I. Read and learn the following words and phrases:

resources – ресурсы

land – земля

available – доступный

to satisfy – удовлетворять

demand – спрос

inhabitants – жители

amount – объем

direction – управление

to decide – решать

decision – решение

consumption – потребление

feature – характерная черта, особенность

ahead – вперед

advantage – достоинство, преимущество

enough – достаточно

to divert – направлять

disadvantages – недостаток

to exist – существовать

to predict – предсказать, предугадать

private enterprise – частное предпринимательство

ownership – собственность

wage – заработная плата

according to / in accordance with – в соответствии с

to interact – взаимодействовать

to determine – определять

pure – чистый

side by side – бок о бок

share – часть, доля

to transfer – переводить, перемещать

items – предметы (товары)

defense – оборона

to avoid – избежать

II. Read the text: types of economic systems

There are a number of ways in which a government can organize its economy.

An economic system is the way in which a country uses its available resources (land, workers, natural resources, machinery, etc.) to satisfy the demand of its inhabitants for goods and services.

There are three main economic systems.

Planned economies.

Planned economies are sometimes called “command economies”. These are economies with large amount of central planning and direction. The government takes all decisions, the government decides production and consumption. Command or planned economies have a number of common features in all states.

The state decides what the nation will produce. It usually plans five years ahead.

Planned economies have a number of advantages:

• everyone in society receives enough goods and services for a basic standard of living;

• the state can control the economy and divert resources to whatever it wants.

Several disadvantages also exist:

• any profits are paid to the governmen;

• planners cannot predict changers in demand.

Market economies.

In a true market economy the government plays no role in the management of the economy. The system is based on private enterprise with private ownership of the means of production.

In a market economy the decisions of many individual buyers and sellers interact and determine the answers to the questions: what to produce, how to produce and who will receive these goods? Resources in a market economy are allocated with the laws of supply and demand.

Mixed economies.

There are no pure market economies in the world today. Many countries have mixed economies in which private enterprise and government sector exist side by side.

The aim of mixed economies is to avoid the disadvantages of both systems and enjoy the benefits that they both offer.

III. Do the following exercises:

Exercise 1. Read and translate the given derivatives.

to produce – production – productive

to govern – government – governmental

to organize – organization – organized

to satisfy – satisfaction – satisfactory

to plan – planning – planned

to decide – decision

to exist – existence

to predict – prediction

to manage – management

to interact – interaction

to determine – determination

to mix – mixture

Exercise 2. Translate the given word combinations from English into Russian.

Available resources; to satisfy the demand; goods and services; planned economies; command economies; large amount; central planning and direction; to take decisions; to decide production and consumption; a number of common features; to plan five years ahead; to have a number of advantages; to have a number of disadvantages; to receive enough goods and services; a basic standard of living; to divert resources; to pay profits; to predict changing in demand; individual buyers and sellers; the laws of supply and demand; private enterprise; to exist side by side; to enjoy the benefits.

Exercise 3. Make up correct word combinations.

to organize resources central features

to satisfy disadvantages available enterprise

to divert demand private resources

to receive goods common amount

to avoid economy large planning

Exercise 4. Insert prepositions where necessary.

1. Any economic system tries to satisfy the demand ... its inhabitants ... goods and services.

2. In planned economies everyone ... society receives enough goods and services ... a basic standard ... living.

3. In command economies any profits are paid ... the government.

4. A true market economy is based ... private enterprise ... private ownership ... the means ... production.

5. Resources in a market economy are allocated ... accordance ... the laws ... supply and demand.

6. Many countries have mixed economies ... which private enterprise and government sector exist side ... side.

Exercise 5. Complete the sentences.

1. An economic system is the way in which a country uses its available resources to ... ... ... .

2. Planned economies are sometimes called ... ... ... .

3. What the nation will produce usually planned ... ... ... .

4. Command economies have a number of ... and ... .

5. In a true market economy the government plays ... ... ... .

6. In a free enterprise economy the decisions of many individual buyers and sellers interact and ... ... ... .

7. In mixed economies government sector and private enterprise exist ... ...

8. The aim of mixed economies is ... ... ... and ... ... ... .

Exercise 6. Read the sentences:

a) translate the sentences which are true;

b) correct the sentences if they are false.

1. An economic system is the way in which a country uses land, workers, natural resources etc. to satisfy the needs of its inhabitants.

2. Planned economies are sometimes called free enterprise economies.

3. In a true market economy the government takes all the decisions.

4. Market economy is based on private enterprise with private ownership of the means of production.

5. It is in planned economy where the state can control the economy and divert resources to wherever it wants.

6. Resources in a market economy are allocated with the decisions of many individual buyers and sellers.

7. Nowadays there are no pure market economies in the world.

8. The only aim of mixed economies is to avoid the disadvantages of both systems.

Exercise 7. Answer the questions.

1. What is an economic system?

2. How many kinds of economic systems are there in the world today? What are they?

3. Planned economies are economies with a large amount of central planning and direction, aren’t they?

4. Who decides production and consumption in command economy?

5. What are the advantages of planned economies?

6. Are there any disadvantages also exist?

7. Does the government play any role in the management in a true market economy ?

8. What is free enterprise economy based on?

9. Are resources in a market economy allocated in accordance with the laws of supply and demand or in accordance with the decisions of the government?

10. What is the principle aim of mixed economies?

Exercise 8. Speak about basic types of economic systems in the world.

B R I T I S H E C O N O M Y