1. Excess Supply

If the price is set too high, excess supply will be created within the economy and there will be allocative inefficiency. The suppliers are trying to produce more goods, which they hope to sell to increase profits, but those consuming the goods will find the product less attractive and purchase less because the price is too high.

2. Excess Demand

There are too few goods being produced to satisfy the wants (demand) of the consumers. However, as consumers have to compete with one other to buy the good at this price, the demand will push the price up, making suppliers want to supply more and bringing the price closer to its equilibrium.

Task 7

Choose the correct preposition

1. I came ___time to hear him speak.

a) on

b) in

c) at

2. We offer free advice _____ financial planning.

a) on

b) at

c) no preposition

3. We offer free _____financial planning advice.

a) on

b) at

c) no preposition

4. We'll help you develop your business idea _____an award winning enterprise.

a) into

b) to

c) toward

5. How many people are ____ your team?

a) behind

b) on

c) in

6. It's always best to focus more ____quality than ___quantity.

a) with

b) on

c) in

7. He doesn't really know much ______ mapping out processes.

a) in

b) around

c) about

8. Despite ____all this, I think that it's a good idea to pursue this course of action.

a) in

b) of

c) no preposition

9. We're committed _____providing you with the best possible service.

a) in

b) to

c) at

10. Many mistakes were made _____the past year.

a) in

b) on

c) for

11. We specialize in providing solutions _____ your specific needs.

a) for

b) to

c) on

Task 8

Match a line in A with a line in B (as in the text)

A	B
amount of to push the price up to sell at certain to increase fluctuations market upward to remain to satisfy to produce more	revenue goods slope constant wants a good the consumption price economy up

Task 9

Match the definitions:

to demand consumption quantity revenue to release to satisfy constantly allocative efficiency excess

the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expense to fulfill the desires, expectations, needs, or demands of (a person, the mind, etc.); give full contentment to the using up of goods and services having an exchangeable value situation in which the limited resources of a firm are allocated in accordance with the wishes of consumers to set free from confinement, restraint, or bondage an amount or quantity beyond what is normal or sufficient; a surplus to ask for urgently or peremptorily steadily; continually; perseveringly; without cessation; uniformly a particular or indefinite amount of anything

Task 10

Find the Russian equivalents to the following English words and word combinations

demand curve opportunity cost to increase revenue in fact certain price to produce more goods to change constantly backbone of economy to complete 10 supply and demand

a) на самом деле b) основа, суть экономики c) постоянно изменяться d) конкурировать, соревноваться e) предложение и спрос f) производить больше товаров g) альтернативные издержки h) определенная цена i) увеличить доход j) кривая спроса

Task 11

Match up the words which have an opposite meaning

curve to compete exactly the same supply change revenue upward slope previous to reflect 10. push

downward slope stability lack pull debt line to absorb different to cope j) next

Task 12

Match up the words which have a similar meaning

to forgo to concern to state to buy to occur to receive to be willing to do to consume attempt 10 suppliers

to sell to get to be relevant to buyers effort to absorb to refuse to happen to show j) to have a strong desire

Task 13

Give the Russian equivalents to the following

quantity demanded; to remain equal; to purchase at a higher price; to forgo the consumption; correlation between something; higher price; at the intersection of; excess demand; to push the price up

Task 14

Form the necessary parts of speech

VERB	NOUN		ADJECTIVE	NOUN
----	supplier		----	nature
reflect	----		----	production
----	demand		efficient	----
correlate	----		----	demand
----	analysis		real	----
allocate	----		----	nature
consume	----		----	force
value	----		----	value

Task 15

Form the new words by using the following suffixes and prefixes

-er; -ship; -tion; -ly; un-; -ence; -ment; -less

consume; exact; buy; relation; demonstrate; produce; allocate; refer; move; attract; constant; high; price; like

Task 16

Read and translate the following sentences paying attention to the meaning of the words and word combinations given below

a) certain - один, некоторый, постоянный, определенный

to be certain of - быть уверенным в

1. I was certain of my decision.

2. Certain people are good at playing bridge.

3. I am certain he will come.

4. I know that I felt absolutely shattered, and I am certain that everyone on the other ships must have felt the same

5. A director of a company may in certain circumstances be made liable for the debts of the company of which he is a director.

