Ex.12. Answer the following questions

1. Why do societies answer the same economic questions – What to produce? How to produce and For whom to produce? – in a different way?

2. Why most modern economic systems are called free market economies?

3. What does free enterprise mean?

4. What motivates people in their free decision-making?

5. Why are economic incentives important?

6. What forms can economic “punishments” take?

7. What components does a free enterprise system consist of?

8. Why are households referred to as Owners?

9. What is consumer sovereignty?

10. In which way do businesses act as Organizers?

11. What does efficiency in business mean?

12. How and where do buying and selling activities take place?

13. What is a market?

14. In which way are resource, product and financial markets interconnected?

15. Are free enterprise systems absolutely free from government interference?

16. Why can government be called “an umbrella” under which the free enterprise system operates?

17. What is the linking function of the price system?

18. What are surplus and shortage?

19. In addition to the price system, what other incentives help the free enterprise economy function successfully?

Ex.13. Make a presentation of the topic “Free-enterprise system”.

WRITING

Ex.14. Write a plan for a summary of Text A. Start with

1. Uniqueness of economic systems

2. ___________________________

3. ___________________________