Grammar: to be in the Present Simple

Передмова

Мета посібника – сформувати навички усного мовлення та забезпечити розвиток навичок читання, аудіювання, граматики, розуміння та перекладу оригінальної літератури з економічних питань.

Посібник містить 32 уроки, які за чотирма змістовими модулями:

1. Типи економіки.

2. Ринкові відносини.

3. Виробничі можливості.

4. Економічний розвиток.

Кожен модуль містить оригінальний професійний текст з економічних питань, передтекстові та післятекстові завдання, вправи з аудіювання та стислий виклад теоретичного та практичного курсу граматики англійської мови.

Посібник призначений для студентів вищих навчальних закладів освіти, які навчаються на економічних спеціальностях.

Unit 1

Grammar: to be in the Present Simple

I am I am not Am I?

He He he?

She is She is not Is she?

It It (isn`t) it?

We We we?

You are You are not Are you?

They They (aren`t) they?

 

Exercise 1

1. He … a student. He … a good student.

2. His father … a doctor.

3. My mother … not a teacher.

4. … your sister a pupil? – Yes? She ….

5. They … at home now.

6. This … my house.

7. … they at school? - No, they … not at school.

8. … your father a pilot? – Yes, he ….

9. Nick … not a student. He … a pupil. He … at school now.

10. These men … drivers.

11. My friend … an engineer. He … at work.

12. … your parents at home? – No, they … not.

13. I … a pupil, I … not a student.

14. … this your book? – This book … not my. My book … in my bag.

15. Michael has a brother. His brother … 20. He … a student. He … at home now.

16. These … his newspapers.

17. … there any books on your table? –Yes, there ….

18. I … a doctor. I … a good doctor.

19. … his friends at school now? – No, they … in the garden.

20. … her sister a teacher? – Yes, she ….

Grammar: to be in the Past Simple

I I I?

He was He was not Was he?

She She (wasn`t) she?

It It it?

We We we?

You were You were not Were you?

They They (weren`t) they?

 

Exercise 1

1. He … a pupil.

2. She … not a doctor, she … a teacher.

3. They … workers.

4. He … ill last week. He … not at work.

5. We … at home on Sunday.

6. The weather … not cold yesterday. It … fine.

7. … he at school yesterday? No, he … not. He … ill.

8. … they students last year? No, they … pupils.

9. There … a lot of books in his room.

10. When … you at home yesterday?

11. There … newspaper on the table.

12. Why you … not at work last Friday?

13. There … a pencil in my pencil – box.

14. Where … his sister last week? – She … not at home. She … in the country.

 

Grammar: to be in the Future Simple

I/we + shall be

You/he/she/it/ they + will be

Exercise

1. He………… a student next week.

2. I…………… at home tomorrow

3. …..you be at home on Sunday?

4. She ……not to be at work on Sunday.

5. Where…. you….. in two days?

6. We….not…. be in the country.

7. He a pilot when he grows up.

8. It…. a good idea.

9. …. he…. In some months?

10. Where… we…. Next month?

11. …. they in the park?

12. They…. not…n the garden.

 

Unite 2

There are four types of questions:

General question – when we put the question to the whole sentence.

Is he here now?

Are they reading the book?

Does she like to study English?

Did you go to the seaside?

Have you done your homework?

Were they in the cinema yesterday?

 

Alternative question – when we doubt about something.

Do you like coffee or tea?

Are you a student or a pupil?

Is he at school or at home?

Has she got a car or a bus/

Did he visit his aunt or his uncle?

 

Special question – when we put the questions with the special words.

Where do you live?

What did he do yesterday?

Why have you done it?

When has he come?

 

Tag questions – we express also doubt.

He is here, isn’t he?

You are a student, aren’t you?

They went to the Crimea mountains, didn’t they?

She was not there, was she?

They don’t go in for sport, do they?

He has done the exercise, has he?

 

Exercise

Put all types of questions to the following sentences.

1. They have a hamster as a pet.

2. Sonia has a new apartment in New York.

3. Tigers eat other animals.

4. We are angry with him about that.

5. My dog never barks at night.

 

Unite 3

Before you read

Discuss these questions with your partner.

-Do you have any idea where the word economics comes from?

-Do you know the names of any famous economists from the past or anything about their ideas?

 

A Vocabulary

Complete each sentence with a word or phrase from the box

 

abundance concept consumer

firm Industrial Revolution population

precious metals production process scarcity

profit raw materials satisfaction

 

1. The…………began in the late 18^th century, when machines started to replace human workers.

2. Sand and limestone are the………..needed to make glass.

3. The…………to make a car involves many people and machines.

4. The extra money a company makes is called………….

5. People want………….from the products they buy.

6. …………… is when there is very little of something.

7. …………… is when there is lots of something.

