Exercise 1. Check your understanding

Now read the text carefully, looking up any new items in a dictionary or reference book. Then answer the following questions:

1. What example is given of a market where sellers and buyers actually meet?

2. How are households’ decisions on what to buy reconciled?

3. Why do prices adjust?

4. What problems do markets and prices solve for society?

5. Why is café owner in business?

6. Why do café owners not have to pay high wages?

7. What makes society put resources into hamburger production?

8. What would consumers do if hamburger prices rose?

9. How many markets does the writer say you are involves in if you buy a hamburger?

10. Does the writer give an exact definition of a market?

Exercise 2. Increase your vocabulary

1. Look at the first paragraph and say which words have the same meaning as:

• At a distance

• Of the neighbourhood

• Carried out, done

2. Look at paragraph 2 again. Can you explain in your own words the writer’s definition of markets?

3. Look at paragraph 3 again and say what words have the same meaning as:

• Ask for

• Make certain that

4. Using words from paragraph 4 again, can you complete the following statements:

• I quite like lamb but really I …

• He was a very keen student. He …. most of his time to his studies.

• I don’t like the canteen, but it’s more … than going out to a café.

• I’m not in … of long and expensive lunches.

• Please … that your essays reach me on time.

• A good degree should … you to get a job.

5. Look at paragraph 5 again. Can you explain the words:

• rent

• profit

• expense account

• part-time job

6. Look at paragraph 6 again and say what words have the same meaning as:

• buy

• illness

• managing

• put up

• rareness

7. Look at paragraph 7 again. Can you explain the words:

• labour market

• wholesale (meat) market

Exercise 3.2 (Study Guide, unit 3). Find in the text English equivalents for the following:

сводить вместе продавцов и покупателей; фондовая биржа; вести дела /заключать сделку/; краткое выражение; корректировка цен; продавать с прибылью; отчет о расходах; неквалифицированная рабочая сила; предлагать высокую оплату труда; распределять ресурсы посредством системы цен; покрыть издержки; быть владельцем кафе; быть вынужденным поднять цены; рынок труда; оптовый рынок; принять общее определение; влиять на распределение скудных ресурсов.

Exercise 3.3 (Study Guide, unit 3)

Complete the following text with the correct form of the words in italics - compete, produce, consume.

In a .../1/ market, .../2/constantly strive to reduce their .../3/ costs as a way to increase profits. The increased efficiency that allows them to reduce their costs also enables ... /4/to sell their goods at a lower price. Thus, by promoting efficiency, .../5/ leads to lower prices. .../6/ also motivates .../7/ to improve the quality and increase the variety of goods and services.

.../8/ soon will learn which brand offers the best value, and that firm will earn greater profits than its .../9/ . Similarly, .../10/ in a .../11/ market must constantly look for new and attractive goods and services to win a larger share of the market.

As firms .../12/ for the ...’s/13/ dollar in a market, their efforts lead to the .../14/ of a variety of better-quality .../15/ at the lowest possible prices. And since we are all .../16/, it follows that .../17/ benefits us all.