trucklines that the company uses to ship its goods, as well as its

sources of energy, are owned by he government.

 

____ d. Robert has ordered two dozens albums recorded by a popular rock band and

recently released by a recording studio. After two days in his store, the albums

were sold. He ordered four dozen more albums and raised the price by $1.00.

 

____ e. In a recent report on buying preferences, Martha found that an increasing number

of consumers were interested in buying desk-top microcomputers. As a top

manager of a high-tech corporation, she is going to recommend to the board of

directors that the corporation add a desk-top computer model to its line of products.

 

4. Listed below are a number of companies. These are followed by brief details of possible

government actions. Consider in each case whether the government’s action would be

beneficial or otherwise to the company in question.

1. The company is an insurance company specializing in motor insurance. Possible government

actions:

a) A relaxation of the drinking and driving laws.

b) The introduction of a lower speed limit on motorways.

с) A substantial reduction in National Health Service expenditure.

 

2. The company manufactures cigarettes.

a) An extensive television publicity campaign encouraging young people to smoking.

b) A slight increase in the tax on cigarettes.

с) A substantial increase in the tax on beer.

 

3. The company operates coach tours to the continent.

a) A substantial increase in the tax on petrol.

b) A new law limiting the number of passengers who can be carried in coaches.

с) A lowering of the retirement age to 55.

 

4. The company is in the business of life assurance.

a) A substantial increase in pay for nurses.

b) A substantial increase in the tax on cigarettes.

c) The abolition of prescription charges for all medicines.

 

GRAMMAR FOCUS



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