Vocabulary focus

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

Споживати товари та послуги; традиційна економіка; за умови конкуренції; ринок визначає ціну продукту; насправді куплений чи проданий; не досить лише просто хотіти чи бажати предмет; домашнє господарство; преференції споживача; пересічний громадянин; мати значний вплив на ринок; суть ринкової економіки; справжній попит; відображення попиту та пропозиції; розподіл ресурсів; альтернативнівитрати; бути проданим за певною ціною;ринкова рівновага; наявність замінників; предмет необхідності для споживачів.

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

To have the power to influence or set price; the operation of supply and demand; the amount of goods and services; to show the ability to pay; consumer preferences; to weigh heavily; to maximize utility; to end up with the best combination; at the other side of; the smallest unit of supply; to make selling decisions; the amount available for sale; the amount purchasers are willing to buy; one of the most fundamental concepts; to be a reflection of; in the most efficient way possible; to show an upward slope; two opposing forces shape the market; fluid equilibrium in a standard market; to be at equilibrium; the percentage change; to vary among products; to be elastic due to availability of substitutes.

Ex.3. Give three forms of the following verbs. Find the sentences with these verbs in the text.

Have, let, mean, buy, pay, show, sell, know, underlie, go, forgo, meet, give, get, understand, become.

Ex.4. Make up noun+noun or adjective+noun collocations (there may be several variants).You can add other word collocations. Give examples either from the text or of your own.

Economic, conventional, decision-making, consumer, demand, market, supply, opportunity, upward, percentage, quantity

Choices, preference, economics, unit, economy, cost, slope, change, relationship, units, demanded.

Model: economic choices

e.g. All societies necessarily make economic choices.

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

1.	demand	a	is the relationship between price and quantity demanded
2.	supply	b	states that the higher the price, the higher the quantity supplied
3.	demand relationship	c	is the amount available for sale or the amount that sellers are willing to sell at a specified price
4.	supply relationship	d	is the correlation between price and how much of a good or service is supplied to the market
5.	utility	e	is response of supply and demand to various factors
6.	the Law of Demand	f	is one in which changes in price witness only modest changes in the quantity demanded or supplied
7.	the Law of Supply	g	is some sort of compromise on the price and quantity of goods sold: the market price is the price at which buyers are willing to buy the same number of goods that sellers are willing to sell
8.	elasticity	h	is when all buyers will try to make themselves as happy as possible, by spending what money they have in the best way possible
9.	inelastic good or service	i	refers to the buying behaviour of a household
10.	market equilibrium	j	states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good

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

The buying behaviour, by way of, which is analogous, the price of a product, would continue buying, weigh heavily, the opportunity cost, to maximize their utility, the amount of a product, in a standard market.

1. For conventional economics, the market answers these questions _____________ the operation of supply and demand.

2. The market determines _____________ , and the price determines what is produced, and who can afford to consume it.

3. In microeconomics,demand refers to _____________ of a household.

4. Consumer preferences _____________ in a household's buying decisions.

5. All buyers will try _____________ , that is, make themselves as happy as possible, by spending what money they have in the best way possible.

6. The quantity demanded is ________ people are willing to buy at a certain price.

7. In microeconomics, the smallest unit of supply is the firm, _____________ to the demand unit of the household.

8. Because supply and demand can shift and change, equilibrium _____________ is also fluid, responding to changes in either market force.

9. Products that are necessities are more insensitive to price changes because consumers _____________ these products despite price increases.

10. A price increase of a good or service that is considered less of a necessity will deter more consumers because _____________ of buying the product will become too high.

Ex.7. Complete the following sentences with prepositions or adverbs.

1. ___ conditions ___ competition, the market determines the price ___ a product.

2. ___ microeconomics,demand refers ___ the buying behavior ___ a household.

3. Each household, or small-scale decision-making unit, is affected ____ different factors when making choices ____ what to buy and how much to buy.

4. ____ the other side ____ every transaction is a seller.

5. ____ considering both their preferences and their budget, the buyers ensure that they end up ____ the best combination ____ goods possible.

6. Because the household is such a small unit, no household has a significant impact ____ the market, and so the actions ____ any single household is its best effort to react ____ the market price and the goods available.

7. The correlation ____ price and how much ____ a good or service is supplied ____ the market is known as the supply relationship.

8. ____ other words, the higher the price, the lower the quantity demanded.