8. Gold and silver are examples of…………….

9. Another word for idea is…………….

10. The…………….is the number of people a country has.

11. A business or company is sometimes called a…………….

12. When we buy things or use services we are a ………….

 

Reading

History of economic thought

Economic thought goes back thousands of years. The ancient Greek, Xenophon, used the word oikonomikos (from oikos, meaning family, household, estate, and nomos, for usage, law). He was talking about skilful or clever ways to manage land and households. We could call many of Aristotel's political writings economics, although he didn’t use the word. The English word economics first appeared in the 19^th century – two and a half thousand years after Xenophon.

Early economic thought was all about the meaning of wealth or being reach. Those early thinkers asked, what makes a state or a country wealthy? For nearly 2000 years, the answer was very simple: gold. A country or nation's wealth depended on its owning precious metals. This simple view of the economy remained until medieval times.

During medieval times – roughly the period between 1100 and 1500 AD, trading between nations grew, and a new social class appeared. These were merchants, people who made their money through the buying and selling of goods, and they began to write their own thoughts on the economy. They saw the economy as a way to make the state strong. For them, the nation's wealth depended on stocks of gold and the size of the population. More people meant bigger armies and a stronger state.

These were still simple ideas. However, daily experience had also taught people many basic economic concepts. For example, they understood the importance of trade with other states. They realized that scarcity makes things more expensive and abundance makes them cheaper.

Modern economics was really born in the 19^th century. At this time, thinkers like Adam Smith wrote down ideas that are still important today. Adam Smith is often called the Father of Modern Economics, although the science was called political economy then. Smith realized that a nation's wealth depended on its ability to produce goods. The value of these goods depended on the cost of production. The cost of production depended on the cost of workers, raw materials and land. This was really the first example of macroeconomics.

Smith and other classical economists were writing at a time of great change. The industrial revolution had begun. Paper money began to replace precious metals. The middle classes were growing stronger. Economists' theories echoed these changes. They wrote about the division of labour (each worker taking their part in the production process). They discussed the problems of population growth. They influenced thinking about social classes.

For classical economists, the value of goods depends on the cost of production. However, the price of goods is not always the same as their real cost. Later economists developed new theories to explain this weakness in classical economics. These are known as the neoclassical economists and they were writing at the end of the 19^th and early 20^th centuries.

In neoclassical economics, supply and demand make the economy work. In other words, the price of goods depends on how much people want them and how easily they can be found. Consumers want satisfaction from their resources (time and money). Firms want profit. In neoclassical economics, this is the basic relationship in the economy. These ideas are still the basis of economic thinking today.

 

Comprehension

Now read the text again and decide whether these statements are true or false.

1. Aristotle did not use the word economics, but he did write about economic ideas. T__F__

2. Early economists thought that a nation without gold was poor.

T__F__

3. People in medieval times didn’t understand anything about economics

T__F__

4. In classical economics, the value of something was measured in gold.

T__F__

5. Economists later found a problem with the classical model.

T__F__

6. In neoclassical economics, supply and demand control price.

T__F__

 

Before you listen

Look at this fact file about Adam Smith. Can you fill in any of the information?

Born in Scotland in (1)……………

Lost his father at the age of (2)…………….

Kidnapped at the age of (3)……………

Went to University of Glasgow at the age of (4)…………….

Went to Oxford University at the age of (5)………………

Most famous book is The Wealth of (6)…………….

Influenced Karl Marx and the founding fathers of (7)…………….

 

Listening

Now listen and complete the information about Adam Smith's life.

 

Like, love, hate, want, need, prefer, know, realize, suppose, mean, understand, believe, remember, belong, contain, consist, own, depend, seem, recognize, see, hear, wish, feel, have, desire, think, hope, smell, taste, the Present Simple is used instead.

He owns a big house in the USA.

The country consists of 51 states.

Now I understand you.

She believes nobody.

I still remember this man.

 

Exercises

Complete the sentences with one of the following verbs in the correct form.

come get happenlook make start stay try work

1. You re working... hard today.' 'Yes, I have a lot to do.

2. I…………….. for Christine. Do you know where she is?

3. It…………….dark. Shall I turn on the light?

4. They haven't got anywhere to live at the moment.

5. They……….. with friends until they find somewhere.

6. Are you ready, Ann?' 'Yes, I..........................'

7. Have you got an umbrella? It......................... to rain.

8. You................... a lot of noise. Could you be quieter? I............ to concentrate.

9. Why are all these people here? What....................?

 

Use the words in brackets to complete the questions.

1. ' Is Colin working... this week?' 'No, he's on holiday.' (Colin/work)

2. Why........................................ at me like that? What's the matter? (you/look)

3. 'Jenny is a student at university.' 'Is she? What.........................?' (she/study)

4...... to the radio or can I turn it off? (anybody/listen)

5. How is your English?.................................. better? (it/get)

Put the verb into the correct form. Sometimes you need the negative (I'm not doing etc.).

1. I'm tired. I. 'm going... (go) to bed now. Goodnight!

2. We can go out now. It isn't raining... (rain) any more.

3. 'How is your new job?' 'Not so good at the moment. I........................... (enjoy) it very much.'

