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Test 3 (Wants and Utilities, Supply and Demand)

I. Match the terms with their definition:

1. marginal utility

A. is decided by the interaction of supply and demand

2. price

B. are the basic needs of mankind

3. wants

C. describes the behaviour of sellers

4. total utility

D. is the desire to buy supported by the ability to pay

5. effective demand

E. is the utility of one unit of a good or service

6. supply

F. is the satisfaction we receive from possessing one extra unit of a commodity

II. Put the words in the correct order:

1. wants, satisfy, which, purpose, economy, to create, mankind’s, the, of, an, is, utilities, will.

2. is, varies, changing, demand, not, but, with, fixed, conditions.

3. the, the, of, of, of, effects, price, enterprise, an, commodity, prospects, profitability.

4. “wants”, “wants”, even, we, these, when, other, present, more, themselves, have, basic, advanced.

5. are, our, by, which, services, attention, intangible, personal, “utilities”, needs, satisfy.

III. Fill in the gaps with the words in italics:

Scale, commodity, goods, price, requirements, scale, substitutes, services, purchasers, competitor.

1. An increased demand raises … .

2. When the price of a … rises the quantity that is supplied will be increased.

3. … are tangible items which either satisfy the basic … of human life or make that life fuller and richer.

4. Scale of preferences is an arrangement of things in one’s own mind with the most preferred items towards the top of the … .

5. Demand is the quantity of goods and … which … are prepared to buy at a given price in a given period of time.

6. If the goods are close … for one another, the price of one will be seriously affected by a lower price of its … .

IV. Are the statements true or false? Correct the false ones:

1. Man’s wants and demands are unlimited.

2. Demand is set.

3. Total utility usually rises while marginal utility always falls.

4. When the price of a commodity rises the quantity that is demanded will be increased.

5. Suppliers don’t vary in their ability to supply.

6. A progressive system of taxation strengthens the purchasing power of consumers.

7. If there is an alternative to a commodity, then it is no longer a necessity.

8. A decreased supply lowers market price.

V. Translate the following terms into English:

1. потребительская корзина

2. предельная полезность

3. человеческие потребности

4. убывающая предельная полезность

5. удовлетворять потребности

6. создавать полезности

7. общая полезность

8. основные требования (запросы) человеческой жизни

9. потребительские товары

10. факторы производства

Test 4 (Market, Markets and Monopolies)

I. Match the terms with their definitions:

1. Equilibrium

A. prices now current in the market

2. Prevailing price

B. a state of balance when all the economic forces present in a situation have an equal influence and there is no tendency to change

3. Patent

C. something which encourages one to greater activity

4. Barriers to entry

D. a market with single buyer who has some influence over the price of his output

5. Incentive

E. protection from being copied or sold by those who do not have a right to do so

6. Franchise

F. factors which prevent the entry of new firms into an industry

7. Monopsony

G. privileges

8. Natural monopoly

I. a market consisting of two sellers

9. Duopoly

J. a situation when a single firm can serve a particular market at lower cost than any combination of two or more firms

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