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Task 1. Read and translate the text





It’s hard to imagine our lives without coins, banknotes and credit cards. Yet for most of human history people lived without money. For thousands of years human societies had very simple economies. There were no shops, markets or traders. There were no employers, paid workers or salaries. Today, we call this kind of economy the traditional economy, and in some parts of Asia, South America and Africa this system still exists.

People who live in a traditional economy don’t have money because they don’t need it. They live lives of subsistence. That means they hunt, gather or grow only enough food to live. There is almost no surplus in the traditional economy, and there is almost no property. Families may own simple accommodation but land is shared by all the tribe. Economic decisions are taken according to the customs of the tribe. For example, every family may need to give some of the crops they grow to the tribal leader, but keep the rest for themselves. They don’t do this because it makes economic sense. They do it because the tribe has always done it. It’s simply a custom.

Custom, also, decides what jobs people do in the traditional economy. People generally do the jobs that their parents and grandparents did before them. Anyway, there aren’t many jobs to choose from in the traditional economy. Men are hunters, farmers or both. The women’s place is at home looking after children, cooking and home-making. This division of labour between men and women is another characteristic of the traditional economy. Whatever the work is, and whoever does it, you can be sure it’s hard work. This is because traditional economies have almost no technology. Physical strength and knowledge of the environment are the tools for survival.

Like any other economic system the traditional economy has its benefits and drawbacks. Probably the biggest benefit is that these are peaceful societies. People consume almost everything they produce and own practically nothing. They are equally poor. For all these reasons war is almost unknown in these societies.



However people who live in traditional societies are among the poorest people in the world. Because custom decides what people do nothing in these societies ever changes. Because there is no technology, people depend on nature to survive. They have no protection from environmental disasters like droughts and floods. They are always in danger of hunger and disease.

But the traditional economy is in danger itself. There are only a few examples left on the planet. In 100 years from now it may have disappeared forever.

Task 2.Now read the text again and match each paragraph with the correct heading.

Paragraph 1………..

Paragraph 2 ……….

Paragraph 3 ……….

Paragraph 4 ……….

Paragraph 5 ……….

Paragraph 6 ……….

    1. Life without money
    2. The advantages of the traditional economy
    3. The future of the traditional economy
    4. The disadvantages of the traditional economy
    5. The importance of tradition
    6. Work in the traditional economy

Task 3. Read the text and do the following task.

You are the leader of a scientific expedition to the forests of Central Africa. You spend six months living with the Mbuti. Give a short presentation about your expedition.

Talk about:

why you went

why the Mbuti are important people to study

what the environment is like

the Mbuti lifestyle

their economic system

what we can learn from the Mbuti

Text

Pygmies are a race of people who live in the rain forest of Asia and Africa. Pygmies are famous for their height because adult pygmies stand only 1 metre 50 tall. But this is not the only reason why they are special. They are also special because they have some of the last traditional economies in the world.

The Mbuti are a pygmy tribe who live in the forests of central Africa. The heavy rain and warm temperatures of the forest make them a rich source of food. In fact, the Mbuti take everything they need from the forest, which is why they call it “mother”. Fruit, roots, mushrooms and meat make up their diet. Their houses, too, come from the forest. These are huts made from the branches of young trees and covered in leaves.



The Mbuti own almost nothing. Even their houses are temporary. When they can no longer find food, families will move to another part of the forest.

Usually the Mbuti men go hunting with bows and arrows. Sometimes hunting is done using nets. Then women help, too. Women build the houses and do the cooking. However, both the men and the women help to look after the children.

Because the forest is so rich in food, the Mbuti don’t spend much time hunting or collecting. Most of their day is spent in the tribal village singing, playing and telling stories.

  Text 2. The market economy

Task 1. Read and translate the text.

Have you ever walked through a busy street market? People push their way through crowds of others in order to reach the stalls first. The air is full of deafening shouts. Stall owners yell to advertise their goods. Buyers cry out their orders. It’s hard to imagine but behind this noisy confusion is a very logical economic theory: the market economy.

The market economy is sometimes called the free market. A free market is not controlled in any way by a government. It is also free from the influence of custom or tradition. In a free market the only reason why things are bought and sold is because there is a demand for them. Prices for goods and services are simply what people are prepared to pay. The market economy is not really controlled by anyone. It controls itself.

The street market where we began has many of the characteristics of the free market. Customers arrive at the market with a shopping list of things they need. They also come with an idea of how much they are prepared to pay. Stall owners sell what customers demand, and try to get the highest price they can for it. Supply and demand control what is on the market and how much it sells for. In the wider economy we are all customers and the stall owners are like companies.

The role of the company in the free market is to supply what people want. However companies need an incentive. The incentive is profit. There are two ways for companies to make a profit. The first way is to raise their prices. The second way is to reduce their production costs. And this brings us to two more features of the market economy: competition and technology.

Competition exists in a free market because, theoretically, anyone can be a producer. This means that companies have to compete with each other for a share of the market. Competition is good for consumers because it helps to control prices and quality. If customers aren’t happy with a product or service, or if they can’t afford it, they will go to a competitor.



Technology exists in a free market because producers need ways to reduce their costs. They cannot buy cheaper raw materials. Instead, they must make better use of time and labour. Technology is the use of tools and machines to do jobs in a better way. This helps companies produce more goods in less time and with less effort. The result: more profit.

People often think that most economies are free markets. However, at the macroeconomic level, a truly free market economy does not exist anywhere in the world. This is because all governments set limits in order to control the economy. Some governments set many limits, other governments set very few, but they all set some. For this reason, a true market economy is only theoretical. Nevertheless, many of the features of the market economy do exist in most societies today.

Task 2. Now read the text again and answer these questions in your own words.

  1. Who controls a market economy?
  2. Who decides what products are for sale in a free market?
  3. What do companies want?
  4. Why is competition a good thing?
  5. Why does technology exist in the market economy?
  6. Why are there no true market economies in the world today?

Writing

Write an essay comparing the traditional economy with the market economy. Discuss the advantages and disadvantages of each economy. Decide which is best in your opinion.

Remember, you should organize your ideas logically.

These phrases will help you: firstly, secondly, furthermore, however, on the other hand.

Paragraph 1

Introduce the subject by saying what a traditional economy is, and what a market economy is.

Paragraph 2

Say what the advantages and disadvantages of the traditional economy are.

Paragraph 3

Say what the advantages and disadvantages of the market economy are.

Paragraph 4

Conclude by saying what you think the best system is.

Write 200-250 words

II VARIANT

 








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