Alfred marshall (1842 -1924) price Theory pioneer

Alfred Marshall was one of the greatest economists of the 19 th century. He wrote his textbook Principles of Economics (1890), which became the stan­dard for the teaching of that subject until well into the 1940. Marshall spent most of his adult life as a profes­sor of economics at Cambridge University. His most famous pupil, John Maynard Keynes, described Mar­shall as the greatest economist of the 19th century." Despite the passage of 100 years since the publication of his Principles, his analysis of market forces is still relied upon to explain economic events.

In Marshall's world, economic events could be ex­plained in terms of the equilibrium market price result­ing from the interaction of supply and demand. One of Marshall's lasting contributions was differentiating be­tween supply and demand in the short run and the long run. Comparing the two forces to the blades of scis­sors, he argued that neither could function without the other. But, just as one blade can be more active than the other, so supply and demand vary in importance in the long and short run. In the short run, the quantity of available goods is more or less fixed (because crops have been planted, production schedules set, etc.). Therefore it is the demand for those items that will be most influential in determining their price. In the long run, he went on, the opposite is true. Both farmers and businesses can add to or reduce their production facilities as the needs dictate. In that way the supply side of the market be­comes most influential in determining price.

II. Выберите английский эквивалент для следующих русских слов:

1. благоприятный, подходящий	a) favour	b) favourable
	c) favourite	d) fame
2. конкурент	a) compete	b) competent
	c) competitor	d) competition
3. деление, разделение	a) divisible	b) division
	c) divide	d) divisor
4. вмешательство	a) interfere	b) interfuse
	c) interchange	d) interference
5. наличный, имеющийся в распоряжении	a) avail	b) available
	c) average	d) avoid
6. вклад	a) contribution	b) contribute
	c) contributor	d) contrast

III. Найдите в правой колонке русский эквивалент для английских словосочетаний:

1. source of wealth	a) государственное регулирование
2. in these circumstances	b) использование механизмов
3. self – interest	c) разделение труда
4. to benefit society	d) производственные мощности
5. as a whole	e) равновесная рыночная цена
6. government regulation	f) в конечном счете
7. division of labour	g) источник богатства
8. the use of machinery	h) в данных обстоятельствах
9. balance of trade	i) в целом
10. equilibrium market price	j) личная выгода, заинтересованность
11. in the long run	k) приносить пользу обществу
12. production facilities	l) торговый баланс