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Unit 5. FREE-ENTERPRISE SYSTEM

 

 

 

TEXT A: What is free enterprise?

TEXT B: Role of government in a free-enterprise economy

TEXT C: Invisible hand

BUSINESS COMMUNICATION: At the airport

GRAMMAR: Future Tenses. The Imperative Mood

 

 

Everything that is really great and inspiring is created by the individual who can labor in freedom.

Albert Einstein (1879 - 1955),

a German theoretical physicist

 

 

 

LEAD-IN

1. Do you feel free? What freedoms do you enjoy? What freedoms are guaranteed in a democratic society? How do you understand economic freedom?

2. If you are free, it means that it is no one but you who makes decisions. What motivates you in decision-making? What motivates people in making economic decisions?

3. While the pure market economy does not imply government’s interference at all, the free enterprise economy does. In what spheres do you think government can perform better than private companies?

 

PRE-TEXT EXERCISES

 

A. Reading drills

Ex.1. Read the words with the following letter combinations.

ou   [au]   output, account, household

       [ʌ]     country, double, nourish

ea   [i:]      each, deal, feature, increase, mean, means

       [e]      health, wealth, measure, instead

       [ei]     great, break  

ow  [au]   how, now, power 

       [ou]   low, own,  slow

au   [ɔ:]    because, automatic, automobile

ch   [t∫]     search, purchase, choose, exchange, channel

       [k]     mechanism, chemical, character

        [∫]     machine, chef, brochure

 

Ex.2. Read the following words with the letter c in different positions.

[k]   economy, Cuba, occur, considerable, sector, country,  occupation

[s]   produce, service, difference, resource, society, decide, incentive, necessary,          receive

[k]-[s]  scarce, consequence, success, coercive

[∫]    socialist, efficiency, beneficial, financial, artificial

[t∫]   which, China, purchase, choose, exchange, channel

[k]   mechanism, school, chemistry, chronicle

 

Ex.3. Read the words in the groups bellow. Pay attention to the word stress.

a) words with the stress on the first syllable:

mechanism, utilize, private, enterprise, difference, social, value, motivate, consequence, innovator, satisfy, borrow, voluntary, contract, surplus, shortage, rationing, indicate;

b) words with the stress on the second syllable:

identical, produce (v), unique, involve, considerable, occur, component, economy, resource, society, objective, creative, productive, pursue, decision, determine, incentive, consumer, possess, potential, competitive, maintain, abundant;

c) polysyllabic words with the main and secondary stress:

economic, manufacturing, beneficial, occupation, inability, artificial, interference.

 

Ex.4. Practice reading the following words.

Identical, mechanism, utilize, occur, private, creative, highly, efficiency, pursue, beneficial, artificial, determine, extremely, reward, consequence, scarce, purchase, sovereignty, entrepreneur, necessarily, interference, coercive, guide.

 

B. Word formation

Ex.5. Study the following typical endings of nouns. Using one of them, change each of the following words into a noun.

Membership; socialism; sadness; information; government; beauty; marriage; excellence.

 

Kind, real, move, human, elect, intelligent, permanent, confuse, leader, improve, equal.

 

Ex.6. Make up adjectives from the following verbs as in the model.

Model: verb + - ive adjective

e.g. to invent inventive; to produce → productive

 Create, decide (d→s), innovate, protect, impress, attract.

 

Ex.7. Form adjectives adding prefix in- (im- before p, il- before l, ir- before r) as in the model. Explain what new meaning the prefix adds to adjectives.

Model: possible → impossible

 

Complete, capable, correct, definite, sensitive, patient, perfect, legal, logical, liberal, regular, rational, relevant.

 

TEXT A: WHAT IS FREE ENTERPRISE?

 

Active Vocabulary

Key terms: private enterprise, private and public sectors, free enterprise economy, efficiency, cost(s), economic resources, decision making, economic incentives, profit, employee, employer, unemployment, household, value, resource market, product market, financial market, intermediary, price system, rationing, surplus, shortage.

Other words and expressions: identical, to deal (with), unique, to utilize, to involve, considerable, trait, to turn into, to occur, to reflect, to force, to pursue, to result (in/from), compatible, to mean, (a) means, to own, to possess, to motivate, to determine, to seek, to search (for), to benefit (from), consequence, to fail, to indicate, to provide, properly, to purchase, to influence, to bring together, to borrow, to save, cornerstone, interference, to enforce, to maintain, to perform, vital, abundant, artificial, to channel.

Linking words and phrases: even though, both…and, although, to a large (small, certain, limited) extent, therefore, instead, in addition to, however, in essence, on the one hand, on the other hand.

    

Just as people are different, so are economic systems. The world has scores of economic systems, no two of which are identical. All have different blends of traditions, commands and markets, that is why they are called mixed economies. Even though they deal with the same economic problems – What to produce? How to produce? For whom to produce? -  each system does so in a unique way. For example, market mechanisms have been utilized in a handful of socialist states, such as Cuba, to a very limited extent. The People's Republic of China is run by the Communist Party, but its economy involves considerable private enterprise and market forces in both private and public sectors. In the United States there are more market economy traits than in Western European countries. These differences occur because economic systems are more than simply means of turning resources into goods and services. They are ways of life, and they reflect the differences in the social values and objectives of each nation.

Many states which are said to have a market economy have a high level of market freedom, therefore they are often called free market or free enterprise economic systems. In this system no one forces people to be creative and productive. Instead, people themselves pursue what they believe to be best for them. By producing the goods and services that society values most highly, a free enterprise system results in the greatest efficiency, or lowest costs, of any economic system. This system is most compatible with individual freedom and political democracy.

What Is Free Enterprise? Free enterprise means that men and women have the opportunity to own economic resources, such as land, minerals, manufacturing plants and computers, and to use these resources to create goods and services for sale. If nobody but a person himself decides what is best to create, what motivates him in this decision-making? In the free enterprise system economic incentives help people determine which course of action will be the most beneficial for them. Businessmen seek high profits. Property owners want the highest price possible for their resources. Workers seek the highest salary possible for a given occupation. Consumers search for the lowest price for a given product.  The system of incentives is an extremely important feature of free enterprise. The promise of rewards stimulates employees to produce more and employers to use resources efficiently. People are willing to do this because they, personally, benefit from it. Economic incentives also serve to direct scarce resources to the production of the goods and services people value the most.

The system of incentives also includes punishments. People may face unpleasant consequences when they fail to do something. In the free enterprise system, punishments usually take the form of losses (or failure) for businesses and low salaries (or perhaps unemployment) for individuals. They indicate that the "what to produce" and/or the "how to produce" questions are not being answered properly, for example, the business or individual is using scarce resources to provide too much of a product or a product not wanted at all.

 

Four components of most free enterprise systems are households, businesses, markets and governments.

Households — the Owners. In a free enterprise system, households own most of the country’s economic resources and decide how to use them. One of the resources that households possess is their labour. They can sell it to existing firms or use to form new businesses. In addition to selling their resources where they can get the highest price or largest profit, households also act as consumers. The wages and salaries of households purchase about two-thirds of all the production in a typical free enterprise economy. Choosing how to spend their money, consumers influence production directing it toward the goods and services they want to get. This is called consumer sovereignty.

Businesses — the Organizers. Businesses organize economic resources to produce a good or service. Entrepreneurs people who start businesses are the organizers and innovators, constantly discovering new and better ways to bring resources together in the hope of making a profit. Like some fuel, profit makes the engine of business work. Entrepreneurs, guided by the potential for profits, create new businesses to satisfy consumers’ needs and desires. The inability to make profits signals businesses to close or to reorganize their resources more efficiently. Efficiencymeans that resources are being used to produce the goods and services that society most desires at the lowest economic cost. In a competitive industry, the presence or absence of profits sends an important signal about the industry’s economic efficiency.

Markets — the Agents. Buying and selling activities take place in markets. Although markets are not necessarily people, they act as agents to bring buyers and sellers together. Over time, markets have become increasingly complex. Now, buying and selling can occur 24 hours a day from anywhere in the world via the Internet. A market is any place or any way that buyers and sellers can use to exchange goods, services, resources or money. There are three categories of markets in a free enterprise society: resource markets, product markets and financial markets. Households go through resource markets to sell their labour to businesses. Businesses go through product markets to sell goods and services to households. And both households and businesses use financial markets to borrow and save money. Typically, businesses borrow money that households save, using financial institutions as the intermediary.

Governments — the Protectors. The cornerstone of a truly free enterprise economy is the absence of government interference in economic matters. However, the government still plays an important role in any free enterprise system. This is because unlimited freedom is impossible: one person’s freedom may sometimes conflict with another’s. So, the main role of the government in a free society is to define and enforce the rules of society. The government has the power to maintain law and order and protect people’s right to own property. In essence, government provides the umbrella under which the free enterprise system operates. Governments also provide goods, such as national defence, that the private market alone would have a hard time producing.

