Методичка Усвят НД. Российской федерации гоу впо алтайский государственный университет международный институт экономики, менеджмента и информационных систем в экономик
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Task 5. Find six pairs of opposites.
Task 6. Now write five example sentences using as many words as possible from this exercise. Task 7. Complete the text with one word for each gap. The first fetter has been given. The traditional economy is the oldest form of economy. It has existed for thousands of years, although today it has almost disappeared. People in a traditional economy do not own (1) p………They do not earn a (2) s ……..and thus neither do they pay (3) t………In fact, there is no money. They live on the raw (4) m………that the forest provides them. They don't grow food or have any organized (5) a………with farms and (6) с………growing in fields. Instead, they (7) g………wild fruit and vegetables or (8) h………wild animals. They eat most of the food they find, and may (9) h………some food for the winter, but they do not sell it. It's a difficult life. There are often (10) s………of food when there is not enough to eat. When this happens, the (1l) t………must move on to another part of the forest.
Types of Economies I VARIANT
Task 1. Read and translate the text It’s hard to imagine our lives without coins, banknotes and credit cards. Yet for most of human history people lived without money. For thousands of years human societies had very simple economies. There were no shops, markets or traders. There were no employers, paid workers or salaries. Today, we call this kind of economy the traditional economy, and in some parts of Asia, South America and Africa this system still exists. People who live in a traditional economy don’t have money because they don’t need it. They live lives of subsistence. That means they hunt, gather or grow only enough food to live. There is almost no surplus in the traditional economy, and there is almost no property. Families may own simple accommodation but land is shared by all the tribe. Economic decisions are taken according to the customs of the tribe. For example, every family may need to give some of the crops they grow to the tribal leader, but keep the rest for themselves. They don’t do this because it makes economic sense. They do it because the tribe has always done it. It’s simply a custom. Custom, also, decides what jobs people do in the traditional economy. People generally do the jobs that their parents and grandparents did before them. Anyway, there aren’t many jobs to choose from in the traditional economy. Men are hunters, farmers or both. The women’s place is at home looking after children, cooking and home-making. This division of labour between men and women is another characteristic of the traditional economy. Whatever the work is, and whoever does it, you can be sure it’s hard work. This is because traditional economies have almost no technology. Physical strength and knowledge of the environment are the tools for survival. Like any other economic system the traditional economy has its benefits and drawbacks. Probably the biggest benefit is that these are peaceful societies. People consume almost everything they produce and own practically nothing. They are equally poor. For all these reasons war is almost unknown in these societies. However people who live in traditional societies are among the poorest people in the world. Because custom decides what people do nothing in these societies ever changes. Because there is no technology, people depend on nature to survive. They have no protection from environmental disasters like droughts and floods. They are always in danger of hunger and disease. But the traditional economy is in danger itself. There are only a few examples left on the planet. In 100 years from now it may have disappeared forever. Task 2. Now read the text again and match each paragraph with the correct heading. Paragraph 1……….. Paragraph 2 ………. Paragraph 3 ………. Paragraph 4 ………. Paragraph 5 ………. Paragraph 6 ……….
Task 3. Read the text and do the following task. You are the leader of a scientific expedition to the forests of Central Africa. You spend six months living with the Mbuti. Give a short presentation about your expedition. Talk about: why you went why the Mbuti are important people to study what the environment is like the Mbuti lifestyle their economic system what we can learn from the Mbuti Text Pygmies are a race of people who live in the rain forest of Asia and Africa. Pygmies are famous for their height because adult pygmies stand only 1 metre 50 tall. But this is not the only reason why they are special. They are also special because they have some of the last traditional economies in the world. The Mbuti are a pygmy tribe who live in the forests of central Africa. The heavy rain and warm temperatures of the forest make them a rich source of food. In fact, the Mbuti take everything they need from the forest, which is why they call it “mother”. Fruit, roots, mushrooms and meat make up their diet. Their houses, too, come from the forest. These are huts made from the branches of young trees and covered in leaves. The Mbuti own almost nothing. Even their houses are temporary. When they can no longer find food, families will move to another part of the forest. Usually the Mbuti men go hunting with bows and arrows. Sometimes hunting is done using nets. Then women help, too. Women build the houses and do the cooking. However, both the men and the women help to look after the children. Because the forest is so rich in food, the Mbuti don’t spend much time hunting or collecting. Most of their day is spent in the tribal village singing, playing and telling stories.
