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17. Fill in the blanks with the Vocabulary on the text.

1. Production … to the activities which are necessary to … the wants of mankind.

2. Man cannot … anything. He takes things provided by … and … them.

3. … is the process of creating material … and nonmaterial … by people.

4. Productive forces are interactions of … and … .

5. Economic relations are interactions of … and their … … .

6. … is any effective … for bringing buyers and sellers into contact with one another.

7. The price of any economic goods under market … is determined by the forces of … and … .

8. In economics a market that runs under … policies is a free market.

9. Markets can … arise.

10. There can be black markets, where a good is exchanged … and …, markets, in which buyers and sellers do not physically … .

Prompts: interact, converts, laissez-faire, values, market, illegally, supply, relates, virtual, create, demand, arrangement, man, economic activity, people, wealth, production, nature(2), conditions, satisfy, spontaneously.

18. Find in the text definitions of the following:

Production, market, productive forces, economic relations.

19. From the text write out all the tpes of markets and try to explain the difference between them.

20. Answer the questions on the text. Use the following expressions to begin your answer:

  • The text tells the readers

  • I suppose …

  • I think …

  • I am certain that …

  • If I got it right …

  • It seems to me …

  • In my opinion …

1. What does production relate to?

2. Are all goods created by man?

3. How are goods created?

4. What is production?

5. What are the elements of production?

6. What are productive forces?

7. Where are finished goods sold and bought?

8. What is market?

9. How can buyers and sellers interact on the market?

10. How is the market price determined?

11. What are the types of markets?

12. What is a free market?

13. Why is a market called free?

14. Is it always necessary to have face to face contact between buyers and sellers?

21. Agree or disagree. Correct wrong statements.

I (quite) agree (with you). I don’t think so.

I think so too. I don’t agree.

Certainly! I think you are mistaken.

Just so. You are wrong

1. Everyone requires a very limited range of things in life.

2. Production relates to the activities which are necessary to satisfy the wants of people.

3. All goods are gifts of nature converted by people.

4. People create all things which are necessary for them.

5. People can create meat, wool, hides, etc.

6. Production is a very long journey from natural product to the completed good.

7. Production is realized by cooperation of three elements: human labour, labour object and labour means.

8. Productive forces are the interactions of people in their economic activity and economic relations are the interactions of man and nature.

9. Market is necessarily a fixed location.

10. Market is any effective arrangement for bringing buyers and sellers into contact with one another.

11. Most commodities are bought and sold on a national market.

12. The price of any economic good is determined by the forces of supply and demand.

13. A market is free in the sense that the government doesn’t intervene through taxes, subsidies and so on.

14. Most markets are not usually regulated at all.

15. Goods in black markets are exchanged legally.

16. Face to face contact between buyers and sellers is a basic requirement for a market to be able to operate efficiently.