Unit 3.

TYPES OF ECONOMIC SYSTEMS

TEXT A: Types of economic systems

TEXT B: Command economy
TEXT C: Good (and bad) models
BUSINESS COMMUNICATION: Finding the way
GRAMMAR: Past Tenses. The Past Simple and the Past Continuous Tenses

Diversity in the world is a basic characteristic of human society, and also the key condition for
a lively and dynamic world as we see today.
Jina to Hu, President of the People's Republic of China

LEAD-IN
1. What is the most typical problem faced by every society?
2. Why cannot people have everything they want?
3. Who usually allocates resources in the country?
4. How can the economic system influence our life?

PRE-TEXT EXERCISES

A. Reading drills
Ex.1. Practice reading the following words:
ch [k] mechanism, mechanic, mechanization, technique, technical (в словах, запозичених з
грецькоїмови)
ph [f] phrase, phase, photograph, telephone, phonetics (в словах, запозичених з грецької
мови)
er, ir, ur [з:] refer, prefer, sir, girl, term, perfect, third, merger, university, burn, nurse, curse
ture [ʧə] structure, picture, venture, gesture, mixture, lecture, nature
sure[ʒə] measure, pleasure, leisure

Ex.2. Read the following words. The underlined letters are silent.
Bomb, comb, lamb, debt, write, know, knife, doubt, receipt, psychology.

Ex.3. Read the words in the group below. Pay attention to the word stress.
a) words with the stress on the first syllable:
several, scarcity, allocate, previously, Asia, clothing, value, major, centrally, formulate, publicly,
industries, socialism, socialist, Sweden, power, operate, ownership, relevant, enterprise,
government, centralized, social;
b) words with the stress on the second syllable:
require, essential, dilemma, referred, efficiently, appearance, variety, society, command, allow,
consumer, percent, consensus, municipal;
c) polysyllabic words with the main and secondary stress:
satisfactorily, opportunity, distribution, independently, intermingled, intervention,
environmentalism.

B. Word formation
Ex.4. Make up nouns as in the model.
Model: noun + suffix –ship →noun
e.g. owner – ownership
Citizen, dictator, friend, leader, member, proprietor, entrepreneur, master.
Model: verb +suffix –tion or –sion →noun
e.g. organize- organization
Protect, decide, define, produce, collect, reduce, consume, divide, cooperate.
Model: noun +suffix-ism →noun
e.g. material-materialism
Marx, Protestant, Buddha, commune, society, capital, consumer, perfection.

Ex.5. Make up adjectives as in the model.

Model: adjective +suffix -ance or -ence (- ancy, -ency) →noun
e.g. efficient - efficiency
Important, different, insistent, resistant, constant, efficient, intelligent.
Model: noun +suffix -ic →adjective
e.g. economy- economic
History, geography, hero, science, ballast, naturalist, metal, poet, myth.

What other noun or adjective suffixes do you know? Give examples.

TEXT A: TYPES OF ECONOMIC SYSTEMS

Active Vocabulary
Key terms: traditional economy, market economy, command economy, mixed economy,
centrally planned economy, to levy taxation, means of production, production and distribution,
shortage and surplus, free enterprise, laissez-faire.
Other words and expressions: a mechanism for survival, to resolve the problems, to store,
scarcity problem, to do for a living, to provide a sense of security and psychological comfort,
to take advantage of, essential dilemma, to exercise economic functions, to control prices,
essential features, to open and run any kind of business, to be intended, to divide up into, in
the marketplace, privately owned, to depend on, to manage the economy, an extensive form, to
detect consumer preferences, sufficient accuracy, social welfare, decision maker, health
insurance, housing projects, free medical services, range from … to, to be owned and operated
by.
Linking words and phrases: if we look at, in fact, subsequently, to refer to, according to,
thus, strictly speaking, however, what is more, as we have classified, to sum up.

To an economist, economic society presents itself as a mechanism for survival — a means

whereby people are able to carry out the tasks of production and distribution. If we look at the
different political and social structures which exist in the world today, and the way in which
those systems have developed over the years, we are tempted to say that people have made use
of, and are making use of, very great varieties of economic systems. In fact, in spite of the
appearance of great variety, it is possible to group these different economic structures into four
broad categories. These basic types of economic organization are usually described as
Traditional economies, Market economies, Command economies and Mixed economies. There
are several basic and unfinished questions that must be answered in order to resolve the problems
of economics satisfactorily. The scarcity problem, for example, requires answers to basic
questions, such as: what to produce, how to produce it, and who gets what is produced. An
economic system is a way of answering these basic questions. Different economic systems
answer them in a different way.
Traditional Economic System
The oldest and until recent times the most common way of solving economic problems
was that of tradition. In traditional societies, people use methods of production and distribution
that were devised in the distant past and which have become an accepted way of doing things by
a long process of trial and error.
A traditional economic system is one in which people's economic roles are the same as
those of their parents and grandparents. Societies that produce goods and services in traditional
ways are found today in some parts of South America, Asia, and Africa. There, people living in
an agricultural village still plant and harvest their own food on their own land. And the ways
they produce clothing and shelter are almost exactly the same as those used in the past. Tradition
decides what these people do for a living and how their work is performed. Traditional economy
provides a sense of security and psychological comfort. Subsequently, there is a relatively low
unemployment rate and low crime rate. A traditional economy allows for a greater degree of
autonomy and little or no money is used.
A traditional economy does not allow for much economic growth and development as
changes are very slow and there is little social mobility. A traditional economy does not take
advantage of technology and there is relatively little promotion of intellectual and scientific
development. A traditional economy provides few incentives for entrepreneurs, thus limiting
choices for consumers and lowering standards of living.
Market Economic System
A market economic system is one in which a nation's economic decisions are the result of
individual decisions by buyers and sellers in the marketplace. The market system of economic
organization is also commonly described as a free enterprise or laissez-faire, or capitalist system.
We shall use all these terms to stand for a market economy. Strictly speaking, the pure market of laissez-
faire system has never existed. Whenever there has been some form of political organization, the political
authority has exercised some economic functions (e.g. controlling prices or levying taxation).
Efficiency is best achieved through a market economy where individual producers each make
their own production decisions based on their own profit motive. Some critics of the free-market
argue that property rights are in conflict with "human" rights. But the critics fail to realize that in
a free-market system, every person has a property right over his own person and his own labor,
and that he can make free contracts for those services.
The framework of a market or capitalist system contains six essential features. They are:
1. private property
2. freedom of choice and enterprise
3. self-interest as the dominating motive
 4. competition
5. a reliance on the price system
6. a very limited role for government.
Command Economic System
A planned economy or directed economy is an economic system in which the state or
government manages the economy. Its most extensive form is referred to as a command
economy, centrally planned economy, or command and control economy. In such economies,
the state or government controls all major sectors of the economy and formulates all decisions
about their use and about the distribution of income, much like a communist state. The planners
decide what should be produced and direct enterprises to produce those goods.
In a command economic system, the main decision maker is the government. No person
may independently decide to open and run any kind of business. The government decides what
goods and services are to be produced. And the government sells these goods and services. The
government also decides how the talents and skills of its workers are to be used. Supporters of
planned economies cast them as a practical measure to ensure the production of necessary goods.
Critics of planned economies argue that planners cannot detect consumer preferences, shortages,
and surpluses with sufficient accuracy and therefore cannot efficiently co-ordinate production (in
a market economy, a free price system is intended to serve this purpose). Planned economies are
notoriously corrupt. Their inefficiency leads to the formation of informal social networks.
Mixed Economic System
No country has an economic system that is 100 percent communism, socialism, or
capitalism. All countries today have mixed economic systems or mixed economies, with some
free enterprise and some government ownership. There is not one single definition for a mixed
economy, but relevant aspects include: a degree of private economic freedom(including privately
owned industry) intermingled with centralized economic planning(which may include
intervention for environmentalism and social welfare, or state ownership of some of the means of
production).
For some states, there is no consensus on whether they are capitalist, socialist, or mixed
economies. Economies in states ranging from the United States to Cuba have been termed mixed
economies.
If the government owns and operates almost all of the nation's means of production, then
that nation's economic system is called communism. China has a communist economic system.
Almost all of the means of production are publicly owned-that is, owned by the government.
Government planners decide the answers to the basic economic questions. Farming on private
plots of land is sometimes allowed. In recent years, the Chinese government has been allowing
more and more private businesses to operate.
If the government owns and operates many of the nation's major industries-such as banks,
airlines, railroads, and power plants-but allows individuals to own other businesses, including
stores, farms, and factories, that nation's economic system is called socialism.
Sweden is an example of a country whose economic system is often described as
socialist. Most of its major industries, such as coal mining, electric power, gas, telephone, and
railroads, are owned by the government. Under Sweden's national health insurance system, the
people receive free medical services all their lives.
If almost all the stores, factories, and farms in a nation are owned and operated by private
individuals or businesses, then its system is called free enterprise, or capitalism. The U.S. has a
free enterprise, or capitalist, economic system.
 Language notes:
we are tempted to say – ми схиляємось до ствердження того, що…
a long process of trial and error– довгий процес випробування та помилок
the pure market of laissez-faire system has never existed – чистий ринок системи невтручання
уряду ніколи не існував
how the talents and skills are to be used –як слід використовувати таланти та навички
a degree of private economic freedom intermingled with centralized economic planning –
ступінь особистої економічної свободи змішана з централізованим економічним
плануванням

VOCABULARY FOCUS

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

Засіб для виживання; виконувати завдання виробництва та розподілу; не зважаючи на
виникнення великої різноманітності; для того, щоб вирішити економічну проблему;
почуття безпеки та психологічного комфорту;братии до уваги; обмежувати вибір
споживачів; вільне підприємництво;досягти ефективності; критики не можуть зрозуміти;
визначити з достатньою точністю; створення неформальної соціальної мережі; надавати
дозвіл на ведення приватного бізнесу; контролювати основні сектори економіки; вільний
ринок; характерні риси; структура ринкової системи; незалежно вирішувати; керувати
основними галузями промисловості; отримувати безкоштовні медичні послуги.

