B) Sum up the text in 5-7 sentences. Present you summary in class.

  4. A Team Presentation
  5. A Team Presentation
  6. A Team Presentation
  7. B) Compare the situation in ' ' with the present-day situation.
minimum rational profit (2) scarcityinterests compromises classified agentspurchased hand represent factorsresources utilization interaction wants efficient

The Market System

The modern market economy is populated by three types of economic agents, whose ___ constitutes economic activity: consumers, producers, and the government. The main social purpose of the economy is to produce goods and services for the satisfaction of the needs and___of consumers.

Consumers, typically, represent households that provide labour, and other___to produce against an income which they use to purchase consumer goods or to save.

Producers, typically, ___ enterprises or firms that acquire ___of production, or inputs - labour, land, and capital - from households and combine them to produce outputs, or commodities which can be ___ into goods - tangible commodities - and services. The activities of firms move around the sale of their output at a___.

The third basic element, the government, is involved with the economy, on the one hand, as a producer and consumer and, on the other___, as a regulator, supervisor and promoter of economic activities.

The economic ___ are engaged in a complex web of transactions involving factors of production and outputs. However, the volume of the commodities that can be produced and___is limited by the___ of resources. This fact has two important consequences as regards economic decision-making:

a) the utilization of resources has to be___. In terms of the welfare of economic agents, the___of resources is efficient when every opportunity has been exhausted to make some individuals better off without hurting the___of others;

b) individual economic agents and society as a whole can not simply use more, they have to make___between alternative uses.

Given these constraints, consumers, producers, and the government have to make___decisions over available resources. Rational decisions reflect choices that draw maximum___from given resources or obtain desired results with the___efforts or cost.

Words you may need:


householdn ',


tangibleadj , ,


promotern , .

complex web


to be exhausted(.)

to make smb better off(.) -.


. | . ., . . | WHAT IS ECONOMICS ALL ABOUT? | BUSINESS CLIMATE IN RUSSIA | VOCABULARY LIST | EXERCISES | Ex. 7. Work on vocabulary and grammar. | B) Has the situation changed since ' ' '? Prove your point of view. | B) Compare the situation in ' ' with the present-day situation. | B) Say how they characterize the UK economy. |

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