Word study
1. Match the words with their definitions.
Strategy, clientele, mark-down, loss leader, profit margin, mark-up, chain store, target
All the people who use the services of a particular firm.
The percentage of the wholesale or cost price added to produce the retail or selling price.
A deduction in the price of goods to encourage sales.
One of a number of similar shops belonging to the same company.
A plan of future action which, in a company, is usually decided by senior management.
A product sold at a loss to encourage trade.
A goal or result aimed at; an objective.
The difference between the cost of buying or producing something and the price for which it is sold.
2. Supply the sentences with the missing words.
Are qualifications gained in Britain ... in other European countries?
Their stock prices fell to levels that didn't ... the true value of their assets.
The Common Law has always ... individual rights.
Communities who live by hunting and gathering still ....
The schools were fighting endlessly to ... truancy.
He could resign if he wanted and ... himself of £156,000 a year pension.
This doesn't ... the fact that the problem has got to be dealt with.
They both come from relatively ... backgrounds.
He must have made a ... amount of money.
The five year boy demonstrated the ability to read, write and do simple ....
Alter, combat, figure, recognize, fair, assure, affluent, exist, reflect, protect
3. What are the synonyms (from the text) of the following words?
to influence to defend
producer benefit
to permit to fight
rival to change
primary major
Grammar focus
4. Complete the following sentences by putting the bracketed verb into the right tense.
We (to find) that if a firm has sales of $100,000 and gross margin of $40,000, it (to have) an average markup on total sales of 40 percent.
In the UK, price increases (to restrict) by the operation of Price Code from 1972 to 1979.
Critics of price control (to argue) that if profits are restricted the level of investment (to reduce).
It is possible that free markets with minimum state intervention (to encourage) competition.
The economic organization of every human society (to characterize) by certain social costs and certain social benefits.
6), Public goods (to produce) and (to consume) in great "lumps" and the users can't (to charge) through the pricing system.
Firms (to supply) goods and services motivated by their desire for profits.
The important point to notice is that the price mechanism under perfect conditions (to operate) automatically.
5. Complete the following sentences with one of the prepositions: of/in/to/forth/from
A factory plans to sell 10,000 units ... its product ... the coming year.
Almost every firm today has sales ... each of the four areas shown ... Fig. 14—1.
The term markup denotes the total amount added ... the cost of merchandise ... setting the initial prices.
Operating expenses and desired profits are clearly set ... on the budgeted income statement.
It can be seen ... Table 14—2 that 20 percent ... sales, for example, is equivalent ... 25 percent of cost.
... real life, perfect knowledge about the prices ... goods and resources is by no means a free good.
It is maintained that the pricing system operates ... the face of extreme inequalities ... income and wealth.
Most ... the industrialized and less developed countries have experienced persistently rapid rises ... prices ... their economies.
6. Complete the following sentences by putting it, they, there with an appropriate form of the verb:
... (to argue) that a market economy responds more quickly to changing economic conditions in world markets.
Overall inflation remained subdued despite exchange rate effects. ... (to be) several offsetting factors.
... (to continue) to be considerable diversity in economic activity across regions in 1993.
... (to be) also a significant pickup in export receipts.
... (to be) also a response to a lesser need for working capital.
Although long-term rates came down at the beginning of 1944, ... (to remain) high relative to current inflation.
Broader price measures also indicate that inflation rate remained very low. ... (to be) about 07 percent compared to 1.6 percent in 1992.
Nevertheless, ... (to be) substantial increases in spending on some goods such as household appliances, furniture and clothing.