What connects consumers, producers and markets? This linking function is performed by the price system. Prices tell people about the demand for a good, and they also tell them how scarce or abundant the good is. Prices provide information that is vital to making economic decisions. Without market prices, it would be very difficult for people to measure the value of each good and the scarcity or abundance of our resources. If a system tries to make decisions without prices, as the command system does, then it probably produces too many of some goods and too few of others. In the first case surplus occurs, when there are more goods than demanded in the market. The opposite of surplus is shortage, that is the situation when there are not enough goods and services that are needed. In the free enterprise system, the market itself regulates the situation with the help of price change.  In the case of government intervention in the market, shortages may result in so-called black markets, artificial controls on demand, such as rationing, and price discrimination.

But if we say that all people seek their own benefit, how does free enterprise result in such beneficial outcomes for society? That’s where competition plays its great role. It helps to channel scarce resources into the production of goods and services that consumers value highly and away from those of low value. For example, when a business makes a large profit, there is an incentive for other individuals to enter that business. On the other hand, if a business is losing money or members of an occupation receive a low wage, there is an incentive to enter a different line of business or a different occupation. In this way, resources are guided toward the production of goods and services receiving economic rewards and away from those receiving economic punishments.

 

Language notes:

scores of... – безліч;

a handful of ... – невелика кількість ч-н;

consumer sovereignty – суверенітет споживача (право вибору благ);

the coercive power – примусова сила;

without market prices, it would be very difficult… - без системи ринкових цін було б важко…;

price discrimination – цінова дискримінація (продаж одного і того ж товару або послуг різним покупцям за неоднаковими цінами).

 

VOCABULARY FOCUS

 

Ex.1. Find the English equivalents in the text.

Однакові типи економічних систем; розглядати одні і ті ж проблеми; у дуже обмеженому масштабі; як у приватному, так і в громадських секторах; перетворювати ресурси на товари та послуги; переслідувати (мету); приводити до якогось результату; економічні стимули; спонукати кого-небудь до дії; зіткнутися з неприємними наслідками; зазнати невдачі; правильно/належним чином; одержати найбільший прибуток; придбати дві третини продукції; самостійність споживача; відкривати/починати свою справу; задовольняти потреби та бажання споживачів; з найбільш низькими економічними витратами; посилати важливий сигнал; звести разом покупців і продавців; обмінюватися товарами, послугами, ресурсами або грошовими коштами; позичати та нагромаджувати кошти; посередник; втручання уряду в економічні питання; визначати і запроваджувати громадські правила; додержуватися закону і порядку; брак (дефіцит) або надлишок ресурсів; «ручне» (штучне) управління попитом; цінова дискримінація;
нормування.

 

Ex.2. Give Ukrainian equivalents of the following words and phrases.

Different blends of traditions; commands and markets; to do smth in a unique way; to utilize market mechanisms; a handful of countries; to involve market forces; market economy traits; these differences occur; a high level of market freedom; to force people to be creative; to value smth most highly; the most beneficial course of action; to seek high profits; to search for the lowest price; to indicate smth; to provide too much of a product; in addition to selling resources; in the hope of making a profit; an inability to do smth; to act as agents; to become increasingly complex; to use a financial institution as an intermediary; to be the cornerstone of smth; to have the coercive power to do smth; to have a hard time doing smth; vital information for making decisions; to channel scarce resources; to receive economic rewards or economic punishments.

 

Ex.3. Give three forms of the following verbs. Find the sentences with these verbs in the text.

Deal, occur, say, result, mean, seek, search, get, purchase, start, make, send, bring, become, go, tell, try, do, lose.

 

Ex.4. Match the words on the left with the definitions on the right.

1

  1. private enterprise

a

  1. a structure which helps buyers and sellers get together to exchange goods or services

2

  1. public sector

b

  1. a situation when there is not enough of something that is needed

3

  1. rationing

c

  1. the ability to do something well without wasting time or money

4

  1. economic resources

d

  1. the policy of limiting the amount of food, fuel, etc. that people are allowed to have when there is not enough for everyone to have as much as they want

5

incentives

e

  1. an amount that is extra or more than you need

6

profit

f

  1. a business that is owned by individuals or other companies, not by the government

7

benefit

g

something that encourages people to do something, especially to  work harder, spend more money, etc.

8

household

h

  1. a supply of something such as money, labour, etc. that an organization or a person has and can use

9

market

i

  1. a person or an organization that helps other people or organizations to reach an agreement

10

sovereignty

j

  1. the part of the economy of a country that is owned or controlled by the government

11

efficiency

k

  1. complete independence

12

intermediary

l

  1. getting involved in and trying to influence the situation

13

interference

m

  1. a helpful and useful effect that something has

14

surplus

n

  1. all the people living together in a single house or flat/apartment, considered as a unit

15

shortage

o

  1. the money that you make in business or by selling things, especially after paying the costs involved

 

Ex.5. Make up verb+noun collocations (there may be several variants).

to make

an important  signal

to satisfy

vital information

to start

resources

to send

an economic decision

to exchange

law and order

to borrow and save

a high profit

to play

consumer’s needs and wants

to maintain

money

to provide

a great role

to make

a new business

 

Ex.6. Fill in the gaps in the following verb collocations with appropriate prepositions or adverbs.

To deal ____ the same economic problems; to do something ____ a unique way; to utilize market mechanisms ____ a very limited extent; to turn resources ____ goods and services; to result ____ the greatest efficiency; to be compatible ____ individual  freedom; to produce goods and services ____ sale; to search ____ the lowest price ____ a given product; to benefit ____ the efficient use of resources; to direct production ____ goods and services people want to get; to produce goods and services ____ the lowest economic cost;  to bring buyers and sellers ____ ; to conflict ____ individual freedom.

 

Ex.7. Choose the appropriate word or 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.

 

Ex.8. Combine two parts logically to make complete sentences.

1

All economic systems have

 

a

in each nation’s social values and objectives.

2

Free market or free enterprise economic systems

b

consumers’ needs and wants.

3

Economic systems reflect the differences

c

unpleasant consequences or so-called economic punishments.

4

Free enterprise means that people

d

different blends of traditions, commands, and markets.

5

Entrepreneurs, who are guided by the economic incentive of profit, create businesses which satisfy

e

employees to produce more and producers to use resources more efficiently.

6

The promise of profit stimulates

f

is provided by the price system and competition.

7

When people fail to make good economic decisions, they may face

g

have a high level of economic freedom.

 

8

In the free market system, economic “punishment” may take the form of

h

losses for businesses  and low salaries or unemployment for workers.

9

Entrepreneurs constantly discover new and better ways

i

have the opportunity to own and use economic resources.

10

A market is any place or any way

j

that buyers and sellers can exchange goods, services, resources, or money.

11

In the free enterprise system, the vital information for decision-making

k

in the hope of making a profit.

 

Ex.9. Look through the text again and replace the words in bold with the linking words and phrases given below.

Even though/although, to a limited extent, therefore, instead, in addition to, however, in essence, on the other hand

 

  1. In a free-enterprise economy, nobody forces entrepreneurs to be creative and productive. Rather, business people themselves choose what is best for their business.
  2. Most countries in the world have a high level of market freedom. That is why, their economic systems are frequently called free market or free enterprise systems.
  3. All economies deal with the same economic problems – What? How? and For whom? But they do it in their own unique way.
  4. In some economies, such as Cuba, the market mechanisms are realized only in certain limits.
  5. Despite the fact that markets are not necessarily people, they act as agents to bring buyers and sellers together.    
  6. Besides selling their resources to get profit, households also act as consumers.
  7. Even if the market system is characterized by the absence of government interference, the government still plays an important role.
  8. If a business is profitable, there is an incentive for other people to join it. Alternatively, if it suffers losses or pays low wages, there is an incentive to change it for another one.
  9. The role of government in some aspects is so important that, in fact, it acts as an umbrella under which the free enterprise system operates.

 

Ex.10. Translate into English.

  1. У світі існує безліч типів економічних систем, які відповідають на головні питання економіки - Що виробляти? Як виробляти? Для кого виробляти? - своїм особливим чином.
  2. Економічні системи відображають відмінності в соціальних цінностях і цілях суспільства.
  3. Високий ступінь ринкової свободи називають економічною системою вільного підприємництва.
  4. Виробляючи товари і послуги, необхідні для суспільства, система вільного підприємництва призводить до найвищої ефективності або найменших витрат економіки.
  5. Економічні стимули допомагають людям вибрати найбільш вигідний спосіб дій.
  6. Якщо люди приймають неправильні рішення, вони можуть зіткнутися з неприємними наслідками, такими як втрати бізнесу або низька зарплата або навіть звільнення працівників.
  7. Учасниками економічної діяльності в більшості систем вільного підприємництва є домашні господарства, компанії, ринки і уряд.
  8. Домашні господарства володіють більшою частиною економічних ресурсів країни і на свою зарплату купують дві третини всієї продукції країни.
  9. Нездатність заробити прибуток є сигналом для компаній про необхідність використовувати свої ресурси більш ефективно.
  10. Ринок - це будь-яке місце або спосіб, які допомагають покупцям і продавцям обмінюватися товарами, послугами, ресурсами або фінансами.
  11. Як домашні господарства так і компанії використовують фінансові ринки для позик або накопичення грошей.
  12. Наріжним каменем системи вільного підприємництва є відсутність втручання уряду в економічні питання.
  13. Уряд забезпечує дотримання закону і порядку і охороняє право людини на приватну власність.
  14. Система цін є важливою інформацією про попит на будь-який товар і про його нестачу або надлишок на ринку.
  15. Конкуренція також допомагає направити ресурси на виробництво товарів і послуг, які споживачі цінують більше за все.

