UNIT 3.

DIFFERENT ECONOMIC SYSTEMS

Text A
Not all economic systems are the same. The economic system of the United States is very different
from the economic system of the Union of Soviet Socialist Republics.
The American system is based on private enterprise. The Russian system is based on the
principles of Karl Marx.
Karl Marx was a political economist who lived in the 19th century. The American system is
capitalistic. The economic ideologies of these two nations differ very much from each other.
The economic system of Britain is similar to the American system. Britain has an economic
system based on private enterprise and private supplies of capital. Property in Britain and the
United States can be owned by indivdual citizens.
The economic freedom of the citizens of Britain and America is not complete freedom. Citizen
must obey the law, but otherwise they can use their time, money and effort as they wish.

Exercises
1. Answer these questions, basing your answers on the text.
a. What does the economic system of the United States differ from?
The economic system of the Unites States is very different from the economic system
of the Union of Soviet Socialist Republics.
b. What is the American system based on ?
The American system is based on private enterprise.
c. What is the Russian system based on ?
The Russian system is based on the principles of Karl Marx.
d. When did Karl Marx live ?
Karl Marx lived in the 19th century.
e. What economic system is the British system similar to ?
The economic system of Britain is similar to the American system.
f. On what two things is the British system based ?
British system based on private enterprise and private supplies of capital.
 g. Who can own property in the United States and Britain ?
Property in the United States and Britain can be owned by individual citizens.
h. What must British and American citizens obey?
British and American citizens must obey the law.
i. What three things can Britons and Americans use as they wish ?
Britons and Americans can use their time, money and effort as they wish.

2. Make these sentences passive, as in the example.

EXAMPLE Most people produce goods and services.
⇒ Goods and services are produced by most people.

a. Some people provide both goods and services.

Goods and services are provided by some people.
b. Economists study the economic system.
The economic system is studied by the economists.
c. That man owns the house.
The house is owned by that man.
d. They will provide shelter and clothes.
Shelter and clothes will be provided by them.
e. Economic changes affect our lives.
Our lives are affected by economic changes.
f. They will maintain his car.
His car will be maintained by them.
g. The economists explained the economic system.
The economic system was explained by the economists.
h. They explained the methods.
The methods were explained by them.
i. He told me how the Russian system works.
I was told by him how the Russian sytem works.
j. Economists describe how capital is used in business.
How capital is used in business is described by economists.

3. Combine these pairs of sentences as in the example, making them conditional and using
may.

EXAMPLE (if) He comes tomorrow.

Perhaps he will see you.
⇒ If he comes tomorrow, he may see you.
a. (if) The people work regularly and well.
Perhaps they will earn more money.
If The people work regularly and well, they may earn more money.
b. (if) The man buys his car at the garage
Perhaps the garage-owner will provide some extra services.
If The man buys his car at the garage, the garage-owner may provide some extra
services.
 c. (if) We buy these commodities today.
Perhaps we will be able to sell them tomorrow.
If We buy these commodities today, we may be able to sell them tomorrow.
d. (if) The farmers try to produce more.
Perhaps they will have some goods to sell as well as to use themselves.
If The farmers try to produce more, they may have some goods to sell as well as to
use themselves
e. Perhaps life will be more enjoyable.
(if) We have a radio and toys for the children.
Life may be more enjoyable, if we have a radio and toys for the children.

4. Here are two lists. The first list contains adjectives. The second list contains nouns and
noun phrases. Arrange the words in each list so that the adjectives match the nouns in
ways which relate to the text. The first two are done for you.

capitalistic satisfaction
economic russian system
private necessities
communistic enterprise
political commodities
scientific methods
basic american system
complex economist
essential ideologist
personal range

capitalistic satisfaction
economic russian system
private necessities
communistic enterprise
political commodities
scientific methods
basic american system
complex economist
essential ideologist
personal range

