Vocabulary Focus

Ex. 1. Study the meaning of the following words.

1. To affect means ‘to influence’: The tax increases have affected us all.

2. An effect is a result or consequence of an event: The political crisis has already had an effect on the Stock Market.

3. The word ‘effect’ can have two other meanings: We tried exporting tea to China but with little effect (impact). In effect(in fact) the two systems are identical.

4. There is also a verb ‘to effect’, which is fairly formal: Production was stopped until repairs were effected (made).

Choose the right word in italics:

1. Do you think a rise in interest rates will affect/ effect consumer spending?

2. Cultural attitudes can affect/effect the success or failure of a merger with an overseas firm.

3. The bad publicity has had an adverse affect/effect on our reputation.

Ex. 2. Match the following common collocations with their Russian equivalents:

A.

A	B
пользоваться большим спросом создавать спрос превышать спрос ассортимент товаров потребительский рынок доход на человека/на душу населения спрос и предложение большой спрос доход, облагаемый налогом удовлетоврять спрос	enormous / great demand (for) to be in good /great demand consumer market to create/make demand to exceed/outgo demand to meet/ satisfy demand demand and supply range of goods taxable income per capita income

B.

A	B
стоимость затрат быть в дефиците основной поставщик невыполнение обязательств поставщиком объем промышленного производства ежедневный выпуск продукции исчерпать запас текущие расходы.	to be in (short /low) supply to exhaust supply leading / major supplier a supplier default current inputs cost of inputs industrial output daily output

Ex. 3. Express in one word:

1. something that is sold for money;

2. the desire of customers for goods or services which they wish to buy or use;

3. pairs of goods that are used together;

4. an idea or a principle relating to sth abstract;

5. pairs of goods that are used in place of each other;

6. to interact (with sth);

7. the price to be paid or amount of money needed for sth;

8. that which is put in;

9. the amount of sth that a person or thing produces;

10. to give sb that is needed or useful/ to provide sb with sth;

11. to establish a connection between, e.g. ideas, events or situations; to think or associate sth with sth else.

Words for reference: compliments, concept , demand, goods, substitutes, to act or have an effect on each other, to relate, output, input, to supply, costs.

Ex. 4. Choose the words with similar meaning from two columns and arrange them in pairs.

A	B
concept (n) interaction (n) loan (n) supply(v) increase (v) purchase (v) transaction (n) affect(v) demand (n) good (n) costs (n)	rise (v) idea (n) expenses (n) cooperation (n) credit (n) buy (v) bargain, deal (n) commodity (n) request (n) influence (n) offer (v)

Ex. 5. Complete the sentences using the words given below.

1. The government increased prices on several basic … .

2. Computers and software, gasoline and automobiles are … .

3. … for these services is outgoing supply.

4. The … of demand and supply may be explained in the context of a market for specific goods.

5. The new model comes in an exciting … of colors.

6. We made a small charge for parking to cover the … of hiring the hall.

7. Supply, the quantity of a product that suppliers will provide, is the seller's side of a … transaction.

8. Manufacturing … has increased by 8% in two years.

9. They discussed the … of additional resources into the scheme.

Words for reference: input, range, output, concepts, demand, goods/commodities, market, compliments, cost.

Comprehension

Ex. 1. Complete the sentences.

1. A market is defined as an institution or mechanism which … .

2. Demand is the amount of the good that buyers… .

3. The law of demand says that … .

4. Ceteris paribus is … .

5. The good is called an inferior good if … .

6. The good is called a normal good if … .

7. Substitutes are … .

8. Complements are … .

9. The factors which affect the amount of the good that buyers are willing and able to purchase are … .

10. The factors which affect the amount of the good that sellers are willing and able to sell are … .

11. The law of supply is … .

Ex. 2. Answer the questions on the text.

1. What is a market?

2. What is demand? What does the law of demand say?

3. What factors affect the amount of the good that buyers are willing and able to purchase?

4. What’s the difference between a normal good and an inferior good?

5. How can you define compliments and substitutes?

6. What is supply? What does the law of supply say?

7. What factors affect the amount of the good that sellers are willing and able to sell?

Text 2

As you read the text, pay special attention how the activities of buyers and sellers automatically push the market price forward the equilibrium price.