b) unlike - непохожий на, в отличие от, неодинаковый, противоположный

1. They contributed unlike sums to charity.

2. She is unlike my sister in many ways.

3. Their humor was not unlike; they were kindred spirits, together almost constantly.

4. Temptations, unlike opportunities, will always give you second chances.

c) as - как. такой же, потому что

as…as - такой же как и

1. The child sang as sweetly as a nightingale.

2. The hotel is quite comfortable as such establishments go.

3. The sun is hot, as everyone knows.

4. They considered it as one of the landmark decisions of the civil rights movement.

5. The measure was deemed as unnecessary.

d) to cause - быть причиной, вызывать, обусловливать

cause -причина, мотив, повод

1. What is more, the underlying cause is well understood.

2. This is still the root cause of all the unhappiness in the world today.

3. Provision for pupils under five is a cause for concern.

4. A cause may be inconvenient, but it's magnificent. It's like champagne or high heels, and one must be prepared to suffer for it. (Bennett)

5. The doctor's report gave no cause for alarm.

6. The moderator invoked a rule causing the debate to be ended.

7. “He is not only dull in himself, but the cause of dullness in others” (Samuel Foote).

8. The good news was a cause for rejoicing.

9. They made common cause with neighboring countries and succeeded in reducing tariffs.

e) same - то же самое, тот же самый, одинаковое, тот же, аналогичный

the same - одинаковый, один и тот же

1. This street is the same one we were on yesterday.

2. These are the same rules though differently worded.

3. The words sale and sail are pronounced the same.

4. Jesus Christ the same yesterday, and today, and forever. (Bible. (New Testament)

5. It's all the same to me whether our team loses or wins.

f) too - очень, слишком, также

1. She wasn't too pleased with his behavior.

2. He's only too willing to be of service.

3. It wasn't too long ago that deregulation was being hailed as the savior of the savings and loan industry.

4. It was not too bright of them to build in an area where rock slides occur.

5. It was just too delicious!

Task 17

Translate into English

1. В результате взаимодействия спроса и предложения устанавливается рыночная цена. Графически она фиксируется в точке пересечения кривой спроса и кривой предложения. Эта точка называется точкой равновесия, а цена равновесной. Если рынок находится в равновесии, то равновесная цена находится в той точке пересечения кривой спроса и кривой предложения, что означает, что количество товара, которое покупатели хотят и могут приобрести, точно совпадает с количеством товара, которое продавцы хотят и могут предложить. При несовпадении спроса и предложения, наблюдает либо дефицит, либо избыточное предложение.

2. Изменение величины спроса означает перемещение из одной точки на кривой спроса в другую, то есть, переход от одной комбинации «цена – количество» к другой комбинации. Причиной таких изменений является изменение цены на данный товар. Снижение цены на товар ведет к возрастанию спроса на этот товар и, наоборот, увеличение цены на товар ведет к уменьшению спроса.

3. Графическое изображение шкалы предложения называется кривой предложения. График наглядно демонстрирует взаимосвязь цены и величины предложения. Одним из основных элементов кривой предложения являются издержки производства. Если производственные затраты ниже рыночной цены, то производителю выгодно поставлять на рынок больший объем товара, т.е. величина предложения растет.

4. Коэффициент ценовой эластичности предложения – это показатель, характеризующий, на сколько процентов изменится предложение товара при изменении его цены на 1%.

5. В отличие от коэффициента эластичности спроса, показатель эластичности предложения имеет положительную величину (при условии, что кривая предложения направлена вверх). Причина состоит в том, что цена и величина предложения изменяются (увеличиваются или уменьшаются) в одном направлении.

6. Спрос, предложение и цена являются основными элементами рынка. Весь комплекс их многомерных связей и взаимодействий образует рыночный механизм. Это механизм соединения продавцов и покупателей через формирование спроса на благо и предложения блага.

7. Кривая спроса (demand curve) - графическое отображение взаимосвязи между рыночной ценой товара или услуги и тем количеством, которое по этой цене будут спрашивать покупатели.

На графике спрос представляется убывающей кривой, отражающей тот факт, что по мере снижения цен на товары и услуги количество их покупок возрастает.

8. Закон спроса и предложения — объективный экономический закон, устанавливающий зависимость объёмов спроса и предложения товаров на рынке от их цен. При прочих равных условиях, чем цена на товар ниже, тем больше на него платёжеспособный спрос (готовность покупать) и тем меньше предложение (готовность продавать). Обычно цена устанавливается в точке равновесия между предложением и спросом. Закон окончательно сформулирован в 1890 году Альфредом Маршаллом.