5. From new words from the words listed below.

EXAMPLE capital ⇒ capitalism ⇒ capitalist ⇒ capitalistic
Note: The suffix - ism = system (noun)
- ist = person (noun)
- istic = about the system or person (adjective)

a. commune b. social c. national d. real e. Individual

a. commune ⇒ communism ⇒communeist ⇒communeistic
- ism = system (noun)
- ist = person (noun)
- istic = about the system or person (adjective)
 b. social ⇒ socialism ⇒socialist ⇒socialistic
- ism = system (noun)
- ist = person (noun)
- istic = about the system or person (adjective)
c. national ⇒ nationalism ⇒ nationalist ⇒ nationalistic
- ism = system (noun)
- ist = person (noun)
- istic = about the system or person (adjective)
d. real ⇒realism ⇒ realist ⇒realistic
- ism = system (noun)
- ist = person (noun)
- istic = about the system or person (adjective)
e. individual ⇒individualism ⇒ individualist ⇒ individualistic
- ism = system (noun)
- ist = person (noun)
- istic = about the system or person (adjective)

TEXT B
Not all economic systems are the same. The economic system of the USA differs greatly from the
system of the USSR. The American system is based on private enterprise with private ownership of
the means of production, while the Russian system is communistic and is based upon the principles
of Karl Marx, the 19th century political economist. The economic ideologies of these two nations
contrast very strongly.
Britain is similar to the USA, It has an economic system based on private enterprise and private
supplies of capital, which can be defined as surplus income available for investment in new
business activities. Property in both the U S and Britain can be owned by individual citizens and
these citizens exercise considerable economic freedom of choice. They can choose what they want
to do and horv they want to earn their living, but are not of course entirely free to do as they wish.

Exercises
1. Say whether these statements are true (T) or false (F), and if they are false say why.
a. ( F ) The economic systems of the United States and the Soviet Union are the same.
Because The economic system of the USA differs greatly from the system of the USSR.
The American system is based on private enterprise with private ownership of the
means of production, while the Russian system is communistic and is based upon the
principles of Karl Marx, the 19th century political economist. The economic
ideologies of these two nations contrast very strongly.
b. ( T ) In the United States the means of production are privately owned.
c. ( F ) Karl Marx was an eighteenth century economic thinker.
Because Karl Marx was the 19th century political economist.
d. ( F ) The British system is based on the principles of Karl Marx.
Because British system, Britain is similar to the USA, It has an economic system based
on private enterprise and private supplies of capital, which can be defined as surplus
income available for investment in new business activities.
e. ( T ) Because Britain has a system of private enterprise, we can say that its economy is
similar to the American economy.
 f. ( T ) Capital is essentially surplus income used for new business activities.
g. ( T ) Individual citizens in Britain and the United States have complete economic freedom.
h. ( T ) British citizens can choose what they want to do as long as they obey the law.

2. Make these sentences passive and omit the agent phrase in the same way as in the
example.

EXAMPLE They based the economics system on Marx.

⇒ i The economic system was based on Marx by them
⇒ ii The economic system was based on Marx.

a. They provided all the necessary goods and services.

I. All of the necessary goods and services were provided by them
II. All of the necessary goods and services were provided.
b. He will supply all the essential commodities.
I. All the essential commodities will be supplied by him
II. All the essential commodities will be supplied
c. The farmer undertook the work last week, and has just finished it.
I. The work last week was undertaken and has just been finished by the farmer.
II. The work last week was undertaken and has just been finished.
d. The men satisfied the economist that they would do the work rapidly.
I. The economist was satisfied by the men that they would do the work rapidly
II. The economist was satisfied that they would do the work rapidly
e. The economists described the whole economic system in a strictly scientific way.
I. The whole economic system was described in a strictly scientific way by the
economists
II. The whole economic system was described in a strictly scientific way.
f. The economic system affected the people's lives in many ways.
I. The people’s lives were affected in many ways by the economic system.
II. The people’s lives were affected in many ways
g. They studied the supply of both essential and non-essential commodities.
I. The supply of both essential and non-essential commodities were studied by
them.
II. The supply of both essential and non-essential commodities were studied.
h. The people enjoy a strong economy in that country.
I. A strong economy in that country is enjoyed by the people.
II. A strong economy in that country is enjoyed.
i. The citizens exercise a considerable amount of economic freedom.
I. A considerable amount of economic freedom is exercised by the citizen.
II. A considerable amount of economic freedom is exercised.
j. They must obey the law.
I. The law must be obeyed by them.
II. The law must be obeyed.

