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Ex.20. Read the text again and decide whether the following statements are true (T) or false (F). Correct the false statements

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  1. A. Fill in the blanks with the correct word.
  2. A. Find out whether the statements given below are true (T) or false (F) according to the information in the text. If the statements are false, correct them.
  3. Answer the following questions to the text.
  4. Answer the following questions.
  5. Answer the following questions.
  6. Assignment 3. Answer the following questions.
  7. B) Explain the objective of Financial Statements and say what ensures usefulness of information disclosed in them to the users.
  8. B) Explain the objective of Financial Statements and say what ensures usefulness of information disclosed in them to the users.
  9. B) Reread the article again and sum up the conclusions of the meeting described in it.
  10. B. Translate the following phrases into English.
  11. Before reading the text study the following words and word combinations and practise reading them.
  12. BODY. Match the following parts of the body with the jumbled definitions on the right.

Ex.19. Read the text. Choose the best sentence A-G to fill in each of the gaps 1-7. Do not use any letter more than once. There is an example at the beginning.

0 There are several reasons that economists have identified.


A Another example of externalities but in the form of external benefits is public education.

B Then, with less money in the economy to spend and higher interest rates, both spending and prices will tend to fall, or at least increase less quickly.

C This kind of good is called a public good because no private business could sell such goods and services to citizens of a nation and stay in business.

D Over the last 40 years these social programs have been rapidly growing parts of government spending and taxation programs in most industrialized economies.

E By intervening, government can force the producers and consumers of the product to pay the cleanup costs. In essence, this economic role of government is simply to make those who enjoy the benefits of selling and consuming a product pay all of the costs of producing and consuming it.

F Without such assurances, few people are going to risk their time and money in enterprises whose rewards may possibly go to the state or some other group.

G One such role is to provide a widely accepted, stable currency that eliminates the need for cumbersome and inefficient systems of barter, and to maintain the value of that currency through policies that limit inflation (an increase in the overall level of prices of goods and services).


1. It simply doesn't work to sell public goods and defense services to those who want them and then not to protect the people who refuse to help pay for them.

2. There are a lot of true public goods − goods that can be jointly consumed.

3. An external cost is a cost reflected in the market price, being a part of the production costs.

4. Public education is the largest and most significant example of government expenditures and support for a service regarded as having significant external costs.

5. Governments in market economies ensure that the legal rights of consumers and producers to own and trade economic resources are clearly recognized and protected.

6. Social welfare programmes subsidized by the government are aimed at making tax policies and the after-tax distribution of income fairer.

7. Monetary policy is the way in which a government charges taxes or spends money to stimulate the national economy in times of high unemployment and low inflation, or to slow it down in times of high inflation and low unemployment.

8. Monetary and fiscal policies are stabilization policies that can be used to avoid severe periods of unemployment and inflation, except in cases of major natural and human disasters − such as wars, floods, earthquakes, and droughts.


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