Ex.2. Give Ukrainian equivalents for the following phrases.

To present itself as; to be tempted to say; in spite of; to come into play; the essential dilemma;
production and distribution; to take advantage of; to solve economic problems; to do for a living;
a sense of security and psychological comfort; a greater degree of autonomy; incentives for
entrepreneurs; to stand for a market economy; the dominating motive; to formulate decisions; to
direct enterprises; relevant aspects; intermingled with; to be notoriously corrupt; consumer
preferences, shortages and surpluses; to reach a consensus on;fail to realize.

Ex.3. Give three forms of the following verbs. Find the sentences with these verbs in the text.
Deal, make, say, come, cost, choose, see, do, find, speak, be, sell.

Ex.4.Make up adjective +noun or noun +noun collocations (there may be several variants).
Give examples either from the text or of your own.
Economic, basic, scientific, profit, free, private, decision, government, scarcity.
Problem, property, system, development, enterprise, questions, motive, maker, ownership.
Model:economic system
e.g. People have made use of a variety of economic systems.

Ex.5. Match up the words on the left with the definitions on the right.

1 an economic system a economy, with some free enterprise and some

government ownership
 2 a traditional b an economic system in which the state or
economic system government manages the economy
3 a market economic c also commonly described as a free enterprise or
system capitalist system
4 a planned economy d one in which people's economic roles are the same
or directed economy as those of their parents and grandparents
5 mixed economic e one in which a nation's economic decisions are the
system result of individual decisions made by buyers and
sellers in the marketplace
6 laissez-faire f a way of answering three basic questions: what,
how and for whom to produce

Ex.6. Choose an appropriate word or a phrase to complete the following sentences.

Decision maker, a mechanism, traditional, basic and unfinished, in the distant past, a free
enterprise or laissez-faire, a sense of security, owned and operated, government, in spite of.

1. To an economist, economic society presents itself as __________ for survival.

2. In fact, __________ the appearance of great variety, it is possible to group these different
economic structures into four broad categories.
3. In traditional societies people use methods of production and distribution devised
__________.
4. A __________ economy does not allow for much economic growth and development as
changes are very slow and there is little social mobility.
5. The market system of economic organization is also commonly described as __________, or
capitalist system.
6. Traditional economy provides __________ and psychological comfort.
7. In a command economic system, the main __________ is the government.
8. All countries today have mixed economic systems or mixed economies, with some free
enterprise and some __________ ownership.
9. Government planners decide the answers to the __________ questions.
10. If almost all the stores, factories, and farms in a nation are __________ by private
individuals or businesses, then its system is called free enterprise.

Ex.7. Complete the following sentences with prepositions.

1. _____ an economist, economic society presents itself as a mechanism _____ survival.
2. If we look _____ the different political and social structures which exist in the world today,
we are tempted to say that people have made use _____ , and are making use _____ , very great
varieties _____ economic systems.
3. Tradition decides what these people do _____ a living and how their work is performed.
4. A traditional economy does not allow _____ much economic growth and development.
5. We shall use all these terms to stand _____ a market economy.
6. Every person has a property right _____ his own person and his own labor, and that he can
make free contracts _____ those services.
7. Its most extensive form is referred _____ as a command economy.
8. Each nation and society thus must make choices and decisions based _____ their own
values.
9. There is not one single definition _____ a mixed economy.
10. Economies _____ states ranging _____ the United States _____ Cuba have been termed
mixed economies.

Ex.8. Combine two parts logically to make a complete sentence.

1 If we look at the different a where individual producers each make

political and social structures their own production decisions based on their
which exist in the world today, own profit motive.
the years,
2 There are several basic and b capitalist, socialist, or mixed economies.
unfinished questions
3 Efficiency is best achieved c then that nation's economic system is
through a market economy called communism.
4 Supporters of planned d we are tempted to say that people have
economies cast them as made use of, and are making use of, very
great varieties of economic systems.
5 For some states, there is no e few incentives for entrepreneurs, thus
consensus on whether they are limiting choices for consumers.
6 If the government owns and f that in a free-market system, every person
operates almost all of the has a property right over his own person
nation's means of production, and his own labour.
7 A traditional economy provides g is 100 percent communism, socialism or
capitalism.
8 The critics fail to realize h have been termed mixed economies.
9 No country has an economic i a practical measure to ensure the
system that production of necessary goods.
1 Economics in states ranging j that must be answered in order to resolve
0 from the USA to Cuba the problems of economics.

Ex.9. Look through the text again and replace the words /phrases in italics with similar
ones.
1. The problem of insufficiency requires answers to questions “What to produce?” “How to
produce?” and “Who gets what is produced?”
2. In a traditional economic system tradition decides how people earn their daily bread.
3. A traditional economy doesn’t make good use of technology and there is relatively little
promotion of intellectual and scientific development.
4. The market system of economic organization is described as economic activity undertaken by
private individuals or organizations under private ownership.
5. The political authority has performed some economic functions.
6. The framework of a market system contains six major traits.
7. In a command economy no individual may independently set up and manage commercial
activity.
8. Critics of command economy argue that planners cannot determine consumers’ likes.
9. Planned economies have a bad reputation to act dishonestly in return for money or personal
gain.
10. In mixed economic systems intervention of government may include well-being of people and
protection of the environment.

Ex.10. Translate into English:

1. Економічне суспільство є засобом для виживання, де люди мають змогу виконувати
завдання виробництва та розподілу.
2. Економічна система - це спосіб відповіді на основні економічні питання – що, як та
для кого виробляти.
3. Проблема дефіциту потребує відповіді на питання, такі як:що виробляти, як
виробляти, та хто отримає те, що було вироблено.
4. Традиції вирішують, як люди заробляють на життя та як виконується їх робота.
5. У традиційній економічній системі люди виробляють товари та послуги методами,
які були винайдені в далекому минулому.
6. В ринковій економічній системі всі питання з виробництва та розподілу вирішують
покупці та продавці на ринку.
7. В адміністративно-командній економічній системі держава та уряд контролюють
основні сектори економіки.
8. Структура ринкової економіки має шість характерних рис.
9. Немає жодної країни, що має чисту економічну систему, яка на 100 відсотків є
традиційною, адміністративно-командною, чи ринковою.
10. Майже всіма засобами виробництва в країні з командною економічною системою
володіє уряд.

LANGUAGE SKILLS

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

1. As a mechanism for survival.
2. It is possible to group these different economic structures into four broad categories.
3. The oldest and the most common way of solving economic problems was that of tradition.
4. Strictly speaking, the pure market of laissez-faire system has never existed.
5. Supporters of planned economies cast them as a practical measure to ensure the production of
necessary goods.
6. Efficiency is best achieved through a market economy where individual producers each make
their own production decisions based on their own profit motive.
7. All countries today have mixed economic systems or mixed economies, with some free
enterprise and some government ownership.
8. Economies in states ranging from the United States to Cuba have been termed mixed economies.
9. If the government owns and operates almost all of the nation's means of production, then that
nation's economic system is called communism.
10. The U.S. has a free enterprise, or capitalist, economic system.

Ex.12. Answer the questions:

1. How does every economic society present itself for an economist?
2. What are the basic types of economic systems?
3. What kind of questions may help to solve economic problems satisfactorily?
4. Why does every society face the problem of resource allocation?
5. What methods of production and distribution are used in a traditional economic system?
6. Describe advantages and disadvantages of traditional economies.
7. Who makes economic decisions in a market economic system?
8. List six essential features of a market economy.
9. Describe the role of government in a planned economy.
10. What are disadvantages of planned economies?
11. Define a mixed economic system.
12. What is the fourth basic question that should be asked by every society?
13. Who owns the means of production in the discussed economic system?