 

LANGUAGE SKILLS

 

Ex.11. Ask questions to which the following statements may be answers.

  1. Yes, they have to deal with the same What? How? For whom? problems.
  2. No, they have different combinations of traditions, commands and markets.
  3. Because they reflect differences in their social values and objectives.
  4. They are often called free market or free enterprise economic systems.
  5. Because people are free to decide what is best for them to produce and to buy.
  6. They are profit for businessmen, high prices for property owners, low prices for consumers, and high salaries for workers.
  7. They are households, businesses, markets and governments.
  8. They can sell their resources and act as consumers.
  9. It is the ability of consumers to influence production, directing it toward the goods and services they want to get.
  10. These are people who start and run businesses and are organizers and innovators.
  11. They act as agents to bring buyers and sellers together.   
  12. There are three categories of markets − resource, product, and financial ones.
  13. Yes, it still plays an important role in a free system.
  14. Its main role is to define and enforce the rules of society.

 

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. ___________________________

 

Ex.15. Write a brief summary (25-30 sentences) of Text  A.

 

Ex.16. Write an essay about advantages and disadvantages of the free enterprise economic system (100-150 words).

 

DISCUSSION POINTS

 

Ex.17. Discuss the following questions.

1. Why are social arrangements such as markets and property rights necessary?

2. “The economic system of tomorrow is mostly likely to be quite different from the economic system of today.” Do you agree?

3. According to polls, most US economists who classify themselves as liberal favour less government involvement in the economy than the general public does. Can you explain these different approaches?

4. A market system is based on consumer sovereignty – the consumer determines what is to be produced. Yet business decides what is to be produced. Can these two views be reconciled? How? If no, why?

 

TEXT B: ROLE OF GOVERNMENT IN A FREE-ENTERPRISE ECONOMY

 

Ex.18. Scan the text bellow and give headlines to each paragraph.

 

If markets and market systems are so efficient, why let the government tamper with their actions at all? Why not adopt a strict policy of what is called laissez-fair and allow private markets to operate without any government interference? (0)___________

National defense is one example where the role of government is indispensable because the defense of a nation is a type of good that is completely different from oranges, computers, or housing. People do not pay for each unit they use, but purchase it collectively for the entire nation. Providing defense services to one individual doesn’t mean that there is less defense for others because all people, in effect, consume those defense services together. In fact, these services are even provided to people in a country who don’t want them because there really isn’t an effective way not to. Nations can afford to build jet fighters; neighbourhoods or individuals cannot. (1) ___________ That is why national defense must be administered by the government and paid for through taxes.

Harmful by-products of manufacturing operations, such as the pollution of air, water and soil, are called externalities and often occur where the ownership of a resource, for example air, seas, rivers, public lands, etc., is not held by individuals or private organizations. Most pollution is, in fact, released into the air, oceans, and rivers precisely because there are no individual owners of those resources who have strong personal incentives to hold polluters liable for the damage they do. (2) ___________ Once the government has established an acceptable, or at least, tolerable level of pollution, it can use laws, regulations, fines, special taxes, even jail sentences to reduce the pollution. This is a classic example of a so-called external cost that is not reflected in the price through normal workings of the marketplace. It is called external because – as in the case of a river polluted by a paper-producing company − neither the  company nor its customers are bearing the actual cost of paper production. Instead, a portion of the cost − the pollution factor − has been shifted to the people who live or work along the river and those taxpayers who eventually are stuck with the cleanup bill. (3)___________  Education is often claimed to offer external benefits in a nation because educated workers are more flexible and productive and less likely to become unemployed. That means government’s spending more for public education today may ultimately lead to savings in public and private spending to fight crime, poverty, and other social problems, as well as increasing the skill level, flexibility, and productivity of the workforce.

Governments in market economies must establish and protect the right to private property and to the economic gains derived from the use of that property. (4) ___________ The government's protection of private property obviously extends to land, factories, stores, and other tangible goods, but it also extends to so-called intellectual property: the products of people's minds as expressed in books and other writings, the visual arts, films, scientific inventions, engineering designs, pharmaceuticals, and computer software programmes.

Some people do not have the skills or other resources to earn a living in a market economy. Others benefit greatly from inherited wealth and talents, or from the business, social, and political connections of their families and friends. Governments in market economies inevitably engage in programmes that redistribute income, and they often do so with the explicit intention of making tax policies and the after-tax distribution of income fairer. Governments in virtually all market economies provide support for the unemployed, medical care for the poor, and pension benefits for retired persons. Taken together, these programmes provide what is sometimes called a "social safety net." (5) ___________

Governments in market economies play critical roles in providing the economic conditions in which the marketplace of private enterprise can function most effectively. (6) ___________ Besides, governments have developed a standard set of stabilization policies − known as fiscal and monetary policies − that they can use to try to moderate (or ideally to eliminate) periods of economic recession and slump. Fiscal policies employ government spending and tax programmes to stimulate the national economy in times of high unemployment and low inflation, or to slow it down in times of high inflation and low unemployment. To stimulate the overall level of spending, production, and employment, the government itself will spend more and tax less, even if it incurs a deficit. Monetary policy involves changes in a nation's supply of money and the availability of credit. To increase spending in times of high unemployment and low inflation, policymakers increase the supply of money, which lowers interest rates (that is, reduces the price of money), thereby making it easier for banks to make more loans. This encourages more spending on consumption by putting additional money in people's hands. Lower interest rates also stimulate investment spending by businesses seeking to expand and hire more workers. In a period of high inflation and low unemployment, by contrast, policymakers can cool down the economy by raising interest rates; thereby reducing the supply of money and the availability of credit. (7) ___________

 

 

Ex.19. Read the text. Choose the best sentence A-G to fill in each of the gaps 1-7. Do not use any letter more than once. There is an example at the beginning.

0  There are several reasons that economists have identified.

 

A  Another example of externalities but in the form of external benefits is public education.

B  Then, with less money in the economy to spend and higher interest rates, both spending and prices will tend to fall, or at least increase less quickly.

C  This kind of good is called a public good  because no private business could sell such goods and services to citizens of a nation and stay in business.

D  Over the last 40 years these social programs have been rapidly growing parts of government spending and taxation programs in most industrialized economies.

E By intervening, government can force the producers and consumers of the product to pay the cleanup costs. In essence, this economic role of government is simply to make those who enjoy the benefits of selling and consuming a product pay all of the costs of producing and consuming it.

F Without such assurances, few people are going to risk their time and money in enterprises whose rewards may possibly go to the state or some other group.

G  One such role is to provide a widely accepted, stable currency that eliminates the need for cumbersome and inefficient systems of barter, and to maintain the value of that currency through policies that limit inflation (an increase in the overall level of prices of goods and services).

 

Ex.20. Answer the following questions. Refer to the text if needed.

1. Why are private companies unable to provide such public services as national defense?

2. What are externalities?

3. Providing examples, explain the difference between external costs and external benefits.

4. What is intellectual property? How can it be protected by the government?

5. What is a social safety net?

  1. 6.  Supporters of wealth redistribution argue that this role of government limits the concentration of wealth and maintains a wider diffusion of economic power among households. Those who oppose major redistribution programs counter that additional taxes on high-income families decrease the incentives of these groups to work, save, and invest, which adversely affects the overall economy. Which opinion do you support?

7. What policies does the government use to stabilize the economy in periods of inflation and unemployment?

8. There is one more role of governments in market economies not discussed in the above text, namely maintaining an effective degree of competition in the economic system. Explain how this can be done.

 

TEXT C: INVISIBLE HAND

 

Before reading

What do you think Adam Smith meant by the “invisible hand” of the market? What does the “invisible hand” do?  

 

Reading

Read the text and do the tasks following the text.

 

 

(1) By following their own self-interest in open and competitive markets, consumers, producers and workers are led to use their economic resources in ways that have the greatest value to the national economy – at least in terms of satisfying more of people’s wants. The first person to point out this fact in a systematic way was the Scottish philosopher Adam Smith, who published his most famous book, An Inquiry Into the Nature and Causes of the Wealth of Nations, in 1776. Smith was the first great classical economist, and among the first described how an economy based on a system of markets could promote economic efficiency and individual freedom, regardless of whether people were particularly industrious or lazy.

(2) Smith argued that if people are naturally good and kind, a market economy offers them a great deal of freedom to carry out their good deeds, backed up by an efficient system of production, which generates more material goods and services for them to use in doing those good works. But what if people are selfish, greedy, or lazy?

(3) Anyone who wants to enjoy more of the material goods and services produced in a market economy faces strong economic incentives to work hard, spend carefully, and save and invest. And most successful businesses have to produce good products, sell them at market prices, pay their employees market wages, and treat their customers courteously – even if that isn’t their natural way of doing things.

