Instituto Superior de Contabilidade e Auditoria de Moçambique

Name: Kenly Stefan Munguambe Class: 02 Subject: English

UNIT 6
Text A
Exercises
1. Answer these questions. You may answer either YES or NO. Give your reasons. Quote from the
text in support of your answer.
a) Are there any completely states?
A: No, as the text says in the first paragraph “no state today is completely communistic”.
b) Are there any completely capitalistic states?
A: No, as the text says in the first paragraph, “no state is completely capitalistic”.
c) Do the various national economies tend towards one or other ideology?
A: Yes, as the text says in the second paragraph,” the various national economic systems tend
towards communism or capitalism”.
d) Are the various economic systems difficult to classify?
A: Yes, as the text says in the second paragraph,” many economic systems are difficult to classify
exactly”.
e) Have most countries found economic control necessary?
A: Yes, as the text says in the third paragraph,” it has been found necessary in many countries to
control or regulate national economic conditions”.
f) Has the US felt the same need?
A: Yes, as the text says in the fourth paragraph,” the USA has felt this need”.
g) Are the under-developed countries interested in control and planning?
A: Yes, as the text says in the fifth paragraph,” the under-developed countries of the world are
usually interested in control and longterm planning”.
h) Has India had a number of national economic plans?
A: Yes, according to the sixth paragraph of the text,” India have had a number of plans guided by
the government”.
i) Is the Indian economy based entirely on private enterprise?
A: No, according to the seventh paragraph of the text,” India makes a distinction between the public
sector of the economy on the one hand and the private sector on the other hand.
 j) Does the Indian economy have two distinct sectors?
A: Yes, as the text says in the seventh paragraph, “India makes a distinction between the public
sector of the economy on the one hand and the private sector on the other hand”.
k) Is the Indian system a mixed economy?
A: Yes, according to the seventh paragraph of the text,” India makes a distinction between the
public sector of the economy on the one hand and the private sector on the other hand”, and the
eighth paragraph says that systems with public and private sectors are sometimes called mixed
economies.
l) Is BOAC a nationalized British industry?
A: Yes, according to the tenth paragraph of the text,” in the public sector of British economic life
are the nationalized industries like BOAC.
m) Is ICI a nationalized British industry?
A: No, according to the twelfth paragraph of the text, ”the private sector includes giant companies
like ICI”.
n) Was the NEDC set up by the British government?
A: Yes, according to the thirteenth and fourteenth paragraphs of the text “British government set up
an official body to plan national economic policies, this body is called NEDC.
o) Are both employers and employees represented on the NEDC?
A: Yes, as the text says in the fifteenth paragraph, “the members of this council are representative
of the employers, the employees and other interested people”.

2. Answer these questions, basing your answers on the text.

a) Why is it difficult to classify many national economic systems?
A: It is difficult to classify many national economic systems because they are not completely
capitalistic or communistic.
b) What are the under-developed countries interested in?
A: The under-developed countries are interested in control and longterm planning.
c) What is the Indian system sometimes called?
A: The Indian system is sometimes called mixed economy.
d) In which sector are the majority of British industries?
A: The majority of British industries are in the private sector
e) What did the British government set up in 1962?
 Instituto Superior de Contabilidade e Auditoria de Moçambique

A: In 1962, the British government set up an official body to plan national economic policies.
3. Invert these sentences (cf. lines 18 and 20 in the text).
EXAMPLE:
The majority of the nation's industries are in the private sector.

⇒ in the private sector are the majority of the nation's industries.

a) The nationalized industries are in the public sector of British economic life.
A: In the public sector of British economic life are the nationalized industries.
b) Goods like coal and iron are among the most important commodities in any economy.
A: Among the most important commodities in any economy are goods like coal and iron.
c) Essential services like transport and education are in the public sector of many socialist
economies.
A: In the public sector of many socialist economies are essential services like transport and
education.
d) Food production and distribution are in the private sector of the national economy.
A: In the private sector of the national economy are food production and distribution.
e) The coal and steel industries are among the activities controlled by the government.
A: Among the activities controlled by the government are the coal and steel industries.
4. You inverted five sentences in Exercise 3 by beginning with the prepositional phrases in those
sentences. Sentences are often inverted in order to add more information to the subject of the
sentence. It is easier to add this information if the subject comes at the end.
Add the following information to your five sentences, in order to practise the technique.
Example:
In the private sector are the majority of the nation's industries.
These industries play a vital part in maintaining the life of the nation.

