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?
b. What is the American system based on ?
c. What is the Russian system based on ?
d. When did Karl Marx live ?
e. What economic system is the British system similar to ?
f. On what two things is the British system based ?
g. Who can own property in the United States and Britain ?
h. What must British and American citizens obey?
i. What three things can Britons and Americans use 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.

b. Economists study the economic system.
c. That man owns the house.
d. They will provide shelter and clothes.
e. Economic changes affect our lives.
f. They will maintain his car.
 g. The economists explained the economic system.
h. They explained the methods.
i. He told me how the Russian system works.
j. Economists describe how capital is used in business.

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.
b. ( ) The man buys his car at the garage
Perhaps the garage-owner will provide some extra services.
c. ( ) We buy these commodities today.
Perhaps we will be able to sell them tomorrow.
d. ( ) The farmers try to produce more.
Perhaps they will have some goods to sell as well as to use themselves.
e. Perhaps life will be more enjoyable.
( ) 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

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

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 US 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. ( ) The economic systems of the United States and the Soviet Union are the same.
b. ( ) In the United States the means of production are privately owned.
c. ( ) Karl Marx was an eighteenth century economic thinker.
d. ( ) The British system is based on the principles of Karl Marx.
e. ( ) Because Britain has a system of private enterprise, we can say that its economy is
similar to the American economy.
f. ( ) Capital is essentially surplus income used for new business activities.
g. ( ) Individual citizens in Britain and the United States have complete economic
freedom.
h. ( ) 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 ttre necessary goods and services.

b. He will supply all the essential commodities.
c. The farmer undertook the work last week, and has just finished it.
d. The men satisfied the economist that they would do the work rapidly.
e. The economists described the whole economic system in a strictly scientific way.
f. The economic system affected the people's lives in many ways.
g. They studied the supply of both essential and non-essential commodities.
h. The people enjoy a strong economy in that country.
i. The citizens exercise a considerable amount of economic freedom.
j. They must obey the law.

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.
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

(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

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 ________;he is a ________.

b. Italy : That man is ________;he is a ________.
c. Spain: That man is ________;he is a ________.

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

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