pure competition — чистая конкуренция
Monopolistic competition — монополистическая конкуренция
to keep something for oneself— задержать что ни будь для себя
to stand out from — отделится от
to attract attention — привлечь внимание
to take over the economic market— принимать экономический рынок
product differentiation—дифференциация продукции
The term market, as used by economists, is an extension of the ancient idea of a market as a place where people gather to buy and sell goods. In former days part of a town was kept as the market or marketplace, and people would travel many kilometres on special market-days in order to buy and sell various commodities. Today, however, markets such as the world sugar market, the gold market and the cotton market do not need to have any fixed geographical location. Such a market is simply a set of conditions permitting buyers and sellers to work together. In a free market, competition takes place among sellers of the same commodity, and among those who wish to buy that commodity. Such competition influences the prices prevailing in the market. Prices inevitably fluctuate, and such fluctuations are also affected by current supply and demand.
Whenever people who are willing to sell a commodity contact people who are willing to buy it, a market for that commodity is created- Buyers and sellers may meet in person, or they may communicate in some other way: by telephone or through their agents. In a perfect market, communications are easy, buyers and sellers are numerous and competition is completely free. In a perfect market there can be only one price for any given commodity: the lowest price which sellers will accept
and the highest which consumers will pay. There are, however, no really perfect markets, and each commodity market is subject to special conditions. It can be said, however, that the price ruling in a market indicates the point where supply and demand meet.
COMMENTS
gold market — рынок золота
free market — рынок, свободный от ограничений
commodity market — товарная биржа
Although in a perfect market competition is unrestricted and sellers
are numerous, free competition and large numbers of sellers are not always available in the real world. In some markets there may only be one seller or a very limited number of sellers. Such a situation is called a monopoly, and may arise from a variety of different causes. It is possible to distinguish in practice four kinds of monopoly.
State planning and central control of the economy often mean that a state government has the monopoly of important goods and services. Some countries have state monopolies in basic commodities like steel and transport, while other countries have monopolies in such comparatively unimportant commodities as matches. Most national authorities monopolize the postal services within their borders.
A different kind of monopoly arises when a country, through geographical and geological circumstances, has control over major natural resources or important services, as for example with Canadian nickel and the
Egyptian ownership of the Suez Canal. Such monopolies can be called natural monopolies.
They are very different from legal monopolies, where the law of a country permits certain producers, authors and inventors a full monopoly over the sale of their own products.
These three types of monopoly are distinct from the sole trading opportunities which take place because certain companies have obtained complete control over particular commodities. This action is often called «cornering the market» and is illegal in many countries. In the USA antitrust laws operate to restrict such activities, while in Britain the Monopolies
Commission examines all special arrangements and mergers which might lead to undesirable monopolies.
COMMENTS
perfect market—совершенный рынок
free competition — свободная конкуренция
natural monopoly — природная монополия
cornering the market — спекулятивное контролирование рынка
merger— объединение, слитие
Money and Financial Institutions
Basically, money is what money does. This means that money can be any substance that functions as a Medium of Exchange, a Measure of Value, and a Store of Value. As a medium of exchange, money is something generally accepted as payment for goods and services As a measure of value, money expresses worth in terms that most individuals understand. Money also serves as a store of value. This means goods or services can be converted into money that is easily stored until some future time. The different forms of money are in use in the United States today. The most familiar are coin and currency. The term coin refers to metallic forms of money. The term currency refers to paper money issued by government. While money has changed in shape, kind or size over the years, modem money still shares many of the same characteristics of primitive money. Modern money is very portable when people carry checkbooks. For example, they really are carrying very large sums of money since checks can be written in almost any amount. Modem money is very durable . Metallic coins last a long time under normal use and generally do not go out of circulation unless they are lost. Paper currency also is reasonably durable. Modern money also rates high in divisibility . The penny which is the smallest denomination of coin , is more than small enough, for almost any purchase. In addition checks almost always can be written for the exact amount. Modern money , however, is not as stable in value. The fact, that the money supply often grew at a rate 10 to 12 per cent a year was considered as major cause of inflation.
COMMENTS
to be any substance — быть какой- нибудь субстанцией
to be accepted as — бути принятым как...
payment— плата
to be converted into — быть конвертированным в ...
to be very portable — тут легко переносить
to be very durable — тут долго пользоваться
7.... last a long time under normal use — при нормальном использовании долго находится в обращении
to go out of circulation — выходить из обращения
to rate high in divisibility — высоко оценивать за возможность делится
denomination of coin — стоимость монеты
money supply — денежная масса
Banks fulfil two distinct needs in a community. For one they provide a safe place for people to deposit their money. For another, they lend excess funds to individuals and business temporarily in need of cash . In effect, banks act as functional institutions that bring savers and borrowers together. To gain a clear understanding of the way in which a bank operates,
let us examine the bank's liabilities and assets. Its liabilities are the debts and obligations to others. Its assets are the properties, possessions, and claims on others. These liabilities and assets generally are put together in the form of a balance sheet — condensed statement showing all assets and liabilities at a given point of time. The balance sheet also reflects net worth — the excess of assets over liabilities , which is a measure of the value of a business. Most bank deposits return to the community in the form of loans. The bank, however, might invest some of the cash in bonds. The bonds would be a good investment for two reasons. One is that they earn the interest and therefore are more attractive than cash. The other is that they have a high degree of liquidity, that is they can be converted into cash in a very short period of time. The liquidity adds to the bank's ability to serve its customers. When the demand for loans increases, the bonds can be sold and the cash loaned to customers.