Ex.13. Make a presentation of the topic “Types of Economic systems”.

WRITING

Ex.14. Make a plan for a summary of Text A.

Ex.15. Write a brief summary of the text (25-30 sentences).
Ex.16. Write an essay (100-150 words) about:

a) Pros and cons of command economies.

b) The role of government in a free-enterprise system.

DISCUSSION POINTS

Ex.17. With your partners do the following.

Explain the basis on which economists in classifying economic systems distinguish between
market’ and ‘command’ economies. On what basis, if any, is it possible to say which type of
economy is superior?
 Establish criteria such as resource ownership, for comparing market and command
economies.
 Explain how welfare criteria can be used to judge the success of an individual economic
system.
 One economic system is superior to another only if it is better able to satisfy welfare
criteria. Discuss the evidence.
 Avoid making subjective, political statements of opinion.

Ex.18. Can you explain the following sayings in your own words? What other sayings about
different kinds of economic systems do you know?
1. Government's view of the economy could be summed up in a few short phrases: If it moves,
tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. Ronald Reagan
(American 40th US President (1981- 1989, 1911-2004)
2. The first lesson of economics is scarcity: There is never enough of anything to satisfy all those
who want it. The first lesson of politics is to disregard the first lesson of economics. Thomas
Sowell (American writer and Economist) (1924 – 2006)
3. I don't know if I can live on my income or not - the government won't let me try it. Bob
Thaves, the creator of the comic strip Frank and Ernest (1924-2006)
4. We have long had death and taxes as the two standards of inevitability. But there are those
who believe that death is the preferable of the two. "At least," as one man said, "there's one
advantage about death; it doesn't get worse every time Congress meets. Erwin N. Griswold,
Solicitor General of the United States,(1904 - 1994)
5. Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a
lifetime. Teach a man to create an artificial shortage of fish and he will eat steak. Jay Leno, an
American stand-up comedian and television host, (b. 1950)

TEXT B: COMMAND ECONOMY

Ex.19. Scan the text bellow and give headlines to each paragraph.
A command economy is where economic decisions are planned out in detail by a central
government authority. The plan is implemented through laws, regulations and directives.
Businesses follow production and hiring targets instead of individually and freely responding to
the laws of supply and demand. Central planners seek to replace the forces that operate in a free
market economy, and the customs that guide a traditional economy, to attain specific societal
goals.
The concept of a command economy was developed by Viennese economist Otto
Neurath as a method to control the hyperinflation after World War I. The phrase comes from the
German "Befehlswirtschaft" and was initially used to describe the Nazi economy. However,
centrally planned economies were in existence before then, including the Incan empire in 16th
century Peru, the Mormons in 19th century Utah, and even the U.S. during World War II
mobilization.
A modern centrally planned economy can be identified by the following five
characteristics:
1. The government creates a central economic plan for all sectors and regions of the
country. It typically starts with a five-year plan to set the overriding economic goals. This is
broken down into shorter-term plans to convert the goals into actionable objectives. The goal of
the five-year plan is to generate robust economic growth, increase production efficiency and best
utilize scarce resources. For the most part, a command economy needs a political system that is
also centrally planned.
2. The government allocates all resources according to the central plan. The goal is to use
the nation's capital, labor and natural resources in the most effective way possible. This pretty
much eliminates unemployment by promising to use each person's skills and abilities to their
highest capacity.
3. The central plan sets the priorities for production of all goods and services. The goal is
to supply enough food, housing and other basics to meet the needs of everyone in the country. In
addition, it may have other priorities, such as mobilizing for war or increasing the nation's
economic growth.
 4. The government owns a monopoly business in industries deemed important to the
goals of the economy. This usually includes finance, utilities, and automotive. There is no
domestic competition in these industries.
5. The government creates the laws that regulate economic activity. These include
regulations, directives and wage/price controls to implement the central plan.
Centrally planned economies are great at mobilizing economic resources quickly,
effectively and on a large scale. They can execute massive projects, create industrial power and
attain imperative social goals. They are able to override individual self-interest, and subjugate
the welfare of the general population, to achieve a greater agreed-upon goal for the society at
large.
Command economies are also good at wholly transforming societies to conform to the
planner's vision, as in Stalinist Russia, Maoist China and Castro's Cuba. For example, the
command economy in Russia built up an effective military might and quickly rebuilt the
economy after World War II.
This rapid mobilization often means command economies mow down other societal
needs. For example, workers are often told what jobs they must fulfill and are even discouraged
from moving. However, people won't ignore their own needs for long. They often develop a
shadow economy, or black market, to buy and sell the things the command economy isn't
producing. The efforts of leaders to control this market can ultimately weaken support for the
central planning authority.
Instead of leading to efficiency, command economies often produce too much of one
thing and not enough of another. That's because it's difficult for the central planners to get up-to-
date information about consumers' needs. In addition, prices are set by the central plan, and so
can't be used to measure or control demand. Instead, rationing often becomes necessary.
Command economies are not good at stimulating innovation. Businesses are focused on
following directives, and are discouraged from making any autonomous decisions.
Centrally planned economies also have trouble producing the right exports at global
market prices. It's difficult for the various planning sectors to coordinate with each other, not to
mention foreign countries' needs.
Cuba, North Korea, China, Russia and Iran are the most commonly referenced examples
of command economies. Russia's Gosplan has been the most studied. It was also the longest
running, lasting from the 1930s until the late 1980s.

Ex.20. Read the text and decide whether the statements are true or false. Correct the false
statements.
1. In a command economy, companies carry out the implemented plan on the basis of the laws of
supply and demand.
2. The concept of a command economy was first put into practice in the US during the WWII
mobilization.
3. In a command economy, the government allocates resources in line with the central plan, usually
for a five-year period.
4. The goal of the central plan is to provide only basic goods and does not have any other priorities.
5. Such important industries as finance and utilities are the state monopoly.
6. Being overregulated, the command type of economic systems doesn’t have any advantages.
7. As in a free-market economy, prices set by the central plan measure and control demand.
8. A shadow economy can appear as a result of peoples’ inability to satisfy their needs.
9. In a command economy, businesses are free to introduce innovations to improve their production
and selling practice.
10. Cuba, South Korea, China, Iraq and Russia are the most frequently used examples of command
economies.

Ex.21.Read the text more thoroughly and answer the questions.

1. Who makes economic decisions in a command economy?
2. When was the concept of a command economy developed?
3. What are the goal and duration of central economic plans?
4. Is unemployment characteristic of the command economic system?
5. How is economic activity regulated in a command economy?
6. Is the rapid mobilization of economic resources inherent in this type a positive or negative
factor?
7. What aspects is the command economy most strong in?
8. Why is rationing necessary in this type of economy?
9. Give examples of command economies.

TEXT C: THE GOOD (AND BAD) MODEL GUIDE

Before reading
If we classify economic models basing on countries’ geographical location, do you think
the countries within one group - American, Asian and European economic models – have the
same features? How can you briefly characterize them?

Reading
Read an article from The Economist and do the tasks following the text.

A SUMMARY of economic models' best and worst features:

(1) The American model. Good points: flexible labour and product markets; low taxes;
fierce competition; and shareholder capitalism, which puts pressure on managers to maximize
profits. Bad points: wide income inequalities; low welfare benefits; poor quality of “public
goods”, such as primary and secondary education; low investment and very low savings rates.
(2) The Japanese model. Good points: lifetime employment encouraged loyalty and high
skill levels; public services, especially education, of high quality; close relations between banks
and other firms; corporate cross-shareholdings shelter managers from impatient shareholders,
allowing them to take a long-term view of investment. This, it was once argued, gave Japan an
advantage over American capitalism, obsessed with short-term profit. Bad points: these “virtues”
are now seen as vices at the root of the country's problems: firms sheltered from the full force of
the market feel little pressure to use capital efficiently.
(3) The East Asian model. The region has long been an intellectual battleground for
economists. Some saw East Asia's rapid growth as proof of the virtues of market-friendly
policies—low taxation, flexible labour markets and open trade. Others argued that South Korea's
industrial policy was evidence of the possible gains from selective government intervention. The
truth is that there is no single “East Asian model”: economic policies vary hugely from relatively
liberal Hong Kong to heavy-handed South Korea; from widespread government corruption in
Indonesia to squeaky-clean Singapore. What the East Asian countries shared was an openness to
trade and higher savings than in other emerging economies.
(4) The German social-market model. Good points: excellent education and training; a
generous welfare state and narrow wage dispersion breed social harmony; close relations
between firms and banks assist high investment. Bad points: overly powerful trade unions, high
taxes, overgenerous jobless benefits and widespread labour and product market restrictions have
led to persistently high unemployment.
(5) The Swedish model. Once advertised as a “third way” between capitalism and
socialism. Good points: relatively open markets combined with a comprehensive welfare state,
narrow wage dispersion and employment schemes that pushed the jobless back into work. Bad
points: rising inflation and recession increased the budget deficit, and as unemployment rose,
costly job schemes were no longer affordable; high personal taxes blunted incentives to work.
(6) The New Zealand model. Radical reforms in the 1980s transformed the rich world's
most regulated and closed economy into one of the most free-market, with the lowest tax rates,
lowest trade barriers and widespread privatization. Bad point: a big increase in inequality.
(7) The Dutch model: Once an extreme example of Eurosclerosis, some now see the
Netherlands as a model for the rest of Europe. Workers have accepted smaller pay rises in return
for more jobs; rules on part-time and temporary jobs have been relaxed; and social-security taxes
have been trimmed. The result has been a dramatic fall in unemployment—to 3.6%, compared
with an average in the euro-11 area of 10.6%. The Dutch model appears to offer a way to cut
unemployment without big cuts in the welfare state or wide pay differentials. However, the
headline jobless rate paints too rosy a picture: one-third of workers are part-time, the highest
proportion in the rich world, and an unusually large number of people receive disability or
sickness benefits and so are excluded from the jobless count.

