Government Intervention in the Economy

1. In every economy the work of different firms has to be coordinated. In a market economy this coordination is achieved by means of markets. Nevertheless the debate over the role for Government in a market economy is continuing and the issue is being widely discussed at the present time. An economy based on free enterprise is generally characterised by private ownership and initiative, with a relative absence of government involvement. However, government intervention has been found necessary from time to time to ensure that economic opportunities are fair, to dampen inflation and to stimulate growth.

2. Governments play a big role in American free enterprise system. Federal, state and local governments’ tax, regulate, and support business. In the United States there are agencies to regulate safety, health, environment, transport, communications, trade, labour relations, and finances. Regulation ensures that business serves the best interests of the people as a whole.

3. Some industries- nuclear power, for instance – have been regulated more closely over the last few years than ever before. In others the trend has been towards deregulation or reduction of administrative burden on the economy.

4. The U.S. economy has a tradition of government intervention for specific economic purposes- including controlling inflation, limiting monopoly, protecting the consumer, providing for the poor. The government also affects the economy by controlling the money supply and the use of credit. The aim is a balanced budget.

VII. Answer the questions:

1. What is an economy based on free enterprise generally characterised    by?

2. What do federal and local governments do?

3. In what way does the government affect the economy?

VIII. Complete the sentences (1- 9) with the words (a-i):

a) invoices b)exports c) shares d)inflation e) cash f) contribution g) profit

H) scarcity i) goods.

5. Commercial ……….are issued after the goods are shipped.

6. The UK’s principal ……….are vehicles, machinery and manufactured goods.

7. A (an) ……..is characterized by rising prices within a certain period of time.

8. Albert Einstein is famous for his ………to science.

9. The great trouble is the ……..of water and the intense heat.

1. The purpose of running a business is to make a …….. .

2. The ………..were delivered to the warehouse by lorry.

3. The capital of a limited company is divided into ……. .

4. Individuals can deposit ……..resources that are not needed at present. Оформите ваши ответы в данной таблице:

IX. Match (1-9) with (a-i) to make up sentences:

Оформите ваши ответы в данной таблице:

Variant III

I. Choose the correct item.

1. The company … websites.

a) designs b) is designing

2. Many companies … Swedish operations because Sweden is attractive for business investment.

a) set up     b) are setting up

3. Sam is in the office working on his computer. At this time yesterday, he … on his computer.

a) worked       b) was also working Оформите ваши ответы в данной таблице: