Comprehension check.

Exercise 1.

1-F, 2-F, 3-T, 4-T, 5-F, 6-T, 7-T, 8-T.

Exercise 3.

1. Economic systems; 2. command economy; 3. economic; 4. at the other extreme; 5. decisions; 6. command economy; 7. free-market economy; 8. consumers’; 9. mixture; 10. intervention; 11. government intervention.

I.

1. In practice all economies are a mixture of the two: command and free-market.

2. Countries also differ in the type of government intervention as well as the level.

3. All societies are faced with the problem of scarcity.

4. All decisions are taken by individuals and firms.

5. Government intervenes through planning, nationalization, regulation, taxes, subsidies.

6. Households decide how much labour and other factors to supply, and what goods to consume.

7. Firms decide what goods to produce and what factors to employ.

II.

1-0; 2-0; 3-the; 4-0; 5-a; 6-0; 7-a; 8-the; 9-the; 10-0; 11-the; 12-0; 13-the; 14-0; 15-0; 16-the; 17-0; 18-0; 19-0; 20-0; 21-the; 22-0; 23-0; 24-0; 25-the; 26-0; 27-0.

IV.

1. she, her, it, she, somebody.

2. Some, he (she), his (her), him (her), himself (herself).

3. I, I, my, my, they, me.

4. They, our, their, us.

V.

1 - have, 2 - is, 3 - are, 4 - have, 5 - is, 6 - has, 7 - have, 8 - was, 9 - were, 10 - was.

VI.

1 - was, 2 - was, 3 - his, 4 - the, 5 - a, 6 - the, 7 - was, 8 - had, 9 - his, 10 - he.

VIII.

Are faced with; in the way; at the one extreme; at the other extreme; free-market economy; in practice; as well; in one; in the other; private sector.

IX.

1. Different societies have different economic systems.

2. All economic systems solve the same problems: what, how and for whom to produce.

3. There are the following economic systems: command economy, free-market economy, mixed economy.

4. There is no a pure command or pure free-market economy. At present all economic systems are mixed.

5. Under the command economy almost all means of production are under the control of government.

6. Government intervenes into all economic processes.

7. There is no private sector under command economy.

8. All decisions about production and allocation are made by separate individuals under the free-market economy.

9. Government doesn’t almost intervene into the process of making decisions.

10. However, the main factor which economics studies is the human behaviour.

11. It’s very difficult to analyse and predict human factor.

Unit 3.

1. accuracy	точність, достовірність
2. assume	припускати, приймати
3. under tightly controlled conditions	в умовах, що суворо контролюються
4. simple model	проста модель
5. to predict	передбачати, пророкувати
6. at a disadvantage	у невигідному становищі
7. food stamps	талони на харчування
8. handicapped	особи, що потерпають від якоїсь фізичної вади
9. social security	соціальне забезпечення
10. to benefit	приносити користь
11. elderly	літні
12. natural sciences	природничі науки
13. simplifying assumption	спрощення; припустиме спрощення
14. to develop	розробити
15. other things remain constant	інші величини залишаються незмінними
16. to respond	реагувати
17. in a broad sense of the word	в повному розумінні слова
18. social sciences	суспільні науки
19. welfare	добробут
20. unemployment benefit	допомога з безробіття