Task 1.Compare European models − German, Swedish and Dutch: what they have in common
and in what they are different.
Task 2.Compare European economic models with American, Asian (Japanese and East Asian)
and New Zealand. Say which of the models you consider the most effective.
Task 3.If somebody is obsessed with an idea (para.2), is he
a) disagreeing strongly with it;
b) refusing to support it;
c) having the mind excessively preoccupied with this idea.
Task 4.How do you understand the term “emerging economies” (para.3)? Give other examples
of emerging economies.
Task 5.Choose the best synonym for the verb “to trim (taxes)” (para.7):
a) to enlarge;
b) to reduce;
c) to keep stable.

BUSINESS COMMUNICATION

FINDING THE WAY. GIVING DIRECTIONS

A Describing location
Ex.1. Answer the questions.
1. How do you get to the university? (by bus, car, train, bike, on foot)
2. How far is the university from your home?
3. How long does it take you to get to the university?
4. Can you describe where your university is situated and how to get there?

Ex.2. Look at the plan. Is the information true or false?

1. The jewelry store is behind the Italian restaurant.
2. The bar is on Second Avenue.
3. The police station is on the left of the fire department.
4. The toy store is across from the Chinese restaurant.
5. The movie theater is opposite the book store.
6. The sporting goods store is behind the furniture store.
7. The bar is next to the Chinese restaurant.
8. The women’s wear store is between the Italian restaurant and the sporting goods store.
9. The men’s wear store is on/at the corner of Pine Street.

Ex.2. Fill in the missing preposition.

1. The women’s wear store is _____ the jewelry store.
2. The movie theatre is _____ the book store.
3. The women’s wear store is _____ the jewelry store and the bar.
4. The toy store is _____ of Main Street and Forest Street.
5. The jewelry store is _____ the Italian restaurant.

Ex.3. Study the language of describing position below and use the information
to answer these questions.
Where is the office? Is it in building A, B, or C? Describe the position of the
other two.

- The office is near the station. (It’s only two minutes on foot.)
- It's in / on Liberty Avenue, on/at the corner, on the left.
- It's next to the post office. (They are side by side.)
- And it's opposite / across from the bank. (On the other side of the road.)

Ex.4. You are in the University. If someone gives you some instructions, where would you
arrive?
1. Go straight on, take the second turning on your left. Pass the pub. It’s opposite the stadium.
2. Go straight on, turn right on Cliff Street. Go up Oxford Street. Turn left. It is between the
station and the pub.
3. Go ahead. Turn the second turning on your right. Pass the bank and the chemist. It’s at the
corner of Oak Street and Oxford Street.
4. Go ahead. Turn right. Go along Cliff Street. Turn right again. It is on your right next to the
baker.
 5. Go along Pine Street. Cross Cliff Street. It is between the hospital and the bank.

B. Giving directions.

Memorize the language of giving directions:

- come out of the General Post Office on Eighth Avenue,

- turn left into / onto Eighth Avenue,
- go along /up / down Eighth Avenue,
- take the first right onto West 33rd Street.
- walk past Madison Square Garden and Penn Station,
- go across Seventh Avenue, Avenue of the Americas, and Broadway,
- go into the last building on the left,
- take the lift (AmE elevator) to the 102nd floor.

Ex.5. Read the following conversations with visitors to the town.

Conversation 1
A: Excuse me, how do I get to the shopping centre?
B: Go along Princes Street, turn first left at the crossroads, then turn second right. The shopping centre
is about 50 metres along that road, in the pedestrian area.
A: So, down Princes Street, left at the crossroads and then second right?
B: Yes, that's right.
A: Thanks a lot.

Conversation 2
A: Excuse me, how do I get to the museum?
B: Let me see ... yes. Go along this road. At the traffic lights turn left into Green Street and go straight
on to Abbey Square. The museum is in the Square, on the right.
A: Sorry, could you say that again?
B: Yes. Go along this road. At the traffic lights turn left into Green Street. Then go straight on to Abbey
Square. The museum is in the Square, on the right.
A: Thank you very much.

Conversation 3
A: Excuse me, is this the way to the sports centre?
B: No, the sports centre is in the opposite direction. Go along this road. There's a bridge on the left. Go
over the bridge, then turn first right, then first left. The sports centre is at the end of the road, on the
left, past the cinema.
A: Many thanks.

Conversation 4
A: Excuse me, can you give me directions to the convention center?
B: Yes, sir. It’s really close to here. Actually it’s within walking distance.
A: That’s what I heard. It’s a nice morning so I wanted to walk there.
B: Ok. Well, when you leave the hotel, cross the street and go right. When you see the library, turn
left. That should be one Forty Second Street West (142nd W.) Head straight for a block and
the convention center will be there on your right.
A: Thank you so much
B: You’re welcome.

Ex. 6. Using the map below, explain to a person new to your town how to get the desired
thing. Choose from among:
get some hiking boots, get some cat food, buy some milk, work out, buy some pants, grab a
hamburger, get some aspirin, see a movie, buy a book, mail a letter, buy some CDs, get a bite to
eat.
The first dialogue is an example.
1. A: Do you know where I can get a cup of coffee?
B: Sure. You could try the Starry Café.
A: Where’s that?
B: It’s on 2nd Avenue across from the pharmacy.
A: Thanks.
B: No problem.
2. A: Do you know where I can __________?
B: Sure. You could try the ___________.
A: Where’s that?
B: It’s on 2nd Avenue above the Grocery.
A: Thanks.
B: You are welcome.
3. A: Do you know where I can __________?
B: Sure. You could try the ___________.
A: Where’s that?
B: It’s at the end of Elm Street below the Town Pub.
A: Thanks a lot.
B: That's OK.
4. A: Do you know where I can __________?
B: Sure. You could try the ___________.
A: Where’s that?
B: It’s right on the corner of 2nd Avenue and Elm Street.
A: Thanks.
B: No problem.
5. A: Do you know where I can __________?
B: Sure. You could try the ___________.
A: Where’s that?
B: It’s just at the corner of 2nd Avenue and Elm Street above the Chemist's.
A: Thank you.
B: Not at all.
6. A: Do you know where I can __________?
B: Sure. You could try the ___________.
A: Where’s that?
 B: It’s on 2nd Avenue just opposite Max Records on the second floor.
A: Thanks.
B: You're welcome.

Ex.7. Work in pairs. Use the words below to complete the dialogues. You don’t need to use
them all.
start get on come finish stop change get off go take go to

1. A: Excuse me.
B: Yes?
A: I want to ______ New Road.
B: Go to the right platform. ______ the first train. ______ at Yellow Circle to the train for
Youth’s Gardens. ______ at Jankie’s which is on the New Road.
A: Thank you. How many stations from Yellow Circle?
B: It’s the second station.
A: Thank you very much.
B: You’re welcome.

2. A: Excuse me.
B: Can I help you?
A: How do I get to Crossroads?
B: ______ any train from platform 1. ______ at King’s Yard. ______ the local train - it’s
yellow. ______ at the next station. That’s it.
A: Thank you.
B: That’s quite all right.

Ex.8. Fill in the blanks for each extract. Use the following words.
across your corner down exit far front how right looking lost miss moment off
on take to transfer way

Directions by Street Name and Nearby Landmarks:

A: You look ____________ . Can I help you?
B: Yeah. I’m ____________ for the Opera Theater. Do you know where it is?
A: It’s on the ____________ of Vladimirskaya Street and Bogdan Khmelnytsky Street. It’s not
far from the Golden Gates Metro station. You can’t __________ it.

