1. Read and remember the words

to determine – определять

to encourage – поощрять

to evaluate – оценивать

to rely on – полагаться

to obey – подчиняться

to satisfy, to meet – удовлетворять

amount – объем, количество

habit – привычка

custom – обычай

authority – власть

profit – прибыль

influence – влияние

measure – мера

income – доход to force smb to do smth – (заставлять кого-л. делать что-л.) – ___________________

to concern with – (заниматься, интересоваться чем-л.) – ____________________

to base on (базировать, основывать (на) – ____________________

to influence (влиять) – __________________

2. Match 1-7 with a-g to make meaningful phrases

1) to provide	a) the type of economic system
2) to satisfy	b) the central authority
3) to determine	c) goods and services
4) to rely	d) the income
5) to obey	e) people’s wants
6) to evaluate	f) to work hard
7) to encourage	g) on the same tools and methods

3. Answer the questions

1. Why do people have to limit their wants?

2. What are the basic questions of economy?

3. What defines the type of economic system the country has?

4. What types of economic systems do you know?

The basic kinds of economic systems

The wants people have are almost unlimited. However, each society has a limited amount of resources from which to provide the goods and services to satisfy these wants. This scarcity of resources forces every society to make decisions about the following questions:

- Which goods and services will be produced?

- How will these goods and services be produced?

- How will the goods and services be distributed?

The answers for every particular country will depend on its priorities. Some countries consider it very important to be powerful and to feel safe. Other countries are concerned with providing food and clothing to all inhabitants. The decision that a country make will determine the type of economic system it has.

The basic types of economic systems are traditional, command and market. Traditional system is the system in which people do things the way they have always done them. They rely on the same tools and methods used by their parents. There is little or no change in such systems because most people methods are based on habit, custom and religious belief. Individuals are not free to make decisions according to what they want to have. Traditional system is not as widely spread as it was before. Though it is still a major force in some areas on the west coast of Canada, in Latin America, Africa and Middle East.

In a command system, the basic economic decision of what and how to produce and distribute is made by a central authority. The members of the society in the system obey. The central authority consists of one person or a small group who control factories, equipment and land. This system is still powerful in China and Cuba and recently our country and the countries of Eastern Europe operated under strong command system.

In a market system, the basic economic decision is based on the actions of people and business firms participating in many different markets. A market system produce goods and services that people are willing to buy and that can bring a profit to the sellers. The interaction of consumers and producers makes the system work. US, Canada and Japan are the best examples of this type of economic system.

The fact is that none of today's economic system is based totally on one of three principles just described. Modern economics have some element of all three influences in them. However one of the principles is usually stronger than the others and defines the whole system. A society's standard of living is one way to evaluate an economic system. The standard of living is a measure of how well the people live. It depends on the amount and kind of goods and services the people of a country enjoy, or their income.

4. Answer the following questions about economic systems

1. Why is there no change in traditional system?

2. Who makes the basic decision in command system?

3. How do you understand that interaction of consumers and producers makes market system work?

4. How do economists evaluate people’s standard of living?

5. Translate into English using the words from the text

1. Обычаи привычки и религиозные верования заставляют людей полагаться на те же орудия и методы труда, которыми они пользовались всегда.

2. Дефицит ресурсов заставляет людей ограничивать свои желания и потребности.

3. Правительство заставляет членов общества подчиняться. Оно навязывает свои решения.

4. Производство товаров и услуг зависит от взаимодействия потребителя и производителя.

5. В командной системе все изменения в экономике зависят от правительства.

6. Правительство занимается повышением уровня жизни населения.

7. Эта компания занимается проблемой распределения.

8. Традиционная система основана на обычаях, традициях и верованиях.

9. Количество ресурсов влияет на объём производства.

10. Экономическая система не может основываться только на одном принципе.

11. Развитие экономики в командной системе находится под влиянием центральной власти.

6. Translate the following sentences including to be + of +noun into Russian

1. This book on economics is of great interest.

2. Independent work at the library is of great value to every university student.

3. These new machines may be of use on farms.

4. Knowledge of foreign languages may be of great importance to everybody.

7. Translate the following sentences into Russian. Pay attention to the different meaning of infinitive + to be

1. Prices are to regulate production and consumption in a market economy.

2. The problem with government regulation of markets is to control how government restrictions work in real life.

3. The aim of that book is to form a theory of the role of government in economic life.

4. The market is to decide how much to produce.

5. A building society is a financial organization whose purpose is to help people buy houses or flats.

6. When the authors of the textbook discussed examples, their intention (намерение) was to prepare students for future economic analyses.

7. Governments are to regulate or plan production and consumption. The former is typical of mixed economies, the latter is typical of command economies.

8. Translate the following sentences including to be + of +noun into Russian

1. Economists' recommendations may be of high value to governments but governments do not always rely on them.

2. The study of economics is of great use even to those students who have no wish to become professional economists.

3. Basic problems of economics are of great importance to every economist, while specific problems of farm economics are mostly of interest to economists who study agriculture.

4. Since economists cannot make experiments, collecting and using information from a large number of past years is of practical importance for analysing and solving problems of today.

5. Professional marketing services are of great value to producer's and sellers.

6. Economic statistics are of interest to economic policy decision-makers.

9. Define advantages and disadvantages of each economic system and then tell about them

To have one's own role in the society; to be stable / unstable; to discourage new ideas and ways of doing things; to accept new methods and products; to make / not to make dramatic change in a short time; to provide / not to provide each person with a job, medical and social services; to meet / not to meet consumers’ needs; to encourage / not to encourage to work hard; to adjust / not to adjust to changes of consumers' wants and needs; to be / not to be safe socially and psychologically; to be / not to be subjected to crises and depression.