4. Catherine phoned me last night. She's on holiday in France. She................ (have) a great time and doesn't want to come back.

5. I want to lose weight, so this week I.............................. (eat) lunch.

6. Angela has just started evening classes. She...................... (learn) German.

7. I think Paul and Ann have had an argument. They........................ (speak) to each other.

Read this conversation between Brian and Sarah. Put the verbs into the correct form.

SARAH: Brian! How nice to see you! What (l)........................... (you/do) these days?

BRIAN: I (2)......................................... (train) to be a supermarket manager.

SARAH: Really? What's it like? (3)............................. I (you/enjoy) it?

BRIAN: It's all right. What about you?

SARAH: Well, actually I (4)..... (not/work) at the moment.

I (5)....................................................... (try) to find a job but it's not easy.

But I'm very busy. I (6)................................................ (decorate).my flat.

BRIAN: (7)......................................... (you/do) it alone?

SARAH: No, some friends of mine (8)............................. (help) me.

Complete the sentences using one of these verbs:

get change rise fall increase You don't have to use all the verbs and you can use a verb more than once.

1 The population of the world...is rising... very fast.

2 Ken is still ill but he.,................................... better slowly.

3 The world........................................... Things never stay the same.

4 The cost of living,............,........................... Every year things are more expensive.

5 The economic situation is already very bad and it…………..worse.

 

 

Unit 4

Before you read

Discuss the following with your partner.

-Do you know much about economics?

-Think which of these statements you think are true:

-Then explain to your partner why.

1. Economics is only the study of money

2. Economics is something governments take care of.

3. An economist basically decides how money is spent.

 

 

A Vocabulary

Match the words with the definitions:

1. budget A the people who control a country and make laws

2. business B information

3. convenience C company that sells goods or services

4. data D easiness

5. demand E the amount of money you have for something

6. government F how much people want something

7. inflation G the number of people without work

8. resources H something such as money, workers or minerals

belonging to an organization, country etc which

can be used to function property

9. trade-off I rising prices

10. unemployment J giving away something in exchange for smth

 

Reading 1

What does economics study?

What do you think of when you hear the word economics? Money, certainly, and perhaps more complicated things like business, inflation and unemployment. The science of economics studies all of these, but many more things as well. Perhaps you think that economics is all about the decisions that governments and business managers take. In fact, economists study the decisions that we all take every day.

Very simply, economics studies the way people deal with a fact of life: resources are limited, but our demand for them certainly is not. Resources may be material things such as food, housing and heating. There are some resources, though, that we cannot touch. Time, space and convenience, for example, are also resources. Think of a day. There are only 24 hours in one, and we have to choose the best way to spend them. Our everyday lives are full of decisions like these. Every decision we make is a trade-off. If you spend more time working, you make more money. However, you will have less time to relax. Economists study the trade-offs people make. They study the reasons for their decisions. They look at the effects those decisions have on our lives and our society.

B Comprehension

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

PARAGRAPH 1 …………………….

PARAGRAPH 2 …………………….

PARAGRAPH 3 …………………….

PARAGRAPH 4 …………………….

PARAGRAPH 5 …………………….

 

A How economists work

B Making deals every day

C Various ideas about economics

D Two areas of economics

E Two types of economist

 

Before you listen

Discuss these questions with your partner.

-If you live in a modern economy, life is quite easy.

-Before the Industrial Revolution, life was much harder.

-In what ways was life more difficult?

 

C Listening

Listen to someone talking about life before the Industrial Revolution. Which of these things are mentioned?

 

1. length of life __

2. housing __

3. illnesses __

4. work __

5. food __

6. having children __

 

Now listen again and match the descriptions with the numbers.

1. life expectancy A about 250

2. number of children who died before they

reached five years old B 1 in 10

3. number of women who died when they

were giving birth C 26

4. years since the Industrial Revolution D 1 in 3

 

Grammar: Present Simple

I/we/ you they read/go/speak/drive/eat/take etc.

He/she/it reads/goes/drives/eats/takes etc.

Use do/does to make negative sentences and questions.

Do I/we/you/they read/speak/go/eat?

Does he/she/it read/go/speak/eat?

I/you/we/they/ do not read/speak/go.

He/she/it does not read/speak/go/eat.

 

Exercises

Complete the sentences using one of the following:

cause(s) close(s) drink(s) live(s) open(s) speak(s) take (s) place

1 Ann………………… ... German very well.

2 I never………………..coffee.

3 The swimming pool……………..at 9 o’clock and…………….at 18.30every day.

4 Bad driving……………..many accidents.

5 My parents…………….in a very small flat.

6 The Olympic Games……………..every four years.

Put the verb into the correct form.

1 Jane... doesn't drink.. (not/drink) tea very often.

2 What time...................................................... (the banks / close) in Britain?

3 'Where...................................................... (Martin/come) from?' 'He's Scottish.'

4 'What....................................................... (you/do)?' 'I'm an electrical engineer.'

5 It........................................................ (take) me an hour to get to work. How long

........................................................... (it/take) you?

