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A Market Economy: Self-interest and Competition. The term market economy refers to the fact that





The term market economy refers to the fact that ... exists and the

market forces of supply and demand determine the ... of goods and ser-

vices. Through the price ..., the forces of supply and demand determine

what will be produced, what ... of goods and services will be produced,

and who will … the goods and services. When products are ... or in short

supply, prices are high and wealthier ... are better able than poorer people

to afford them. When a produce ... such as beets is not in great demand,

the price for this item is ... . Thus, in a market economy price allocates

... goods and services by determining who will get them. The basic prin-

ciple reads: when the price of a good or service is low, buyers are willing

to buy more of it (... is high). Suppliers’ … to prices is opposite to that

of buyers: the lower the market price, the less suppliers are willing to sell

(... is low). In a market economy, if the quantity brought to the market is

... to supply consumers’ ..., the economy will create a ... market price.

11. Fill in the gaps with the necessary prepositions.

1. You should pay for the goods … 30 days. 2. If we concentrate … the

problem, we will find the solution. 3. The results of his work do not com-

pare … those of the average employee. 4. It can be done only … certain

conditions. 5. Their control … the marketplace is insignificant. 6. Have

you investigated the demand … this product? 7. They cannot influence

… the situation. 8. Our products are known … … the borders of the coun-

try. 9. What price have you charged … our new TV set? 10. Their policy

will lead … the failure, I’m afraid. 11. She asked them … financial sup-

port but they refused. 12. We work … maximizing our profit. 13. I don’t

want you to interfere … my business. 14. Their influence … her is enor-

mous. 15. We can’t rely … his information because we have no factual

evidence. 16. Refer … some other sources of information. 17. They are

not concerned … production. They are distributors.



12. Give the Russian equivalents to the following words and word-com-

binations.

Social standing; economic reasoning; costs and benefits; decision in-

volves opportunity costs; commonly agreed-upon goals; fail to provide

the highest standard of living; capital goods; subject matter of econom-

ics; data handling; monitor the performance of the economy; to encour-

 


 

 

age growth; motivated by the quest for profit; economic rewards; cast a

mold; substitute products; consecutive quarters; sustainable rate; actual

output; most used economic measure, shadow economy, the degree of

competition, competitive market structure.

13. Give the English equivalents to the following words and word com-

binations.

Тенденция продолжается; приемлемо ли определенное поведе-

ние; влияет на экономическое решение; оставить эмоции в сторо-

не; как ресурсы размещены в пределах одной отрасли; имеющие-

ся альтернативы; неограниченные потребности; незанятое обо-

рудование; немногие привилегированные живут в роскоши; с эко-

номической точки зрения; создает и является владельцем бизне-

са; держать под контролем; конкурирующие фирмы; назначить це-

ну; состояние экономики; доходы от внешнеэкономической дея-

тельности

14. Translate the following ‘noun+noun’ word-combinations.

Demand curve, time period, capacity utilization, target capacity

utilization rate, sales volume, market structure, export oil, oil export,

capital investment, investment capital, monopoly control, monopoly

superprofits, unemployment figures, market conditions, unemployment

benefit, services price, price index, services price index, world market,

world market prices, world market cotton prices, world market cotton

prices index.

15. Explain the meaning of the following terms in your own words.

Supply, demand, economic institution, opportunity costs, inputs,

output, labour, laissez-faire, pure competition, target unemployment

rate, exports, totals, bartering goods, monetary value, trough, recession,

boom, depression.

16. Match the halves

1. Economy is

2. Economics is

3. Learning economic reasoning

4. Opportunity costs are

5. Resources refer to anything

6. Demand is

7. Supply is

8. Economic competition often leads

9. Pure competition exists

10. Industries with only one producer

11. Making the right prediction can

12. Whatever is not consumed in the country

 


 

 

13. Policymakers use GNP

a. that can be used to manufacture products.

b. to lower prices and the introduction of differentiated products.

c. determine whether the business will be profitable or not.

d. can be sold to other countries as exports.

e. to forecast trends and to analyze the economy’s performance.

f. when there are no barriers to competition.

g. are called monopolies.

h. means learning how to think as an economist.



i. willingness and ability to purchase goods and services.

j. a community’s system of wealth creation.

k. social science concerning behaviour in the fields of production,

consumption, distribution, and exchange.

l. providing of what is needed.

m. benefit lost by not employing an economic resource in the most

profitable alternative activity.

17. Think of the situations where you can use the following idioms.

work against time; work body and soul; work hand in hand; work

one’s finger to the bone; work one’s heart out; work round the clock;

play a trick on somebody; play for time; play hardball; play one’s cards

right; play it safe; play one’s ace; play the game; a fair play

18. Open the bracket, using the correct verb form.






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