Features of Capitalism

In a capitalist system private households need goods. They buy these goods from the income that they have. Some households have more income than others. Sometimes only one member of a household has a job, at other times both husband and wife go to work. Then they have more money to buy goods. This is the demand side of the economy.

On the other side companies and businesses offer private households goods and services. They produce the goods that they think consumers will want to buy. To do this they need workers to produce these goods and services. This is the supply side of the economy.

Companies and households get together at markets. Here they exchange goods, services and jobs (labour). A market is a place where people buy and sell things. In a capitalist society the prices of goods, services and labour are determined by supply and demand. If a lot of people want to buy a certain product its price will go up. Products that are mass produced usually have low prices.

Another important feature of capitalism is competition. Many companies may sell the same type of product. Companies will try to sell better products at a cheaper price so that they can get consumers to buy their products. Firms that cannot compete are very often driven out of business.

Task II. Scan the text above and write down all the sentences containing the Modal verbs.

Task III. Open the brackets using the Degrees of Comparison.

1. Jill’s a far (intelligent) person than my brother.

2. Kate was the (practical) worker of the firm.

3. Greg felt (bad) yesterday than the day before.

4. This auction is the (good) I have ever seen.

5. Jack is the (clever) of the three directors.

Task IV. Find the synonyms for the words and combinations given below.

Task V. Fill in the correct article.

1. … Thames is … short river.

2. … Russia occupies … eastern half of Europe and … northern third of Asia.

3. When was she in … USA?

4. Bill was … rich man. He was … richest man in his … village.

5. … United Kingdom consists of … Great Britain and … Northern Ireland.

Task VI. Open the brackets using the Pronouns someone, everyone, anyone, no one. Translate the sentences into Russian.

1. … left a wallet in my office yesterday.

2. The question was so difficult that … could answer it.

3. I am afraid, I won’t be able to find … in the office now: it is too late.

4. Is there … there who knows French?

5. You must find … who can help you.

Task VII. Translate into English.

1. Собственники и компании обмениваются товарами, услугами и работой.

2. При капитализме цены определяются спросом и предложением.

3. Собственники должны быть уверены, что обладают достаточным количеством средств, чтобы купить товар.

4. Предприятия производят товары в надежде, что кто-нибудь их купит.

5. Одна из важнейших черт капитализма – конкуренция.