VII. Answer the following questions:

1. What does the term «price» denote in economics? 2. How is the price normally restricted in commercial practice? 3. What is interest rate? 4. What is exchange rate? 5. What may the price refer to? 6. What two important functions do prices perform? 7. What can you say about the rationing effect of prices? 8. What do you know about the production-motivating function of prices? 9. May prices be free to respond to changes in supply and demand?

VIII. Replace the Ukrainian words and phrases by suitable English

equivalents in the correct form. Retell the passage:

(Для того щоб купити) foreign products or services, or (інвестувати) in other countries, (компанії) and individuals may first (купити валюту) of the country with which they are doing business. Generally, (експортери) prefer to be paid for their (товари та послуги) either in their own (валюті) (Japanese in yen and Germans in marks) or in U.S. dollars, which are accepted (у всьому світі). For example, when the French buy (нафту) from Saudi Arabia, they may (платити) in U.S. dollars, not French francs or Saudi dinars, even though the United States is not involved in the transaction. The foreign exchange market, or "FX" market, is where (купівля та продаж) of different currencies takes place. (Ціна) of one currency in terms of another country’s currency is called (валютний курс).

Communicative situations

1. Round-table discussion. The question on the agenda is «Prices in a market economy».

Questions for discussion:

• the role of prices in a market economy;

• in a market economy prices act as signals;

• how prices answer the What, How and Who questions in a market economy;

• explain the Law of Diminishing Marginal Utility and give examples;

• the rationing effect of prices;

• the production-motivating function of prices.

GRAMMAR EXERCISES

The Infinitive. Forms and Functions

I. Give all the forms of the following Infinitives:

to write, to reach, to manage, to laugh at, to distribute, to look for, to put, to improve, to feel, to hold, to utilize, to determine.

II. Change the sentences according to the Pattern:

Pattern: Having good friends is important.

It is important to have good friends.

1. Being polite to other people is important. 2. Learning how to cook is easy. 3. Walking alone at night in that part of the city is dangerous. 4. Playing tennis is fun. 5. Is learning a second language difficult? 6. Looking up words in a dictionary takes a lot of time.

III. Translate into Ukrainian:

1. I am glad to give you advice. I am glad to be given advice. I am glad to have given you advice. 2. It is very kind of you to help me. It is very kind of you to have helped me. 3. She seems to lose her temper easily. She seems to be losing her temper. 4. She was to meet him at the station. She was to be met at the station. 5. He wants to ask you a question. He wants to be asked a question. 6. She seems to have asked him about it. She seems to have been asked about it. 7. I want to write much her about it. She wants to be written much about it. 8. He doesn’t want to disturb you. He doesn’t want to be disturbed. 9. They had to do this work in time. The work had to be done in time.