IX. Make up your own dialogue using the following words, expressions and words-combinations:

quantity of goods and services

rationing effect of price

to offer items for sale

to attend an auction

market economy

auctioneer

elasticity

bidder

X. Refer the following statements to the past:

Model: Economic incentives influence our decision about what and where to buy.

Economic incentives influenced our decision about what and where to buy.

1. What you see at the auction is the rationing effect of prices. 2. Prices encourage producers to increase their level of output. 3. The law of demand describes the relation­ship between prices and the quantity of goods and services. 4.They sell these goods because they want to have a profit from such transaction. 5. Adam Smith describes the principal elements of the economic system in his book «The Wealth of Nations».

XI. Ask questions to which the following statements are answers:

Model: This work seemed easy. Did this work seem easy?

1. The development of modern economics began in the 17th century. 2. Large corporations used economists to study the way to do business. 3. Peter received his first paycheck of $135 yesterday. 4. I went into business last year. 5. First of all we decided to learn the demand of our consumers.

XII. Translate into English:

1. Йому було нелегко розпочати власну справу. 2. Зміни попиту та пропозиції вплинули на ринкові ціни. 3. Ціни впли­нули на зменшення рівня випуску товарів. 4. Для того щоб вивчити попит споживачів, ми провели низку спостережень. 5. Ми переглянули результати спостережень і зробили для себе певні висновки.

XIII. Communicative situations:

1. If you owned an ice-cream shop at a seaside resort and additional ice-cream shops were opening in your area because of increasing prices, how would you take advantage of the use of substitute products to compete more effectively?

How would you make use of the concept of demand elasticity in making decisions whether or not to raise your prices for your specially items such as shakes, sundaes, and banana splits?

2. When the forces of supply and demand are at work in a market economy, the equilibrium price is the only one that matters. All other prices are irrelevant (beside the point).

Explain this statement.

3. The law of demand works because consumers have the ability to substitute. The law of supply works because producers have the ability to substitute.

Explain these statements.

Lesson 4

THE CONSUMER ІП OUR ECONOMY

I. Read and memorize the following words, word- combinations and word-groups:

to meet one's needs — задовольняти потреби e.g. Many businesses work very hard to meet your needs and wants.

wage(s) (syn. salary) — заробітна плата e.g. In return for working, you will receive a wage or salary.

wealth — багатство

e.g. Wealth is the value of the things you own.

to deposit money in a savings accout — класти гроші на ощадний рахунок

e.g. We decided to deposit money in a savings account,

to earn interest — одержувати відсотки

to loan — позичати, давати позику

e.g. Wealth, in the form of money that is loaned to others or deposited in a savings account, will earn interest,

expenditures — витрати

savings — заощадження

e.g. The Greens plan their expenditures and savings very carefully.

to make one's decision — приймати рішення e.g. When the time comes to make a major purchase, we compare products and prices before making our decision,

to keep track — дотримуватися курсу e.g. Most of the time, we are able to keep track of our expenditures (the money spent), so that we are able to meet our immediate needs.

to exceed — перевищувати surplus — лишок

e.g. Budgets in which income exceeds expenditures will have a surplus.

rate of return — норма прибутку

e.g. The rate of return is expressed as a percentage of the amount on deposit for a period of a year,

compound interest — складні відсотки e.g. Most accounts offer compound interest, yield — прибуток

e.g. It is important to distinguish between rate of return and yield, the actual amount of interest earned,

to share risk — розподіляти страхову суму e.g. Insurance enables people to share risk, endowment insurance — страхування-вклад e.g. Endowment insurance protects the insured for a specific number of years.

consumer credit — споживчий кредит e.g. Consumer credit provides cash, goods, or services now, while spreading repayment into the future,

finance charge — фінансові витрати e.g. Finance charge is the total amount you pay to use credit.

passbook loan — книжка займу

e.g. If you have a savings account, you may to apply for a passbook loan against your balance in that account.

II. Give English equivalents of the following:

класти гроші на банківський рахунок дотримуватися курсу

одержувати відсотки фінансові витрати

захист інтересів споживача витрачати гроші

норма прибутку складні відсотки

джерело прибутку страхування-вклад

споживчий кредит приймати рішення

задовольняти потреби