VII. Retell the text B using the following words and

word-combinations:

command economy; central authority; to go along with smth; production quotas; major economic choices; major industries; to direct resources; to stress growth of heavy manufacturing; to strengthen national defence; in a relatively short time; to change direction drastically; consumer goods; to determine needs; to meet the wants and needs of individuals; the lack of incentives; regardless of; to shift resources; to operate the system; a large decision-making bureaucracy; production costs; to deal with day-to-day problems.

Reading drILLS

 

1. Practise the pronunciation of the following words:

a) stress the first syllable:

market, interest, buyer, seller, price, profit, final, flexible, trend, quality, level, business, switch, money, goods, services, government, care, lack, slowly, generally;

b) stress the second syllable:

arrangement, conduct, adjust, transaction, efficient, significant, supply, decline, reverse, exist, involve, incredible, variety, available.

 

Text C

In a market economy, the questions of What, How and for Whom to produce are made by individuals and firms acting in their own best interests. In economic term a market is an arrangement that allows buyers and sellers to come together to conduct transactions¹.

Since consumers like products with low prices and high quality, producers in a market economy will try to supply such products. Those who make the best products for the lowest prices will make profits² and stay in business³. Other producers will either go out of business or switch to⁴ different products consumer can buy.

A market economy has several major advantages that traditional and command economies do not have. First, a market economy is flexible and can adjust to change over time.

When gas prices in the United States began to level off in 1985 and then decline in 1986, the trend slowly began to reverse.

The second major advantage of the market economy is the freedom that exists for everyone involved. Producers are free to make whatever they think will sell. They are also free to produce their products in the most efficient manner. Consumers on the other hand are free to spend their money or buy whatever goods and services they wish to have.

The third advantage of the market economy is the lack of significant government intervention. Except for national defence, the government tries to stay out of the way⁵. As long as there is competition among producers, the market economy generally takes care of itself.

The final advantage of the market economy is the incredible variety⁶ of goods and services available to consumers. In fact, almost any product can and will be produced so long as there is a buyer for it.

 

COMMENTS

1. to conduct transactions — проводити дiловi операцiї

2. to make profits — отримувати прибуток

3. to stay in business — залишатися в бiзнесi

4. to switch to — переорiєнтуватись

5. to stay out of the way — не втручатися

6. incredible variety — неймовiрна рiзноманiтнiсть

VOCABULARY EXERCISES

I. Find equivalents:

1. to conduct transactions 2. in the most efficient manner 3. to act in one’s own best interests 4. to stay out of the way 5. to make profits 6. the lack of significant government intervention 7. to adjust to change over time 8. to stay in business 9. incredible variety 10. to switch to 11. on the other hand 12. market economy

а. отримувати прибуток б. проводити дiловi операцiї в. з іншого боку; у свою чергу г. неймовiрна рiзноманiтнiсть д. не втручатися е. працювати для власної вигоди є. залишатися в бiзнесi ж. переорiєнтуватися з. найбiльш ефективним способом и. ринкова економіка і. змiнюватися з часом ї. брак значного втручання уряду

Match the synonyms:

a buyer, to desire, to make profits, to take care (of), to supply, to conduct transactions, interest, considerable, a purchaser, to allow, benefit, to get profits, variety, to manufacture, to arrange a deal, to provide (with), significant, to look after, tendency, lack, intervention, to permit, diversity, to produce, interference, trend, to wish, absence.

III. Match the antonyms:

to sell, advantage, high prices, to spend money, to decline, flexible, to go out of business, to save money, disadvantage, low prices, worst, to buy, credible, variety, best, uniformity, inflexible, to stay out of the way, incredible, available, to meddle with other people’s business, unavailable, to stay in business, to level off.