6 I.................................. (play) the piano but I............................ (not/play) very well.

7 I don't understand this sentence. What........................................... (this

word/mean)?

 

Use one of the following verbs to complete these sentences. Sometimes you need the negative: believe eat flow go grow make rise tell translate

1 The sun...goes.. round the earth. 7 An interpreter...................... from one

2 Rice.... doesn't grow.. in Britain. language into another.

3 The sun............................ in the east. 8........................................................... A liar is someone who

4 Bees....................................... honey., the truth.

5 Vegetarians............................ meat. 9 The River Amazon.................... into

6 An atheist............................. in God. the Atlantic Ocean.

Ask Liz questions about herself and her family.

1 You know that Liz plays tennis. You want to know how often. Ask her. How often...do you play tennis?..

2 Perhaps Liz's sister plays tennis too. You want to know. Ask Liz. your sister

3 You know that Liz reads a newspaper every day. You want to know which one. Ask her.

4 You know that Liz's brother works. You want to know what he does. Ask Liz.

5 You know that Liz goes to the cinema a lot. You want to know how often. Ask her.

6 You don't know where Liz's mother lives. Ask Liz.

 

Complete using one of the following:

I apologise I insist I promise I recommend I suggest

1 It's a nice day.... I suggest... we go out for a walk.

2 I won't tell anybody what you said..................

3 (in a restaurant) You must let me pay for the meal.............

4...................... for what I said about you. It wasn't true and I shouldn't have said it.

5 The new restaurant in Hill Street is very good.......... it.

 

 

Unite 5

Unit 6

Before you read

Discuss these questions with your partner.

-Do you think most countries have a market which is free from government management?

-Can you think of any examples supporting or disagreeing with this idea?

 

A Vocabulary

Complete each sentence with a word or phrase from the box.

Advertise afford competition

Controlled costs incentive

Limit prepared profit raise

Reduce role street market

Theoretical

 

1. Every Saturday this road becomes the local ……. where people come to buy fruit and vegetables.

2. Businesses …………. their products in the media to attract more consumers.

3. My ……….. in the business is to meet customers and find out what they want.

4. Making money is the main ………. to work.

5. I bought this old camera for $50 and sold it for $75. That's $25 ………..

6. If there is only one producer in the market, there is no …………….

7. Production …… are the amount of money companies spend to make a product.

8. The idea that life exists on other planets is …………. Nobody knows for sure.

9. A ………… economy is one where a government decides what can be bought and sold and/or how it is done.

10. The speed …………. on this road is 90 kilometers per hour.

11. When there is a demand we ………….. prices but we ……………. them if we want to sell something quickly.

12. I can't ……….. that car – it is far too expensive.

13. People are …………. to pay a lot for services if they are of a good quality.

 

The market economy

Have you ever walked through a busy street market? People push their way through crowds of others in order to reach the stalls first. The air is full of deafening shouts. Stall owners yell to advertise their goods. Buyers cry out their orders. It's hard to imagine, but behind this noisy confusion is a very logical economic theory: the market economy.

The market economy is sometimes called the free market. A free market is not controlled in any way by a government. It is also free from the influence of custom or tradition. In a free market, the only reason why things are bought and sold is because there is a demand for them. Prices for goods and services are simply what people are prepared to pay. The market economy is not really controlled by anyone. It controls itself.

The street market where we began has many of the characteristics of the free market. Customers arrive at the market with a shopping list of things they need. They also come with an idea of how much they are prepared to pay. Stall owners sell what customers demand, and try to get the highest price they can for it. Supply and demand control what is on the market and how much it sells for. In the wider economy, we are all customers, and the stall owners are like companies.

The role of the company in the free market is to supply what people want. However, companies need an incentive. The incentive is profit. There are two ways for companies to make a profit. The first way is to raise their prices. The second way is to reduce their production costs. And this brings us to two more features of the market economy: competition and technology.

Competition exists in a free market because, theoretically, anyone can be a producer. This means that companies have to compete with each other for a share of the market. Competition is good for consumers because it helps to control prices and quality. If customers aren't happy with a product or service, or if they can't afford it, they will go to a competitor.

Technology exists in a free market because producers need ways to reduce their costs. They cannot buy cheaper raw materials. Instead, they must make better use of time and labour. Technology is the use of tools and machines to do jobs in a better way. This helps companies produce more goods in less time and with less effort. The result: more profit.

People often think that most economics are free markets. However, at the macroeconomic level, a truly free market economy does not exist anywhere in the world. This is because all governments set limits in order to control the economy. Some governments set many limits, other governments set very few, but they all set some. For this reason, a true market economy is only theoretical. Nevertheless, many of the features of the market economy do exist on most societies today.

 

B Comprehension

Now read the text again and answer these questions in your own words in the space provided below.

 

1. Who controls a market economy?

2. Who decides what products are for sale in a free market?

3. What do companies want?

4. Why is competition a good thing?

5. Why does technology exist in the market economy?

6. Why are there no true market economies in the world today?

 

Before you listen

Discuss these questions with your partner.