9. Спрос - это количество товара, которое потребители готовы и желают приобрести за одну цену, на данном рынке, на протяжении данного периода. Величина спроса - количество товара или услуг определенного вида и качества, которое покупатель желает купить по данной цене в течение определенного периода времени. Величина спроса зависит от доходов покупателей, цен на товары и услуги, цен на товары-субституты и комплементарные блага, ожиданий покупателей, их вкусов и предпочтений.

10. Кривая спроса - графическое отображение взаимосвязи между рыночной ценой товара или услуги и тем количеством, которое по этой цене будут спрашивать покупатели. На графике спрос представляется убывающей кривой, отражающей тот факт, что по мере снижения цен на товары и услуги количество их покупок возрастает.

Task 18

Answer the following questions:

1. What is the “demand relationship”?

2. What does the downward slope of the demand curve show?

3. What does the Law of Demand show?

4. What does the Law of Supply show?

5. How do supply and demand relate?

6. When does equilibrium occur?

7. What is the difference between excess demand and excess supply?

8. Is it possible to avoid/escape disequilibrium?

9. In what type of economy does the law of demand/supply work?

10. When we collect data on price and quantity, how do we know we have identified a supply curve or a demand curve?

Text B

Shifts vs. Movement

Task 19

Read the text to yourself and be ready for a comprehension check-up

For economics, the “movements” and “shifts” in relation to the supply and demand curves represent very different market phenomena:

1. Movements  A movement refers to a change along a curve. On the demand curve, a movement denotes a change in both price and quantity demanded from one point  to another on the curve. The movement implies that the demand relationship remains consistent. Therefore, a movement along the demand curve will occur when the price of the good changes and the quantity demanded changes in accordance to the original demand relationship. In other words, a movement occurs when a change in the quantity demanded is caused only by a change in price, and vice versa. Like a movement along the demand curve, a movement along the supply curve means that the supply relationship remains consistent. Therefore, a movement along the supply curve will occur when the price of the good changes and the quantity supplied changes in accordance to the original supply relationship.

2. Shifts A shift in a demand or supply curve occurs when a good's quantity demanded or supplied changes even though price remains the same. Shifts in the demand curve imply that the original demand relationship has changed, meaning that quantity demand is affected by a factor other than price. A shift in the demand relationship would occur if, for instance, beer suddenly became the only type of alcohol available for consumption.

The degree to which a demand or supply curve reacts to a change in price is the curve's elasticity. Elasticity varies among products because some products may be more essential to the consumer. Products that are necessities are more insensitive to price changes because consumers would continue buying these products despite price increases. Conversely, a price increase of a good or service that is considered less of a necessity will deter more consumers because the opportunity cost of buying the product will become too high.

A good or service is considered to be highly elastic if a slight change in price leads to a sharp change in the quantity demanded or supplied. Usually these kinds of products are readily available in the market and a person may not necessarily need them in his or her daily life. On the other hand, an inelastic good or service is one in which changes in price witness only modest changes in the quantity demanded or supplied, if any at all. These goods tend to be things that are more of a necessity to the consumer in his or her daily life.

To determine the elasticity of the supply or demand curves, we can use this simple equation:

ELASTICITY =(% change in quantity : % change in price)

If elasticity is greater than or equal to one, the curve is considered to be elastic. If it is less than one, the curve is said to be inelastic. As we mentioned previously, the demand curve is a negative slope, and if there is a large decrease in the quantity demanded with a small increase in price, the demand curve looks flatter, or more horizontal. This flatter curve means that the good or service in question is elastic.

Elasticity of supply works similarly. If a change in price results in a big change in the amount supplied, the supply curve appears flatter and is considered elastic. Elasticity in this case would be greater than or equal to one.

On the other hand, if a big change in price only results in a minor change in the quantity supplied, the supply curve is steeper and its elasticity would be less than one.

Task 20

Copy out the dominant noun/verb/adjective for each part and find the words associated with them in meaning.

Task 21

Read each paragraph and find the sentence(s) that reveal(s) the idea of the title

Task 22

Copy out the topic sentence in each paragraph

Task 23

a) By comparing the words containing -ing form, state their function

b) State the idea(s) involved in the sentence(s) beginning with because

Task 24

Answer the questions:

1. What does the movement imply and when does it occur?

2. What does the movement along the supply curve mean?

3. When does a shift occur?

4. What is the difference between a shift in a demand curve and a supply curve?

5. What is elasticity?

6. Is elasticity the same among products?

7. Give the definition of elastic and inelastic goods.

8. What does the flatter curve mean?

Task 25

Make a plan to retell the text.