Directions by Underground or Bus:

A: Excuse me. Can I trouble you for a ____________ ?
B: Sure. What’s wrong?
A: I’m lost. Do you know ____________ to get ____________ the Olympic Stadium?
B: The easiest ____________ to get there is probably by underground. Just ____________ the
Central Line to Khreschatyk Station, ____________ to Maidan Nezalezhnosti on Blue Line and
get ____________ at Olympiyska Station. When you go out any ____________ , it should be
right in ____________ of you.

Directions by Foot or Car:

 A: Can I get to the Premier Palace Hotel from here ____________ foot?
B: Sure. It’s not that ____________ . Just go ____________ Bogdan Khmelnytsky Street, then
turn ____________ to Pushkinskaya Street and then left to Taras Shevchenko Street. The hotel
should be on ____________ right. It’s ____________ from Bessarabska Square.

Using the above dialogues as a model, explain how to get to your university or home by
underground or bus, on foot, by street name or nearby landmarks.

Ex.9. Look at the office plan. Can you match the questions and answers?
1 Excuse me. Where's the lift?
2 Excuse me. Where are the stairs?
3 Where's the computer room?
A Where's the drinks machine?
5 Where are the toilets, please?

a On the right, just after the lift,

b It's over there. The first door on the right,
c It's just past the stairs. The third door on the right.
d Go through the doors at the end, and they're on the right,
e Go to the end of the corridor, through the doors, and turn left.

Ex.10. John Smith has come to Glick and Warburg on a business trip, but he can’t find
where the company’s office is. He calls Laura Sands, the company’s manager, on his
mobile. Read the dialogue from the Business Basics course and answer these questions.
1 Where is John exactly? 2 Which floor is Meta Co. on? 3 Mark the position of Meta Co. on
this floor plan.

L.: Laura Sands. How can I help you?

V: Hi, Laura. This is John.
L: John! Where are you?
V: I'm in your building but I can't find your offices.
L: Are you on the fourteenth floor?
V: No. I'm on the fourth. At reception they told me to go the fourth.
L: No, we're on the fourteenth, John. Are you near an elevator?
V: Yes, there's one just next to me. It's Elevator D.
L: Elevator D. OK. So take the elevator to the fourteenth floor. When you come out of the elevator,
turn left. You'll see the Conference Center in front of you. Then take the first right.
V: One second. So that's left at the elevator, then first right.
L: Yeah. Go along the corridor, past the Conference Center. At the end of the corridor you come to
a small escalator. Go up the escalator, and Glick and Warburg is immediately on the right, just
opposite the Business Center.
V: So that's along the corridor, up the escalator, and you're on the right.
L: Yeah - just opposite the Business Center. It's easy to find. There are signs everywhere.
V: OK, thanks, Laura. I'll be with you in a moment. Bye.
L: Good luck, John!
 Ex.11. You work in an office on the fourteenth floor. Decide where it is on the floor plan
above, but don't tell your partner. Give your partner directions from one of the four lifts /
elevators. Your partner must say which office it is.

GRAMMAR EXERCISES

PAST TENSES

Ex.1. Define the tense forms in the sentences and translate them into Ukrainian.
Model:
He solved (Past Simple) the cross-word yesterday. He was solving (Past Continuous) the cross-
word puzzle when he heard (Past Simple) the telephone ringing. He had solved(Past Perfect)
the cross-word puzzle by the time the film started (Past Simple). He had been solving (Past
Perfect Continuous) the cross-word puzzle for half an hour.
1. Yesterday I was ringing up to my secretary but nobody answered. I was ringing her from 3 till 5
o’clock. At last she answered at eight o’clock in the evening. She told me that she had been
working on her report all that time.
2. The weather was terrible. It was raining heavily. She had been standing at the bus stop for half
an hour but there was no sign of any transport.
3. When I arrived, he was staying in the same hotel where we first had met.
4. One day I was sitting in my office in a small town on the west coast of England. It was five
o’clock in the afternoon. I had already finished my work for the day and was resting quietly in
my favourite armchair. I was thinking of the days that had gone by, especially of those days
that I had spent on the Coral Islands in the Pacific.

Ex.2. Define what tense forms should be used in the following micro-situations. You don’t
need to translate the sentences.
1. Ми погодились, коли вона запропонувала нам поїхати у відрядження. Вона запевняла,
що організація була чудовою.
2. Мені дзвонив хто-небудь 20 хвилин тому? – Так, твій партнер з бізнесу. – Що він
сказав? – Він сказав, що замовив тенісний корт на сьому годину.
3. Де ти був учора ? Я приходив до тебе. Я подзвонив кілька разів, але ніхто не відповів.
– Я був на виставці наших товарів. Я працював там кілька годин, коли ти прийшов до
мене.
4. Жінка сиділа біля вікна і думала. Вона думала про те, що її колега не повідомив її
перед тим, як поїхав до Києва.
5. Коли я зустрів її пів години тому, її очі були червоні. Я зрозумів, що вона плакала.
6. Сара прийшла додому о шостій. Вона повечеряла і почала читати книжку, коли раптом
згадала, що вона забула подзвонити босу.
7. Вони йшли по вулиці і розмовляли, коли вона раптом забула, що хотіла сказати.
8. Вони прийшли додому опівночі, тому що збори закінчились пізно. Коли вони зайшли
до квартири, то побачили, що всі вже сплять.

THE PAST SIMPLE TENSE

 Ex.3. Write the Past Simple of the following verbs Refer to the Table of Past Tenses –
Spelling.
Smile, argue, cancel, reply, plan, file, point, die, ship, wave, map, carry, lie, stop, use, relax, stay,
study, tie, cram, try, open, drop, hurry, step, borrow, drag, permit, refer, differ, control, hope,
hop, annoy.

Ex.4. Write the Past Simple of the verbs in the list below. Systematize them into three
groups according to the reading rules. Then, read the verbs out.
/d/ - після голосних та дзвінких приголосних – play-played
/t/ - після дієслів, які закінчуються на /k/, /s/, /ts/,/f/,/p/ – watch-watched
/id/ - після дієслів, які закінчуються на /t/ або /d/ – add- added

Wait, start, tape, explain, charm, smash, remind, hope, shout, rain, aim, happen, listen, tame,
laugh, help, wish, wave, visit, kiss, look, miss, enjoy, dive, crash, clean, jump, arrange.

Ex.5. Write the past forms of these irregular verbs.

Be, broadcast, burn, catch, choose, cost, cut, drive, eat, find, fly, get, have, meet, see, send, stand,
take, teach, think, wake, and write.

Ex.6. Fill in the blanks with a suitable verb in the correct form.
find, meet, burn, hit, choose, ride, begin, buy, lend, teach, fly, break, catch, cut

1. My friend lent me the sum of money I asked him for.

2. Larson _________a horse when he lived in the village.
3. The boys ________ the ball and ________ the window yesterday.
4. My group mate ________ the topic for the course paper last week.
5. The Browns ________ to Paris on holiday last year.
6. She ________ her school mate at the theatre last night.
7. The wooden hut ________ fire and ________ last summer.
8. George ________ the latest model of Nissan last month.
9. She ________ the ring she had lost at the wedding ceremony.
10. Father ________ his son to drive last summer.

Ex.7. The main forms of the following verbs are often misused.
beat — beat — beaten lay — laid — laid
bite — bit — bitten lie — lay — lain
feel — felt — felt lie — lied — lied
fall — fell — fallen rise — rose — risen
find — found — found raise — raised — raised
found — founded — founded saw — sawed — sawed
hang — hung — hung sew — sewed — sewn
hang — hanged — hanged sink- sank-sunk
draw — drew — drawn stick — stuck — stuck
withdraw — withdrew — withdrawn strike — struck — struck
 Answer the questions using the above mentioned verbs.
“When did they sink the submarine?” –“They sank it a month ago.”
1. When did they lay the table? 2. Where did they hang the picture? 3. When did they
withdraw the troops from the country? 4. When did they raise the workers’ wages? 5. Where
did they find the manuscript? 6. When did they found the museum? 7. When did they draw
up the contract? 8. When did they lay off the workers? 9. When did they ring the bell?
10. When did the clock strike? 11. When did they find the new workers? 12. When did they
feel bad? 13. Why did they lie to us? 14. When did the dog bite you? 15. When did they saw
the branches? 16. When did you sew the dress?

Ex.8.Put the verbs in brackets into the correct forms of the Past Simple.
John had a bad day. It happened to him exactly as one humorous rhyme says:
He (oversleep) and (miss) his train,
(Slip) on the sidewalk in the pouring rain.
(Sprain) his ankle, (skin) his knees,
(Break) his glasses, and (lose) his keys.
So, when he (get) home, he (look) angry.