(4) The basic reason for that kind of change in some people’s behaviour is competition. As Adam Smith pointed out, when there are several butcher shops in a community, any butcher who is rude or tries to sell inferior meat at unreasonable prices soon loses business and income to other butcher shops. If your neighbourhood butcher is naturally friendly and benevolent, so much the better.

(5) But even customers who do not know a butcher personally don’t have to depend on such altruistic characteristics to get good service and products. The more a greedy, selfish, or lazy person wants to enjoy a higher standard of living, the more he or she will try to meet the competition and build up a large base of satisfied customers. Or as Smith described this feature of market economies, people are led “as if by an invisible hand” to work and behave in ways that use resources efficiently, in terms of producing things that other people want and are willing to pay for, even though that may have been “no part of their original intentions”.

(6) Another factor must be at work for Smith’s invisible hand to function properly: the butcher must own or rent the shop, so that he or she has the rights to its profits. Without this right to private property, and to the profits it brings, the invisible hand of competition will not motivate businesses to offer the best and most varied products at reasonable prices. Butchers who are employees of the state will view their jobs very differently than those who are in business for themselves. This fact holds true throughout the economy, whether one considers a butcher, a carpenter, a restaurant chain, or a multinational insurance company.

 

Task 1. Discuss how the example of a butcher’s character and behaviour illustrates the functioning of a free market. (paras.4 and 5)

Task 2. According to Adam Smith, what factor determines the difference between

“butchers who are employees of the state” and “butchers who are in business for themselves”? (para.6.)

Task 3. If somebody treats you courteously, is their attitude showing

a) politeness and respect;

b) caution and fear;

c) courage and bravery? (para.3)

Task 4. Having read the above text, how can you define the “invisible hand” with one or two words?

 

BUSINESS COMMUNICATION

 

AT THE AIRPORT

Look at the picture. What do you think the phrase Live out of a suitcase mean?

 

John works for a major airline. He complains about his job:

When I applied to work in this position, I had no idea that I'll be living out of a suitcase six to seven months of the year.

 

Here is some vocabulary about airports and air travel.

Beginning and ending your journey:

a departures board - a notice board in an airport that tells passengers information about their flight

a boarding pass - a piece of paper or card that is given to a passenger at check-in. A passenger must have one to be allowed to go onto the plane

passport control - the place in the airport where your passport and boarding card are checked before you go to the departure lounge

a final call - an announcement that's made over the airport's loudspeaker system to let passengers know that the flight is almost ready to go

baggage reclaim - part of the airport where you go to collect your luggage after you arrive at your destination airport. Usually there is a 'carousel' - a continuous moving strip of material that goes round in a circle with passengers' bags on it

 

Types of flights:

a short-haul flight - a flight that takes a short time (up to about three hours), compared to a long-haul flight

a long-haul flight - a flight that takes a long time (over seven hours), compared to a short-haul flight

a domestic flight - a flight between two airports in the same country

an international flight - a flight between two airports in the different countries

a red-eye (flight) - a flight that leaves late at night and arrives early the next morning

 

Types of seats on a plane:

a window seat - a seat next to the window

an aisle seat - a seat next to the aisle (the walkway between rows of seats)

an economy seat - a seat in the economy class part of the plane (in the back part of the plane, where the seats are smaller and closer together than in other parts of the plane)

a first-class seat - a seat in the first-class part of the plane (in the front part of the plane, where the seats are bigger and spaced further than in other parts of the plane)

 

Ex.1. If you take a flight from an airport in an English-speaking country, you're likely to hear some of these dialogues. In pairs read the dialogues and be ready to act them out later.

 

Dialogue 1. Check in.

 

 

 

A:  Good morning. Can I have your ticket, please?

B:   Here you are.

A:   Thank you. Would you like a window or an aisle seat?

B:   An aisle seat, please.

A:   Do you have any baggage?

B:   Yes, this suitcase and this carry-on bag.

A:   OK, please place your bag on the scale.

B:    I have a stopover in Frankfurt – do I need to pick up my luggage there?

A:    No, it’ll go straight through to Los Angeles. Here is your boarding pass – your flight leaves from gate 15A and it’ll begin boarding at 3:20. Your seat number is 26E.

B.   Thank you.

 

Dialogue 2. Passport Control

 

A:   Good morning. Can I see your passport?

B:    Here you are.

A:   Thank you very much. Are you a tourist or on business?

B:    I'm a tourist.

A:   That's fine. Have a pleasant stay.

B:    Thank you.

 

Dialogue 3.Going through security.

A:   Please lay your bags flat on the conveyor belt, and use the bins for small objects.

B:   Do I need to take my laptop out of the bag?

A:   Yes, you do. Take off your hat and your shoes, too.

(B. walks through the metal detector)

 [BEEP BEEP BEEP BEEP]

A:   Please step back. Do you have anything in your pockets – keys, cell phone, loose change?

B:   I don’t think so. Let me try taking off my belt.

A:   Okay, come on through.

(B. goes through the metal detector again)

A:   You’re all set! Have a nice flight.

 

Situation 4: On the plane

 

Flight attendant: Chicken or pasta?

Passenger: Sorry?

Flight attendant: Would you like chicken or pasta?

Passenger: I’ll have the chicken.

Flight attendant: Anything to drink?

Passenger: What kind of soda do you have?

Flight attendant: Coke, Diet Coke, Sprite, Orange, and Dr. Pepper.

Passenger: A Diet Coke, no ice, please.

Flight attendant: Here you go.

Passenger: Thanks.

 

Conversation Tips:

If you didn’t understand what the flight attendant said, you can say Sorry? or Pardon? to ask him or her to repeat it.

If you want to ask for something, you can use the phrase “Can I have..?” For example:

Can I have a blanket?

Can I have a pair of headphones?

 (or: Can I have a headset?)

Can I have some extra napkins?

Can I have some water?

Can I have a decaf coffee?

 

Dialogue 4. Meeting people on arrival

A:  Was your plane on time?

B:  Yes, it was right on time.

A:  Did you have a good trip?

B:  Yes, it was fine.

 

Ex.2. Complete the phrases with the following options.

1.Would you like…

a smoking/ a non-smoking?

a window seat/ an aisle seat?

an economy seat/a first-class seat?

2. I am here …

on business.

to attend a … conference.

to visit my friends.

to see the sights of …

3. What do you have in your luggage?

Just my personal belongings.

Only some books.

Only some cough/heart/flu medicine.

A (video) camera and a lap-top.

4. Where will you be staying?

At a hotel.

At my friends.

At the host family.

At a students’ residence.

5. How many bags do you have to check in?

Just this bag.

Two suitcases and this carry-on bag.

Only a backpack.

Only my hand luggage.

 

Ex.3. Choose the best option to complete the sentence.

1. _________ I have a coffee with milk, please?

A. Can       B. Will     C. Do

2. Excuse me, where is the Delta check-in __________?

A. desk      B. station     C. table

3. I lost my __________ pass - can I get another one?

A. traveling      B. seating       C. boarding

4. I have a ________ in Paris on the way to Israel.

A. stayover      B. stopover       C. layoff

5. ______ have the pasta, please.

A. I'll      B. I'm     C. I'd

6. A __________ coffee, please.

A. regular       B. standard     C. normal

7. The metal in my belt _________ the alarm.

A. set off     B. took off     C. went off

8. Do I __________ to take off my shoes?

A. want      B. need     C. should

9. Is the flight on __________?

A. hour     B. time     C. departure

10. There's a half-hour __________.

A. depart     B. delay     C. late

11. What _______ of juices do you have?

A. can     B.         kind     C. mark

12. How much is the oversized luggage ________?

A. fee    B. tax    C. bill

13. You need to ________ up your bag in Charlotte.

A. take    B. pick   C. get

14. What’s my ________ number?

A. chair      B. sit        C. seat

15. Will my luggage go straight __________ to New York?

A. away     B. through    C. out

 

Ex.4. Read the dialogue.

 

Going through Customs.

Customs Officer: Next. Your passport, please.

Woman: Here you are.

Customs Officer: What is the purpose of your visit?

Woman: I’m here to attend a teaching convention for the first part of my trip, and then I plan on touring the capital for a few days.

Customs Officer: And where will you be staying?

Woman: I’ll be staying in a room at a hotel downtown for the entire week.

Customs Officer: And, what do you have in your luggage?

Woman: Well, just my personal belongings, ... clothes, a few books, and a CD player.

Customs Officer: Okay. Please open your bag.

Woman: Sure.

Customs Officer: Okay ... Everything’s fine. By the way, is this your first visit to the country?

Woman: Well, yes and no. Actually, I was born here when my parents were working in the capital many years ago, but this is my first trip back since then.

Customs Officer: Well, enjoy your trip.

 

Ex.5. Choose the correct answer to the following questions.