Task 26

Write a brief summary of the text. Use the following key-patterns:

It is expected that… Advances are described In comparison with… In this connection, I’d like to say… Finally the author/experts come to the conclusion that…

а) Предполагают, что… b) Описываются преимущества…. c) По сравнению с… d) В этой связи хотелось бы сказать… e) В заключение автор/ эксперты приходят к заключению, что…

Task 27

Points for discussion

1. Must equilibrium be stable? Is equilibrium a phenomenon we observe in the real world?

2. Is there a freely traded commodity for which you think the laws of supply and demand are inappropriate?

3. Is it possible for a demand curve to slope upward? Can you construct an example?

4. Is the firm ever in equilibrium? Is equilibrium a useful concept?

5. Are the laws of supply and demand at work in the offering of courses at your university? If not, why?

6. Is it possible for a demand curve to slope upward? Can you construct an example?

7. The market demand curve is an aggregation of individual demand curves. Should product definition and geographic considerations enter into this aggregation?

8. Distinguish between a “change in demand” and a “change in quantity demanded”.

UNIT 4

Price has to be paid for success. Almost invariably

those who have reached the summits worked harder

and longer, studied and planned more assiduously,

practiced more self-denial, overcame more difficulties

than those of us who have not risen so far.(B.C.Forbes)

PRICE

Pre-reading tasks

Task 1

Practice the reading of the following words

ceiling ['si:lɪŋ] liquor ['lɪkə] hamburger ['hæmbɜ:ɡə] interference [̗ɪntə'fɪərǝns] government ['ɡʌvnmənt]

shortage ['ʃɔ:tɪdʒ] resolve [rɪ'zɒlv] involve [ɪn'vɒlv] scalper ['skælpə] obvious ['ɒbvɪəs] expect [ɪk'spekt] interfere [̗ɪntə'fɪə] equilibrium [̗i:kwɪ'lɪbrɪəm]

occasionally [ə'keɪʒnǝlɪ] accessory [ək'sesərɪ] manufacture[mænjυ'fæktʃǝrə] artificial [̗ɑ:tɪ'fɪʃǝl] associate [ə'səυʃɪət] automobile ['ɔ:təməbi:l] apartment [ə'pɑ:tmənt]]

Task 2

Make sure you can read these words correctly and say what words in the Russian language help you (to) guess their meaning:

person; limited; determine; options; rent; common; associated; familiar; equilibrium; interfere; result; refrigerator

Task 3

Give the initial forms of the following words:

occurs; rises; was; sold; cities; associated; getting; caught; actually; less; lower; owner; goes; repaired

Task 4

Learn to recognize the following international words:

product; percent; gas; sport; problem; gasoline; accessories; dealer; regulate; transactions

Task 5

Read and translate the following words paying attention to the stress displacement:

art - artificial; government - governmental; problem - problematic; resolve - resolution; popular - popularity; electrical - electricity; reduce - reduction

Text A

PRICE

Task 6

Read the text and be ready to do the exercises.

The most obvious cost a person bears in buying a product is the price of the product. Price reflects cost because people have a limited amount of funds that they can spend, and if they spend their money on one thing, they cannot spend it on another. When the price of a product goes up, the amount of other things that a person must give up in order to buy the product rises. The amount of income a person receives affects the cost of buying an item because it determines which options a person must give up when buying a product.

Price Ceilings

One interference with the market process is called a price ceiling. A price ceiling occurs when the price is artificially held below the equilibrium price and is not allowed to rise.

Price ceilings lead to shortages.

Shortages create a rationing problem --- somehow, it must be determined who will get the product and who will not. There are many ways to resolve the problem of shortages. (1) The most common way to resolve the shortage problem is first-come, first-served. Shortages are typically associated with long lines. (2) Another common way to resolve the problem of shortages is for the sellers to choose which buyers they will sell to. Landlords often rent to preferred renters. (3) A third way to resolve the problem of shortages is by lottery. Those who pick the right numbers are allowed to buy. (4) And a fourth way to resolve the problem of shortages is to have the government make the choice of buyer.

Price ceilings provide a gain for buyers and a loss for sellers. Sellers would like to avoid the loss if they can. One way to do so is called a black market. In this case, the sellers illegally raise the price and hope to get away with it. So, for example, tickets to popular events are sold by scalpers at high prices. While there are many other examples, black markets are not smart; it is just too easy to be caught. It is also not smart because of the existence of gray markets. A gray market is a way of getting around the price ceiling without actually doing anything illegal. There are two forms of gray market. One form of gray market involves charging for goods or services that were formerly provided free. The second form of gray market is to provide less service for the same price.