Task 1. Read and translate the text. Have you ever walked through a busy street market? People push their way through crowds of others in order to reach the stalls first. The air is full of deafening shouts. Stall owners yell to advertise their goods. Buyers cry out their orders. It’s hard to imagine but behind this noisy confusion is a very logical economic theory: the market economy. The market economy is sometimes called the free market. A free market is not controlled in any way by a government. It is also free from the influence of custom or tradition. In a free market the only reason why things are bought and sold is because there is a demand for them. Prices for goods and services are simply what people are prepared to pay. The market economy is not really controlled by anyone. It controls itself. The street market where we began has many of the characteristics of the free market. Customers arrive at the market with a shopping list of things they need. They also come with an idea of how much they are prepared to pay. Stall owners sell what customers demand, and try to get the highest price they can for it. Supply and demand control what is on the market and how much it sells for. In the wider economy we are all customers and the stall owners are like companies. The role of the company in the free market is to supply what people want. However companies need an incentive. The incentive is profit. There are two ways for companies to make a profit. The first way is to raise their prices. The second way is to reduce their production costs. And this brings us to two more features of the market economy: competition and technology. Competition exists in a free market because, theoretically, anyone can be a producer. This means that companies have to compete with each other for a share of the market. Competition is good for consumers because it helps to control prices and quality. If customers aren’t happy with a product or service, or if they can’t afford it, they will go to a competitor. Technology exists in a free market because producers need ways to reduce their costs. They cannot buy cheaper raw materials. Instead, they must make better use of time and labour. Technology is the use of tools and machines to do jobs in a better way. This helps companies produce more goods in less time and with less effort. The result: more profit. People often think that most economies are free markets. However, at the macroeconomic level, a truly free market economy does not exist anywhere in the world. This is because all governments set limits in order to control the economy. Some governments set many limits, other governments set very few, but they all set some. For this reason, a true market economy is only theoretical. Nevertheless, many of the features of the market economy do exist in most societies today. Task 2. Now read the text again and answer these questions in your own words.
Writing Write an essay comparing the traditional economy with the market economy. Discuss the advantages and disadvantages of each economy. Decide which is best in your opinion. Remember, you should organize your ideas logically. These phrases will help you: firstly, secondly, furthermore, however, on the other hand. Paragraph 1 Introduce the subject by saying what a traditional economy is, and what a market economy is. Paragraph 2 Say what the advantages and disadvantages of the traditional economy are. Paragraph 3 Say what the advantages and disadvantages of the market economy are. Paragraph 4 Conclude by saying what you think the best system is. Write 200-250 words II VARIANT
Task 1. Read and translate the text. In many ways the planned economy is the direct opposite of the market economy. In the market economy the forces of supply and demand decide everything: what is produced, how much is produced, the methods of production and the price. In the planned economy all of this is decided by the government. In every way that the market economy is free, the planned economy is controlled. Unfortunately, no economic system is perfect. If there was a perfect system, economists wouldn’t have anything to argue about! Market economies have their strengths but they have their problems too. Planned economies try to provide solutions to these problems. For example, the free market supplies the things that people want. However, what people want and what they need are not always the same. Fast food is always in demand but it’s bad for us. In a planned economy the government could decide to stop fast food restaurants operating in the market. A second problem with free markets is that producers always want the highest price. Often the poor can’t afford things. In a planned economy the government sets prices. They make sure that everyone can afford basic commodities. This is one way that planned economies try to share things equally. Another is to control how much people get paid. In a planned economy workers’ wages depend on the service they provide to society. If people can live without their service you get paid less. This is very different from the free market. In the free market someone’s salary mostly depends on the demand for his or her work. If people like what you do you get paid more. Before 1900 there were few examples of planned economies. During the 20th century, however, the planned economy became the standard for socialist governments like the USSR and China. These countries experienced amazing economic growth in a very short time. In a market economy it takes a long time for big industries to grow from small companies. In a planned economy, however, huge industries can grow overnight. The government simply decides to spend money on factories and factories appear. Britain, for example, took centuries to develop her steel industry in a free market economy. China developed hers in a few decades. But as we said, no economic system is perfect. The planned economy has many drawbacks. One of these drawbacks is problems with supply. It is difficult for governments of planned economies to know exactly how much to produce to meet demand. In a market economy when the price of a commodity rises, this indicates a rise in demand. Companies then supply more to the market. This warning system doesn’t work in a planned economy because price is controlled by the government. The result is shortages. When shortages happen governments can do two things: ration goods or raise prices. In this situation people then start to hoard things and the problem gets even worse. As the population gets bigger shortages like this become more common. For this reason China – once the world’s biggest planned economy – is rapidly moving towards another system: the mixed economy. Task 2. Now read the text again and decide whether these statements are true or false. 