1. Translate into Russian:

1. Supply and demand is the relationship between how much of a particular product is available and how much of it people want.

2. Supply is the amount of a commodity or a service which will be offered for sale at a given price.

3. Demand is the amount of a commodity or service which will be bought at any given price.

4. Demand is affected by price.

5. Demand increases or decreases as the price changes.

6. Ал increase in demand can also be caused by a rise in consumer spending, investment and government expenditure.

7. The link between price and demand is shown by a demand curve (кривая спроса).

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8) The demand curve is a graph (кривая) that shows how much of the prod­uct can be sold at each price in a range of prices.

I. Now say what you know about demand and supply.

to represent

Translate into English paying attention to the meanings of the Russian word «пред-сташкпъо:

1. Какую компанию вы представляете?

2. Позвольте мне представиться.

3. Позвольте представить вам моего друга.

4. Предложение этой компании представляет для нас большой интерес.

to face

1. Answer the questions:

1. Do you agree that, as a rule, people face lots of problems in theirlife (earn­ ing money, making a career, bringing up children)?

2. Do people sometimes face problems when ihey travel?

3. Do countries face difficulties in different periods of their development? For example, unemployment, inflation, fow productivity, poverty, slow pace of economic growth, low investment activity.

2. Make up sentences of your own using:

1. To face danger;

2. to face a dilemma;

3. to face difficulties;

4. to be faced with.

price

The verbsfrequently used with the word "price "are: to change, to cut, to reduce, to lower, toinci-ease, to raise, to pay, to charge (взимать), Го rise, logoup/down. "Ira us la io into English:

1. На прошлой неделе иены на потребительские товары выросли.

2. За последнее время цены значительно выросли.

3. Некоторые компании решили поднять/снизить свои цены.

4. Покупатели были готовы заплатить более низкую цену.

5. Поставщики начали взимать более высокие цены.

Ex. 7. a) Find evidence in Text A to support these statements:

1. The backbone of any economy are producers.

2. ... the imbalances in the market ... tend to be corrected by changes in prices.

b) Develop the idea of how buyers and producers respond to changes in the price of a good.

E\. 8. a) Read the text, b) What do you think profit depends on? c) State the factors affecting the price.

Factors That Affect Price

Managers of coiporations have a duty to earn a profit. They are hired for That purpose by the firm's shareholders.

In addition, managers of all firms must earn profits if they want to stay in business.

Profits, among other things, depend on prices. The first factor affecting price is demand. The demand for a product means Ihe amount customers are willing and able to buy at a given price. The lower the price, the more units of a product will be bought. Demand is not the only thing that counts in setting a price. Cost must also be kept in mind.

General economic rules say lhaT a firm will usually be forced to raise its prices when its costs rise, even though doing so will reduce sales volume. Any reduction in costs, on the other hand, gives the firm a chance to lower prices, increase sales, and improve profits.

Competition is a third factor that affects pricing. The more competitors a firm has, the greater the chance That customers will turn elsewhere if the firm raises iTs prices.

Words and word combinations you may need

cost n — себестоимость sales volume - оГуьем продаж pricing n — ценообр;иопание

hire v— нанимать

count v—иметь значение, идти и расчет set a price — устанавливать иену keep in mind — иметь в виду

Ex. 9. Sum up Text A (orally/in writing).

Situation: Imagine you have bought a consumer product and it has not satis­fied you. What, in your opinion, was the origin of the problem? Do you think the product was not described accurately when it was sold to you? Do you know the firm whose product you bought? Who are the firm's competitors in the market? Discuss the situation with your friend.

TextB The Role of Government in the Economy

In every economy the work of different firms has to be coordinated. In a market economy this coordination is achieved by means ofmar-

7. Любннцеш

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kets. Nevertheless the debate over the role for Government in a market economy is continuing and the issue is being widely discussed at the present time. An economy based on free enterprise is generally charac­terised by private ownership and initiative, with a relative absence of government involvement. However, government intervention has been found necessary from time to time to ensure that economic opportuni­ties are fair, to dampen inflation and to stimulate growth.

Government plays a big role in the American free enterprise sys­tem. Federal, state and local governments tax, regulate, and support business.

In the United States there are agencies to regulate safety, health, environment, transport, communications, trade, labour relations, and finances. Regulation ensures that business serves the best interests of the people as a whole.

Some industries — nuclear power, for instance - have been regulat­ed more closely over the last few years than ever before. In others the trend has been towards deregulation or reduction of administrative bur­den on the economy.

The U.S. economy has a tradition of government intervention for specific economic purposes — including controlling inflation, limiting monopoly, protecting the consumer, providing for the poor. The gov­ernment also affects the economy by controlling the money supply and the use of credit. The aim is a balanced budget.