Price Floors

A price floor exists when the price is artificially held above the equilibrium price and is not allowed to fall. There are many examples of price floors. In some cases, private businesses maintain the price floor while, in other cases, it is the government that maintains the price floor. One price floor that was maintained by the private businesses used to be called “fair trade”. In the case of fair trade, the manufacturer would set a price for the product that was above the equilibrium price. The manufacturer then told the retail stores that the price could not be lowered or the store would not be able to sell any of the manufacturer's products.

There were many ways to solve the problem of surpluses. Occasionally, a store simply broke the manufacturer's policy. The store lowered the price to get rid of the surplus. The manufacturer had threatened that the store would be prohibited from selling the manufacturer's product; the store either believed that the manufacturer would not carry out the threat or did not care.

More likely, stores would try to get around the price floor without actually violating it. One common solution was to provide more service for the same money. Stereo stores could add free CDs or other free accessories. Washing machine stores used to virtually give away the dryer. Gas stations gave away glasses, knives, and Blue Chip Stamps. A second solution was to simply absorb the surplus. Your textbook producers would have a surplus of textbooks. At the end of each edition, the books would be returned to the publisher and the paper was recycled. A third solution was to change the name of the product in order to reduce the price. Surplus liquor was bottled with a different label and sold as Slim Price or Yellow Wrap at a lower price. Surplus washing machines and refrigerators were sold, for example, to Sears and marketed as Kenmore at a lower price. When automobiles were fair-traded, the dealers could not lower the price; however, they would give a trade-in value that was much greater than the trade-in car was actually worth. The main point here is that, even if someone interferes with the market process, there are powerful forces to return to equilibrium.

Task 7

Choose the correct preposition

1. These solutions are tailor-made _____ your needs.

a) for

b) to

c) on

2. We're not really interested _____this type of cooperation.

a) on

b) at

c) in

3. This is the best-selling product ____ the market.

a) on

b) in

c) over

4. Our products are available all _____the world.

a) in

b) around

c) about

5. I'm very happy that you're considering me ____this position.

a) about

b) in

c) for

6. The research is moving _____( = progressing) well.

a) along

b) around

c) about

7. It'll be a while ____we start being profitable.

a) until

b) for

c) before

8. ______the end of next year, we will have made $100,000.

a) By

b) Until

c) In

9. These candy bars account _________________ about 70% of our sales.

a) to

b) from

c) for

10. I take a lot of pride ______ this company .

a) of

b) in

c) on

11. Our air conditioners cost around $1,000, ____our competitors' air conditioners cost at least $2,000.

a) since

b) for

c) while

Task 8

Match a line in A with a line in B (as in the text)

A	B
to buy to determine to interfere trade-in high price gray independent problem 10. to provide	ceiling service dealer market of shortage income value options the process j) the product

Task 9

Match the definitions:

obvious item shortage ceiling to resolve market equilibrium surplus accessories interfere

to come to a definite or earnest decision about; determine to do something an amount or a quantity in excess of what is needed. a subordinate or supplementary part, object, or the like, used mainly for convenience, attractiveness, safety, etc., as a spotlight on an automobile or a lens cover on a camera; an article or set of articles of dress, as gloves, earrings, or a scarf, that adds completeness, convenience, attractiveness, etc., to one's basic outfit an open place or a covered building where buyers and sellers convene for the sale of goods to come into opposition, as one thing with another, esp. with the effect of hampering action or procedure easily seen, recognized, or understood; open to view or knowledge; evident a condition that exists when demand exceeds supply because of a lack of equilibrium in a market a state of rest or balance due to the equal action of opposing forces. separate article or particular: 50 items on the list; a separate piece of information or news, as a short piece in a newspaper or broadcast the overhead interior surface of a room;. the top limit imposed by law on the amount of money that can be charged or spent or the quantity of goods that can be produced or sold.