Ex.9. Choose suitable time expressions and put them in the correct position.

yesterday, a week ago, last month/ week/ year, two years ago, an hour ago, on Tuesday/ Friday/
Sunday, in 2012

1. I went to the office by taxi.

2. They signed the contract.
3. They cut their living expenses by half.
4. Mr. McKinley founded this hotel.
5. The prices fell down sharply.
6. This purchase cost us a fortune.
7. Our company sold this building to our partners.
8. The BBC broadcast the match live from Paris.
9. Jimmy flew to Amsterdam on business.
10. Luckily, my friend lent me some money.
11. The students of my group flew to California.
12. His assistant came at 12 o’clock.
13. They started this company.
14. Mary and Jane bought absolutely similar cars.
15. His HR manager taught him how to behave at the interview.

Ex.10. Rewrite the sentences in the negative. Look at the example provided.
1. My brother found his watch. – My brother didn’t find his watch.
2. You jumped high. – ______________________.
3. Albert played squash. – ______________________.
4. The teacher tested our English. – ______________________.
5. Fiona visited her grandma. – ______________________.
6. He washed the car. – ______________________.
7. You were thirsty. – ________________________.
8. She forgave her husband. - __________________.
9. He had a computer. – ______________________.
10. I bought bread. – __________________________.
11. You saw the house. – ______________________.

Ex.11. Write questions in the Past Simple.

Model:
you / walk / the dog –Did you walk the dog?
1. she / home / get – ____________________________?
2. Anna / the window / open
3. you / in the garden / work – ______________________?
4. you / a song / sing – ____________________________?
5. she / on a chair / sit – ___________________________?
6. you / the castle / visit – __________________________?
7. Jenny / the door / lock – _________________________?
8. she / happy / be – _______________________________?
9. Greg / the ball / kick – ___________________________?
10. the car / at the corner / stop – ______________________?

Ex.12. Put the verbs in brackets into the most suitable form (affirmative, negative or
interrogative). Make other necessary changes.
1. The construction of the business centre ________ (start) a month ago.
2. It ________ (be) bitterly cold yesterday. I ________ (not put) on my warm coat and I ________
(catch) a cold.
3. The postman ________ (bring) the morning mail only at 12 o’clock.
4. I ______(see) you the other day coming out of the library with a stack of books.
5. We ________ (have) a picnic yesterday, but the rain ________ (spoil) the whole pleasure.
6. You ________ (go) to the Crimea when you ________ (be) a child?
7. As soon as I came up, they _______ (get) into the taxi and _______ (go) away.
8. What places of interest you ________ (see) when you ________ (be) in Italy?
9. Every winter Nick ________ (go) to the Swiss Alps to ski.
10. He ________ (come) in, ________ (take) off his hat, ________ (move) a chair to the table and
________ (join) the conversation.
11. When he ________ (arrive)? The plane was delayed and he ________ (come) two hours later.
12. How much your bag ________ (cost)? – I ________ (pay) $200 for it.
13. When Valerie worked late, Carl always _________ (walk) her home.

Ex.13. These statements may have inaccurate information. If you don’t agree with them,
respond in the negative and give accurate information.
Model:
Agatha Christie was a very popular Australian writer.
– No, she wasn’t. She was a very popular English writer.
1. You started learning English last year.
2. Michelangelo painted the Mona Lisa.
3. You worked part-time in a bank last year.
4. Shakespeare wrote detective stories.
5. Abraham Lincoln was the first president of the USA.
6. Michael Jackson died at the age of 60.
7. Merriam and you studied at the library together yesterday.
8. You went on holiday to the Canary Islands last summer.
9. You saw “The Titanic” at the weekend.
10. Uma Thurman starred in the film “Pretty Woman”.

Ex.14. Make up questions to the phrases below, using most suitable time references from
the box. Give short and full answers. Your sentences must be in the Past Simple.
two hours ago, a few years ago, yesterday, last afternoon, last night, last Saturday, in your/my
childhood, after breakfast/dinner, for her birthday

Model:
Meet a friend at the theatre.
- Did you meet your friend at the theatre yesterday?
- No, I didn’t. I met him in the café.
1. Hear it on the news.
2. Live in the house around the corner.
3. Go to London on business.
4. Take a long walk after lectures.
5. Negotiate the contract with your partners.
6. Borrow some money from your friend.
7. Find a new friend at University.
8. Have a cup of coffee before work.
9. Take the book back to the store.
10. Get a very tempting offer.
11. See a person who is very generous.
12. Send your Mother a dozen roses.

Ex.15. Make up 10 tag questions, using phrases in Ex. 12. Give short answers.
Model:
You lived in the house around the corner.
- A few years ago you lived in the house around the corner, didn’t you?
- Yes, I did. /No, I didn’t.

Ex.16. Read the text. Fill in the gaps with proper auxiliary verbs to complete the questions
following the text.
People used to get water mostly from streams, lakes and rivers. Then cities started growing.
This brought many people to one place. They needed more water for their homes and factories.
Sometimes it didn’t rain for a long time. Then the rivers had very little water left. People
learned to save water for these dry times. They built places in which they stored water. They
called these places reservoirs.
 Reservoirs hold water until people in cities need it. Large pipes carry water from reservoirs
to the city. People also get water from wells.
Years ago, people lifted water out of wells in buckets. This was hard work and took a long
time. Now they pump the water up. The pump makes it easier for people to get water where they
want it.
1. Where _______ people use to get water from?
2. What _______ started growing?
3. Why _______ the rivers have very little water left?
4. What _______ people learn to do for the dry times?
5. What _______ people build to store water?
6. How long _______ reservoirs hold water?
7. How ______ people lift water out of wells years ago?
8. How long ______ it take them to lift water out of wells?
9. What ______ the way to get water now?
10. _______ the pump make it easier to get water they want?

used to / would + infinitive

Ex.17. Stella has found a new job and her life has changed. Look at the chart below and
write what she used to or didn’t use to / never used to do in the past.
Some time ago Now
She worked as a school teacher. She works at the university.
She lived in a small town. She lives in the capital.
She lived in a small house. She lives in a big flat.
She didn’t get up early. She gets up very early.
She didn’t earn much money. She earns a lot of money.
She walked to get to work. She drives her car to work.
She had a dog. She has a dog and two cats.
She didn’t have good neighbours. She has very nice neighbours.
She didn’t have a family. She has a husband and two daughters.
She never travelled. She travels with her family a lot.

Ex.18. Think of suitable verbs to complete the sentences. Look at the example provided.
1. There used to be a very good public library here. Now there isn’t any. We
have to go either to the University library or to the National Library in the city centre.
2. Customers didn’t use to ______ shopping from home.
3. I used to ______ in that house over there.
4. The Moody Blues used to ______ very popular when I was young.
5. We used to _______ a piano, but we sold it.
6. I used to _______ to the cinema a lot, but I never get the time now.
7. I used to ______ that he was really intelligent but I've changed my mind.
8. He used to ______ a lot of money but he lost it all investing in Web sites.
9. In the 1950's English people used to ______ to the radio much more than they do now.
10. My sister didn’t use to ______ out much, but now she’s never at home!
11. Did she use to _______ in Australia when she was a child?
12. What time did you use to ______ to bed when you were a student?
 13. Did you use to _______ long hair?
14. Did you use to _______ much money on clothes, when you were young?

Ex.19.Say what you used to do but now you don’t. Use but now…, but not any more, but not
any longer to make a contrast between the past and the present. Two sentences are given to
you as an example.
Model:
I used to like eating hamburgers, but I can’t stand them now.
I used to dislike Colin but I often see him now, and we are good friends.
You may use the following prompts: watch the BBC news, be very punctual, study at school,
go skating every winter, have a dog, play the piano, drink coffee, spend a lot of money on
clothes.

Ex.20. Complete these sentences with used to or would.

Notice that would is not used with state verbs (be, have, dislike, etc.)
I ______ live in a small house in the country when I was a little girl. I ______ get up every day
at 7.30 because I lived not far from school. My grandmother ______ get our breakfast ready
because my parents ______ start their work very early. Then my father ______ drive me to
school. The lessons ______ start at 9.00. We stayed at school till 4 p.m. because I ______
participate in a lot of after-school activities. In the afternoon I ______ walk home alone because
father didn’t pick me up. He ______ work late in the office. My parents ______ work a lot but
now they are pensioners and spend a lot of time with their grandchildren.

Ex.21. Translate into English using used to or would to express repeated actions or states in
the past.
1. Я раніше користувалась комп’ютерним центром. Зараз я маю свій ноутбук.
2. Ви поїдете на роботу на машині? – Навіть не знаю. Раніше я їздила на машині, а зараз
вона часто ламається.
3. Раніше ми були добрими друзями, але зараз ми бачимось дуже рідко.
4. Вона раніше дуже рідко носила окуляри, бо вважала, що вони їй не пасують.
5. Мої сусіди раніше жили в маленькому містечку.
6. Ми , бувало, зустрічали свято з нашою великою сім’єю. Зараз багато з нас живуть в
різних містах.
7. Коли мені було 14 років, ми жили у Львові. Зараз ми живемо в Полтаві.
8. Я прибирав свою квартиру сам, коли жив один. Зараз це робить моя дружина.