IV. Fill in the blanks with prepositions or adverbs if necessary:

1. In a market economy, the questions... What, How and... Whom to produce are made... individuals and firms acting... their own best interests. 2. A market economy is flexible and can adjust to change... time. 3. Since consumers like products... low prices and high quality, producers... a market economy will try to supply such products. 4. Those who make the best products... the lowest prices will stay... business. 5. The second major advantage... the market economy is the freedom that exists... everyone involved. 6. Except... national defence, the government tries to stay... the way. 7. As long as there is competition... producers, the market economy generally takes care... itself. 8. The final advantage... the market economy is the incredible variety... goods and services available... consumers.

V. Complete the following sentences:

1. In a market economy the questions of What, How and for Whom to produce are made by.... 2. In economic term a market is.... 3. Since consumers like products with low prices and high quality,.... 4. Those who make the best products for the lowest prices.... 5. Other producers will either go out of business or.... 6. A market economy has.... 7. The first advantage of the market economy is.... 8. The second major advantage of the market economy is.... 9. Consumers are free to spend their money or.... 10. The third advantage of the market economy is.... 11. As long as there is competition among producers,.... 12. The final advantage of the market economy is....

VI. Match each term in Column A with its definition in Column B:

Column A Column B

1. economic system	a. An economic system that allocates scarce resources according to custom.
2. traditional economy	b. An economic system in which major decisions concerning the allocation of resources are made by agencies of the government.
3. command economy	c. The approach a country uses to deal with scarcity and achieve its economic goals.
4. business	d. The production, distribution, and sale of goods and services for a profit.
5. consumer	e. The rivalry among buyers and sellers in the purchase and sale of resources and products.
6. competition	f. A person who buys and uses goods or services.
7. market	g. The difference between revenues and operation costs incurred by a business.
8. profit	h. Place where buyers and sellers come together to conduct transactions.

 

VII. Define which of the following items best completes

the statement:

1. A market exists

a. where consumers express their needs and wants.

b. when products are advertised.

c. where merchants build shops.

d. where buyers and sellers exchange goods and services.

2. 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.

3. The special role of the profit motive in a market economy is that, it

a. drives sellers to produce what buyers want.

b. results in high prices.

c. discourages people from taking risks.

d. keeps people from going into business.

4. In another country, privately owned business firms can produce goods or services in any lawful manner that they choose.

This country has

a. a market economy.

b. a traditional economy.

c. a command economy.

d. a mixed economy.

VIII. Answer the following questions:

1. Who asks the questions of What, How and for Whom to produce in a market economy? 2. What is a market in economic term? 3. Who will stay in business in a market economy? 4. What advantages does market economy have? Explain it in details. 5. What does the final advantage of the market economy consist in?

IX. Translate into English:

1. Ринкова економiка має кiлька головних переваг, яких нема в традицiйнiй та команднiй економiках. 2. Коли цiни на газ у Сполучених Штатах вирiвнялися в 1985 р. i потiм упали в 1986 р., то ця тенденцiя повiльно почала змiнюватися в протилежному напрямку. 3. Одна з головних переваг ринкової економiки полягає у свободi, яка iснує для кожного пiдприємця. 4. Оскільки споживачам подобаються товари за низькими цiнами i високої якостi, виробники за ринкової економiки намагатимуться постачати саме такi товари. 5. Уряд намагається не втручатися в жодні галузi, крім нацiональної оборони. 6. У ринковiй економiцi майже будь-який товар може бути i буде виготовлений, поки на нього є покупець.

COMMUNICATIVE SITUATIONS

All countries have developed economic systems (ways of producing and distributing goods and services). Economic systems are used to answer the three basic economic questions:

n What goods and services are to be produced?

n How are goods and services to be produced?

n For whom are goods and services to be produced?

Different types of economic systems have different mechanisms (methods) for answering these questions. Summarize the three types of Economic Systems.