Task 10

Find the Russian equivalents to the following English words and word combinations

the problem of shortage rent controls retail store artificially held to get rid of surplus obvious cost allowed by law to resolve the problem 9. to break the policy 10. to affect the cost

решить проблему нарушить курс, политику проведения чего- либо разрешенный законом влиять на стоимость очевидная стоимость регулирование арендной платы магазин розничной торговли проблема нехватки чего-либо i) избавиться от излишка товара j) искусственно удерживаемый

Task 11

Match up the words which have an opposite meaning

to avoid income to maintain cause occasionally to allow obvious to repair surplus 10. to resolve

consequence, effect, end obscure, vague needing, lacking to ignore, to neglect to reject, to refuse to face, to seek breaking, harm debt, expenses constantly, frequently j) to question, to wonder

Task 12

Match up the words which have a similar meaning:

to maintain amount to low to hope value to give up form tenants to involve 10. to return

to reduce assessment appearance, framework to give to keep going, to support detriment, disadvantage, or deprivation from failure to keep volume, chunk to abandon, to back down j) to anticipate

Task 13

Give the Russian equivalents to the following:

the price goes up; to expect people to buy; different set of options; imposed by sellers; common way; to pick the right numbers; to provide free; to reduce the price; to interfere the market process; powerful resources

Task 14

Form the necessary parts of speech

ADJECTIVE		NOUN		VERRB	NOUN
----		art		determine	----
problematic		----		prefer	----
popular		----		choose	----
private		----		----	service
productive		----		maintain	----
----		law		solve	----
regular		----		----	----
certain	----			affect	building
vacant	----			----	----
----		product		prevent	associate
different		----		prohibit	----

Task 15

Form the new words by using the following suffixes and prefixes:

-less; -ment; -er; -ation; re-; -ly; over-; -ance; il-; -full; sur-; un

determine; price; garden; govern; own; create; arrange; like; do; maintain; legal; power; plus; easy

Task 16

Read and translate the following sentences paying attention to the meaning of the words and word combinations given below:

a) to expect - ждать, ожидать, рассчитывать, полагать, предполагать

1. It is expected that students and staff will make reasonable efforts to resolve matters at the outset.

2. Students can reasonably expect their own rooms to be places where their individual preferences are respected and not ignored.

3. If you do not expect the unexpected, you will not find it; for it is hard to be sought out, and difficult.

4. As I know more of mankind I expect less of them, and am ready now to call a man a good man, upon easier terms than I was formerly. (Johnson, Samuel known as Dr Johnson).

5. "We should not expect something for nothing—but we all do and call it Hope" (Edgar W. Howe).

b) to be guilty - провиниться, быть виновным, преступный

1. He was found guilty on four counts of illegally providing immigration advice.

2. Fines are reduced in cases where guilty pleas are entered.

3. August 11, 1863 William Lilley, laborer of Clare pleaded guilty to stealing a tin bottle from William Gosling of Clare.

4. No-one shall be held guilty of any criminal offense for an action which was not a criminal offense at the time it was committed.

5. The guilty never escape unscathed. My fees are sufficient punishment for anyone. (Bailey, F(rancis) Lee)

6. The secret motive of the absent-minded is to be innocent while guilty. Absent-mindedness is spurious innocence. (Bellow, Saul)

c) fraud - обман, мошенничество, подделка, фальшивка, мошенник

1. That diet book is a fraud and a waste of time.

2. The damage that he seeks to recover must have flowed directly from the fraud perpetrated upon him.

3. Style is a fraud. I always felt the Greeks were hiding behind their columns. (de Kooning,Willem)

d) in line - в ряд, в соответствии с

to stand in line - выстроиться в ряд, стоять в очереди, стоять в ряд

1. Please stand in line for the pledge of allegiance.

2. I'm waiting in line at the bakery.

3. He's third in line to be president.

4. He's in line to be the fastest runner of all time.

5. He's in line to be the next champion.

6. The new policy was intended to keep prices in line with their competitors.

7. The children stood in line for their lunches.

e) way - путь , сторона, направление, метод, особенность

by the way - между прочим

by way of - посредством, в качестве

to give way to - уступать, поддаваться чему-либо, отступать

1. Democracy is not about numbers, it is a way of life.

2. It is in life as it is in ways, the shortest way is most commonly the foulest, and surely the fairer way is not much about.

3. The plan is defective in several ways.

4. By the way, have you received that letter yet?

5. He is by way of being an authority on the subject.

6. I gave way to my rage and ordered them from the house.

7. The army gave way before the advance of the enemy.

f) while - между тем как, тогда как, время. хотя, в то время как

for a while - на время, на некоторое время

once in a while - изредка

1. All you're supposed to do is every once in a while give the boys a little tea and sympathy. (Anderson, Robert Woodruff)