-Do you think the free market is a good idea?

-Is it good for society? Why/Why not?

 

C Listening

Now listen and choose the correct answer.

 

Adam Smith's invisible hand theory:

1. People are naturally selfish/helpful.

2. The free market only demands what is good for society/producers.

3. When people work for their own good, they do good for consumers/society also.

In the real economy:

4. In the free market there is demand for goods which are not expensive/necessary.

5. There is also demand for goods which are good/bad for us.

6. The market/Advertising can create demands that do not normally exist.

 

Grammar: Present perfect

I/you/we/they HAVE + Past Participle

He/she/it HAS + Past Participle

 

Use the Present Perfect when the action in the past has a result now.

Where is your key? I don’t know. I have lost it.

Is Ann here? No, she has gone out.

 

Use the Present Perfect to announce a recent happening.

Ow! I have cut my finger.

The road is closed. There has been an accident.

 

Use the Present Perfect with just, already, yet, ever, never, recently, lately, in the last few days, so far, since childhood, for ages, today, this month.

I haven’t seen you for ages.

He has already done his homework.

She hasn’t come back yet.

 

Exercises

You are writing a letter to a friend. In the letter you give news about yourself and other people. Use the words given to make sentences. Use the present perfect.

Dear Chris,

Lots of things have happened since I last wrote to you.

1 I / buy / a new car .. I ' ve bought a new car...

2 my father / start / a new job............................................................................................

3 I/ give up / smoking.........................................................................................................

4 Charles and Sarah / go / to Brazil..............................................

5 Suzanne /have / a baby.................................................................................................

Read the situations and write sentences. Choose one of the following: arrive break go up grow improve lose

1 Mike is looking for his key. He can't find it He has lost his key...

2 Margaret can't walk and her leg is in plaster. She....................................................

3 Maria's English wasn't very good. Now it is much better.........................................

4 Tim didn't have a beard last month. Now he has a beard.......................................

5 This morning I was expecting a letter. Now I have it.................................................

6 Last week the bus fare was 80 pence. Now it is 90..................................................

 

Read the situations and write sentences with just, already or yet. After lunch you go to see a friend at her house. She says 'Would you like something to eat?' You say: No, thank you.. I.. ve just had.. lunch,... (have lunch)

1 Joe goes out. Five minutes later, the phone rings and the caller says 'Can I speak to Joe?' You say: I'm afraid......................................................................................................... (go out)

2 You are eating in a restaurant. The waiter thinks you have finished and starts to take your plate away. You say: Wait a minute!....................................................... (not/finish)

3 You are going to a restaurant this evening. You phone to reserve a table. Later your friend says 'Shall I phone to reserve a table?' You say: No,....................................... it. (do)

4 You know that a friend of yours is looking for a job. Perhaps she has been successful. Ask her. You say:...................................................................................................................? (find)

5 Ann went to the bank, but a few minutes ago she returned. Somebody asks 'Is Ann still at the bank?' You say: No,............................................................................................ (come back)

 

Put in been or gone.

1 Jim is on holiday. He's...gone... to Italy.

2 Hello! I've just............................ to the shops. I've bought lots of things.

3 Alice isn't here at the moment. She's.................. to the shop to get a newspaper.

4 Tom has............................ out. He'll be back in about an hour.

5 'Are you going to the bank?' 'No, I've already................. to the bank.'

 

 

Unit 7

You are asking somebody questions about things he or she has done. Make questions from the words in brackets.

1 (ever / ride / horse?).... Have you ever ridden a horse ?..

2 (ever / be / California?)..................................................................................................

3 (ever / run / marathon?).................................................................................................

4 (ever / speak / famous person?)...................................................................................

5 (always / live / in this town?)........................................................................................

6 (most beautiful place / ever / visit?) What...............................................................

 

Complete B's answers. Some sentences are positive and some negative. Use a verb from this list: be be eat happen have meet play read see see try

What is George’s sister like? I have no idea. I…………………….her.

How is Amy these days? I don’t know. I………………her recently.

Are you hungry? Yes. I……………………much today.

Can you play chess? Yes. But I……………………..for ages.

Did you enjoy your holiday? Yes, it’s the best holiday I…………….for a long time.

What is that book like? I don’t know. I…………………………..it.

Is Rome an interesting plase? I’ve no idea. I…………………………there.

Mike was late for work again. He…………………………..late every day this week.

Do you like caviar? I don’t know. I………………….it.

The car broke down again. That’s the second time it…………..this week.

Who/s that woman by the door? I don’t know. I………………….before.

 

Complete these sentences using today / this year / this term etc.

1 I saw Tom yesterday but.... I haven’t seen him today....

2 I read a newspaper yesterday but I................................................................... today.

3 Last year the company made a profit but this year...................................................

4 Tracy worked hard at school last term but..................................................................

5 It snowed a lot last winter but.......................................................................................

6 Our football team won a lot of games last season but we.......................................

 

Read the situations and write sentences as shown in the examples.