⇒ In the private sector are the majority of the nation's industries, which play a vital part in
maintaining the life of the nation.
a) (to 3a) These industries include various types of transport, steel-production and coal-mining.
A: In the public sector of British economic life are the nationalized industries, which include
various types of transport, steel-production and coal-mining.
b) (to 3b) Coal and iron are vital minerals in any nation's list of resources.
A: Among the most important commodities in any economy are goods like coal and iron which are
vital minerals in any nation's list of resources.
c) (to 3c) Transport and education employ a large part of the national work-force.
A: In the public sector of many socialist economies are essential services like transport and
education, which employ a large part of the national work-force.
d) (to 3d) Food production and distribution are perhaps the most basic activities in any
economy.
A: In the private sector of the national economy are food production and distribution, which are
perhaps the most basic activities in any economy
e) (to 3e) These industries are generally classified as heavy industries.
A: Among the activities controlled by the government are the coal and steel industries, which are
generally classified as heavy industries.
5. Change these sentences by changing certain adjectives into verbs. The new verbs are listed, but
not in the proper order. Note that all these verbs are concerned with making something happen
or causing something to happen
Example:
They made the economy regular

⇒They regulated the economy.

a) They made the subject complex.
A: They complexed the subject.
b) They made the subject simple.
A: They simplified the subject.
c) They made the businesses solid (by bringing them together).
A: They brought the business together.
d) They made the business 'liquid' (by breaking it up or 'dissolving' it).
A: They dissolved the business.
e) They made the economy active.
A: They activated the economy.
f) They made the economy active again (or for a second time).
A: They reactivated the economy.
g) They made the industry national (or public).
 Instituto Superior de Contabilidade e Auditoria de Moçambique

A: They nationalized the industry.

h) They made the business inter-national.
A: They internationalized the economy.
Text B
Exercises
1. Say whether this statements are true (T) or false (F), and if they are false say why.
a) (F) Because no state is completely communistic.
b) (T)
c) (F) Because many economic systems in the world are difficult to classify.
d) (T)
e) (T)
f) (T)
g) (F) Because the nationalized industries in Britain are in the public sector of the economy
h) (T)
i) (T)
j) (F) Because it is a very difficult matter to plan ahead in a mixed economy.

2. Combine these pairs of sentences in the two ways shown in the example
a) The economists have organized a commission which must study the economic problems os
Latin America.
The economists have organized a commission to study the economic problems of Latin
America.

b) The workers have demanded an investigation which must find out what happened in the
factory.
The workers have demanded an investigation to find out what happened in the factory.

c) The trade unions have asked for a new plan which must regulate the flow of work.
The trade unions have asked for a new plan to regulate the flow of work.

d) The government has proposed a new scheme which must come into operation next year.
The government has proposed a new scheme to come into operation next year.

e) The employers have prepared a special scheme which must be approved by the government.
The employers have prepared a special scheme to be approved by the government.

3. Arrange the following sentences in their proper order, to produce a paragraph about the National
Economic Development Council.
A: C, A, E, F, B, D
4. In each of these sentences a word is missing. Provide a word from the text, from between lines
4 and 16.

a) The USSR is a country of communism.

b) The Americans are dedicated to a system of private enterprise.
c) To control an economy is much the same as to regulate it.
d) The work was carefully guided by the authorities for five years.
e) It is necessary to make a sharp distinction between planned and unplanned economies.
f) He does not work in this sector of the economy but in the public one.
g) A mixed economy possesses some of the qualities of the two main types of economic
system.
h) Coal, steel and farming are very important national industries.
i) The majority of the workers were happy about the new plan, but a small number were not.
j) Some industrial giants like BP and ICI, are international as well as national in their
activities.

5. Study the table. It shows how words can be formed by adding first the suffix - ify, and then the
suffix - cation (with suitable changes in spelling).

EXAMPLE: simple ⇒ simplify ⇒ simplification

Use the table and the example to help you fill in the blanks in the sentences.

