To move the production possibility frontier

outwards - просувати вперед межу

виробничих можливостей

EXERCISES I. Answer the questions:

1. What's a market economy?

2. What's the main difference between a market economy and a planned economy?

3. Do changing demands affect production? In what way?

4. What's the mechanism of producing goods and services in a market economy?

5. Give the advantages of a market economy.

6. Give the disadvantages of a market economy.

II. Suggest Ukrainian equivalents:

new advanced products; products which are favoured; they try to make the largest profits possible; provide free or subsided supplies; produce goods and then advertise heavily; a firm which switches from labour-intensive production to a new one; a decline in the prosperity of the nation

III. Replace the parts in italics by synonyms:

• businesses owned and run by the state

• products and services, which are favoured

• at first view

• production alters swiftly.

IV Fill in the gaps with the words and expressions from the text.

1. Small South-East Asian states like Hong Kong and Singapore contain some businesses by the state.

2. The system is based on____ with____ of___.

3. Private supplies of capital can be defined as_____ available for____ in____.

4. Consumers are willing to spend more on products and services, which_______.

UNIT 4. TYPES OF ECONOMIC SYSTEMS 27

5. More profits will____ more firms to produce those particular goods that are favoured.

6. In a market economy it is____ who decide what is to be produced.

5. ____ firms see the opportunity of_____ and produce the new fashionable and favoured

products.

6. The economy___ automatically to meet changing demands.

7. Firms tend to be highly____ in such an environment.

7. In a free market individual people are free_____.

8. But when you have that car produced, you are moving_____.

9. You actually make___ by___, even though you become a millionaire in the process,

and you do it without____ or____.

10. Some goods would be____ if the government did not provide_____ supplies.

11. Some other goods and services, such as defence and policing, are impossible to______ in

response to consumer spending.

12. ___ of the market system is that production_____ to meet changing demands.

13. If a firm switches from____ to one where new technology_____ in the factory, it can

lead to___ and___ problems.

14. It is necessary to have____ to pass laws____ consumers and workers.

15. Firms have___ in future sales if they are to produce new goods and services.

16. A recession means____ spending,____ jobs and____ of the nation

V Translate the following sentences into English.

1. Ринкова економіка характеризується незначною мірою втручання з боку держави в планування та контролювання економічного процесу.

2. В умовах ринкової економіки зміни попиту споживачів відіграють значну роль у формуванні політики фірм.

3. Для збільшення доходів та конкурентоспроможності фірми повинні постійно вивчати попит та відповідно змінювати свою діяльність.

4. Що моднішим є товар, то вищу ціну за нього треба платити.

5. Ринкова економіка характеризується приватною власністю на ресурси та використанням системи ринків та цін для управління економічною діяльністю.

VI. Place the words and phrases from the box associated with market and centrally planned economies under the appropriate headings in the table below.

state ownership of main enterprises		competition
competitive management of enterprises		private ownership
subsidizing of unprofitable organisations		unemployment
bankruptcy of unprofitable companies		badly managed enterprises
intolerance of staff according to real necessities	overstaffing
price established by interaction of supply	and demand	merging of companies
employment of staff according to real necessities

Market Economy	Centrally Planned Economy

Now add other characteristics that you can think of.

PART I. ECONOMICS

SECTION C. Mixed Economy

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