Ex.22. Correct the mistakes if there are any.

1. I lay the papers on your table.
2. In 1994, Christian Rucker aged 24, got out of magazines and started her own business – she
found The White Company.
3. Ron worried that he might lose his job.
4. How much they paid you last month?
5. He used to lay awake worrying about work.
6. For some reason, they canceled their tour to New Zealand.
7. Did you used to eat a lot of sweets when you were a child?
8. She hanged a picture on the wall.
9. Do you feel that he chose the wrong career?
10. She lied on the sofa because of a severe migraine headache.
11. As the summer was very dry, the apples felt down from the trees.
12. There was a party on Friday at your house, wasn’t it?

Ex.23. Translate into English.

1. Мій брат вивчав менеджмент в університеті.
2. Я раніше часто грав у теніс, а тепер я не маю часу.
3. Коли ти переїхав до Києва? – Близько п’яти років тому.
4. Прибутки компанії різко впали в 2012 році.
5. Директор провів нараду з керівниками відділів, а потім поїхав у відрядження до Вени.
6. Нам не сподобалась п’єса, тому ми пішли раніше.
7. Ми часто, бувало, писали листи один одному, зараз же, в основному, надсилаємо
текстові та електронні повідомлення.
8. Секретарка поклала листа на стіл та вийшла з кабінету.
9. Де ти був учора ввечері? Я дзвонив тобі десять разів.
10. Я не працював у четвер, у мене був вихідний.
11. Рік тому назад ціни на цю продукцію виросли вдвічі.
12. Ви добре провели вихідний у Львові? – Так, ми оглянули майже всі визначні місця
цього чудового міста.
13. Самий старий ресторан в світі відкрився в Китаї в 1153 році.
14. Вчора по телебаченню була дуже цікава передача про економічну ситуацію в світі. Ти
дивився її?
15. Уряд підвищив податки минулого року.

THE PAST CONTINUOUS

Ex 24. Match the beginning of each sentence in column A(1-11) with its ending in column B
(a-k) and add when (suddenly) to complete the phrase. Look at the example provided (11-
k).
I was going to bed when suddenly I heard a strange noise.
A B
1. Jane was walking home a. he fell off the ladder.
2. John was painting a picture b. she cut her finger.
3. Mr Drill was driving to the c. their ball broke a window.
airport
4. She was chopping potatoes d. the teacher entered the room.
5. Dan was climbing the tree e. a branch broke.
6. We were having a picnic f. he spilled the paint.
7. Jill was sleeping g. the wind blew her hat off.
8. The children were playing h. his car broke down.
football
9. He was painting the bedroom i. the telephone woke her up.
10. The students were talking j. it started raining.
11. I was going to bed k. I heard a strange noise.
 Ex.25. Put the verbs in brackets into the Past Continuous.
1. Yesterday at six, John _______ (drive) to the airport.
2. While Clara _______ (have) lunch in the canteen, Jane and Vicky _______(talk) to a customer.
3. I _______ (prepare) the invoice, when my computer crashed.
4. When we _______ (sit) in the meeting, Joseph suddenly got an idea.
5. The secretary _______ (correct) the document, they _______ (discuss) the solution to the
problem.
6. Tracy and her colleague _______(walk) to the office, when it suddenly started to rain.
7. During the week of the conference I _______ (stay) at a nice B&B.
8. Where you _______(stay) at during your business trip in London?
9. Who _______ (do) my job while I was in hospital?
10. I ________ (just leave) the office when they arrived.

Ex.26. Ask questions to the words in bold, as in the example below. The first one is given to
you as an example.
1. At half past seven, we were signing a contract. – What were you doing at half past seven?
2. When Charlie was driving home he saw a motorcycle accident.
3. Robert looked out of the window. Ricky was still waiting for Holly.
4. Everything happened so unexpectedly. Mrs. Rich was speaking on the phone, I was sorting out
the papers, and he was standing over there by the window.
5. I saw Grace in the garden. She was watering flowers singing softly to herself.
6. He turned on the TV; the match hadn’t started yet. Players from both teams were signing
autographs.
7. They resigned when we were launching a new product.
8. Yesterday afternoon while I was shopping, I lost my wallet.
9. While she was cooking you were all watching television. (tag question)

Ex.27. Ask questions of all possible types (general, who/what/why-questions, tag questions,
etc.) to the following sentence:
We were developing a new market campaign, when we heard news of a takeover bid.

THE PAST SIMPLE versus THE PAST CONTINUOUS

Ex.28.Put the verbs in brackets into the correct tense form: the Past Simple or the Past
Continuous. Compare and analyze the sentences, and elicit the difference.
1. She __________ (to cook) dinner yesterday.
2. She __________ (to cook) at three o'clock yesterday.
3. She __________ (to cook) from two till four yesterday.
4. I __________ (to read) a very good book last month.
5. I __________ (not to read) at five o'clock.
6. I __________ (not to read) when you came in.
7. Susan __________ (to pass) her exam two days ago.
8. Susan __________ (to pass) her exam at this time yesterday.
10. Pete __________ (to work) in the garden yesterday.
11. Pete __________ (to work) in the garden at five o'clock yesterday.
12. Where Pete __________ (to work) when I came to see him?
 13. My sister __________ (to wash) the dishes after dinner yesterday.
15.My sister __________ (to wash) the dishes at eight o’clock yesterday.

Ex.29. Choose the correct tense form to complete the sentences.

1. I saw a light in your window as I passed/was passing by.
2. Yesterday as I was walking down Cherry Lane, I met/ was meeting Frank, an old friend of mine.
3. Lucy’s elder sister said that she went/was going to enter Leeds University.
4. While my daughter waited/was waiting for my call, somebody knocked at the door.
5. We just talked/were talking about her when she suddenly came in/was coming in.
6. Yesterday while Dad shaved/was shaving, he cut/ was cutting himself slightly.
7. They quarreled/were quarrelling while they washed /were washing the car.
8. I sat/was sitting by the window when I heard/was hearing a strange noise from the street.
9. At six o’clock I waited/was waiting for Jenifer at the station.
10. It rained/was raining heavily as I walked/was walking towards their house.

Ex.30. Complete the following sentences by putting the verbs in brackets into the correct
tense, either the Past Simple or the Past Continuous. Look at the example provided.
1. When I arrived the lecture had already started and the professor was writing
(write) on the blackboard.
2. Helen ________ (live) in Athens when she ______ (meet) the man who was to become her
husband.
3. We suddenly ________ (realize) that we ______ (walk) the wrong direction.
4. While you _______ (lie) on the beach, we ________ (work) in the office.
5. The phone _______ (ring) again and again. Mary nervously _______ (pick) it up and ______
(put) it down again.
6. The BBC_______ (broadcast) the talk of our President last night.
7. He ________ (sell) his shares last week because their value _______ (fall down) very
quickly.
8. Arnold ______ (look) out of the window. It ______ (be) another dreary day.
The wind ______ (blow) hard and big black clouds ________ (gather) on the horizon.
9. The burglar _______ (open) the safe when he ______ (hear) footsteps.
10. I ______ (not listen), so I missed what you said.
11. When I _______ (see) him he ______ (paint) the roof of his house.
12. Tracy _______ (eat) dinner when someone _______ (knock) on the door.
13. Yesterday, Steve ________ (work) on his report all day long.

Ex.31. Choose an appropriate phrase from the box below and complete each sentence (1-6).
I was just leaving the office, he was thinking about resigning, she was just discussing something
with her friend, he was visiting his business partners, the company’s funds were running out, the
deadline was coming soon.
1. We decided to bring the project to a close because ______________________ .
2. Our financial manager cut down on bonuses because ____________________ .
3. My partner sold his shares in business because ______________________ ___.
4. He didn’t come to the office all week because __________________________ .
5. I didn’t see when the president of the company arrived because ____________ .
6. She didn’t answer the telephone because ______________________________ .
 Ex.32. Read the sentences (1-12) and identify the tenses. Then match them to the correct
descriptions (a – f).
a. an action which happened at a definite time in the past
b. past habits
c. actions which happened immediately one after another
d. two or more simultaneous actions
e. an action which was in progress when another action interrupted it
f. to describe the atmosphere in the introduction to the story before we describe the
main events

1. We were walking in silence when suddenly she asked me to help her.

2. They used to wake up at 6 a.m. when they lived in a suburb.
3. The day was marvelous. The sun was shining, the birds were singing. So we decided to go for a
walk.
4. We visited Paris last year.
5. Miss Brown’s telephone was ringing while she was typing the report.
6. I lit the candle, opened a window and nodded to him.
7. Mary dropped two cups when she was washing up last night, but neither of the cups broke.
8. She got on the train, entered the compartment and showed her ticket to the guard.
9. I was walking along the street watching what was going around me. Fast cars were going in
both directions and it was impossible to cross the road.
10. I bought this dress at our nearest shopping mall two weeks ago.
11. When I was at school, I used to wear a uniform.
12. Why weren’t you listening to me when I was speaking?

