V. Discuss the following with your partner.

Here are some things that affect how a market operates. How important do you think each one is?

• the size of companies

• what products and services are like

• what information consumers and companies have about products

• ease of entry into the market for companies

• companies having the resources and technology they need Perfect competition is really only an idea. It almost never happens in

the real world. Why do you think this is? Can you think of any market that has perfect competition?

VI. Say what you have learned about:

• Influence of market structure on prices

• Competition of small companies

• Perfect and complete information for companies

Think and give extensive answers.

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Grammar exercises

VII. Translate the sentences. Practise the use of Modal Verbs (§ 14).

1. Sometimes the government has to impose trade barriers to protect domestic producers. 2. Developing his strategy a retailer ought to choose the most convenient location for his store. 3. Since productive recourses are scarce, alternative uses of available resources have to be considered. 4. All the necessary adjustments in a balance sheet are to be made before it is handed to the financial manager. 5. As labour differs from other production factors, social and political problems should be taken into account. 6. Any entry in a journal ought to be recorded accurately to avoid errors. 7. The Central Bank of every country must perform two basic functions.

VIII. Supply the correct forms of the verbs. (§ 11). Translate the sentences.

1. The demand of bread (to go down) in Western Europe for several years. 2. In a country with command economy the government (to make) all decisions about production and consumption. 3. Every economist (to see) the importance of the question of what, how and for whom to produce goods. 4. When people are poor, social services (to give) to them. 5. Nations (to have) different periods. 6. Different laws (to regulate) the sphere of economics. 7. The industrial development of the country (to plan). 8. When the price of some goods (to grow), people (to try) to use less of them but producers (to want) to produce more of them. 9. Turkey and Norway both (to limit) profits of firms, the latter (to control) prices and wages.

At leisure 1. Read the article without a dictionary, try to retell it.

Word origin Hobby

Many of us have pets, par ticularly dogs and cats that we treat like «members of the fam ily». In England, many years ago, farmers displayed the same love and affection for their horses as we do toward

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our domestic animals. So great was the atten tion given to these animals that it was very common to see such things as horses’ harnesses dec­orated with fresh flowers each morning!

Robin, Dobbin and Hobin were the favorite names given to plow horses. Because of this popula rity, Hobin was changed slightly to HOBBY, and became the term describing a toy animal.

Any child receiving a HOBBY as a gift spent many happy hours riding it. Just as the Eng lish noblemen spent time enjoy ing various sports.

Eventually the word HOBBY was used when referring to any time an individual spent for pleasure with no pay. Through the years many people found they were able to enjoy a parti cular HOBBY and earn money from it. This still happens in our present time and many people profit from their HOBBY.