Study the different meanings of the following words and use them to translate the sentences.

1) It cost him a lot of money.

2) What will it cost to have it repaired?

3) To distinguish himself among potential readers and advertisers, he decided to create a low-cost specialized newspaper.

4) If they reduce costs in manufacturing, that will put them in a strong position to adapt (приспосабливаться) to the market.

5) We can slowly increase production and it will eventually enable us to cut unit costs.

6) Expenses are the costs of operating the business.

1) Не has assumed control of the business.

2) An entrepreneur is someone who organizes, manages and as­sumes the risks of a business.

3) She assumed an air of innocence.

4) Assume that the government undertakes policies designed to re­duce the level of unemployment.

5) Many of the figures used for projected sales, costs and expenses will only be assumptions.

6) Economists often make different assumptions about the time pe­riod to which their conclusions apply.

7) In macroeconomics we make some simplifying (упрощенные) assumptions.

Express your point of view on the following statements.

1) Manufacturers and distributors often give seasonal discounts. Why?

2) What would happen if there were no trade barriers and transport costs?

3) What effect do consumers have on the economy when they increase or decrease the amount of their purchases?

Спрос

Study the words and the word-combinations.

1.  Read the text and assimilate its information [6, с. 27—30].

Demand

The quantity of an item buyers actually purchase in a market over a given period is influenced by a number of important determinants:

1. The price of the item.

2. Income available to spend.

3. Accumulated savings in the form of bank deposits, stocks, bonds and ownership of homes, other structures and equipment. Such savings are called wealth.

4. Expectations of future price changes.

5. The prices of alternative items.

6. Tastes or current fashions.

7. The population served by the market.

In analysing the behaviour of buyers in the market, we concentrate on the effect of each of these determinants one at a time. We pay special attention to the relationship between the price of an item and the quantities buyers will purchase. The quantity demanded of an item is the amount that buyers are willing to purchase over a period at a certain price, given all other influences on their decision to buy.

Demand is a relationship between the price of an item and the quantity demanded. The term “demand” as used in economics is not a fixed number. When analysing a given demand for a product, we as­sume that demand determinants other than the price of the item are held fixed. For example, the demand for cars over a year indicates how the annual quantity demanded would vary as the price of cars changes, other things being equal. The other things held constant are all demand determinants other than the price of cars, such as income available for spending.

The law of demand states that in general, other things being equal, the lower the price of a good, the greater the quantity of that good buyers are willing and able to purchase over a given period. Conversely, the law implies that buyers will buy less of a good over any given period if the price of the good increases while nothing else changes. The law is relevant to all goods and services.

NOTES:

2.  Answer these questions basing your answers on the text:

1) What influences the behaviour of buyers in a market?

2) Which of the demand determinants is the most important one?

3) What is demand?

4) What does the law of demand state?

Say whether these statements are true or false, and if they are false, say why?

1) The quantity of items buyers actually purchase in a market is determined by their wealth.

2) People very often have everything they want.

3) The amount we are ready to pay is an indication of the value we put on a thing.

4) The more important a thing is to us, the more we are willing to pay.

5) Changes in prices lead to changes in the quality of a particular commodity.

6) According to the law of demand people buy less of a good if its price increases.

Study the different meanings of the following words and use them to translate the sentences.

1) The president spoke about things he was going to realize during his term of office.

2) It is essential for the future of the country that two opposing sides should come to terms.

3) The academic year consists of two terms.

4) He sees everything in terms of money.

5) What are your terms?

6) We are on easy terms with them.

7) The activities of people are measurable in terms of payment received.

5.  Fill in the words “value”, “cost” and “price” where necessary and translate the sentences. Remember that:

1) He learnt the... of his friend.

2) The oil... are falling in the world market.

3) The OPEC countries have agreed to reduce oil production to keep the... on the same level.

4) Synthetic materials have become cheaper, since the... of pro­duction are lower now.

5) The... of living has risen, whereas wages have remained the same.

6) The... of this information is enormous.

7) He set a high... on his time.

8) At Christmas sales one can buy goods at reduced....

Express your point of view on the following statements.

1) What determines your decision to buy a certain amount of an item?

2) Some people get a lot of pleasure from being well-dressed, some from having seen the latest film, some from food, some from the knowledge that the family is well provided for. In what way can you get from your income the maximum satisfaction that appeals to your taste?

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