1. What is the purpose of the woman’s visit?

a) business; b) pleasure; c) business and pleasure

2. Where will the woman stay during her trip?

a) at a friend’s home; b) at a hotel; c) at a university dormitory

3. About how long will the woman be in the country?

a) one or two days; b) three or four days; c) more than four days

4. What things are in the woman’s luggage?

a) clothing, computer, and books; b) CD player, clothing, and books;

c) books, gifts and computer

5. What other piece of information do we learn about the woman?

a) Her parents are on the same trip.

b) She enjoys travelling to different countries.

c) She was born in that country.

 

Ex.6. Vocabulary Quiz. For each of the six questions choose the correct answer.

1. Check the ______ to see which gate you need to go to for your flight.

a. passport control

b. departures board

c. baggage carousel

d. window seat

2. Didn't you hear the ______ ? Come on, we need to go now or we'll miss our flight.

a. call finally

b. call final

c. final call

d. final calling

3. The flight from London leaves at 2.30 PM and arrives in Berlin at 4.00 PM. It's a ______ flight.

a. short-haul, international

b. long-haul, international

c. short-haul, domestic

d. short-haul, red-eye

4. We had to wait for ages at the ______ for our luggage to arrive.

a. bag conveyor belt

b. luggage reclaim

c. baggages reclaim

d. baggage reclaim

5. ______ sets are always more expensive than ______ seats because they're so much bigger and more comfortable.

a. Best-class / economy

b. First-class / economy

c. Economy / first-class

d. First-class / Second-class

6. I don't mind having ______ but I'd rather have ______ and be able to see the view as we land.

a. an aisle seat / a window seat

b. an aisle chair / a window seat

c. a seat in the aisle / a seat by the window

d. a window seat / an aisle seat

 

Ex.7. Airport Role-play.

 

You are going to be a traveller going through customs. Visit as many countries as you can and write down which countries you visited.

1)    Do the drills.

A: Welcome to Canada. May I see your passport please?

B: Sure. Here it is.

A: Where are you coming from?

B: I’m coming from Seoul, Korea.

A: What is the purpose of your visit?

B: I’m here on business.

visiting relatives.

here as an exchange student.

 here as a tourist.

A: How long are you planning to stay?

B: I’ll be staying for three weeks.

for 1 month.

until tomorrow.

until next Tuesday.

A: Where will you be staying?

B: I’ll be staying at a hotel.

at my aunt’s house.

at a dormitory.

A: Have you ever been to Canada before?

B: No, this is my first time.

A: Do you have anything to declare?

B: No, nothing.

A: Enjoy your stay.

B: Thank you.

 

2) Role-play the situations  in the airport using the vocabulary of the lesson.

 

 

 

GRAMMAR

 

FUTURE TENSES

 

Ex.1.Find the verbs in the sentences below, define their tense forms and translate them into Ukrainian.

Model:

Next year our company will have been building bridges for over 50 years. (Future Perfect Continuous) We will have fulfilled the main project by the end of the autumn. (Future Perfect) Most probably, we will take part in the tender for the construction of a new bridge. (Future Simple) I believe we will be able to win the tender. (Future Perfect) I am going to discuss it with the board of directors in Hamburg. This time tomorrow I’ll be flying there. (Future Continuous)

 

  1. By the beginning of November, Brian and I will have been working here for ten years. My friend is going to quit the job and make a fresh start. I think he will accept the job offer from the Los Angeles Times.
  2. I’ll be very busy at 4 this afternoon. We will be discussing our new project with the investors. It will be our third meeting. We will have finished the meeting by the time you arrive at the office.
  3. We’re going to make a contract with this company. I hope we will make a contract with them tomorrow. By the time Nadine finishes her job and prepares all the necessary papers, we will have been working on this contract for a few hours. We will have signed the contract by 6 o’clock.
  4. Shall I get the papers for you, Martin? – No, not now. I’m going to Glaxo in a few minutes. You will have booked the flight by the time I get back, won’t you? – I’ve booked it already.  And I’ve arranged your accommodation. You’ll be staying in the Carlton Hotel. – Good. Thank you, Patricia.

 

Ex.2. Define what tense forms should be used in the following micro-situations. You don’t need to translate the sentences.

  1. Що я буду робити завтра о десятій годині? У цей час я буду готуватися до екзамену. Я цілий день буду зайнятий. Удень я збираюся попрацювати в університетській бібліотеці. Гадаю, я попрацюю там години дві або три. Ні, до третьої години я не закінчу. Я буду повторювати матеріал вже кілька годин, коли ви прийдете.
  2. Ти завтра не чекай на мене о першій годині. Я у цей час буду складати екзамен Сподіваюсь, до четвертої години я вже складу. Я тобі одразу зателефоную. У будь-якому випадку, до того часу, коли я прийду додому, ти вже будеш відпочивати і дивитись телевізор години півтори.
  3. Наступного місяця ми отримаємо перші інвестиції і робота пожвавиться. До того часу, коли він вийде на роботу, ми вже закінчимо всі підготовчі роботи. У жовтні буде півроку, відколи ми готуємо цей проект.
  4. Я збираюсь поїхати завтра. Я їду завтра. Мій поїзд рушає о п’ятій годині. Добре, я поїду післязавтра. У цей час я якраз буду їхати (буду в дорозі). До того часу я вже поїду. Я буду їхати вже більш години, коли ти зможеш повідомити мені, поїдеш ти туди чи ні.

 

THE FUTURE SIMPLE TENSE

 

Ex.3. Put the verbs in brackets into the Future Simple.

  1. Take this opportunity, and I guarantee you ____________ (not regret) it.
  2. I don’t think we ____________ (need) to cook anything else for them.
  3. Do you think we ____________ (win)?
  4. I’m sure your luggage ____________ (turn up) soon.
  5. I promise we ____________ (write) to you regularly.
  6. We certainly ____________ (consider) your suggestion.
  7. I am afraid Mr Jarvis ____________ (not be) there tomorrow.
  8. His parents believe he ____________ (become) a great pianist one day.
  9. Life ____________ (be) better a hundred years from now.
  10. Did you remember to reserve a table in the restaurant? – Oh no, I forgot. I ____________ (telephone) right now.
  11. She has cut my hair too short. – Don’t be so upset. It ____________ (grow) again very quickly.
  12.  I expect the article ____________ (appear) in May’s issue of the magazine.
  13. Is that the phone? – Yes, but don’t get up! I ____________ (answer) it.
  14. If I finish before you, I ____________ (wait) for you outside.
  15. You ____________ (understand) a lot when you grow older.

 

Ex.4. Read and writetheopposite (positiveornegative). Make other changes if necessary. The first sentence has been done for you as an example.

  1. I’m sure he will drive us to the airport. – I’m afraid he won’t drive us to the airport.
  2. I hope we will arrive on time. – ____________________________________.
  3. She says we won’t have a test tomorrow. – ___________________________.
  4. We’ll stop at the next filling station. – _______________________________.
  5. He won’t pay the bill. – ___________________________________________.
  6. People will forget about him in a few years. – _________________________.
  7. This week we won’t need more money than usual. – ____________________.
  8. I think Frederick will go to Africa next year. – _________________________.
  9. I don’t think they will support us. – _________________________________.
  10. Scientists predict that climate won’t seriously change in the third millennium. – ______________________________________________________________.

 

Ex.5. Put will or won’t in the best place in the sentence.

  1. I hope there be no problems getting a visa.
  2. It isn’t a holiday season, and there be many tourists there.
  3. I’m sure it be difficult to find accommodation at this time of the year.
  4. Do you think we be able to buy tickets there?
  5. Ruth be here for your engagement party?
  6. I’m afraid we get there in time.
  7. Could you possibly change my flight to the evening? – Wait a minute. I just check the computer.
  8. I’m sorry, but there be any time for us to have lunch.
  9. Our ice-creams are melting. I put them in the freezer.
  10. Tomorrow be a very busy day for me. I don’t think I have time to go shopping with you.
  11. You hold this box for a moment while I am unpacking it?
  12.  Someone kindly tell me what is going on around here?
  13. Is there anything good on TV tonight? – I don’t know. I have a look in the newspaper.
  14. Your fax is absolutely illegible. I can’t read the document. – Sorry about that. I send it again.
  15. Just tell me what it cost in round numbers.

 

Ex.6. Make questions using the question words in brackets.

  1. Jane says she will speak to the manager about it. (when) -  When will Jane speak to the manager?
  2. Helena says her brother will graduate from college in a few months. (when)
  3. Martin says he won’t start looking for a job after leaving school. (why)
  4. He will apply to two or three universities instead. (where)
  5. Mary will probably start studying Spanish next year.  (what language)
  6. I guess William will be the driving force in this business. (who)
  7. The installation of a new computer system will take about a week. (how long)
  8. The first stage will be finished in a couple of days. (when)
  9. John will take you from the airport. (who)
  10. Wait for me, please. I’ll be ready in a few minutes. (when)

 

Ex.7. Complete the statements with question tags. Make a response.

Model:

You’ll help Linda in understanding the details of the contract, won’t you? -Certainly, I will.

Let’s go swimming, shall we? - A good idea, let’s.

Don’t be long, will you? - No, I won’t. At least, I’ll try.

