Is based on: ______________________________________________________________________

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work for a living: _________________________________________________________________

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to perform their work: _____________________________________________________________

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makes little or no effort: ____________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

will sell well: ­­­­­­­­­____________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

private ownership: ________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

relies on the market: _______________________________________________________________

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markets as well as government decisions: ______________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Exercise 8. Choose from the box the words and word-combinations having the same or similar meaning to the words listed below. More than one is possible.

бути готовим робити (2)
бути у розпорядженні (2)
власність (3)
втручання (3)
державна власність (2)
дуже важливий (3)
кінцевий споживач (2)
нестача (3)
особиста власність (2)
поєднання (2)
приватна власність (2)
розподіл (2)
розподіляти (2)
споживач (2)
сприяти (3)
стимул (3)
технологія виробництва (2)
установа (2)
частина (2)

public ownership		key	a customer		an institution	a participation
a technology		a dose	property		to encourage	a combination
private ownership		allocation	a share		an intervention	an organization
a final consumer		a consumer	a blend		to distribute	to favour
an encouragement		essential	possessions		a shortage	private property
an individual property		a lack	a motive		distribution	to be willing
an interference		crucial	a deficit		to be ready	to be available
personal property		to stimulate	to allocate		state property	an incentive
an ultimate customer	to be at one’s disposal			a production method			ownership

Exercise 9. Translate the words in brackets into Ukrainian.

Every economy has limited resources (у своєму розпорядженні) to meet (необмежені людські бажання). So the (проблема вибору) arising out of (нестачу ресурсів) faces every economy. All societies have to decide what they (готові відмовитися) to get the things they want. It is the task of an economic system to (ефективно поєднати своїї ресурси), wants and (технології виробництва). To do so, it must answer (три основні та взаємозалежні економічні питання): What to produce, How to produce, and For Whom to produce with its limited resources.

Not all societies choose to answer these questions in the same way, however, (кожне суспільство намагається) to answer them (еффективно). The economic system a country has (грунтується на) what is best for the country. The way each question is answered identifies (тип економічної системи) that exists (у певному суспільстві). (Загалом існує) three kinds of economic systems (у світі). They are: traditional, command, and market economies.

вирішує (У традиційній економіці), the custom or tradition of the society (надає відповіді на) the What, How, and Who questions.

(У суспільстві з командною економікою) it is (урядові установи) that (приймають рішення) which products will be made, they decide where (розташувати новий завод) and what factory to modernize. By setting wage rates for everyone, (центральна влада вирішує) who will receive (вироблені товари та послуга).

The most widely accepted economic system today is (ринкова економіка). In this type of economy it is (діяльність та рішення) of the buyers and sellers of goods, services and resources that (керують економічною системою).

Since there are no (як чистих командних, так і чистих ринкових економік), it is perhaps better to describe (більшісь сучасних економік) as (змішані економіки), in which (як уряд, так і приватні особи) have their economic (вплив на ринок) effect on the marketplace.

Exercise 10. On the left of the page there are the first halves of sentences. The second halves of the sentences are on the right, though not in the same order. Pair the halves and then write your own list of the completed sentences. Translate into Ukrainian.

Since there will not be enough produced to meet everybody’s wants,	as its economic system.
The central problem of economics is	in accordance with the laws of supply and demand.
The market system and the ownership of wealth are	to make the most productive use of their means of production
In command economies the major means of production are	some way will have to be chosen to determine how the output is distributed.
Private property provides people with the incentive	to obtain the greatest profits at the lowest possible cost.
A market, or free enterprise system, as it is sometimes called, is	to determine the most efficient ways of allocating the factors of production and solving the problem of scarcity.
Private property and the profit motive are	privately owned.
The profit motive encourages people	the key elements in determining who will be rich, middle or poor.
In market economies the major means of production are	one in which the decisions of many individual buyers and sellers interact to determine the answers to the questions of What, How and Who.
The way in which a society provides answers to the What, How and Who questions is known	essential elements in a market economy.
Resources in a market economy are allocated	usually publicly owned.

Completed sentences

Translation

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Exercise 11. Match each term in column A with its definition in column B.

