Lesson 4

Task 1. Complete the text with the words in the box.

1. desire	5. profits	9. defense	13.intervention	17. to make money
2. a free market	6. competitive	10. creating new jobs	14. changing demands	18.consequences
3. investment	7. private enterprise	11. the opportunity	15.management	19. ownership
4. spending	8. more resources	12. employers	16. alters	20. Consumers

Market economy

In a true market economy the government plays no role in the ( 15 ) of the economy, the government does not intervene in it.

The system is based on ( 7 ) with private ( 19 ) of the means of production and private supplies of capital, which can be defined as surplus income available for ( 3 ) in new business activities.

Workers are paid wages by ( 12 ) according to how skilled they are and how many firms wish to employ them. They spend their wages on the products and services they need.

( 20 ) are willing to spend more on products and services, which are favoured.

Firms producing these goods will make more ( 5 ) and this will persuade more firms to produce these particular goods rather than less favoured ones.

Thus, we can see that in a market economy it is consumers who decide what is to be produced. Consumers will be willing to pay high prices for products they particularly ( 1 ).

Firms, which are privately owned, see ( 11 ) of increased profits and produce the new fashionable and favoured products. Such a system is, at first view, very attractive.

The economy adjusts automatically to meet ( 14 ). No planners have to be employed, which allows ( 8 ) to be available for production. Firms tend to be highly

( 6 ) in such an environment. New advanced products and low prices are good ways to increase sales and profits.

Since all firms are privately owned they try to make the largest profits possible. In ( 2 ) individual people are free to pursue their own interests. They can become millionaires, for example.

Suppose you invent a new kind of car. You want ( 17 ) out of it in your own interests.

But when you have that car produced, you are in fact moving the production possibility frontier outwards.

You actually make the society better off by ( 10 ) and opportunities, even though you become a millionaire in the process, and you do it without any government help or ( 13 ). Not surprisingly there are also problems. Some goods would be under purchased if the government did not provide free or subsidized supplies. Examples of this type of good and service are health and education.

There are other goods and services, such as defense and policing that are impossible to supply individually in response to consumer ( 4 ).

Once ( 9 ) or a police force is supplied to a country then everyone in this country benefits. A cornerstone of the market system is that production ( 16 ) swiftly to meet changing demands. These swift changes can, however, have serious ( 18 ).

Task 2. Match each of the words or phrases on the left to an appropriate definition.

1 capital d	a) something that you have done successfully, especially through hard work or skill
2 co-operation f	b) things that are for sale
3 entrepreneur j	c) the money that you pay for borrowing money from a bank, etc. or the money that you earn when you keep money in a bank
4 interest c	d) a large amount of money that is invested or is used to start a business
5 market share i	e) a business organization that sells goods or services
6 reward g	f) the fact of doing sth or working together with sb else to achieve sth
7 subsidiary h	g) a thing that you are given because you have done sth good, worked hard, etc.
8 achievement a	h) a business company that belongs to and is controlled by another larger company
9 company e	i) the amount that a company sells of its products or services compared with other companies selling the same things
10 goods b	j) a person who makes money by starting or running businesses, especially when he/she has to take financial risks

Task 3. Fill in the blanks using the word combinations given below, translate the letter.

Letter 1.

Please sign and return one copy of each of these documents and ( d ) for your reference.

You will be expected ( f ) on your first day at Snowflake Productions. A copy of the programme ( a ).

( c ) meeting you again soon and ( b ) you will be very happy in ( e ).

a) is enclosed

b) hope that

c) I look forward to

d) keep the duplicate copies

e) your new post

f) to attend an induction course

Letter 2.

Thank you for calling this morning ( c ) to Singapore next month. ( d ) you for offering to meet me at the airport and drive me to my hotel.

I will be arriving on flight SQ101 ( a ) at 1830 hours. Accommodation ( f ) for me at the Supreme International Hotel, Scotts Road.

I will be travelling up to Kuala Lumpur on Sunday 14 July on MH989 ( e ) from Singapore Changi Airport Terminal 2 at1545 hours.

I look forward to ( b ).

a) on Monday 8 July

b) meeting you

c) regarding my trip

d) I am very grateful to

e) which departs

f) has been arranged

Task 4. Choose the correct variant.

1.The project was finished, but it wasn’t ….

a) done

b) made

c) completed

d) maximized

2.If you are …, you are your own boss.

a) satisfied

b) self-employed

s) well-bred

d) appreciated

3. It seemed a waste of money to buy anything but ….

a) the worst

b) the best

c) good

d) bad

4. Our management demands that a receptionist … always be on the spot.

a) can

b) is able to

c) could

d) should

5. Read the instructions before you … on the device.

a) will switch

b) switched

c) switch

d) has switched

6.Could you tell me what the responsibilities of the job…?

a) is

b) was

c) be

d) are

7. Try … the problem in person with him.

a) solve

b) solving

c) to solve

d) to be solving

8.When the supervisor asked her about her career plans, she … anything.

a) doesn’t say

b) didn’t say

c) won’t say

d) hasn’t said

9.What would you do, if you … a million?

a) won

b) win

c) has won

d) had won

10. I wish I … a child.

a) am

b) was

c) will be

d) were