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Ex.16. Write an essay about advantages and disadvantages of the free enterprise economic system (100-150 words).
Ex.15. Write a brief summary (25-30 sentences) of Text A.
Ex.14. Write a plan for a summary of Text A. Start with
Ex.12. Answer the following questions.
Ex.11. Ask questions to which the following statements may be answers.
1. Yes, they have to deal with the same What? How? For whom? problems.
2. No, they have different combinations of traditions, commands and markets.
3. Because they reflect differences in their social values and objectives.
4. They are often called free market or free enterprise economic systems.
5. Because people are free to decide what is best for them to produce and to buy.
6. Economic incentives do.
7. They are profit for businessmen, high prices for property owners, low prices for consumers, and high salaries for workers.
8. They are households, businesses, markets and governments.
9. They can sell their resources and act as consumers.
10. It is the ability of consumers to influence production, directing it toward the goods and services they want to get.
11. They are called entrepreneurs.
12. Because they act as agents to bring buyers and sellers together.
13. There are three categories of markets − resource, product, and financial ones.
14. Yes, it still plays an important role in a free system.
15. Its main role is to define and enforce the rules of society.
1. Why do societies answer the same economic questions – What to produce? How to produce and For whom to produce? – in a different way?
2. Why most modern economic systems are called free market economies?
3. What does free enterprise mean?
4. What motivates people in their free decision-making?
5. Why are economic incentives important?
6. What forms can economic “punishments” take?
7. What components does a free enterprise system consist of?
8. Why are households referred to as Owners?
9. What is consumer sovereignty?
10. In which way do businesses act as Organizers?
11. What does efficiency in business mean?
12. How and where do buying and selling activities take place?
13. What is a market?
14. In which way are resource, product and financial markets interconnected?
15. Are free enterprise systems absolutely free from government interference?
16. Why can government be called “an umbrella” under which the free enterprise system operates?
17. What is the linking function of the price system?
18. What are surplus and shortage?
19. In addition to the price system, what other incentives help the free enterprise economy function successfully?
Ex.13. Make a presentation of the topic “Free-enterprise system”.
1. Uniqueness of economic systems
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