A	B
Command economy	An organized way of providing answers to the fundamental economic questions of What, How and Who.
Economic system	The natural desire of every entrepreneur to make as much profit as possible.
Free enterprise system	A type of economic system in which the activities of firms and the allocation of productive resources are determined by government direction rather than the market forces.
Market economy	An economic system in which the decisions concerning the productive resources allocation are based on tradition and custom.
Mixed economy	A form of organization of the economy in which decisions on resources allocation are left to the independent decisions of individual buyers and sellers acting in their own best interest without central direction.
Private property	A form of organization of the economy in which some goods and services are produced by the government and some by private enterprises.
Profit motive	One of the essential elements in a market economy that gives each individual the right to own, use and dispose of things of value.
Traditional economy	An economic system characterized by private ownership of property and productive resources, the profit motive to stimulate production, competition to ensure efficiency, and the forces of supply and demand to direct the production and distribution of goods and services.

1. and economy

1	2	3	4	5	6	7	8

Exercise 12. Correct the following statement if you find them wrong. Make sure you begin your answers with such commonly accepted phrases as:

• I quite agree with smb/smth.

• Yes, that's quite right.

• I don't think that's quite right.

• I am afraid I don't/can’t agree with smb/ smth.

• I'm afraid that's completely wrong.

• That's not quite right/true.

• I wouldn't say so.

• Oh, no, quite on the contrary.

• As far as I remember…

1. There is no need for a society to resolve three fundamental and interdependent economic questions.

2. The reason every society provides answers to the fundamental economic questions is that there is enough of everything to go around.

3. All countries in the world have just the same approaches to address the basic economic questions.

4. Most economic systems function as command economies.

5. The advantage that a society with a traditional economy has over other systems is that people benefit from their extra work and raise their standard of living.

6. In answering the basic economic questions a free market economy relies on decisions made by government

7. Command economies combine market-type systems with some degree of government intervention.

8. In a mixed economy the means of production are privately owned and all national economic decisions are the result of decisions of individual buyers and sellers in the market place.

Exercise 13. Translate the sentences into English using the active vocabulary.

Проблема нестачі ресурсів стосується проблеми розподілу ресурсів. Кожне суспільство вибирає свій особистий шлях надання відповіді на основні економічні питання Що, Як і для Кого виробляти. У суспільстві з традиційною економікою більшість людей не вільні приймати рішення, які грунтуються на тому, що вони хочуть або що хотіли б мати. В деяких сучасних суспільствах уряд відіграє значу роль у відповідях на основні питання що, як і хто. Командна економіка – це така, в якій уряд приймає усі рішення щодо виробництва та розподілу багатства країни В ринковій економіці основні засоби виробництва знаходяться у приватній власності. Не існує ринкових економік без втручання уряду в деякі економічні проблеми. Ринкова система надає окремим лю-дям та торгівельно-промисловим підпри-ємствам стимул виробляти речі, які хочуть покупці та за ціною, яку вони готові заплатити. Велика кількість незалежних покупців і продавців, приватна власність та мотив прибутковості – найважливіші складові ринкової економіки. Усі сучасні суспільства – це суспіль-ства зі змішаними економіками, що поєднують елементи ринкової та командної економік. У змішаних економіках рішення що виробляти, як його виробляти і для кого приймаються як ринком, так і урядом.

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Exercise 14. Answer the following questions.

1. What are the three basic economic questions that every society must answers?

2. What makes each society look for the answers to the basic economic questions?

3. Why must individuals and societies provide answers to the basic economic questions?

4. How does each society make its decisions to solve the problem of scarcity?

5. What does the What question refer to?

6. What are the ways of providing answer to the How question?

7. What does the Who question mean?

8. What is an economic system?

9. What determines the type of an economic system?

10. What categories do economic systems fall into?

11. What is a traditional economy?

12. How are the answers to What, How and Who questions decided in a society with a traditional economy?

13. Why are there few social changes within a traditional economy?

14. What is a command economy?

15. Who makes decisions on the fundamental economic questions in a society with a command economy?

16. Who owns the major means of production in a command economy?

17. Why do the individuals have very little say as to how the basic economic questions are answered.

18. What is a market economy?

19. How is sometimes a market economy called?

20. What is a free enterprise system?

21. What is a free enterprise system based on?

22. Who owns the means of production in a society with a market economy?

23. How are the basic questions decided in a market economy?

24. What role do buyers and sellers play in a market economy?

25. What is private property?

26. What role does private property play in a market economy?

27. What is the profit motive?

28. What is the main incentive of a free enterprise, or market, economy?

29. How do the individuals benefit from a market economy?

30. What is a mixed economy?

31. Why are there neither pure market economies nor pure command economies?

32. Why are economic systems of most democratic countries called mixed economies?