1. In a planned economy the government decides how products are made. T/F 2. In a planned economy suppliers can sell anything that is in demand. T/F 3. In a planned economy a doctor should get paid more than a footballer. T/F 4. Planned economies grow more slowly than market economies. T/F 5. In a market economy greater demand for something makes it cheaper. T/F 6. Planned economies are difficult to run in countries with large populations. T/F Task 3. Match the words and phrases with the definitions. commodity when the government sets a limit on how much people can buy of something standard when there is not enough of something socialist a strong metal made of iron industry something you can buy or sell steel what is usual or typical indicate all the businesses and companies involved in the production of heavy goods, food, technology, etc. warning system describes someone/something aiming to share wealth equally shortage secretly storing and hiding goods for use later rapidly work ration show solution very quickly hoard money paid regularly for work done operate answer to a problem wages a system which tells us that something bad is going to happen
Task 1. Read and translate the text. Most economists would say that there are no examples in the world today of a completely free market or a completely controlled economy. Instead, every country operates a mixture of the two systems. Even in the freest economies like the USA there is some government control; even in the strictest planned economy there is some free enterprise. Economies mix government control and free market values in different ways. One way is to let privately owned businesses exist alongside state run industries. The economy becomes divided between the state sector and the private sector. The state sector often includes industries that the government thinks are important and need protection from the risks of the free market. Theses could include public transport, hospitals, schools and the postal service. The state sector can also include large industries that are important for a country’s economic health, such as oil, steel or agriculture. These are sometimes called primary industries because they provide basic materials to manufacturers. These state sector industries use money that the government collects in taxes. Often they do not need to compete with other companies because no other company is allowed to provide the same product or service. However, many countries have recently started a process called deregulation. Deregulation means freeing up the economy to allow private businesses to compete with state-run industries. The state sector should then run more efficiently in order to compete in the free market and because it now has less government protection. Deregulation of services like telecommunications, transport and banking has happened in many countries in recent years. People have generally accepted these changes. However, generally the public is less happy when governments start talking about deregulation in education and health services. Many people feel that profit motivation will harm these services rather than improve them. Another way in which economies today are mixed is that governments put limits on free enterprise. For example, governments may decide to ban trade in certain goods if they are dangerous. They may also create laws to make sure companies trade honestly or to prevent monopolies. If a company has a monopoly, normal market forces do not affect it. This is bad for consumers and the economy in general. Governments may also regulate methods of production. They do this to guarantee that products are safe for consumers and to protect the environment. Many economists would argue that the mixed economy is the best system for consumers. This is because consumers have two ways to control the economy: by choosing to buy a company’s goods or services and by choosing to give political parties their votes. Task 2. Now read the text again and answer the questions.
Task 3. Complete each sentence with a word or phrase from the box.
1.……………is when businesses are able to trade without control from the government. 2. …………… industries belong to and are run by the government. 3. ……………. industries belong to and are run by independent businesses. 4. Buses, trains and planes are examples of ……………………… 5. ……………. is another word for farming. 6. …………….. produce new goods from raw materials. 7. When a business works ………., it runs successfully without wasting resources. 8. Telephone and Internet systems are part of the ……………. industry. 9. ……………. is what drives businesses in the market economy. 10. When the government puts a ………….. on a commodity people are not allowed to buy or own it. 11. If only one company controls part of the economy they have a …………………… 12. When companies …………… they do business with each other. Writing Write an essay comparing the planned economy with the mixed economy. Discuss the advantages and disadvantages of each economy. Decide which is best in your opinion. Use these words and phrases to organize your ideas: despite this, nevertheless, consequently, in contrast, similarly Read texts again and use these notes to help you. Write four paragraphs. Discursive essay Paragraph 1. What is a planned economy? What is a mixed economy? Introduce the subject by saying generally there are these two kinds of economies that have advantages and disadvantages. Paragraph 2. Describe a planned economy, explaining its advantages and disadvantages. Paragraph 3. Describe a mixed economy, explaining its advantages and disadvantages. Paragraph 4. Conclude by saying which system you think is best. or Explain why you think neither system is the best. |
enefits ■ consumer ■ drawbacks
