Text-study

1. Learn the following words

to cast – подводить итог, подсчитывать

cost - себестоимость

to enable – давать возможность

ingredient – составная часть, ингредиент

to interact взаимодействовать

old-fashioned – устаревший

to own – владеть, обладать

polling booth – кабина для голосования

request – просьба, требование

selling price - продажная стоимость

storekeeper - лавочник

to undersell – продавать дешевле других

2. Answer the following questions

1. Why is it likely in a market economy that if consumers want some goods, they will get them?

2. What is free enterprise economy?

3. What essential elements are there in a market economy?

4. Who owns the means of production in a market economy?

5. Why does the profit motive give sellers the incentive to produce at the lowest possible cost?

6. Why do economists compare markets to polling booths?

7. Consumer votes can be a matter of life and death to business in a market economy. Why? Explain it.

III. Suggest the Russian equivalents for the words and word-combinations given below

Free enterprise system, essential elements, private property, means of production, to be publicly owned, profit margins, a kind of economic polling booths, charging a price, wholesale customers, to satisfy the requests.

IV. Look at the photo. Answer the question

Free enterprise in action. How do the activities in this photo illustrate the ways in which free enterprise answers the What, How and Who

questions?

V. Increase your vocabulary

extra charge - наценка

loan charge – плата за кредит

rental charge – плата за прокат

sales charge – комиссия за продажу (акций)

service charge – плата за обслуживание

tuition charge – плата за обучение

fixed charges – постоянные издержки

interest charges – платежи процентов

management charges – административные расходы

overhead charges – накладные расходы

shipping charges – расходы по погрузке

transportation charges – транспортные расходы

Make some sentences of your own with the above expressions

VI. Match the words with their definitions.

1) Incentive	a) the difference between the buying and selling price of goods
2) profit margin	b) being or employed in the sale of goods in large quantities and usually at low prices
3) cost	с) an organization, esp. a business firm
4) item	d) an act of asking for something, esp. politely
5) request	e) the amount of money paid or needed for buying, doing, or producing something
6) wholesale	f) a single thing on a list or among a set
7) owner	g)something which encourages one to greater activity
enterprise	h) a person who has something, esp. by lawful right