 

  1. She won’t go on a night train, __________?
  2. You’ll drive carefully, __________?
  3. They won’t raise the prices again, __________?
  4. Customers will get huge discounts by booking in advance, __________?
  5. This job will offer you excellent opportunities for promotion, __________?
  6. You won’t sign this document, __________?
  7. There will be enough room for everyone, __________?
  8. You won’t tell anyone,  __________?
  9. Let’s go for a walk, __________?
  10. Don’t forget to call us as soon as you arrive, _________?

 

Ex.8. Replace the words in bold with will or shall.

  1. Can you hold this parcel for me so I can tape it up? – Will you hold this parcel for me so I can tape it up?
  2. Why don’t we go out for dinner tonight?
  3. Do you want me to open the champagne?
  4. Can you help me with it?
  5. Would you like me to carry that for you?
  6. Why don’t we contact Eric? He may be able to help?
  7. Сan you explain how it works?
  8. Where do you want me to put all these papers? – On my desk.
  9. Let’s take one more swim before we go back to the hotel.
  10. Do you want me to e-mail these sales figures to our head office?
  11. Can you hold this shopping bag for me while I open the door?
  12.  Why don’t we wait until the rain stops?
  13.  It’s hot and very stuffy in here. Can you open thе window? 
  14. What do you want me to do with all this shopping?
  15. Can you call me as soon as you arrive in Toronto? 

 

Ex.9. Make a request or offer to do something in the following situations.

Model:

This programme isn’t very good.

a request: Will you change the channel to a news programme?

an offer:  Shall I change this channel to another one?

 

  1. This box is very heavy. I can’t even lift it.
  2. I can’t find my glasses.
  3. I’ve forgotten all about posting the letter.
  4. It’s so hot and stuffy in here.
  5. Oh dear! I haven’t got any money with me.
  6. I see you don’t know how to make it start.
  7. You’re short of time. And you haven’t booked a taxi yet.
  8. It’s late now, and the television in your room is so loud!
  9. Our dinner is almost ready but we haven’t got any bread.
  10.  This coffee is too sweet for me. I can’t drink it.

 

THE FUTURE SIMPLE versus THE PRESENT SIMPLE

 

Ex.10. Put the verbs in brackets into the correct tense form: the Future Simple or the Present Simple.

  1. She  ________ (call) us as soon as the plane lands.
  2. Excuse me, what time ________ the train from London ________ (arrive)?
  3. Daisy is waiting for Charles. She wonders if her husband ________ (be) late as usual.
  4. ________ we ______(go) to the football match? – That’s a good idea! What time  ________ it (start)?
  5. I wonder if they ________ (give) us a discount.
  6. I don’t know if they ________ (give) you a discount.  But if they ________ (do), I’ll be surprised.
  7. Unless you ______ (hurry), you will be late for the interview.
  8. Mike, ________ you ______ (give) this message to Helen, please? – Well, I’ll try, but I doubt if I ________ (see) her today.
  9. I can’t help you unless you ________ (tell) me what’s wrong.
  10. I’ll call you as soon as I ________ (come) home from work.
  11. Jane will be at my house when you ______  (arrive).

 

THE FUTURE SIMPLE versus BE GOING TO

 

Ex.11. What does will or be goingto express in each sentence? Choose the correct variant from the meanings in brackets.

  1. Can I take your order, sir? – Yes, I’ll have the salmon with a salad, please. (on-the-spot decision/ promise)
  2. My younger brother is a computer nerd. He says he is going to become a great computer programmer. (planned action/ ambition)
  3. Your brother is very clever for his age. He will probably have a very successful career. (warning/ prediction about the future based on past experience, belief and expectation)
  4. We’re going to visit the Louvre tomorrow. (planned action/ ambition)
  5. It’ll probably be really busy and you’ll have to queue. (expectation/ warning)  
  6. I’m not going to get petrol here. It’s too dear. (a firm decision/ a plan)
  7. Look at those black clouds! It’s going to rain. (a prediction about the near future, when we can see something that is about to happen/ a prediction based on our intuition, expectation or belief)
  8. I expect she’ll want to stay in one of the best hotels. (a prediction based on the evidence of something that is going to happen in the near future/ a prediction based on our intuition, expectation or belief)
  9.  I’m afraid we’re lost. I’ll stop and ask the way. (on-the-spot decision/ a decision already made)
  10. She’ll be 40 this coming October. (a future event which will definitely happen and which we cannot control/ a prediction based on our intuition, expectation or belief)

 

Ex.12. Fill in: will or be going to.

  1. I don’t know how to use this camera. – It’s quite easy. I ________ show.
  2. These plants need watering. – I know. I ________ water them later.
  3. Is Roger coming to the party?  - Yes, but he ________  probably be late.
  4. (In a hotel) I’ve got a problem with my shower. It isn’t working. – I ________ send someone up straightaway. Which room is it?
  5. You ________ certainly make a big impact on Carter.
  6. Madonna ________ give a charity concert next month.
  7. What do you want for lunch? – I think I ________ have chicken and a small salad.
  8. Watch out! You ________ bang your head on the door frame.
  9. I’ve got a splitting headache! – Have you? Wait there and I ________ get a tablet for you.
  10.  Don’t worry about these dirty marks. They ________ wash off easily.
  11. Why have you set the alarm clock to go off at five thirty? – Because I ________ get up then. I need to go to the railway station to meet someone.
  12. Don’t sit in the sun for too long. You ________ get sunburnt.
  13. My sister Ruth ________ study abroad next year.
  14. We have excellent sales opportunities in Asia, and we ________ increase sales by at least ten percent this year.
  15. I hope he ________ recognize me when he sees me.

 

BE GOING TO versus THE PRESENT CONTINUOUS

 

Ex.13. Open the brackets to complete the sentences. Use be going to or the Present Continuous with the meaning of future.

  1. Aunt Ann (come) out of hospital next Thursday. I (drive) her home. – Aunt Ann is coming out of hospital next Thursday. I’m going to drive her home.
  2. ________ you really ________ (give up) smoking? – Yes, I am. I threw my last packet of cigarettes away yesterday.
  3. The Sales Manager ________ (fly) to Italy on Friday.
  4. Have you washed the car? – Not yet, I  ________ (wash) it later.
  5. The strikers ________ (return) to work on Monday.
  6. Tomorrow is Dad’s birthday and we ________ (go) out for a meal to celebrate.
  7. When ________  you ________ (pay) the electricity bill?
  8. I don’t like this pizza. I ________ (not finish up) it.
  9. I’ve arranged for the window cleaner to come. He ________ (come) at 9 tomorrow morning.
  10. Our company ________ (open) a new branch in Amsterdam next month.
  11.  I’m tired of the whole thing, and I ________ (not talk) about it anymore.
  12. I can’t promise you anything today. We ________ (interview) a few candidates for the post this Thursday.

 

Ex.14. Open the brackets and use the correct tense form. Put the sentences into the appropriate column. Explain why.

 Future Simple

be going to

Present Continuous

(I think/hope) Paul and Mary will get married.

Paul and Mary are going to get married in spring.

 

(They have decided.  They haven’t agreed on a date.)

 

Paul and Mary are getting marriedat 3 tomorrow afternoon.

(Everything has been arranged, and we know exactly when it is taking place.)

 

  1. We ________ probably ________ (buy) a new car. We ________ (buy) a new car. We ________ (buy) a new car next week.
  2. Have you decided what to do with the money you inherited? –

Richard:  Not yet. Perhaps, I ________ (buy) a luxury car.

Don: Yes, I’ve decided not to spend this money. I ________ (invest) it instead.

  1. I hear Arnold ________ (make) a speech at our conference today. — Yes, it’s on the agenda. 
  2. Who do you think ________ (win) the next election? – It’s too early to predict. I can only say that the Green Party ________ (not to win), definitely.
  3. What a lovely new bike! Is it yours? And what ________ you ________ (do) with your old bike?
  4. Don’t let him play in the sun for too long: his delicate skin ________ (burn) very easily.
  5. Look at that tree! It ________ (fall) down!
  6. Have you finished your work? – Not yet, but I’m sure I ________ (finish) it on time.
  7. My sister ________ (become) a ballet dancer when she grows up.          
  8. Peter doesn’t know how to light a fire. Look! He ________ (burn) himself.
  9. We ________ (move) into our new flat next Saturday. My parents have arranged everything.
  10. What are you doing this evening? – Nothing special. I ________ probably ________ (watch) TV.
  11. ________ we meet tomorrow evening? – Sorry, Martin, I can’t. We ________ (celebrate) my granny’s birthday.

14. What about Wednesday? –  I __________ (go) to the fitness centre on Wednesday.

15. Can we meet at the weekend then?  - I ________ (spend) this weekend with my parents. Actually, I have no free time.

 

Ex.15. Correct the mistakes if there are any.

  1. Are you going to pick me up from work today, please? – Certainly, I will. I’ll be there at 5 o’clock sharp.
  2. Look! Your cat going to catch the bird.
  3. Wash your hands. Dinner will ready in five minutes.
  4. Jerry expects he is going to get a pay rise soon.
  5. When you going to get your hair cut?
  6. We don’t go to Nicole’s party tonight because George is working.
  7. What will I do with this application form? – You must fill it in and return to the office by Wednesday.
  8. Excuse me, what time will Flight BA 577 from London arrive?
  9. What are you planning to do this summer? – I will spend two weeks in June with my cousin in France. And then…  We will probably go to Spain. I haven’t decided yet. 
  10. Shall you do the shopping for me, please?
  11.  I’ll call you when I will finish work.

