UNIT 6.

MIXED ECONOMIES
Exercises Text A
1. Answers these questions. You may answer either YES or NO. Give your reasons.
Quote from the text support of your answer.
a. Are there any completely communistic states?
= NO, because no state today is completely communistic.

b. Are there any completely capitalistic states?

= NO, because no state is completely capitalist.

c. Do the various national economics tend towards one or other ideology?

= YES, because it’s in paragraph 1. “The various national economic systems tend
towards communism or capitalism”.

d. Are the various economic systems difficult to classify?

= YES, because it’s in paragraph 1. “many are difficult to classify exactly.”

e. Have most countries found economic control necessary?

= NO, because it’s in paragraph 2. “It has been found necessary in many countries to
control or regulate national economic conditions”.

f. Has the US felt the same need?

= YES, because it’s in paragraph 3. “Even the most dedicated free enterprise systems,
such as the USA, have felt this need”.

g. Are the under-developed countries interested in control and planning?

= YES, because it’s in paragraph 3. “The under-developed countries in the world are
usually interested in control and longterm planning”.

h. Has India had a number of national economic plans?

= YES, because it’s in paragraph 4. “Such countries as India have had a number of
plans guided by the government”.

i. Is the Indian economy based entirely on private enterprise?

= NO, because it’s in paragraph 4. . “Such countries as India have had a number of
plans guided by the government”.

j. Does the Indian economy have two distinct sectors?

= YES, because it’s in paragraph 4. “India makes a distinction between the public
sector of the economy on the one hand and the private sector on the other land”.

k. Is the Indian system a mixed economy?

= YES, because it’s in paragraph 5. “Such systems, with public and private sectors,
are neither communistic nor capitalistic, but are sometimes called mixed
economies”.
 l. Is BOAC a nationalized British industry?
= YES, because it’s in paragraph 6. “In the public sector of British economic life are
the nationalized industries like coal and steel, British Rail and BOAC.

m. Is ICI a nationalized British industry?

= NO, because it’s in paragraph 7. “In the private sector are the majority of the
nation’s industries, both large and small. The private sector includes giant
companies like ICI and BP and a greta number of small family business.”

n. Was the NEDC set up by the British government?

= YES, Because it’s in paragraph 8. “In 1962 the British government set up an
official body to plan national economic policies. This body is called the National
Economic Development Council.”

o. Are both employers and employers represented on the NEDC?

=YES, because it’s in paragraph 8. “The members of this council are representatives
of the employers, the employers and other interested people.”

2. Answer these questions, basing your answers on the text.

a. Why is difficult to classify many national economic systems?
= Because the various national economic systems tend towards communism or
capitalism, and many are difficult to classify exactly.

b. What are the under-developed countries interested in?

= The under-developed countries in the world are usually interested in control and
longterm planning.

c. What is the Indian system sometimes called?

= Such systems, with public and private sectors, are neither communistic nor
capitalistic, but are sometimes called mixed economies.

d. In which sector are the majority of British industries?

= In the private sector are the majority of the nation’s industries, both large and small.

e. What did the British government set up in 1962?

= In 1962 the British government set up an official body to plan national economic
policies. This body is called the National Economic Development Council.
TEXT B Exercises 1
1. Say whether these statements are true (T) or false (F), and if they are false say why
a. (F) The USSR is completely communistic
= Because no state today is completely communistic.

b. (T) The USA is not completely capitalistic.

c. (F) The many economic systems in the world are not difficult to classify.
= Because the various national economic systems tend generally towards one type or
the other, but many systems are difficult to classify.

d. (T) Even the United States finds it necessary to control national economic conditions
to a certain extent.

e. (T) the interest of the under developed countries in longterm planning is inevitable.

f. (F) India makes a clear distinction between the two sectors of its typically mixed
economy.
= Because India makes a clear distinction between the public sector and the private
sector of its economy.

g. (F) The nationalized industries in Britain are inevitably in the private sector of the
economy.
= Because in the public sector of British economic life are the nationalized industries
like coal and steel, British Rail and BOAC.

h. (T) Giants like ICI and BP are not publicly owned.

i. (T) The British government controls the economy very strictly through the NEDC

j. (F) Planning ahead in a mixed economy is not particularly difficult.

= Because it is however a very difficult matter to plan ahead in a mixed economy.