IV. Test

1. Выберите из колонки справа по смыслу слова, пропущенные в предложениях.⁵

1)Businesses aim to … these needs and wants by producing goods and services. 2) When food is produced, … are used up. 3)A business may be considering three investment options but can only … one. 4)The benefit lost from the next best … is called the opportunity cost of the choice. 5)There are not enough resources to satisfy all consumers … and wants. 6)In a household economy the family budget is … on a range of goods and services. 7)The function of an economy is to allocate scarce resources amongst … wants. 8)In less developed countries the decision about what to … is simpler. 9)The way in which goods and services are produced can …. 10) Resources are … relative to needs and wants.

a)afford b)alternative c)needs d)produce e)provide f)research g)resources h)satisfy i)scarce j)spent k)unlimited l)vary

2. Выберите существительное, которое может следовать за данным глаголом.

1)to solve a)changes 2)to use up a)resources

b)problems b)assumptions

c)productions c)economies

3)to organize a)quality 4)to provide a)choice

b)activity b)service

c)validity c)enterprise

5)to answer a)options 6)to buy a)needs

b)portions b)wants

c)questions c)goods

2. Выберите из приведенного списка термины, соответствующие данным определениям.

1) Means of supplying a want. 2) A thing that is or may be chosen. 3) The benefit lost from the next best alternative. 4) Practical science of the production and distribution of wealth. 5) Amount produced by manufacture, mining, labour etc. 6) Annual estimate of revenue and expenditure. 7) Money paid for commodities or services.

a) cost b) budget c) economics d) opportunity cost e) option f) output g) resource

Unit 2

I. Information for study. Text a

Прочтите следующую информацию и запишите на полях основные термины, связанные с тематикой текста.

MARKET ECONOMIES

In MARKET ECONOMIES (also known as CAPITALIST ECONOMIES or FREE ENTERPRISE ECONOMIES) resources are allocated through markets.

The role of government in a free market system is limited. Its main functions are:

• To pass laws which protect the rights of businesses and consumers and punish offenders;

• To issue money and make sure that the monetary system operates so that markets work efficiently;

• To provide certain essential products and services that would not be provided by firms, such as policing, national defence and the judiciary;

• To prevent firms from dominating the market and to restrict the power of trade unions. These activities will restrict competition and affect the workings of the market.

What to produce. This decision is often made by consumers. Businesses will only produce goods if consumers will buy them and so firm must identify consumers’ needs and respond to them. Firms which produce unwanted products are likely to fail.

Resources will be used to produce those goods and services which are profitable for businesses. If consumers buy more of a particular product prices will tend to rise. Rising prices will attract firms into that industry as they see the chance of profit. For example, in recent years, new firms have set up supplying accommodation for the elderly, to exploit rising demand as the population ages in the UK.

As demand for out of date and unwanted products falls their prices will also fall. Firms will leave these industries due to a fall in profit. They will sell unwanted resources like land, buildings and equipment and make labour redundant. These resources will be used by other businesses. For example, many cinemas have closed down due to a lack of demand. Some of the buildings used as cinemas have been bought by other businesses and used as bingo halls, night clubs or supermarkets.

How to produce. In market economies businesses decide this. Businesses aim to make a profit. They will choose productions methods which reduce their costs. Competition in business forces firms to keep prices low. Consumers will prefer to buy their goods from firms which offer lower prices, although other things such as quality will also influence them.

How are goods and services allocated? Firms produce goods and services which consumers purchase with money. The amount of money consumers have to spend depends on their income and wealth. In market economies individuals own the factors of production. For example, workers earn wages from selling their labour. Owners of capital receive interest, owners of businesses receive profits and owners of land receive rent. All of these can be spent on goods and services. Those individuals with the most money can buy the most products.

In practice there are no pure market economies in the world. However, some countries such as the USA, Japan and Hong Kong have economies which possess many of the characteristics of market economies.