MINISTRY OF HIGHER EDUCATION

AND SCIENTIFIC RESEARCH

‫الجمهورية الجزائرية الديمقراطية الشعبية‬
HIGHER SCHOOL OF MANAGEMENT SCIENCES
ANNABA
PEOPLE'S DEMOCRATIC REPUBLICOF ALGERIA
2nd year all groups 2023/2024 1stSemester Exam of English Time: one 1H30

Advantages of Market Economy

Unlike other types of economies, a market economy increases business efficiency and
competition. Governments, in their limited roles, work to promote this by creating and
enforcing legislation that places limits on activities that detract from a competitive
environment. They also support business efficiency but regulate how businesses treat
consumers and workers to maximize efficiency.

Efficiency is usually measured in terms of costs and profits. High efficiency is typically
viewed as low costs and high profits, whereas low efficiency is viewed as high cost and low
profits. Competition plays a role in efficiency because it forces businesses to do whatever is
necessary to lower costs, control more of the market, and achieve higher sales to increase
profits, as long as it is legal. Increased productivity is also associated with a market
economy. In any economy, people need money to purchase goods and services. In a market
economy, this need leads to increased motivation because workers want to earn more money
to supply their needs and to live comfortably. People motivated to work
increase productivity and output for the economy. In a command economy, where a central
authority or government sets wages, levels of production, prices, and investments, there is
less worker motivation because no matter how much harder they work, they will not see
additional monetary benefit.

A country's market economy supports increased innovation. Firms and individuals are
encouraged to innovate to gain a competitive advantage and increase their market share.
With money as a primary motivating factor, companies look to create new products and
technologies to generate more revenue, higher incomes, and more profit. Innovation also
leads to a greater variety of goods and services, which provides a broader selection for
consumers.

I) Reading Comprehension(9pts):
a- According to the text say whether the following statements are true or
false and correct the false ones? (5pts )

1- Efficiency and competition are more likely to be enhanced in a market economy.

2- The government in a market economy has only a regulating role.
3- The cost is the main drive of businesses in market economy.
4- In a market economy workers are not motivated to provide more efforts because their
salary is fixed by the government regardless of the principle of merit.
5- Innovation and competition can contribute in increasing sales by providing a wider
choice for consumers.
a- Provide synonyms to the followings from the text: (2pts)

Earnings / provide / control / financial

b- Provide synonyms to the followings from the text: (2pts)

Tighter / loss / deprive / to lower

1
MINISTRY OF HIGHER EDUCATION
AND SCIENTIFIC RESEARCH
‫الجمهورية الجزائرية الديمقراطية الشعبية‬
HIGHER SCHOOL OF MANAGEMENT SCIENCES
ANNABA
PEOPLE'S DEMOCRATIC REPUBLICOF ALGERIA
2nd year all groups 2023/2024 1stSemester Exam of English Time: one 1H30

II) Grammar: report the followings (2pts)

1. He said, “I will submit the report tomorrow."
2. He said, "Is the team working on the new marketing campaign?"
3. John said, "What do you think about the new plan discussed yesterday?"
4. He said, "We sell quality products at affordable prices to attract more customers."
II) Vocabulary (9pts)
Exercise 1: fill in the blanks using the following terms: market system, centralized
commands, mixed system, scarce resources, economic system, allocate, traditional
system (3,5pts)
1. An economic system serves as a framework for deciding how to (1) resources to meet the
wants and desires of individuals. The (2) of a nation dictates which individuals or groups will
benefit from the production of goods and services. . The extent of involvement by a society's
leaders in distributing (3) plays a role in shaping its economic system. In specific regions of
the world, a (4) persists, rooted in customs and beliefs. In a system characterized by (5),
government officials assume authority over the factors of production. Conversely, in a (6), the
economy operates on information obtained through a pricing mechanism. The final category
of economic system blends essential components from both previous systems, forming a (7).
Exercise 2: a-Complete the following sentences by filling in the blanks with appropriate
terms: (1pts)
1. A paid occupation, especially one that involves prolonged training and a formal
qualification is: …………
2. The term that applies to an individual who is hired for a compensation to initiate work or
tasks for an organization is: ………
b- In a table classify the followings statements according to your answer in (1) and (2)
(2pts)
1. May have limited autonomy in decision-making.
2. Sets the rate of payment, which is paid in full or in part in advance.
3. Often involves a higher degree of autonomy and responsibility.
4. Income is fixed and predetermined with occasional raise or bonus.
Exercise 3: say if the following statements are true or false (1,5pts)
1. The primary sector focuses on providing services rather than tangible products.

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MINISTRY OF HIGHER EDUCATION
AND SCIENTIFIC RESEARCH
‫الجمهورية الجزائرية الديمقراطية الشعبية‬
HIGHER SCHOOL OF MANAGEMENT SCIENCES
ANNABA
PEOPLE'S DEMOCRATIC REPUBLICOF ALGERIA
2nd year all groups 2023/2024 1stSemester Exam of English Time: one 1H30

2. The tertiary sector involves the highly specialized production of goods with a focus on
innovation.
3. Secondary sector does not interact directly with Earth's resources.

Exercise 4: replace the underlined expressions with the equivalent terms and provide
examples (1pts)
1.Tangible items that have a long lifespan.
2.Goods essential for the production of other goods and services

Good Luck