1 Jack is driving a car but he's very nervous and not sure what to do.
You ask:.... Have you driven a car before?..

He says:... No this is the first time I've driven a car.

2 Len is playing tennis. He's not very good and he doesn't know the rules.

You ask: Have.....................................................................................................................

He says: No, this is the first..............................................................................................

3 Sue is riding a horse. She doesn't look very confident or comfortable.

You ask:..............................................................................................................................

She says:............................................................................................................................

4 Maria is in London. She has just arrived and it's very new for her.

You ask:..............................................................................................................................

She says:......................

 

 

Unit 8

Before you read

Discuss the following with your partner.

-Can you actually think of any examples of countries with a completely free market or a totally controlled one?

-Give any examples you can think of or say why you can't come up with any true examples.

 

A Vocabulary

Complete each sentence with a word or phrase from the box.

 

Agriculture ban free enterprise

Manufacturers monopoly private sector

Profit motivation public transport state sector

Telecommunications efficiently trade

 

1. …… is when businesses are able to trade without control from the government.

2. ………………. industries belong to and are run by the government.

3. ………………. industries belong to and are run by independent businesses.

4. Buses, trains and planes are example of ……………..

5. …………. is another word for farming.

6. ……………. produce new goods from raw materials.

7. When a business works ………, it runs successfully without wasting resources.

8. Telephone and internet systems are part of the ………. industry.

9. ………… is what drives businesses in the market economy.

10. When the governments puts a …………. on a commodity, people are not allowed to buy or own it.

11. If only one company controls part of the economy, they have a ………...

12. When companies …………….., they do business with each other.

 

 

Reading

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.

Economics 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 are 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 on 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 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.

B Comprehension

Now read the text again and answer the questions:

1. What do most economists believe about economies in the world today?

A. There are a number of free markets.

B. Some countries have a completely planned economy.

C. A mixed economy exists in some way in all countries.

2. Why do governments choose to run some industries?

A. So they can collect taxes.

B. Because they need to be protected from the risks of the free market.

C. To encourage a divided economy.

3. Why do governments deregulate some industries?

A. To make the industries more efficient.

B. To protect them.

C. Because there is too much competition.

4. According to the text, what is not very popular with the public?

A. Deregulation of public transport.

B. Deregulation of hospitals and schools.

C. Deregulation of telecommunications and banking.

5. What type of state control is not mentioned in paragraph 5?

A. Controlling the way companies do business.

B. Controlling what companies sell.

C. Controlling the prices companies set.

 

Discuss the following with your partner.

-Here is a list of arguments against state-run hospitals and arguments against private hospitals.

-Read the list and decide under which heading you think each one should go.

 

C Listening

Now listen and check your answers.

1. badly organised

2. creates a class of poor, unhealthy people

3. hospitals in bad condition

4. hospitals will reduce costs to make money

5. is bad for society in general

6. long waiting lists for patients

7. only the rich can afford health care

8. staff are poorly paid

9. taxpayers support everyone

 

Against state-run hospitals: Against private hospitals:

 

Unit 9

Present tenses.

 

 

Unit 10

A Vocabulary

Choose the correct answer A, B or C from the list opposite.

 

1. Companies usually have a ………….. with a senior managers at the top and employees at the bottom.

2. McDonald's has a very big …………. of the fast food market.

3. Some teachers mark students' work using a ………… from A to E.

4. No one's work is ………….. We all make mistakes.

5. A perfect economic system may never ……….

6. A ………… monopoly means an absolute or complete monopoly.

7. Not all twins are ………….. Some twins are brother and sister, for example.

8. Sometimes a person's colour or race can be a ………… to getting work.

9. We use curtains to …………. light.

10. Countries have been ………….. with each other for thousands of years.

11. The ………… point is where two things are balanced against each other.

12. Honey is a healthier ………… for sugar to make things sweet.

13. Everyone should have ……….. to education.

 

1. A shape B structure C building

2. A piece B part C market share

3. A scale B point C grade

4. A good B better C perfect

5. A is B live C exist

6. A pure B good C clean

7. A similar B identical C same

8. A gate B barrier C block

9. A harrier B close C block

10. A shopping B trading C selling

11. A equilibrium B middle C equal

12. A difference B addition C substitute

13. A access B openings C entrance

 

Reading

B Comprehension

Now read the text again and decide whether these statements are true or false.

 

1. Market structure describes how competitive a market is. T_F_

2. Perfect competition and pure monopoly are opposites. T_F_

3. Four conditions are necessary for perfect competition to exist. T_F_

4. In perfect competition, every company makes a slightly different product. T_F_

5. Perfect competition makes it easy for new companies to start trading. T_F_

 

Before you listen

Discuss the following with your partner.

-Perfect competition is really only an idea. It almost never happens in the real world. Why do you think this is? Can you think of any market that has perfect competition?

 

C Listening

Now complete each sentence with words from the box. Then listen and check your answers.

