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IX. Make your own dialogue using the following words, expressions and word-combinations:

the role of government free enterprice

price system the American economic system

private property competition

gross national product

X. Open the brackets using the Present Indefinite Tense in the Passive Voice:

Model: Every society (to face) with the identical problem

of scarcity.

Every society is faced with the identical problem

of scarcity. 1. Human wants (to unlimit), but the resources necessary to satisfy those wants {to limit). 2. The total value of the goods and services produced by the economy in a single year {to call) the gross national product {GNP}. 3. Mr. Redd (to offer) an excellent price for selling his land. 4, The term capital (to use) often by business people. 5. Monopolies can set the price at which their goods (to sell).

XI. Read and change the sentences according to the model:

Model: Adam Smith describes the principal elements of the economic system in his book «The Wealth of Nations».

The principal elements of the economic system

are described by Adam Smith in his book «The

;?m , Wealth of Nationsn.

* 1 Everything concerning the. American economic system

mterestfVne. 2. They-^consider" Adam Smith «the father of

modern economics)). S.^Economic incentives influence"/our

decisions about what and where to buy, 4. Economic forces

'Effect'decisions in the world of business. 5. Prices direct market

economies.

XII. Translate into English:

1. PeHTOto na3WBaK>Tb ujny 3a KopucTyBaHHsi 36Mneio. 2. TepMJH «KaniTan» sacTO BiKHBaeTbcsr 6i3HecMeHaMM. 3. Eko-HOMinni cMCTeMM MOW<yTb ,6yrn KJiacmpiKOBaHi hk TpaAWuJMHi, 3aranbHi ra pkhkobl 4. JliofleH, fl«i KopiCTyKiTbcfl TOBapaMM Ta nocnyraMM flnsi 3aflOBoneHHfl cbo'i'x noTpe6, H33HBaioTb cno-HtuBaHaMM. 5. 3aranbHa eapricib ycix ToeapiB i nocnyr 3a oflMH pin na3MBaeTbCfi BanoBMM HaujoHanbHMM npoayKToiw.

XIII. Communicative situations:

Marta Redd owns a 10-acre plot of ground at the eastern edge of town. It is next to an area that is «going commercials. Last month Ms. Redd was offered an excellent price for selling her land to the Blue Manufacturing Company. Blue wanted to erect a new plant on the land. Ms. Redd knew that if she sold her acreage to the firm she would receive more than if she continued to lease it to Frank White, a farmer who is presently growing vegetables on the land.

  1. Why did Blue Manufacturing want to buy Ms. Redd's land?

  2. Why is Redd likely to accept Blue's offer?

  3. How will these events affect White?

  1. Explain how the story illustrates the ways that the opportunity cost of land, profits, and the profit motive affect the use of land.

  2. Describe a situation in which the profit motive would affect the use of another productive resource (labor, capital, or entrepreneurship). -,. •-■ -'-s-

IS

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