NOTE: Remember to remove the 'e' in simple, note and pure.

a) This plan is not simple enough. We must therefore simplify it. The simplification of the plan
is essential.

b) The economy of that country belongs in the Marxist group or class. We must therefore
classify it as communistic. The classification of the economy of that country is not difficult.
·
c) That water is not pure enough. It is necessary therefore to purify it. The purification of the
water is a matter of public health.

d) Please send a note to the members of the Council. You should notify them of the date of the
next Council meeting. The notification should reach them this week.

e) The economics teacher tried to make the situation clear. He tried to clarify his description by
making it simpler. When he had made this clarification, his students understood the whole
matter much better.
Supplement
1. Seven words can be formed from the basic word nation. This table shows how to do it. Make
a list of the words, and put each word in its suitable place in the sentences. You will also
need the word nation itself.
 Instituto Superior de Contabilidade e Auditoria de Moçambique

a) The USA is the homeland of the American nation.

b) Most countries have nationalized banks, such as the be Bank of England.
c) The Socialist Party has plans to nationalize various privately owned industries.
d) British Rail is already a nationalized industry, because it is publicly owned.
e) The name given to the change from private to public ownership is nationalization.
f) In the last twenty years nationalism has been a strong political force leading to the formation
of many new nations.
g) A person who is interested in the progress and history of his own country may be called a
nationalist.
h) Many governments have certain policies which are not inter-national but simply national.

2. Make acronyms letter-names from the groups of names listed below.

EXAMPLE: (a) The United States of America ⇒ The USA

. (b) British Petroleum ⇒ BP

NOTE Keep the definite article 'the' where this is customary.

a) The Organization of African Unity ⇒ The OAU

b) The United Kingdom (of Great Britain and Northern Ireland) ⇒ The UK
c) North Atlantic Treaty Organization ⇒ NATO
d) The European Economic Community ⇒ The EEC
e) Association of South East Asian Nations ⇒ ASEAN
f) United Nations Organization ⇒ UNO
g) World Health Organization ⇒ WHO
h) The International Labour Organization ⇒ The ILO
i) The International Monetary Fund. ⇒ The IMF
j) The Food and Agricultural Organization. ⇒ The FAO
k) Trans World Airlines ⇒ TWA
i) British European Airways. ⇒ BEA
l) General Agreement on Tariffs and Trade. ⇒ GATT

3. Composition. Write about 400 words on the topic 'Mixed Economies'. Your work should be
in two parts: (i) an introduction on economic systems in general; (ii) mixed economies in
particular. Use the material provided in the texts and exercises.

Each country has an economic system to determine how the national economic conditions must be
controlled or regulated. An economic system determines how resources are distributed among
members of a society; they determine the value of goods or services; and they even determine what
sorts of things can be traded for those services and goods.
How a society structures its economic system is largely a political and social issue. So, there are
three big economic systems which can be adopted for each country: capitalism, socialism, and
communism. No state today is totally based on one system, some are more capitalistic, some are
more socialistic and others are more communistic such as the system of Union of Soviet Socialist
Republics.

Some countries, such as the United States of America has a capitalistic system, in which individuals
control the factors of production: the land, the labor, and the capital. This system is based on private
enterprise with private ownership of the means of production.

While the citizens have much freedom in a capitalistic system, in a socialist system they have less.
Socialism is an economic system in which individuals own their human capital. No one can make
you work a particular job, and employers must bargain with you to trade your labor for money or
other financial incentives.

In a Communistic system, private property and private enterprise are greatly reduced. In theory, it
demands that all property should belong to the state, however in practice the citizens are permitted
to have personal property.

But, because no state or country today is completely communist, socialist or capitalist we have one
another system. Economic systems with public and private sectors, are neither communistic nor
capitalistic, but are sometimes called mixed economies. Britain and India nowadays has a mixed
economy. India makes a clear distinction between the public sector and the private sector of its
economy.

A mixed economic system protects private property and allows a level of economic freedom in the
use of capital, but also allows for governments to interfere in economic activities in order to achieve
social aims. This system typically maintains private ownership and control of most of the means of
production, but often under government regulation.

Ultimately, it is important to note that many economic systems are difficult to classify. It has been
necessary in many countries to control or regulate national economic conditions. The mixed
economic system emerges to classify the countries with public sector and private sector.