Use the table given below:

Type of economic system	What to produce?	How to produce?	For whom to produce?
Market economy	Business firms produce goods and services that consumers are willing and able to buy for prices that will yield profits for the firms.	Seeking to compete profitably in the marketplace, individual business owners decide what combinations of productive resources (land, labour,capital and entrepreneurship) they will use in producing goods and services.	Finished goods and services are distributed to individuals and households who are willing and able to buy them.
command economy	A central planning authority (government agency) decides what goods and services to produce.	A central planning authority (government agency) decides what combinations of productive resources will be used in producing goods and services.	A central planning authority (government agency) decides who will receive the goods and services that are produced.
traditional economy	The goods and services produced today are the same as those produced in previous generations.	The combinations of productive resources used in producing goods and services are the same as those in past generations.	Finished goods and services are traded locally for other finished goods and services.

GRAMMAR EXERCISES

The Past Perfect Tense

I. Answer the following questions:

1. Where had you lived before you came to Kyiv? 2. What language had you studied before you began to study English? 3. What grammar material had you studied before you began to study the Past Perfect Tense? 4. Where had you studied before you entered the University? 5. What English books had you read by the begginning of the second term? 6. How many English words have you learnt by the end of the term? 7. What had you done by nine o’clock last night?

II. Make the following sentences interrogative and negative:

1. Kate had done her lessons by eight o’clock. 2. The girls had cleaned the rooms by the time their mother came back. 3. He had studied English before he entered the University. 4. My roommates had finished dinner by the time I got home. 5. They had bought all necessary goods before noon. 6. By that time mother had prepared dinner. 7. The students had left when the teacher came. 8. We had reached the village before the sun set.

III. Put questions to the italicized words:

1. We had discussed all the questions by the end of the week. 2. He had made an appointment with Mr. Black by that time. 3. My friend had passed all hisexams by the end of December. 4. The students had finished their work by six o’clock yesterday. 5. The teacher had looked through all the exercises by the time the lesson began. 6. They went home after the ship had disappeared. 7. The doctor had examined ten patients by three o’clock. 8. Everybody had finished his work by the appointed time.

IV. Transform the sentences according to the Patterns:

Pattern A: He left Kyiv at the end of May.

He had left Kyiv by the end of May.

1. He returned to Kyiv at the end of February. 2. They settled the matter on May 15th. 3. She finished reading the novel last Friday. 4. They visited most of the museums last Saturday.

Pattern B: They got to the station. The train left. (when)

When they got to the station the train had left.

1. He went to Washington. He made a reservation at the Hilton. (before) 2. He graduated from the University. He went to Washington. (after) 3. Victor worked on the farm. He joined the army. (before) 4. Ann spent a year in Paris. She could speak French very well. (after)

 

Pattern C: She entered the University. (Her friends knew)

Her friends knew that she had entered the University.

1. Nothing happened to them. (We hoped) 2. The guests left late at night. (she said) 3. Ann got a poor mark in English. (Everybody knew) 4. They made an excursion to Chernihiv. (We knew) 5. Robert told a lie. (I thought)
6. Our football team won the game. (I was happy).

V. Translate into Ukrainian:

1. When I got home, I found that someone had broken into my flat and had stolen my fur coat. 2. After the sun had set we went home. 3. The professor had reviewed the material before he gave the quiz. 4. The concert hadn’t begun when we came. 5. He had learnt English well before he went to England. 6. By six o’clock I had learnt all the words. 7. They had gone to bed when somebody knocked at the door. 8. I couldn’t recognize him as I had not seen him since we studied at theInstitute together. 9. He didn’t think that the boy had grown so much. 10. At last I learnt what had happened to my friend.

VI. Complete the sentences according to the Pattern:

Pattern: Mary told us a story she....

Mary told us a story she had never told us before.

1. At their dinner party we met some people we.... 2. The dinner was quite unusual, I ate something.... 3. She spoke of something she.... 4. I went for a walk and decided to take the road I.... 5. The lecture was very interesting, we heard something we.... 6. He showed us the pictures he....