 

Ex.16. Translate the dialogue.

-         Ти слухала прогноз? У неділю буде чудова погода. У мене пропозиція. Чи не поїхати нам на пікнік?

-         Чудова ідея. Я приготую сандвічі, візьмемо овочі, що-небудь смачненьке.

-         Може запросимо когось з друзів?

-         Звичайно, буде тільки веселіше.

-         Я збираюсь завтра зустрітися з Сильвією. Запросимо її з Ніком?

-         Буде чудово, якщо вони складуть нам компанію (if they join us).

-         Тоді я поговорю з нею. Гадаю, вони не відмовляться.

 

THE FUTURE CONTINUOUS TENSE

 

Ex.17. Put the verbs in brackets into the Future Continuous.

  1. What ______  you ______ (do) at around 7 o’clock tomorrow evening?
  2. _____ you ______(wait) for me when the plane arrives tonight?
  3. In an hour, you ____________ (sit) in front of your TV and I____________ (bake) your favourite apple pie.
  4. Are you nervous about the interview? – Yes, a little. This time tomorrow, I ____________ (talk) to the HR manager.
  5. We ____________ (have) dinner when the film starts.
  6. Don’t phone them so early. They ____________ (sleep).
  7. I ____________ (wait) outside the cinema at 7.30. See you then!
  8. My father ____________ (work) the whole day tomorrow.
  9. I’d better go out tomorrow because my sister ____________ (practise) the violin all day.
  10. _______ you ________ (take) your car to the meeting? – Yes, I think I will. Why are you asking me?
  11. Do you think she ____________ (still work) here in five years’ time?
  12. Steve, let’s wait! They ____________ (change) the guard in a few minutes. We can’t miss such a good view.
  13. Just think, this time next Friday I ____________ (sit) in a Paris café reading Le Figaro.
  14. You _______ (not read). You ________ (look) at all the pretty girls passing by.
  15. What hotel  ________ you  __________ (stay) at?

 

Ex.18. You want to ask your friend or colleague to do something for you. First, ask them politely about their intentions for the near future and, if your wishes fit in with their plans, make a request. Use the prompts in brackets to make questions.

Model:

You want your colleague to give a book to Roger tomorrow. (see) -

- Will you be seeing Roger tomorrow? - Certainly, why?

             - Could you give him this book?

 

  1. Your colleague is busy photocopying a lot of papers. You need to quickly make a photocopy of one document. (use a photocopier for long)
  2. You want some aspirin from the chemist’s. Claire is just leaving the house. (walk past the chemist’s when you’re out)
  3. You would like your friend to buy Cola for you. (go out during the lunch time)
  4. You know that Betty is going to the dentist. You would like to ask her to make an appointment for you. (go to the dentist after work)
  5. Sue is going out with her boyfriend. You want to ask her to post the letter. (go by the post office)

 

THE FUTURE CONTINUOUS versus THE FUTURE SIMPLE

 

Ex.19. Open the brackets and use the correct tense form in the following dialogue.

Situation: Stella and her family are going on holiday tomorrow morning. Now, she is talking with her sister Valerie.

Valerie:     What timeare you going to leave for the airport?

Stella:        At about 6 a.m.

Valerie:     6 a.m.? You __________ (arrive) at the airport terribly early! 

Stella:        I know, but we want to avoid the rush. We ­­­­­­_____  ­­­­­­­­(check in) as quickly as we can, then we __________ (have) breakfast at the airport cafeteria.

Valerie:     Perhaps you’re right. Are you excited about the trip?

Stella:       Yes, a little.

Valerie:   I still can’t believe that this time tomorrow morning you _______ (sit) on a plane to Malta. Lucky you are!

Stella:       Yes, this time tomorrow….

Valerie:    This time tomorrow evening, you __________(relax) on the beach and I __________ (do) the ironing or something!

Stella:        I only hope there _________ (not be) a delay of our flight, and we __________ (not sit around) at the airport. You never know these days!

 

Ex.20. Choose the correct variant to complete the sentences. Explain your choice.

  1. I’ve got toothache again.  I see/ am seeing the dentist this afternoon.
  2. I’m going to the supermarket. - You’d better be quick then as it is going to close /closes at eight o’clock.
  3. I know exactly. When we arrive, she will pick/ will be picking cherries.
  4. Is Janet coming to the theatre with us next Saturday? - I don’t know, but I’ll be seeing /I am going to see her in the fitness club tomorrow. I’ll ask her then.
  5. I’ll call you as soon as I arrive /will arrive at the airport.
  6. I’m sure when I get home my dog will sit/ will be sitting at the door waiting for me.
  7. I doubt if she passes/ will pass her exams.
  8. If you ask/ will ask Bob nicely, I’m sure he will help you.
  9. Don’t call Amanda between 8 and 9. She will put/ will be putting her child into bed.
  10. He will finish his course paper when he will have/ has all the material.

 

THE FUTURE PERFECT versus THE FUTURE PERFECT CONTINUOUS

 

Ex.21. Put the verbs in brackets into the Future Perfect.

  1. Let’s hope they ____________ (repair) the road by the end of this summer.
  2. The train ____________ (leave) by that time. We have to look for another way to get there.
  3. He _________ (not graduate) from university by May.
  4. Don’t say anything. You _________ (forget) me by then.
  5. By Christmas, Patrick and his wife ________(be married) for 20 years.
  6. My uncle _________ (retire) by the end of this year.
  7. _______ you ______(buy) a new printer by the end of this week?
  8. By the time you get home we _________ (clean) the house from top to bottom.
  9. I _________ (not complete) the report until 5 o’clock. Will you help me?
  10. We’d better wait till the end of the month. Charles ________ (pass) his exams by then, so we’ll be able to travel together.

 

Ex.22. Say or write what they will have been doing by the end of this year.

Be attentive:  state verbs cannot have the Perfect Continuous Tense form.

Model:

My brother /run/ his own business/ five years  –

By the end of this year, my brother will have been running his own business for five years.

  1. Monica /design clothes/ three years.
  2. My father/work for the same company/ ten years.
  3. Elizabeth /be in this job/six years.
  4. My friend Kevin/ study/economics/ four years.
  5. They/ build their new house/ two years.
  6. William Brown/train the Irish national basketball team/ five years.
  7. The Greens /live in this house/ twenty years.
  8. Martha /specialize in growing tulips/ about four years.
  9. Helen /play the piano/over ten years.
  10. Her elder brother Nick/play football/ five years.

 

Ex.23. Put the verbs in brackets into the correct form, the Future Perfect or the Future Perfect Continuous.

  1. Television began broadcasting in 1947. By the year 2017, people ____________ (watch) TV for 70 years.
  2. Tom is on holiday and he is spending his money very quickly. If he continues like this, he ____________ (spend) all his money before the end of his holiday.
  3. I came to England six months ago. I started my economics course three months ago. When I return to Australia, I ____________ (study) for nine months and I ____________ (be) in England for exactly one year.
  4. By the time they arrive, we ____________ (go) home.
  5. You only imagine! You ____________ (fly) non-stop for fourteen hours before you get to Kolkata.
  6. In June, my grandmother and grandfather ________ (be married) for fifty years.
  7. The party ____________ (go) for ages by the time we arrive.
  8. You _________ (perfect) your English by the time you come back from the US.
  9. By the time we get to Chicago this evening, we ____________ (drive) more than four hundred miles. We are going to be exhausted.

 

FUTURE TENSES REVIEW

 

Ex.24. Identify the tenses, then match the sentences on the left with their functions on the right.

1. How long will you have been studying English by the end of this term?

2. Don’t put too much in that bag or it will burst.

3. Look!  The lorry is on fire, it’s going to explode.

4. Will you be going out during the break? – Yes, why? - Could you get me a bottle of mineral water, please?

5. The milk doesn’t smell fresh. I’ll pour it out.

6. We’re flying to Cyprus next Friday. The plane takes off at 9 a.m.

7. This time next Wednesday, we’ll be having an English lesson.

8. By the time we get home, the football match will have begun.

9. Shall I give you a lift to the airport on Friday?

10. Have you decided how to promote your products? – Yes, we’re going to advertise them on the Internet.

11. What are you thinking about? – My holiday. This time next week I’ll be relaxing in Miami.

12.Spring will set in early this year.

13. Don’t bother. I’ll tell Ann about it. I’ll be seeing her at work anyway.

14. I won’t have completed all these forms before he comes. Will you help me with it?

15. In time, people will find an efficient way to dispose of toxic waste and even fight nuclear radiation.

16. I haven’t decided yet. Perhaps, I’ll buy this smart phone.

17. Now that I’ve got the money, I’m going to buy it.

a. a prediction about what you think, expect, believe, doubt, suppose, etc., may or may not happen in the future, often with the words certainly, perhaps, probably

b. an action or situation which will definitely  happen in the future and we cannot control or change it

c. a spontaneous (on-the-spot) decision

d.  promises, warnings, threats, etc.