2. He was sleeping while I was singing.

3. This case, while interesting, is a bit frustrating.

4. The floor was strewn with books, while magazines covered the tables.

5. I send her a note once in a while to let her know I'm thinking of her.

6. The tired mother was happy to see the baby was quiet for a while.

g) actually - фактически , на самом деле, по существу

1. I actually won the lottery!

2. You may actually be doing the right thing by walking out.

3. She actually spoke Latin.

4. No one actually saw the shark.

5. Large meteorites actually come from the asteroid belt.

6. Actually, we all help clear up after a meal.

7. Actually, I haven't seen the film.

8. I'm not all that surprised actually.

9. She hasn't proved to be too satisfactory, actually.

10. The transmission screen shows the picture that is actually on the air

h) occasionally - изредка, порой, периодически, время от времени, случайно

1. He was arrogant and occasionally callous

2. Open areas are only occasionally interrupted by clumps of trees

3. They visit New York on occasion

4. Now and again she would take her favorite book from the shelf and read to us.

5. As we drove along, the beautiful scenery now and then attracted his attention

Task 17

Translate into English

1. Потребности различных групп общества приводятся в соответствие путем изменения (регулирования) цен на товары и ресурсы - труд, капитал(оборудование), землю.

2. Ваше решение о покупке на ленч гамбургера имеет непосредственное отношение к вопросу о рынках и ценах, поскольку, к примеру, повышение цен на мясо и, соответственно, переключение продавцов - владельцев кафе на более дорогие обеды может привести к тому, что вопрос «для кого производить» будет решаться в пользу других, более богатых потребителей.

3. По степени развитости этих и иных хозяйственных свобод рынки можно подразделить на три типа: свободный, нелегальный и регулируемый.

Первый тип рынка – свободный рынок. Он обладает максимумом экономических свобод в их классическом понимании, о котором сказано выше.

Между тем определение “свободный рынок” требует уточнения в двух отношениях: для кого он свободен и от кого. Свободным такой рынок является для его субъектов. Им принадлежит так называемый экономический суверенитет. Так, продавцы сами решают, что продавать, кому сбывать продукцию и по какой цене. Подобным суверенитетом обладают и покупатели. В силу этого экономические связи на классическом рынке строятся только по горизонтали. Между контрагентами (договаривающимися сторонами) складываются партнерские отношения на основе хозяйственного договора, контракта (соглашения, устанавливающего права и обязанности для обеих сторон на какой-то срок).

4. Рынок первого типа свободен от вмешательства государства и стро гого правового регулирования. Ради истины следует признать, что часто такая неограниченная свобода оборачивается своей неприглядной стороной. В наше время из-за своеволия субъектов рынка и несоблюдения ими правил игры этот тип рынка получил нелестные названия – “дикий”, “уличный”, “нецивилизованный.

5. Второй тип рынка – нелегальный – близок по характеру поведения его субъектов к первому типу. Но между ними имеются существенные различия. Нелегальный рынок включает в себя его разновидность – теневую торговлю. Она ведется с нарушением законов и правил купли-продажи обычных товаров (при отсутствии необходимых патентов, лицензий, при неуплате сборов, налогов и т.п.). Нелегальным является и “черный” рынок. На нем подпольно торгуют товарами, которые законом запрещено реализовывать (например, наркотики, оружие).

6. Рынок третьего типа – регулируемый, подчиненный определенному порядку, который закреплен в правовых нормах и поддерживается государством. Переход в ХХ в. к этому типу рынка обусловлен объективными причинами, которые вызвали тенденцию к усилению организованности и управляемости рыночных связей.

7. Наличие потолка цен приводит к сокращению количества предлагаемых товаров и услуг, образованию дефицита, который затем приводит к необходимости искусственного сокращения спроса на основе нормирования отпуска товаров через талоны, карточки. Конечным результатом установления потолка цен является выход предприятий из отрасли.

8. В условиях рыночных отношений одним из важных классификационных признаков цен является степень их свободы от регулирующего воздействия государства. Значительная часть цен является свободной, складывающейся на рынке под влиянием спроса и предложения независимо от какого-либо государственного влияния.

9. Регулируемые цены также формируются под влиянием спроса и предложения, но могут испытывать определенное воздействие государства. Государство может повлиять на цены путем прямого ограничения их роста или снижения. Государство в лице органов власти и управления может устанавливать на отдельные виды товаров и продукции фиксированные цены. В условиях рыночной экономики преимущественно действуют два вида цен: свободные и регулируемые.