In time, the bank would grow and prosper diversifying its assets and
liabilities in the process. It might use some of its excess funds to buy state or local bonds. It might loan some funds on a short-term basis to other banks. Then, too, a bank might use some of its assets to buy an interest in another business. The bank also might try to attract more depositors by introducing different kinds of accounts. Once the bank attracts more funds, it can make more loans and more profits.
COMMENTS
to deposit their money — для сохранения вкладов
to lend excess funds — давать кредит
3.... in need of cash — когда нужны наличные 4.... that bring savers and borrowers together — который объединяет кредитора с дебитором
to gain a clear understanding — чтобы иметь чёткое представление
liabilities — пассив
assets— актив
the excess of assets over liabilities — превышение пассивов над активами
9.... they earn the interest — на них насчитываются проценты 10. liquidity — ликвидность
7. Прочитайте, переведите и устно перескажите следующие темы:
Economic Systems.
Business Organizations.
Market and Market Structures.
Money and Financial Institutions.
Темы к контрольной работе №3 Economic Systems
The survival of any society depends on its ability to provide food, clothing and shelter for its people. Since these societies are also faced with scarcity decisions concerning What. How and or Whom to produce must be made.
All societies have something else in common. They have an economic system or an organized way of providing for the wants and needs of their people. The way in which these decisions are made will determine the type of economic system they have. There are three major kinds of economic systems: traditional, command and market.
Traditional Economy In a society with a traditional economy nearly all economic activity is the result of ritual and custom. Habit and custom also prescribe most social behavior . Individuals are not free to make decisions based on what they want or would like to have. Instead, their roles are defined. They know what goods and services will be produced, how to produce them, and how such goods and services will be distributed. An example of traditional economy is the society of polar Eskimo of the last century. For generations, parents taught their children how to survive in a harsh climate, make tools, fish and hunt. Their children, in turn, taught these skills to the next generation. The main advantage of the traditional economy is that everyone has a role in it This helps keep economic life stable and community life continuous. The main disadvantage of the traditional economy is that it tends to discourage new ideas and even punishes people for breaking rules or doing things differently. So it tends to be stagnant or fails to grow over time.
COMMENTS
social behavior — социальное поведение
polar Eskimo — северные эскимосы
to discourage — отговаривать
4.... tends to be stagnant — имеет тенденцию к застою 5.... fails to grow over time — не может развиваться дальше
Other societies have a command economy — one where a central authority makes most of the What, How and for Whom decisions.
Economic decisions are made at the top and people are expected to go along with choices made by their leaders. It means that major economic choices are made by the government. It decides goals for the economy and determines needs and production quotas for major industries. If the planning body wants to stress growth of heavy manufacturing, it can shift resources from consumer goods to that sector. Or, if it wants to strengthen national defence, it can direct resources from consumer goods or heavy manufacturing to the production of military equipment and supplies The major advantage of a command system is that it can change direction drastically in a relatively short time. The major disadvantage of the command system is that it does not always meet the wants and needs of individuals. The second disadvantage of the command economy is the lack of incentives that encourage people to work hard. In most command economies today workers with different degrees of responsibility receive similar wages. in addition , people seldom lose their jobs regardless of the quality of their work. As a result, there is a tendency for some to work just hard enough to fill production quotas set by planners.
The command economy requires a large decision-making bureaucracy. Many clerks, planners, and others are needed to operate the system. As a result, most decisions cannot be made until a number of people are consulted, б or a large amount of paperwork is processed. This causes production costs to increase and decision-making to slow down. Thus, a command system does not have the flexibility to deal with day-to-day problems.
COMMENTS
1... people are expected to go along with — ожидается что люди присоединятся
to shift resources — переместить ресурсы
the lack of incentives — недостаток стимулов
in addition — кроме того
regardless of— несмотря на
production costs — затраты производства
In a market economy, the questions of What, How and for Whom to produce are made by individuals and firms acting in their own best interests. In economic term a market is an arrangement that allows buyers and sellers to come together to conduct transactions. Since consumers like products with low prices and high quality, producers in a market economy will try to supply such products. Those who make the best products for the lowest prices will make profits and stay in business . Other producers will either go out of business or switch to different products consumer can buy. A market economy has several major advantages that traditional and command economies do not have. First, a market economy is flexible and can adjust to change over time.
When gas prices in the United States began to level off in 1985 and then decline in 1986, the trend slowly began to reverse. The second major advantage of the market economy is the freedom that exists for everyone involved. Producers are free to make whatever they think will sell. They are also free to produce their products in the most efficient manner. Consumers on the other hand are free to spend their money or buy whatever goods and services they wish to have.
The third advantage of the market economy is the lack of significant government intervention. Except for national defense, the government tries to stay out of the way. As long as there is competition among producers, the market economy generally takes care of itself. The final advantage of the market economy is the incredible variety of goods and services available to consumers. In fact, almost any product can and will be produced so long as there is a buyer for it.
COMMENTS