D Vocabulary p 21

1. Free trade is when businesses are able to trade without control from the
government.
2. State sector - Industries belong to and are run by the government.
3. Private sector - Industries belong to and are run by independent businesses.
4. Public transport - Buses, trains, and planes are examples of.
5. Agriculture is another word for farming.
6. Manufacturers produce new goods from raw materials.
7. When a business works successfully without wasting resources, it runs efficiently.
8. Telephony and Internet systems are part of the telecommunications industry.
9. Profit motivation is what drives businesses in the market economy.
10. When the government puts a ban on a commodity, people are not allowed to buy
or own it.
11. If only one company controls part of the economy, they have a monopoly.
12. When companies trade business with each other, they do business.

E Comprehension p22
1. C - A mixed economy exists in some way in all countries.
2. B - Because they need to be protected from the risks of the free market.
3. A - To make the industries more efficient.
4. C - Deregulation of telecommunications and banking.
5. A - Controlling the way companies do business.

Revision Vocabulary p24

Crossword:

Across: 11. Micro

1. Mixed Down:
3. Traditional 2. Macro
6. Equilibrium 4. Command
7. Descriptive 5. Deflation
8. Elasticity 9. Demand
10. Prescriptive

Opposites:
- Benefits / Drawbacks
- Consumer / Manufacturer
- Drought / Flood
- Private sector / State sector
- Shortage / Surplus
Sentences:
1. The consumer benefits from a surplus in the market.
2. Drought can lead to a shortage of agricultural products.
3. Manufacturers play a vital role in the private sector.
4. Consumers often weigh the benefits and drawbacks before making a purchase.
5. The state sector regulates certain industries to prevent drawbacks.

C
1. property
2. currency
3. trade
4. materials
5. agriculture
6. commerce
7. interacting
8. spending
9. harvest
10. shortages
11. community

A Vocabulary p 25
1. If you are in a hurry, it can be difficult to make a rational decision.
2. The amount of money you have to spend is your budget constraint.
3. The maximum speed limit on this road is 120 kilometers per hour.
4. Quality is often the deciding factor when people choose something to buy.
5. Some people calculate how much they spend every week.
6. Green is a combination of yellow and blue.
7. When you buy something from a shop, you make a purchase.
8. When you assume something is true, you guess that it is true.
9. The use or satisfaction you get from something you buy is called utility.
10. Olive oil is a healthy alternative to butter.
B Comprehension p 26
1. According to neoclassical economists, consumers want A. The most satisfaction at
the lowest cost.
2. What is C. The total amount of money you have to spend.
3. What is B. The satisfaction you get from a product or service.
4. What explains A. The more satisfaction something gives you, the more you want
it.
5. Neoclassical economists believe about consumers that they make A. logical
decisions.

H Writing p23
A Comparative Analysis of Planned and Mixed Economies
In the realm of economic systems, two predominant models shape the global
landscape: the planned economy and the mixed economy. These frameworks exhibit
distinctive features, each with its own set of advantages and disadvantages.

A planned economy is characterized by centralized government control over

economic activities, while a mixed economy blends elements of both central planning
and market forces. Despite this fundamental difference, both systems aim to address
the complexities of resource allocation and economic growth. In this essay, we will
delve into the strengths and weaknesses of each model, ultimately examining which
is more conducive to fostering prosperity.

Planned economies, often associated with socialist or communist ideologies,

prioritize equality and collective ownership. In such systems, the government dictates
production levels and resource distribution. While this centralized approach can lead
to efficient resource allocation in certain sectors, it often lacks the dynamism and
innovation inherent in market-driven economies. Nevertheless, planned economies
can mitigate income inequality and prioritize essential services.

Contrastingly, mixed economies embrace a dual approach, allowing both state

intervention and market forces to coexist. This amalgamation seeks to harness the
efficiency of the market while addressing social welfare concerns through
government regulations. Nevertheless, the challenge lies in striking the right balance,
as excessive government interference can stifle entrepreneurial spirit, and unbridled
market forces may lead to inequality.
While a planned economy may offer stability and equality, it may compromise
innovation. On the other hand, a mixed economy attempts to strike a balance, yet
challenges persist in finding the optimal equilibrium. In my opinion, neither system is
inherently superior. The efficacy of an economic model depends on the unique needs
and values of a society, emphasizing the importance of adaptability in the pursuit of
prosperity.