English for Economics_The Mixed Economy

English for Economics

Unit 3: The Mixed Economy

by Hoai Nguyen

Multiple Choice

1.     What do most economies believe about economies in the world today?

A.    There are a number of free markets.

B.    Some countries have a completely planned economy.

C.    A mixed economy exists in some way in all countries.

Most economists would say that there are no examples in the world today of a completely controlled economy. Instead, every country operates a mixture of the two systems. Even in the freest economics, like USA, there is some government control, even in the strictest planned economy there is some free enterprise.

• A

• B

• C

Multiple Choice

1.     Why does government choose to run some industries?

A.    So they can collect taxes.

B.    Because they need to be protected from the risks of the free market.

C.    To encourage a divided economy.

Economies mix government control and free market values in different ways. One way is to let privately owned businesses exist alongside state run industries. The economy becomes divided between the state sector and the private sector. The state sector often includes industries that the government thinks are important and need protection from the risks of the free market. These could include public transport, hospitals, schools and the postal service. The state sector can also include large industries that are important for a country’s economic health such as oil, steel or agriculture. These are sometimes called primary industries because they provide basic materials to manufacturers.

• A

• B

• C

Multiple Choice

3.  Why do government deregulation some industries?

A.    To make the industries more efficient.

B.    To protect them

C.    Because there is too much competition.

These state sector industries use money that the government collects in taxes. Often, they do not need to compete with other companies because no other company is allowed to provide the same product or service. However, many countries have recently started a process called deregulation.

Deregulation means freeing up the economy to allow private business to compete with state-run industries. The state sector should then run more efficiently in order to compete in the free market and because it now has less government protection.

• A

• B

• C

Multiple Choice

4. According to the text, what is not very popular with the public?

A.    Deregulation of public transport.

B.    Deregulation of hospitals and schools.

C.    Deregulation of telecommunications and banking.

Deregulation of services like telecommunications. Transport and banking has happened in many countries in recent years. People have generally accepted these changes. However, generally the public is less happy when the governments start talking about deregulation in education and health services. Many people feel that profit motivation will harm these services rather than improve them.

• A

• B

• C

Multiple Choice

5.  What type of state control is not mentioned in paragraph 5?

A.    Controlling the way companies do business.

B.    Controlling what companies sell.

C.    Controlling the prices companies set.

Another way in which economies today are mixed is that government put limits on free enterprise. For examples, governments may decide to ban trade in certain goods if they are dangerous. They may also create laws to make sure companies trade honestly or to prevent monopolies. If a company has a monopoly, normal market forces do not affect it. This is bad for consumers and the economy in general. Government may also regulate methods of production are safe for consumer and to protect the environment.

Many economists would argue that the mixed economy is the best system for consumer. This is because consumers have two ways to control the economy by choosing to buy a company’s goods or services and by choosing to give political parties their votes.

• A

• B

• C

Open Ended

Which are the ideas against state-run hospitals? Write the number in the space:

1.     Badly organized.

2.     Creates a class of poor, unhealthy people.

3.     Hospitals in bad condition.

4.     Hospitals will reduce costs to make money.

5.     Is bad for society in general.

6.     Long waiting lists for patients

7.     Only the rich can afford health care

8.     Staff are poorly paid

9.     Taxpayers support everyone.

Open Ended

Which are the ideas against private hospitals? Write the number in the space:

1.     Badly organized.

2.     Creates a class of poor, unhealthy people.

3.     Hospitals in bad condition.

4.     Hospitals will reduce costs to make money.

5.     Is bad for society in general.

6.     Long waiting lists for patients

7.     Only the rich can afford health care

8.     Staff are poorly paid

9.     Taxpayers support everyone.

​Listening: State-run hospitals vs. private hospitals

​Now listen and check your answers