Exercise 1. Translate from English into Russian and back:

1. The free market allows individuals to pursue their self-interest without any government restrictions.
2. The command economy allows little scope for individual economic freedom since most decisions are taken centrally by the government.
3. In a mixed economy the government and private sector interact in solving economic problems. The government controls a significant share of output through taxation, transfer payments and the provision of goods and services such as defense and the police force. It also regulates the extent to which individuals may pursue their own self-interest.

Exercise 2. Discuss.

1. Most economists would prefer to categorize the U.S. economy as a mixed economy. Why don’t they call it a market economy?

2. Suppose in your previous life you were an economic advisor to Nikita Khrushchev of the Soviet Union. How did you, as a central planner, decide what, how and for whom to produce goods and services in a country of roughly 123 million people at the time?

3. What is the meaning of “free” in free market?

4. Proponents of free market systems argue that free enterprise leads to more efficient production and better response to changing consumer preferences. But others point to the fact that markets are not perfect. Why aren’t markets perfect?

Exercise 3. Write a short essay on one of the following topics:

1. The strength of the marketplace and motivations for government involvement.

2. Russia – from plan to market.

Exercise 4. Understanding a lecture: Yates, Unit 3.

1. You are now going to hear part of a lecture, divided into short sections to help you understand it. As you listen, answer the questions below.

Section 1

Complete the following statement with the words the lecturer uses:

· Markets are _________________through which prices influence how we ____________________.

· Note down how many kinds of economy the lecturer is going to talk about.

Section 2

· Note down the first kind of economy.

________________________________________________________________________________

· Is this statement correct or incorrect?

In this kind of economy the government decides what should be produced and what should be consumed.

Section 3

· Is this statement correct or incorrect?

To plan this kind of economy is very simple.

· Note down the country that is an example of this kind of economy.

________________________________________________________________________________

· Is this statement correct or incorrect?

In this kind of economy the government does not own factories or land.

Section 4

· Note down the kind of economy the lecturer is talking about.

________________________________________________________________________________

· Is this statement correct or incorrect? “You cannot become a millionaire in this kind of economy.”

· Note down the country that is an example of this kind of economy.

________________________________________________________________________________

Section 5

· Note down the kind of economy the lecturer is talking about.

________________________________________________________________________________

· Which two sections of society interact in this kind of economy?

________________________________________________________________________________

· Is this statement correct or incorrect?  “Most countries have economies of this kind.”

 

 

2. Make sure you know the English equivalents to the collocations below:

- командная экономика

- планирующий орган

- центральное планирование и руководство

- свободный рынок

- вмешиваться

- преследовать собственные интересы

- превышать благосостояние

- создавать новые рабочие места

- государственное вмешательство

- смешанная экономика

- государственные ограничения

3. You should also write a summary of the lecture, based on your notes.

Exercise 5. Listening (from Guide to Economics, unit 3 C, F and unit 4 C, F)   –