The market economy

Theoretically, there are two types of economic systems: command and market economies. A market economy is one in which the decisions of many individual buyers and sellers interact to determine the answers to the questions of what to produce, how to produce and who to produce for.

Besides buyers and sellers there are other important elements in a mar­ket economy. One of these is private property. It means that individuals have the right to own the means of production (land, buildings, machinery and other natural and man-made resources). Private property not only con­firms the right to own and dispose of real assets, it also provides the own­ers of property with the right to income from that property in the form of rent, interest and profits.

The desire to earn a profit is the first ingredient in a market economy. Economists call this desire the profit motive. It makes sellers produce the things that buyers want, and at a price they want to pay. The profit motive also gives sellers the incentive to produce at the lowest possible cost.

Economists often compare markets to polling booths. However, un­like the booths in which people vote for politicians, markets provide a kind of economic polling booth for buyers to cast their votes (in the form of purchases) for the goods and services they want. Producers who interpret the votes correctly by producing the things that buyers demand can earn profits. Those who interpret the voting incorrectly, producing too much or too little, or charging a price that is too high or too low, do not earn profits. In fact, they often lose money.

Consumer votes can be a matter of life and death to business in a mar­ket economy.

Answer the questions:

1. What is a market economy?

2. Are there any other important elements in a market economy?

3. What means of production may individuals own?

4. What right does private property provide to the owners?

5. What is the profit motive?

6. What do economists often compare markets to?

7. When do producers lose money?

Задание 2. Перепишите следующие слова и словосочетания и дайте их английские эквиваленты.

1. типы экономических систем

2. командная экономика

3. рыночная экономика

4. покупатели и продавцы

5. собственность

6. частная собственность

7. средства производства

8. земля

9. здания

10. владельцы собственности

11. проценты и прибыль

12. мотив прибыли

13. стимул

14. производить

15. покупка

16. получать прибыль

17. владеть

18. покупать

Задание 3. Перепишите следующие предложения. Определите, являются ли они истинными или ложными.

1. A market economy is one in which the profit motive is the main one.

2. Consumer votes are not important to business in a market economy.

3. The profit motive makes sellers produce at the highest possible cost.

4. A market economy is one in which the government of the country or
the planning body makes the plans what, how and how many/much to
produce.

5. In a market economy all means of production belong to the state.

Задание 4. Перепишите следующие предложения, определите в каждом из них видо-временную форму и залог глагола-сказуемого. Переведите предложения на русский язык.

1. The euro symbol was designed by the Commission services.

2. In theory anything can be used as money provided people trust it.

3. Much attention is being paid to the development of three-dimensional television.

4. The ruble has been the Russian unit of currency for many centuries.

5. Research is being done in different spheres: from nuclear power to the use of alternative sources energy like solar energy, wind power, wave power, tidal power.

Задание 5. Перепишите следующие предложения, подчеркните в каждом из них модальный глагол или его эквивалент. Переведите предложения на русский язык.

1. He can speak several foreign languages fluently.

2. I can’t afford going to a holiday now. I have a lot of work.

3. You should attend classes regularly.

4. I’d rather walk if you can give me the exact direction.

5. He doesn’t go to school so he has not to get up early.

6. It’s very unlikely, but he might be prepared to help you.

Задание 6. Перепишите следующие предложения, подчеркните причастия, определите их форму и функцию (определение или обстоятельство). Переведите предложения на русский язык.

1. Only a concerted action of all countries against the deterioration of the environment can eliminate the devastating effects of human activities and make households and industry process or recycling wastes more effectively.

2. The accounting profession in Great Britain is rich in tradition.

3. Great Britain is the founding place of modern financial reporting and independent audit.

4. There are accepted habits and traditions in the lay-out of business letters.

5. The name and address of the firm written to are typed on the left-hand side of the letter.

Задание 7. Дополните следующие предложения так же, как в тексте «The market economy» и переведите их на русский язык.

1. There are three types of economic systems:...

2.... the decision of many buyers and sellers interact...

3. Besides buyers and sellers there are other important elements...

4. Individuals have the right to own...

5. Private property provides the owners with the right...

6. The desire to earn profit is...

7. Economists call the desire to earn profit...

8. The profit motive gives sellers...

9. Economists often compare markets...

10. Producers who interpret the votes correctly can...

11. Those who interpret the voting incorrectly...

12. Consumer votes can be a matter...

Задание 8. Обобщите информацию из текста «The market economy» в соответствии с данными темами:

1. Types of economic systems.

2. A market economy.

3. Private property.

4. The desire to earn a profit.

5. Markets.

ВАРИАНТ 2

Задание 1. Прочитайте текст и переведите его письменно. Ответьте на вопросы после текста письменно. Выучите слова (Active vocabulary).

Active vocabulary: