Ex.7. Choose the appropriate word or a phrase to complete the following sentences

Households, most compatible, labour, surplus, borrow and save, purchase, bring together, in a unique way, economic incentives, shortage, competition, to a very limited extent, define and enforce, businesses

1. Each economic system deals with What? How? and For whom? problems ____.

2. In some countries, market mechanisms are utilized ________.

3. Free enterprise systems are ________ with individual freedom and political democracy.

4. In the free enterprise system ________ help people answer What? How? and For whom? questions in the most beneficial way, e.g. low prices for goods or services for consumers and high profit for producers.

5. ________, one of the components of the free enterprise system, own most of the country’s economic resources and with their wages and salaries ________ two-thirds of all the country’s production.

6. One of the resources that households have is their ________, which they can sell to businesses.

7. Another component of the free enterprise system, ________, performs the role of organizers.

8. Markets act as agents which ________ buyers and sellers ________.

9. Financial markets are used by both households and businesses that want to ________ money.

10. The main role of government in the free enterprise system is to ________ the rules of society.

11. The situation when there are more goods than demanded is called ________. When the opposite occurs, it is called ________.

12. Another economic incentive in the free enterprise system is ________, which stimulates businesses to make the most efficient decisions.