UNIT 3 Different Economic Systems

Not all economic systems are the same. The economic system of the USA differs greatly from the system of Cuba. The American system is based on private enterprise with private ownership of the means of production, while the Cuban system is communistic and is based upon the principles of Karl Marx, the 19th century political economist. The economic ideologies of these two nations contrast very strongly.

Britain is similar to the USA. It has an economic system based on private enterprise and private supply of capital, which can be defined as surplus income available for investment in new business activities. Property in both the US and Britain can be owned by individual citizens and these citizens exercise considerable economic freedom of choice. They can choose what they want to do and how they want to earn their living, but are not of course entirely free to do as they wish. They must obey the law. Otherwise, however, they can use their time, money and effort as they wish.

 

 

Exercise 1. Answer these questions, basing your answers on the text.

 

a. What does the economic system of the United States differ from?

b. What is the American system based on?

c. What is the Cuban system based on?

d. When did Karl Marx live?

e. What economic system is the British system similar to?

f. What two things is the British system based on?

g. Who can own property in the United States and Britain?

h. What must British and American citizens obey?

i. What three things can Britons and Americans use as they wish?

 

Exercise 2. Say whether these statements are true or false, and if they are false, say why.

 

a. The economic system of the United States and Cuba are the same.

b. In the United States the means of production are privatively owned.

c. Karl Marx was an eighteenth century economic thinker.

d. The British system is based on the principles of Karl Marx.

e. Because Britain has a system of private enterprise, we can say that its economy is similar to the American economy.

f. Capital is essentially surplus income used for new business activities.

g. Individual citizens in Britain and the United States have complete economic freedom.

h. British citizens can choose what they want to do as long as they obey the law.

 

 

Exercise 3. Make these sentences passive, as in the example.

 

EXAMPLE: Most people produce goods and services.

Goods and services are produced by most people.

a. Some people provide both goods and services.

b. Economists study the economic system.

c. That man owns the house.

d. They will provide shelter and clothes.

e. Economic changes affect our lives

f. They will maintain his car.

g. The economists explained the economic system.

h. They explained the methods.

i. He told me how the Cuban system works.

j. Economists describe how capital is used in business.

 

 

Exercise 4. Combine these pairs of sentences as in the example, making them conditional and using may.

 

EXAMPLE: (if) He comes tomorrow. Perhaps he will see you.

If he comes tomorrow, he may see you.

 

a. (if) The people work regularly and well. Perhaps they will earn more money.

b. (if) The man buys his car at that garage. Perhaps the garage-owner will provide some extra services.

c. (if) We buy these commodities today. Perhaps we will be able to sell them tomorrow.

d. (if) The farmers try to produce more. Perhaps they will have some goods to sell as well as to use themselves.

e. Perhaps life will be more enjoyable. (if) We have a radio and toys for the children.

 

 

Exercise 5. Here are two lists: the first contains adjectives, the second contains nouns and noun phrases. Arrange the words in each list so that the adjectives match the nouns in ways which relate to the text: the first one is done for you.

 

capitalistic satisfaction

economic Cuban system

private necessities

communistic enterprise

political commodities

scientific methods

basic American system

complex economist

essential ideologies

personal range

Exercise 6. Form new words from the words listed below.

 

EXAMPLE: capital – capital ism – capital ist – capital istic

Note: The suffix -ism = system (noun)

-ist = person (noun)

-istic = about the system or person (adjective)

 

a. commune c. national e. individual

b. social d. real

 

 

Exercise 7. Make these sentences passive and omit the agent phrase in the same way as in the example.

 

EXAMPLE: They based the economic system on Marx.

i The economic system was based on Marx by them.

ii The economic system was based on Marx.

 

a. They provided all the necessary goods and services.

b. He will supply all the essential commodities.

c. The farmer undertook the work last week, and has just finished it.

d. The men satisfied the economist that they would do the work rapidly.

e. The economists described the whole economic system in a strictly scientific way.

f. The economic system affected the people's lives in many ways.

g. They studied the supply of both essential and non-essential commodities.

h. The people enjoy a strong economy in that country.

i. The citizens exercise a considerable amount of economic freedom.

j. They must obey the law.

 

 

Exercise 8. Arrange these sentences in order to make a logical paragraph about the American and Сuban economies.

 

A This system was founded by the nineteenth century political economist Karl Marx.

B Capitalism is based on the idea of individual citizens owing property and privately conducting their own businesses.

C Whereas the American system is capitalistic, the Cuban system is communistic.

D Communism however is based on the idea of property belonging to the state and all business being public rather than private.

E The American and Cuban ideologies are very different.

Exercise 9. Find words in the text for which these words could be substituted:

 

a. founded (§1) f. described (§2) k. pick (§2)

b. possession (§1) g. extra (§2) l. completely (§2)

c. main teachings (§1) h. single (§2) m. follow (§2)

d. countries (§1) i. have and use (§2) n. physical power (§2)

e. stores (§2) j. selection (§2)

Exercise 10. In the text there are two adjectives of nationality: American and Cuban. Below is a list of countries (nations). Study the example and then do the same for the listed words:

 

EXAMPLE: Britain: That man is British; he is a Briton.

Holland: That man is Dutch; he is a Dutchman.

 

a. Germany: That man is _______; he is a _______.

b. Italy: That man is _______; he is a _______.

 

Do the same for the following:

 

c. Spain k. Japan s. Thailand

d. Greece l. Scotland t. Turkey

e. Brazil m. Canada u. Egypt

f. Sweden n. Mexico v. Ghana

g. Portugal o. Norway w. England

h. France p. Pakistan x. Ireland

i. Malaysia q. Indonesia y. USA

j. China r. Iran z. Zambia

 

 

SUPPLEMENT

In geography and economics we often refer to parts of the world rather than list countries by name, e.g. The Middle East. Below are 25 countries. List them under these five headings: (a) Latin American; (b) North African; (c) Balkan; (d) South-East Asian; (e) others.

 

Libya France Brazil Malawi Philippines

Greece Argentina Mauritania Albania Nicaragua

Thailand Yugoslavia Canada Morocco Algeria

Bulgaria Mexico Pakistan Cambodia Peru

Japan Norway Malaysia Egypt Rumania

 

 

Essential Vocabulary

1. private enterprise приватне підприємництво

2. private ownership приватна власність

3. means of production засоби виробництва

4. surplus income додатковий прибуток

5. property власність

6. exercise тут: користуватись Syn. enjoy

7. freedom of choice свобода вибору

8. effort зусилля

9. obey the law підлягати закону

10. conduct a business вести справу