  1. a form of request
  2. an offer or suggestion, asking for instructions

 

  1. an action which will be in  progress at a stated future time
  2. a planned action or an action which will definitely occur in the near or distant future as a result of a routine (almost the same as the Present Continuous)
  3. asking politely about someone’s arrangements in order to see if our wishes fit in with their plans
  4. prediction based on what you see or feel and there is evidence that something will definitely happen in the near future
  5. plans, firm intentions to do something  in the future or ambitions
  6. fixed arrangements in the near future (we often know when and where)
    1. timetable/programme
    2. actions which will be finished before a stated future time
    3. emphasis on the duration of an action up to a certain time in the future

 

 

Ex.25. Choose the correct tense form.

1. Don’t sit in the draught or you ____________ a cold.

a) are catching b) are going to catch  c) will catch  d) will have caught

2. Ask her again. Perhaps she ____________ her mind.

a) will change  b) is going to change  c) will have changed  d) will be changing

3. They __________ Kennedy Airport by now and will be on their way to England.

a) will be leaving    b) will left     c) will have been leaving      d) will have left 

4. We ____________ to London tomorrow. Would you like to come with us?

a) drive   b) will have been driving c) are driving  d) will have driven

5. Margie just called and said she would be here at 8 o’clock. By the time she gets here, we ____________ for her for two hours.

a) will wait   b) will be waiting  c) will have been waiting d) will have waited

6. ____________ to town today? -  Yes, why? – Can I come with you?

a) Will you be going  b) Will you go  c) Are you going to go d) Will you have gone

7. I can’t believe that you ____________ on a plane to Malta while I’m driving to work tomorrow morning.

a)     will sit  b) will have been sitting c) will be sitting d) will have sat

  1. Be careful, Tony! You ____________ the vase.

a) will drop   b) are dropping  c) are going to drop d) will have dropped

9. Cars of tomorrow ____________ using gas and they won’t pollute the air.

a) are going to stop  b) will be stopping  c) will stop  d) will have been stopping

10. I’m afraid the train ____________ before we reach the station.

a) will leave    b) won’t leave   c) will have left  d) is going to leave

11. I can’t believe that by the end of this week we ____________ all our exams.

 a) will pass     b) will have passed      c) pass       d) are going to pass

12. Just imagine! This time next summer we ____________ on a beautiful beach in Palma de Majorca.

a) are going to lie b) will lie  c) will be lying  d) will have been lying

13. When the mountaineers get back to the base, they ____________ in the snowstorm for two days.

a) will be   b) will be being   c) are going to be  d) will have been  

14) Tom will be very tired when he ____________. He will have been travelling for twenty four hours.

a) will arrive  b) arrives  c) have arrived d) will be arriving

15. The film ____________ by the time we get there.

a) will start     b) is going to start   c) will have started d) will be starting

 

Ex.26. Identify the mistakes and correct them. One sentence is correct.

  1. I’m not sure but perhaps they are visiting us next week.
  2. I won’t speak to him until he will apologize.
  3. By the end of this month, she will be teaching for twenty years.
  4. I’ve come out without any money. – Never mind, I am going to lend you some. How much do you want?
  5. Cathy doesn’t study enough. – I know. I’m afraid she won’t have passed the exam.
  6. She won’t have complete the balance sheet by Friday.
  7. Any suggestions? What shall we do tonight? – I don’t know. Will we go to the coffee house we enjoyed last time?
  8. The workers will have had finished the repairs by Friday.
  9. Will you use the photocopier for long? – No, this page only. Do you have something urgent?
  10.  Don’t lend him your car – he’ll crash it. I know him.
  11. If I’ll finish before you, I will wait for you.
  12. I want to call Simon. – Well, don’t call him before ten. He will sleep anyway.
  13.  Nicole can type these letters as soon as she will come back from her lunch break.
  14.  What are your plans for the holidays?  Do you go anywhere this summer?

 

Ex.27. Translate into English. You may need the following words and expressions: sort out something; turn on the heating; meet with an accident; apply to the University; delay a flight; move to a new flat; land

 

  1. Не хвилюйся так! Я впевнена, ти складеш іспит.
  2. Поквапся, за кілька хвилин починається урок.
  3. Що ті збираєшся робити з усіма цими паперами?
  4. Тобі допомогти їх розсортувати?
  5. У кімнаті доволі прохолодно. Ти не включиш опалення?
  6. Обережно! Ти ж потрапиш в аварію.
  7. Не думаю, що вони складуть контракт до кінця дня.
  8. У майбутньому, можливо буде лише одна валюта і зовсім не буде банків.
  9. Тобі потрібна буде машина сьогодні ввечері? - Ні, а що? - Можна, я візьму машину на кілька годин?
  10. Подумай тільки, завтра у цей час ми будемо плавати у морі.
  11. Можливо, через погану погоду буде затримка рейсу.
  12. Батько говорить, що в жовтні буде 10 років, як він працює в цьому банку.
  13. Дженіфер збирається стати адвокатом. Цього року вона буде вступатиме до університету. Сподіваюсь, вона поступить.
  14. Наступного тижня ми нарешті переїзжаємо на нову квартиру.
  15. За кілька хвилин літак сідатиме.

 

 

THE IMPERATIVE MOOD

 

Ex.1. Complete the sentences, using the following expressions.

Be careful! Have a good journey/holiday! Help! Hurry up! Look out! Sleep well. Come in. Don’t forget… Don’t worry. Follow me. Have some (more)…  Make yourself at home. Sit down. Wait for me!

 

1. I’m going to bed. – Good night! ______________________________________

2. Could I see Mr.Smith, please? I have an appointment for 3 o’clock. – Of course, sir. ___________________________, please. 

3. ____________________. –  Thanks. I’ll phone you as soon as I get to the place.

4. ________________________! It’s so slippery here!

5. ________________________. We are going to be late!

6. ________________________I can’t swim!

7. _________________________ I can’t catch up with you!

8. ____________________ coffee. –  No, thanks, I don’t drink more than one cup.

9. I’ll be home late tonight. –  OK. ________________________ your keys then.

10. Hello. _____________ and __________________, please. ______________ .

11. Jane hasn’t called yet! –  . __________________. She will if she has promised.

 

Ex.2. Use adverbs always and never in the following imperative sentences.

1. Add salt to potatoes when you cook them.

2. Check the tyres before you drive a car.

3. Cook chicken when it's frozen.

4. Wait more than fifteen minutes for somebody who's late.

5. Unplug electrical appliances before repairing them.

6. Count your change after buying something.

7. Put off till tomorrow what you can do today.

8. Say “'I will love you forever”.

9. Pay bills the day you get them.

10. Apologise for things that are not your fault.

 

Ex.3. Change the following sentences according to the model.

Model:Will you stop whistling? → Stop whistling, will you?

 

1. Can’t you do something useful?

2. Won’t you stop asking questions?

3. Could you post this letter?

4. Would you hold this bag?

5. Can you get me some stamps?

6. Won’t you come in?

7. Will you take a seat?

8. Can you answer the phone?

 9. Could you type this document today?

10. Won’t you come too late?

 

Ex.4. Decide which of the following imperatives sound too direct and make them more polite.

1. You stay here and wait for me.

2. Stop talking! I can’t hear anything because of you. 

3. Take your seats, everybody, and let’s start.

4. Don’t ask me how to get to the railway station. I’m not from here.

5. Go to the traffic light and turn right.

6. Don’t you touch this iPad - it’s not yours!

7. Get out of my way and let me pass!

8. Give me your phone. I promised Jane to call her at 6.

9. Tell the truth, the whole truth and nothing but the truth.

10. Take off your hat when you enter the room.

 

Ex.5. Correct the mistakes in the following sentences.

1. Remember always what I told you.

2. Don’t tell anybody, won’t you?

3. Let he will call me tonight, and I’ll tell him about the results of the meeting.

4. The letter has arrived but let’s don’t open it until John gets home.

5. Shall we have a break for a cup of coffee now? - Let us have a break.

6. What cake shall we buy for Dad’s birthday? – Let me consider. I think I’ll bake a cake myself.

7. You don’t believe her; she never tells the truth! 

8. Look never at me like that!

9. Let’s don’t argue about these obvious things.

 

Ex.6. Translate into English.

1. Не ходіть по траві!

2. Я ніколи не була у Франції, давай поїдемо до Парижа цього літа!

3. Ну сідай ж!

4. Ніколи більше про це не запитуй!

5. Почувайте себе як  вдома!

6. Замовкніть, усі!

7. Не паліть тут, добре?

8. Обережно, ти можеш впасти!

9. Нехай він сам вирішує, що робити.

10. Поквапся, ми запізнюємось.

11. Не приходьте завтра, я буду зайнятий.

12. Не хвилюйтесь, усе буде добро.

13. Давай повечеряємо сьогодні разом.

14. Обід готовий, йди мий руки.

15. Завжди перевіряйте рахунок перед тим, як сплатити.