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Англійська мова_Кунатенко.doc
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X. Translate into English:

1. Ціни відіграють важливу роль на всіх економічних ринках. 2. За умов ринкової економіки ціни діють як сигнали. 3. Цінова система в ринковій економіці напрочуд гнучка. 4. Ціни на вільному ринку нейт­ральні. 5. На економічних ринках покупці та продавці мають проти­лежні наміри та надії. 6. Покупці бажають купувати за низькими цінами. 7. Продавці приходять на ринок із надією на високі ціни.

XI. Retell the text a using the following words and

word-combinations:

price system; to determine a value for any goods or services; prices act as signals; market economy; high price; low price; prices are neutral; flexible; free market system; competition between buyers and sellers; a free enterprise market economy; to affect the prices; opposite hopes and intentions; unforseen events; to take place; adjustment process; market equilibrium; surplus; shortage.

Reading drills

1. Practise the pronunciation of the following words:

a) stress the first syllable:

bargain, possible, current, marginal, compensate, argument, tendency, indicate, satisfy, diminish, purchase, matter, sacrifice;

b) stress the second syllable:

majority, advance, commodity, expenditure, accept, utility, relationship, remain, exist, desire, continue, successive, financial.

Text B

In most economic systems, the prices of the majority of goods and services do not change over short periods of time. In some systems it is of course possible for an individual to bargain over prices, because they are not fixed in advance. In general terms, however, the individual cannot change the prices of the commodities he wants. When planning his expenditure, he must therefore accept these fixed prices. He must also pay this same fixed price no matter how many units he buys. A consumer will go on buying bananas for as long as he continues to be satisfied. If he buys more, he shows that his satisfaction is still greater than his dislike of losing money. With each successive purchase, however, his satisfaction compensates less for the loss of money.

A point in time comes when the financial sacrifice is greater than the satisfaction of eating bananas. The consumer will therefore stop buying bananas at the current price. The bananas are unchanged; they are no better or worse than before. Their marginal utility to the consumer has, however, changed. If the price had been higher, he might have bought fewer bananas; if the price had been lower, he might have bought more.

It is clear from this argument that the nature of a commodity remains the same, but its utility changes. This change indicates that a special relationship exists between goods and services on the one hand, and a consumer and his money on the other hand. The consumer’s desire for a commodity tends to diminish as he buys more units of that commodity. Economists call this tendency the Law of Diminishing Marginal Utility1.

Comments

1. the Law of Diminishing Marginal Utility — закон спадної граничної корисності