The mixed economy

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.

Economics 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. These 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 on 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 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.

B Comprehension

Now read the text again and answer the questions:

1. What do most economists believe about economies in the world today?

1. There are a number of free markets.

2. Some countries have a completely planned economy.

3. A mixed economy exists in some way in all countries.

2. Why do governments choose to run some industries?

   1. So they can collect taxes.

   2. Because they need to be protected from the risks of the free market.

   3. To encourage a divided economy.

3. Why do governments deregulate some industries?

   1. To make the industries more efficient.

   2. To protect them.

   3. Because there is too much competition.

4. According to the text, what is not very popular with the public?

   1. Deregulation of public transport.

   2. Deregulation of hospitals and schools.

   3. Deregulation of telecommunications and banking.

5. What type of state control is not mentioned in paragraph 5?

   1. Controlling the way companies do business.

   2. Controlling what companies sell.

   3. Controlling the prices companies set.

Discuss the following with your partner.

-Here is a list of arguments against state-run hospitals and arguments against private hospitals.

-Read the list and decide under which heading you think each one should go.

C Listening

Now listen and check your answers.

1. badly organised

2. creates a class of poor, unhealthy people

3. hospitals in bad condition

4. hospitals will reduce costs to make money

5. is bad for society in general

6. long waiting lists for patients

7. only the rich can afford health care

8. staff are poorly paid

9. taxpayers support everyone

Against state-run hospitals: Against private hospitals:

Grammar: Present Perfect or Present Perfect Continuous

Exercises

Read the situations and write two sentences using the words in brackets in the Present Perfect or the Present Perfect continuous.

1 Tom started reading a book two hours ago. He is still reading it and now he is on page 53.

(read / for two hours) .. He has been reading for two hours.

(read / 53 pages so far) ....He has read 53 pages so far...

2 Linda is from Australia. She is travelling round Europe at the moment. She began her tour three months ago.

(travel / for three months) She

(visit / six countries so far)

3 Jimmy is a tennis player. He began playing tennis when he was ten years old. This year he is national champion again - for the fourth time.

(win / the national championship four times)

(play / tennis since he was ten)

4 When they left college, Mary and Sue started making films together. They still make films.

(make / ten films since they left college) They

(make / films since they left college)

For each situation, ask a question using the words in brackets.

1 You have a friend who is learning Arabic. You ask:

(how long / learn / Arabic?) ...How long have you been learning Arabic?

2 You have just arrived to meet a friend. She is waiting for you. You ask:

(how long / wait?)

3 You see somebody fishing by the river. You ask:

(how many fish / catch?)

4 Some friends of yours are having a party next week. You ask:

(how many people / invite?)

5 A friend of yours is a teacher. You ask:

(how long /teach?)

6 You meet somebody who is a writer. You ask:

(how many books / write?)

(how long / write / books?)

7 A friend of yours is saving money to go on holiday. You ask:

(how long / save?)

(how much money / save?)

Put the verb into the more suitable form, present perfect simple (I have done etc.) or continuous (I have been doing etc.).

1. Where have you been? ...Have you been playing... (you/play) tennis?

2. Look! Somebody (break) that window.

3. You look tired (you/work) hard?

4. ' (you/ever/work) in a factory?' 'No, never.'

5. 'Jane is away on holiday.' 'Oh, is she? Where (she/go)?

6. My brother is an actor. He (appear) in several films.

7. 'Sorry I'm late.' 'That's all right. I (not/wait) long.'

8. 'Is it still raining?' 'No, it (stop).'

9. I (lose) my address book (you/see) it anywhere?

10 I……..……. (read) the book you lent me but I………………(not/finish) it yet.

11 I…………… (read) the book you lent me, so you can have it back now.

Unit 9

Module 1: Types of economics.

Present tenses.