A monopoly a monopsony

An oligopoly imperfect competition

 

1. Any market structure apart from perfect competition is called …………..

2. ……….. is when there is only one seller of a good or service.

3. ……………. is when only a small number of sellers control the market.

4. ……….. is when there is only one buyer in the market for a product or service.

 

Grammar: the Past Simple

We use the Past Simple to say that the action happened in the past (yesterday, the day before yesterday, some years ago, last month etc.

Regular verbs irregular verbs

Open ed work ed studi ed write – wrote – written

Invit ed pass ed stopp ed go – went - gone

Decid ed enjoy ed clos ed speak – spoke- spoken

 

He went to the theatre yesterday.

We invited them to the party but they decided not to come.

In questions and negatives we use did/didn’t.

Did you enjoy the party? No, I did not.

Did they write the composition? No, they did not (didn’t).

 

Exercises

Yesterday was a typical working day for Sharon. Write what she did or didn't do yesterday.

1... She got up at 7 o'clock... 7........................................ at 5 o'clock.

2 She.............................. a big breakfast. 8................ tired when.............. home.

3 She................................................... 9..................... a meal yesterday evening.

4 It.......................... to get to work..................................... 10 out yesterday evening.

5.............. at 8.45. 11................................... at 11 o'clock.

6 lunch...................................... 12 well last night.

 

Put one of these verbs in each sentence:

buy catch "cost drink fall hurt sell spend teach throw win write

1 Mozart... wrote … more than 600 pieces of music.

2 'How did you learn to drive?' 'My father.................... me.'

3 We couldn't afford to keep our car, so we................... it.

4 I was very thirsty. I........................... the water very quickly.-

5 Paul and I played tennis yesterday. He's much better than me,-so he...... easily.

6 Don.............................. down the stairs this morning and.............. his leg.

7 Jim.... the ball to Sue, who............................................ it.

8 Ann............................. a lot of money yesterday. She.............. a dress which….£100.

 

A friend has just come back from holiday. You ask him about it. Write your questions.

1 (where/go?)... Where did you go?... 6 (how/travel?)....................................

2 (go alone?).............................................. 7 (the weather/fine?)

3 (food/good?)......................................................................................................

4 (how long/stay there?) 8 (what / do in the evenings?)

5 (stay / at a hotel?) 9 (meet anybody interesting?

 

Complete the sentences. Put the verb into the correct form, positive or negative.

1 It was warm, so I... took... off my coat. (take)

2 The film wasn't very good. I ... didn't enjoy. it very much. (enjoy)

3 I knew Sarah was very busy, so I............................... her. (disturb)

4 I was very tired, so I..................................... to bed early. (go)

5 The bed was very uncomfortable. I............................... very well. (sleep)

6 Sue wasn't hungry, so she............................... anything. (eat)

7 We went to Kate's house but she.............................. at home. (be)

8 It was a funny situation but nobody................................ (laugh)

9 The window was open and a bird............................... into the room. (fly)

10 The hotel wasn't very expensive. It............................. very much. (cost)

11 I was in a hurry, so I................................... time to phone you. (have)

12 It was hard work carrying the bags. They............................ very heavy. (be)

 

Unite 11

 

Before you read

Discuss these questions with your partner.

-Can you think of any reasons why there are monopolies?

-Do you think monopolies have advantages as well as disadvantages?

 

A Vocabulary

Complete each sentence with a word from the box.

 

Aggressive cables illegal

Innovation legal naturally

Network occurs printing

Publishing takeover

 

1. A …………….. is a set of connections.

2. When one company gains control of another company it is called a …….

3. Raw materials are things like wood or oil that exist …………...

4. Electricity travels along ………… to reach our houses.

5. ………….. people get what they want by violence and force.

6. …………… companies are responsible for the writing and pictures in books, etc.

7. ……………. companies make books.

8. ………….. is inventing and thinking of new solutions to problems.

9. If something is ………., it is allowed by law.

10. When something is ……….., it is not allowed by law.

11. If a problem ………….., you will have to deal with it.

 

Reading

Monopolies

In a monopoly, one company has a much larger market share than any other company. In fact, their share is so big that other companies cannot really compete. When there is a monopoly, the normal laws of supply and demand do not always work. Monopolies come in different kinds, but a pure monopoly is when there is only one company in the market providing a particular product or service. This situation, in fact, is the exact opposite of perfect competition. How do pure monopolies happen?

Some monopolies occur naturally. This happens when a company manages to create an economy of scale. An economy of scale is when variable costs of production increase more slowly than increases in supply. Every company would like to be in this situation. Unfortunately, it's not easy to achieve. Economies of scale are possible for companies which need a lot of money to set up but much less money to run.

A telephone company is a good example. Telephone companies have to spend millions of pounds laying cables. However, once they have made the network, running the system does not cost too much. Any other company that wants to compete will have to make their own network. Not surprisingly, not many bother!