9. Buyers want to buy ____ many goods ____ possible, ___ cheaply ___ possible.

10. When supply and demand are equal, the economy is said to be ___ equilibrium.

Ex.8. Choose and combine two parts logically to make complete sentences.

1.	Under conditions of competition, where no one has the power to influence or set price,	a	is known as the supply relationship.
2.	If all three conditions are not met	b	no household has a significant impact on the market.
3.	Because the household is such a small unit	c	some products may be more essential to the consumer.
4.	Economists refer to the behavior of sellers	d	then the demand is not real.
5.	The correlation between price and how much of a good or service is supplied to the market	e	if a slight change in price leads to a sharp change in the quantity demanded or supplied.
6.	Producerssupplymoreat a higherprice	f	because they have few if any substitutes.
7.	A good or service is considered to be highly elastic	g	in which changes in price witness only modest changes in the quantity demanded or supplied.
8.	Elasticity varies among products because	h	as the market force of supply.
9.	An inelastic good or service is one	i	the market (everyone, producers and consumers together) determines the price of a product.
10.	Unique goods such as diamonds are inelastic	j	because selling a higher quantity at a higher price increases revenue.

Ex.9. Read the text and choose the best option.

The supply/demand theory (1) ________ the paradox of inessential-but-expensive diamonds and cheap-but-essential water. The supply-and-demand theory tells us that diamonds are highly priced because they are (2) ________. There are objectively (3) ________of them relative to demand. If diamonds were as (4) _______ as gravel we would use them to pave our garden walks. More precisely, the (5) ________ point in the market for diamonds is reached at a high price per ounce. Recall that at the equilibrium point the supply and demand curves the paradox the quantity demanded (6) ________ the quantity supplied. Diamonds become more (7) ________ to produce as more are produced. Consequently, the supply curve slopes up: producers want a higher price (to cover their (8) ________ cost) if they have to produce more. The price is in equilibrium determined at the (9) ________ of supply and demand. Given the unique supply/demand circumstances in this market (people badly want diamonds and diamonds are costly to produce) the intersection (10) ________ at a high price. If the demand curve were to fall back towards the origin, the price would fall.

1. a) solves b) decides c) manages d) proves

2. a) deficit b) scarce c) rare d) seldom

3. a) little b) few c) many d) much

4. a) common b) typical c) useful d) particular

5. a) equality b) proper c) equilibrium d) necessary

6. a) equals b) is c) will be d) becomes

7. a) expensive b) precious c) valuable d) costly

8. a) raising b) increasing c) rising d) improving

9. a) intersection b) point c) place d) interaction

10. a) happens b) becomes c) is d) occurs

Ex.10. Look through the text again and replace the words /phrases in italics with similar ones.

1. Society needs to make choice what should be produced, how it will be produced, and who is allowed to buythose products.

2. The market answers these questions by means of supply and demand.

3. In microeconomics, demand refers to the way in which groups of people living together buy goods.

4. Each household or asmall organization is influenced by different factors.

5. Consumer preferences influence a household’s buying decision to a greatextent.

6. All buyers want to make the best use of the usefulness of a product.

7. Supply and demand is the chief support of the system of market economy.

8. The relationship between demand and supply is the basis of the forces behind the allocation of resources.

9. People naturally avoid buying a product that will refrain them from buying something else they value more.

10. Two opposing forces of demand and supply form the market.

Ex.11. Translate into English:

1. Суспільствуслідробитивибірщодо того, щовиробляти, як слід виробляти товари та послуги, та хто може споживати ці товари та послуги.

2. Преференції споживача дуже впливають на купівельне рішення сім’ї.

3. Попит та пропозиція завжди рівносильні, оскільки кількість куплених товарів дорівнює кількості проданих товарів.

4. Фірми працюють незалежно одна від одної, вирішуючи, що продавати та скільки продавати, залежно від ціни.

5. Саме сукупні сили попиту та пропозиції створюють ринкову економіку.

6. Попит та пропозиція є, можливо, однією з найголовніших концепцій економіки та основою ринкової економіки.

7. Ціна є відображенням попиту та пропозиції.

8. Кажуть,що ринкова рівновага настає, коли попит та пропозиція є рівними.

9. Продукти першої необхідності менш вразливі до ціни, тому що споживачі будуть продовжувати купувати їх незважаючи на зростання ціни.

10. Еластичність відрізняється серед різних продуктів, оскільки деякі продукти можуть бути більш важливими для споживача.