Ex.33. Choose the best option.

1. While I ________ for him to call up, he ________ a good time at the party.
a. waited b. was waiting c. have waited
a. have b. had c. was having
2. She ________ this exercise yesterday at 5 o’clock.
a. has written b. wrote c. was writing
3. He ________ me to the party yesterday.
a. has invited b. was inviting c. invited
4. I ________ my exam on economics an hour ago.
a. passed b. have passed c. was passing
5. He ________ a book two days ago.
a. read b. has read c. was reading
6. They ________ this film on Sunday.
a. have seen b. saw c. were seeing
7. She ________ the picture when I came.
a. painted b. has painted c. was painting
8. I ________ my report when the General Manager entered the meeting room.
a. made b. have made c. was making
9. They ________ the new words yesterday from three till seven.
a. learnt b. were learning c. have learnt
10. It ________ this week.
a. rained b. has rained c. was raining

Ex.34. After three months of looking for work, Cathy was at last called for an interview.
Complete the following extract from her interview by putting the verbs in brackets into the
correct past tense form.
Interviewer: So how long ______ you _______ (work) for that company?
Cathy: About two years.
Interviewer: And what ______ you _______(do) while you ______ (work) there?
First, I _______ (take part) in the project of investigating their
Cathy: motivation problems.
It sounds interesting. And what _______ the results _______ show?
Interviewer: I can’t really say anything definite. While we ________ (process) the
results, the company ______ (decide) to postpone the project for some
Cathy: time later.
I see. _____ you ______ (move) on to another project?
Yes. But again, as soon as our team ______(start) the project, serious
Interviewer: problems ______(arise). While we _______(develop) a new working
Cathy: model, the funds for the program ______ (stop). So, I ________ (decide)
to leave them and make a fresh start. That is why I’m here.

Ex.35. Correct the mistakes if there are any.

1. The sun raised at 6.30.
2. When Tom came home, his wife cooking dinner.
3. Tim hurt his foot when he was playing football.
4. I couldn’t answer your call. I worked in the garden then.
5. I was going to phone you later, but it slipped my mind.
6. Ali has bought a very expensive car a month ago.
7. Alice was cleaning the house all morning.
8. Do you remember the things we used to do when we were kids?
9. Hilary chose to ignore the doctor’s warning.
10. While Richard drove to Yellowstone National Park he met a deer on the road.
11. How he damaged his car so badly? – I don’t know exactly, but I’m sure he was driving too fast.
12. In1888, George Eastman has introduced the first Kodak camera.
13. At midnight, I still worked at a computer though I was feeling ill.

Ex.36. Translate into English.

1. Вчора я отримала по факсу дуже цінне/важливе повідомлення про злиття (the merger)
наших компанії.
2. Коли я увійшов до аудиторії, студенти все ще обговорювали доповідь.
3. Я раніше плавала кожен день. Зараз плаваю лише тричі на тиждень.
4. Одрі Хепберн знялася (to star) не в багатьох фільмах, але залишила незабутній слід в
історії кіно.
5. Фільм, який я вчора бачила дуже вразив мене.
6. Поїзд наближався до станції. Пасажири стояли біля вікон та махали (to wave) капелюхами.
7. Аманда закінчила університет, отримала гарну пропозицію та стала менеджером великої
міжнародної компанії.
8. Секретарка друкувала доповідь, коли увійшов директор та поклав папери на стіл.
9. Минулого року ми з сім’єю відвідали Історичний музей.
10. Джесіка готувалась до іспиту, в той час, як Яків дивився аналітичну програму по
телевізору.
11. Колись мама пекла великий торт мені на день народження. Зараз ми купуємо торти в
супермаркеті.
12. Коли ми купались в озері, Мері готувала нам обід.
13. Це був ясний літній ранок. Вона сиділа в кафе в центрі Парижу і пила свою ранкову каву.
14. Вони саме будували цей міст, коли я був тут минулого року.
15. Всі спокійно читали, коли раптово двері відчинились і увійшов незнайомець.

THE PAST SIMPLE versus THE PRESENT PERFECT

Ex.37. Choose the correct tense, either the Past Simple or the Present Perfect.
1. Dan Brown, an American author of thriller fiction, best known for the 2003 bestselling novel
‘The Da Vinci Code’has so far written/wrote so far seven books, with two being adapted to
cinema.
2. Agatha Christie has written /wrote a lot of brilliant detective novels.
3. TheKrugers lived/have lived inGermany for five years, and then they moved/have moved to
Austria. Theylived/have lived in Vienna for three years now.
4. My uncle has worked/worked as a banker for 25 years. Then he retired.
5. I wrote/have written a letter but I cannot send it. My computer is disconnected.
6. Did you have/have you had your breakfast? – Yes, I have had/had it at 7.30.
7. Jane went/has gone to Canada a year ago. She has worked/worked in Toronto for a while and
then went/has gone to the United States.
8. He didn’t smoke /hasn’t smoked for three months. He wants to give it up.
9. Help yourself to a piece of cheese cake! I just baked /have baked it.
10. I was in/have been to London several times.

Ex.38.In the following sentences put the verbs in brackets in either the Past Simple or the
Present Perfect. Look at the example provided.
1. Last night I saw (see) “This Means War” at the cinema. –
Oh, I have already seen(see) it twice.
1. I see you’ve got a new car. When _________ (buy) it?
2. _______ (read) any books by Wilbur Smith? – No, I don’t even know this author.
3. She ________ (work) for a big law firm for 30 years. Then she retired.
4. You ____ (be) here before? –Yes, I ____ (spend ) my holidays here last year.
5. You ________ (find) the money which you ________ (lose) yesterday ? – Yes, I have. I ______
(find) it in the pocket of my coat when I ______ (come) home.
6. How long you ________ (know) him? – We ________ (meet) in 1996, but we ________ (not
see) each other since last summer.
7. Who________ (invent) the television?
8. They say scientists ______ (discover) a new planet.
9. I ________(leave) working for Hendersons four years ago. Then I _____(work) for Jacobs for a
while, and then I ______ (join) this company. I _______(work) here for three years.
10. Isabel ________ (move) into her new house a month ago, but I _____ (not, visit) her yet.

Ex.39.Complete the sentences with the appropriate option.

1. When ________________ the company?
a) have you joined
b) did you joined
c) did you join
d) have you ever joined
2. ___________________ in Pakistan?
a) Did you ever worked
b) Have you ever worked
c) Worked you
d) Didn't you have worked
3. That's the best presentation ______________________ .
a) I never heard
b) I didn't hear
c) I used to hear
d) I've ever heard
4. He's the most difficult customer _____________________.
a) I never dealt with.
b) I never had to deal with.
c) I've ever had to deal with.
d) I've never had to deal with.
5. ___________________ to him last week.
a) I spoke
b) I've already spoken
c)I didn't spoke
d) I spoke
6. ______________ a binding contract last year and it is still valid.
a) We have signed
b) We signed
c) We haven't signed
d) We have sign
7. The reason I look so brown is that _______________ from a business trip to Barbados.
a) I come back
b) I came back
c) I never came back
d) I've just come back
8. Sales ________ in 1995 but then _____ in 1996.
a) rise fall
b) rose fell
c) have risen have fallen
d) rose have fallen
9. You ____________ to a word ____________ .
 a) listened I haven't said
b) didn't listen I say
c) listened saying
d) haven't listened I've said
10. It's obvious that ________________ this report.
a) you haven't read
b) you didn't read
c)you don't read
d)you read not

Ex.40. Correct the mistakes if there are any.

1. John is so happy. He graduated from University!
2. When have you graduated from University?
3. One of the worldwide best-selling novelists, Wilbur Smith wrote more than
thirty successful novels. Now, he is working on a new book.
4. Sir Isaac Newton invented calculus.
5. Don’t worry about the letter. I have posted it the day before yesterday.
6. It seems to me that I lost my glasses! I can’t find them anywhere.
7. You’re so absent-minded. By the way, have you found the gloves that you lost
last week? – No, I bought a new pair the other day.
8. Have you got any money? –Yes, I borrowed it from my brother.
9. Are you tired? –Yes, a little. I painted the ceiling today.
We haven’t seen Peter this week, but we have seen him a couple of weeks ago.