10. Ценовая политика является одним из наиболее важных и наиболее гибких инструментов маркетинга, во многом определяющим уровень сбыта товаров и формирующим представление о нем в глазах потребителей

Task 18

Answer the following questions:

1. What is the function of the price?

2. What does the price mean?

3. When does the price ceiling occur?

4. What is/are the consequence(s) of price ceilings?

5. What are the ways to resolve the problem of shortages?

6. What does a price ceiling give to buyers and sellers?

7. What is the difference between a black market and a grey market?

8. What is a ‘’price floor’’?

9. Are surpluses connected with a price floor or a price ceiling?

10. What is/are the way(s) to solve the problem of surpluses?

Task 19

Read the text to yourself and be ready for a comprehension check-up.

Text B

FREE MARKET

A free market is a term that economists use to describe a market which is free from government intervention (i.e. no regulation, no subsidization, no single monetary system and no governmental monopolies). Within the ideal free market, property rights are voluntarily exchanged at a price arranged solely by the mutual consent of sellers and buyers. By definition, buyers and sellers do not coerce each other, in the sense that they obtain each other's property rights without the use of physical force, threat of physical force, or fraud, nor are they coerced by a third party (such as by government via transfer payments) and they engage in trade simply because they both consent and believe that it is a good enough choice. Price is the result of buying and selling decisions en masse as described by the law of supply and demand. Free markets contrast sharply with controlled markets or regulated markets, in which governments directly or indirectly regulate prices or supplies, which according to free market theory causes markets to be less efficient. Where government intervention exists, the market is a mixed economy. In the marketplace the price of a good or service helps communicate consumer demand to producers and thus directs the allocation of resources toward consumer, as well as investor, satisfaction. In a free market, price is a result of a plethora of voluntary transactions, rather than political decree as in a controlled market. Through free competition between vendors for the provision of products and services, prices tend to decrease, and quality tends to increase. A free market is not to be confused with a perfect market where individuals have perfect information and there is perfect competition.

Free market economics is closely associated with laissez-faire economic philosophy, which advocates approximating this condition in the real world by mostly confining government intervention in economic matters to regulating against force and fraud among market participants. Some free market advocates oppose taxation as well, claiming that the market is more efficient at providing all valuable services of which defense and law are no exception, that such services can be provided without direct taxation and that consent would be the basis of political legitimacy making it a morally consistent system.

While some economists regard the free market as a useful if simplistic model in developing economic policies to attain social goals, others regard the free market as a normative rather than descriptive concept, and claim that policies which deviate from the ideal free market solution are 'wrong' even if they are believed to have some immediate social benefit.

In political economics, one opposite extreme to the free market economy is the command economy, where decisions regarding production, distribution, and pricing are a matter of the state. Other opposites are the gift economy and the subsistence economy. The mixed economy is intermediate between the position of a planned economy and market economy.

In social philosophy, a free market economy is a system for allocating goods within a society: purchasing power mediated by supply and demand within the market determines who gets what and what is produced, rather than the state. Early proponents of a free-market economy in 18th century Europe contrasted it with the medieval, early modern, and mercantilist economies which preceded it.

Task 20

Find the sentences connected with price, market, demand

Task 21

Find the sentences revealing the idea of competition

Task 22

Single out the most characteristic feature(s) of free market.

Task 23

Read each paragraph and find the sentence(s) that reveal(s) the idea of the title

Task 24

Copy out the topic sentence in each part of the text.

Task 25

a) Translate the sentences(s) containing rather…than

b) State the function of -ing words.

Task26

Answer the questions:

1. What does the word market mean?

2. What is the opposite to a free market?

3. What is the difference between controlled and regulated markets?

4. What is the function of the price of a good in the marketplace?

5. A free market is a perfect market. Give pros and cons.

6. Does the free market lead to developing of economics of the country?

7. Does the free market occur in any type of economics?

8. What are positive and negative features of a free market?

9. What is the function of taxation in free market system?

10. What is the function of the government in free market system?

Task 27

Make a plan to retell the text.

Task 28

Write a brief summary of the text. Use the following key-patterns:

A mention should be made…	a) Следует упомянуть о…
2. It is reported…	b) В тексте говорится о….
3. The difference between… and… is given	c) Дается разница между…и…
4. It should be stressed (emphasized) that…	d) Следует отметить, что…
5. The text is of interest to…	e) Текст интересен …

Task 29

Points for discussion

1. What are the likely effects of incorrect price ceilings and price floors?

2. Does your firm distinguish between classes of customers in the price it charges for a particular product? Who does make this distinction? Why?

3. What is the role of information in market structure determination? Does advertising make a market more competitive?

4. Explain why price discrimination is undesirable.

5. Can it be said that the market does a poor job of allocating resources between the present and the future?

UNIT 5

For every promise, there is price to pay.

(Jim Rohn)