Vocabulary exercises

1. Which of the following statements are true/false according to the text? Correct the false sentences:

1. According to an old joke, if you teach a parrot to say «Demand and sup­ply», you have an economist.
2. Auctioneers bring together potential sellers of art, livestock, used farm equipment, and, sometimes, real estate.
3. Highly competitive markets such as a central grain exchange are usually called currencies.
4. Demand is a schedule showing the various amounts of a good or service buyers (or a buyer) are willing and able to purchase at each of a series of possible prices during a specified period of time.
5. A fundamental characteristic of demand is this: as price rises, the quantify demanded falls, and as price falls, the corresponding quantity demanded rises.
6. There is a negative or inverse relationship between price and quantity de­manded.
7. Quantity supplied is one of the characteristic features of economics.
8. As the forces of supply and demand come together, an invisible «collective bargaining» process ensues.
9. The end result is the establishment of a single price is called the non-equilib­rium price.
10. Unfortunately demand and supply cannot be shown schematically.

2. Fill in the gaps with the words and expressions given below:

1. These economic ________ (demand and supply) have a lot to do with all economic systems and with all our life.

2. The tools of demand and supply can __________ far in understanding.

3. A market is an _________ or mechanism which ________ buyers («demanders») and sellers («suppliers») of particular goods, ser­vices, or resources.

4. As our examples ________, some markets are local, while others are na­tional or international.

5. We focus on markets ___________ of large numbers of independently acting buyers and sellers exchanging a standardized product.

6. These are the highly competitive markets such as a central grain exchange, a stock market, or a market for foreign _________.

7. Demand shows the ________ of a product which will be purchased at various possible prices.

8. Economists call this inverse relationship the ___________.

9. As price rises, the _____________ quantity supplied rises.

10. Price is an _______ from the standpoint of the consumer, who is on the paying end.

11. Demand encompasses the wishes of ________ while supply represents the hopes of suppliers.

12. The end result is the establishment of a single price, called the ________ that balances quantity demanded with quantity supplied.

13. The establishment of any price other than the equilibrium price _______ instability in the market.

14. Both demand and supply can easily be shown _________ and in table form.

Imply, schematically, consumers, take us, law of demand, currencies, brings together, corresponding, phenomena, institution, consisting, quantities, obstacle, equilib­rium price, leads to.