However, the world of business is a jungle, and there are more aggressive ways to create a monopoly. One of these is by making takeovers. This means that a more powerful company buys a smaller one in the same industry. Takeovers happen vertically or horizontally. In a vertical takeover, a company buys companies that supply it with materials or services. For example, a publishing company might buy a printing business. In a horizontal takeover, a company buys its competitors. The competitors then become part of the first company.

One final way a monopoly occurs is for the government to make it happen. This is called a legal monopoly, but not because other monopolies are illegal! It is called a legal monopoly because it is created by law. The government may decide that a competitive market is not good for a certain industry. In this case, it can make one company the only legal supplier. Sometimes, it provides the service itself. This is called a state monopoly. The postal service in many countries is an example of a state monopoly.

Generally, monopolies are not good for consumers. This is because in a monopoly, the laws of supple and demand do not work in the same way. A company with a monopoly becomes a price maker. They have much more power to set the price for their product or service. Also, they don’t usually spend money on innovation because they don’t need to. The bottom line, as they say, is that monopolies mean less choice for consumers.

 

B Comprehension

Now read the text again and match the phrases on the left with the definitions on the right.

 

1. pure monopoly A a company with the power to set prices

in the market

2. natural monopoly B when a company buys a competitor

3. legal monopoly C when only one company supplies

to the market

4. horizontal takeover D when a company buys a supplier

5. vertical takeover E when a monopoly occurs due to

economies of scale

6. price maker F when a monopoly occurs due to

government control

 

Before you listen

Discuss this question with your partner.

-What dangers might monopolies face?

 

C Listening

Now listen to someone talking about the threats which face monopolies. Tick the things in the list that are mentioned.

1. rising variable costs __

2. a fall in demand __

3. a change in fixed costs __

4. innovation by another company __

5. takeover from a foreign company __

 

Unite 12

A vocabulary

Соmplete each sentence with a word from the box.

 

Managers, entrepreneurs, proprietorship, corporation, partnership, funds, stockholder, taxes, capital, liabilities, business, ability.

1. There are numerous reasons that make people think about owning a ___________ of their own.

2. About 50 percent of_________________start their businesses in industries in which they have some experience.

3. In a large business the tasks of organizing and operating are done by many hired ___________.

4. The source of ___________for a proprietorship is usually the owner's own savings and loans from banks.

5. Of the three basic forms, the _____________ is the simplest and the most common form in many western countries.

6. A _______________ is a business organization that is owned by two or more persons to carry on a business for profit.

7. A limited partnership has one or more general partners who put up some capital, run the business and bear the ___________of the business.

8. Partners bring additional ____________ to a proprietorship.

9. A ______________ is a business organization created under a government charter.

10. A person who owns a stock certificate is called a._____________.

11. They have minimal legal restrictions and do not how to pay the special __________placed on corporations.

12. There are several advantages of the corporate form of ownership. The first is the __________ to attract financial resources.

 

Reading

B Comprehension

Unit 13

Business operations

Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders. They are contrasted with project management, and consist of business processes.

The outcome of business operations is the harvesting of value from assets owned by business Assets can be either physical or intangible. An example of value derived from a physical asset like a building is rent. An example of value derived from an intangible asset like an idea is a royalty. The effort involved in "harvesting" this value is what constitutes business operations.

Business operations encompasses three fundamental management imperatives that collectively aim to maximize value harvested from business assets (this has often been referred to as "sweating the assets"):

1. Generate recurring income.

2. Increase the value of the business assets.

3. Secure the income and value of the business.

All three imperatives are mutually dependent. The following basic tenets illustrate this interdependency:

· The more recurring income an asset generates, the more valuable it becomes. For example, the products that sell at the highest volumes and prices are usually considered to be the most valuable products in a business's product portfolio.

· The more valuable a product becomes the more recurring income it generates. For example, a luxury car can be leased out at a higher rate than a normal car.

· The intrinsic value and income-generating potential of an asset cannot be realized without a way to secure it. For example, petroleum deposits are worthless unless processes and equipment are developed and employed to extract, refine, and distribute it profitably.

The business model of a business describes the means by which the three management imperatives are achieved. In this sense, business operations is the execution of the business model.

Generating recurring income

This is the most straightforward and well-understood management imperative of business operations. The primary goal of this imperative is to implement a sustained delivery of goods and services to the business's customers at a cost that is less than the funds acquired in exchange for said goods and services—in short, making a profit.

The funds directly acquired by the business in exchange for the goods and services it delivers is the business's revenue.

The cost of developing, producing, and delivering these goods and services is the business's expenses.

A business whose revenues are greater than its expenses makes a profit. Such a business is profitable.

Unit 14

The structure of a company

Organization structure in business is very important. People in a company, its employees hold different positions.

The relationship between those employees with different positions makes organization structure.

At present most firms are divided into threemajor parts:

- capital (shareholders)

- management

- labour.

Let us take a typical company. There is a director who is a 'senior manager. He sits on the Board under the authority of the President. The Board decides what company policy and expenditure must b