3. Arrange these sentences in order to make a logical paragraph about the American
and Russian oconomies.

A. This system was founded by the l9th century political economist Karl Marx
 B. Capitalism is based on the idea of individual citizens owning property and privately
conducting their own business.
C. Whereas the American is capitalistic, the Russian system is communistic.
D. Communism however is based on the idea of property belonging to the State and all
businesses being public rather than private.
E. The American and Russian ideologies are very different.

E–C–B–D–A
The American and Russian ideologies are very different. Whereas the American is
capitalistic, the Russian system is communistic. Capitalism is based on the idea of
individual citizens owning property and privately conducting their own business.
Communism however is based on the idea of property belonging to the State and
all businesses being public rather than private. This system was founded by the
l9th century political economist Karl Marx.

4. (i) Find single words in the first paragraph of the text for which these words could
be substituted :

a. founded b. possession c. main teachings d. Countries

a. Founded = based
b. Possession = owned
c. Main teachings = principle
d. Countries = nations

(ii) Find single words in the second paragraph,ot tne text for which these words
could be substituted :

a. stores b. described c. extra d. Single

e. have and use f. Selection g. Pick h. Completely
i. follow j. physical power

a. Stores = Eterprise f. Selection = Choice

b. Decribed = Defined g. Pick = Choose
c. Extra = Surplus h. Completely = Entirely
d. Single = Private i. Follow = Obey
e. Have and use = Property j. Physical power = Strongly

5. In the text there are two adjectives of nationality: American and Russian, Below is a
list of countries (nations). Study the example and then do the same for the listed
words.
EXAMPLE Britain: That man is British; he is a Briton.
Holland: That man is Dutch; he is a Dutchman.
India: That man is Indian; he is an Indian.
 a. Germany: That man is German ;he is a German.
b. Italy : That man is Italian ;he is an Italian.
c. Spain: That man is Spanish ;he is a Spaniard.

Do the same for the following:

d. Greece e. Brazil f. Sweden g. Portugal
h. France i. Malaysia j. China k. Japan
l. Scotland m. Canada n. Mexico o. Norway
p. Pakistan q. Indonesia r. Iran s. Turkey
t. Egypt u. Ghana v. England w. Ireland
x. USA y. Zambia

d. That man is Greek, he is a Greek.

e. That man is Brazilian, he is a Brazilian.
f. That man is Swedish, he is a Swede.
g. That man is Portuguese, he is a Portuguese.
h. That man is French, he is a Frenchman.
i. That man is Malaysian, he is a Malaysian.
j. That man is Chinese, he is a Chinese.
k. That man is Japanese, he is a Japanese.
l. That man is Scottish, he is a Scottish man.
m. That man is Canadian, he is Canadian
n. That man is Mexican, he is a Mexican.
o. That man is Norwegian, he is a Norwegian.
p. That man is Pakistani, he is a Pakistani
q. That man is Indonesian, he is an Indonesian
r. That man is Iranian, he is an Iranian
s. That man is Turkish, he is a Turkish
t. That man is Egyptian, he is an Egyptian.
u. That man is Ghanaian, he is a Ghanaian.
v. That man is English, he is an Englishman.
w. That man is Irish, he is an Irishman.
x. That man is American, he is an American.
y. That man is Zambian, he is a Zambian.

Supplement
ln geography and economics we often refer to parts of the world rather than list countries by
name, e.g. The Middle East. Below are 25 countries. List them under these five headings: (a)
Latin-,American; (b) North African; (c) Balkan; (d) South-East Asian; (e) others.

Libya France Brazil Malawi

Greece Argentina Mauritania Albania
Thailand Yugoslavia Canada Morocco
Bulgaria Mexico Pakistan Cambodia
Japan Norway Malaysia Egypt
Rumania Peru Algeria Nicaragua
 Philippines

Latin - American North African Balkan South East Asian Others

Argentina Libya Bulgaria Philippines Japan

Brazil Algeria Greece Malaysia France

Nicaragua Morocco Romania Thailand Norway

Mexico Egypt Albania Cambodia Canada

Peru Mauritania Yugoslavia Pakistan Malawi