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

1. Free competition and large numbers of sellers are always available in the real world. 2. Monopoly describes a market in which there is only one seller or a very limited number of sellers. 3. In economic theory there are four kinds of monopoly. 4. States always monopolize important basic commodities. 5. Egyptian nickel is a good example of natural monopoly. 6. Cornering the market is quite legal in the USA. 7. The Monopolies Commission consider that it is undesirable to restrict business mergers.

Define which of the following items best completes the statement.

1. Monopolies are permitted in public utilities because in these Industries

a. regulation is relatively easy.

b. competition might be harmful to the public interest.

c. utilities receive financial assistance from the government.

d. utilities are very large firms.

2. Which of the following firms will have the greatest freedom in setting the price of its products?

a. One of three companies in an industry.

1. The only producer of a product with many substitutes.
2. The only producer of a product with no substitutes.
3. One of 300 firms in an industry.

3. A merger results when

1. two or more firms combine to form a single corporation.
2. a firm undergoes vast, internal expansion.
3. the stock of a corporation is traded on several stock exchanges.
4. a large firm goes out of business.

Answer the following questions.

1. What is a monopoly? 2. What are the first three kinds of monopoly? 3. What examples of important state monopolies are given? 4. What monopoly are Canadian nickel and the Suez Canal examples of? 5. What are certain inventors permitted by law to have? 6. What word in the last paragraph shows that the fourth type of monopoly is quite distinct from the other three? 7. What happens when certain companies obtain complete control over particular commodities? 8. What do the Americans call their anti-monopoly laws? 9. What does Britain use to restrict special arrangements?

 

 

Unit 6

DEMAND

Active words and word-combinations

 

active/brisk/fair demand	- оживленный спрос
actual demand	- действительный (фактический) спрос
aggregate demand	- совокупный спрос
consumer/customer/consumptive demand	- потребительский спрос
correlation	- связь, соотношение
couple	- соединять, связывать
curve	- кривая
demand and supply	- спрос и предложение
demand keeps pace with supply	- спрос не отстает от предложения
demand outdistances supply	- спрос опережает предложение
demand outruns production	- спрос опережает производство
diminishing	- уменьшение, ослабление
downward	- понижательный, спускающийся
effective/effectual demand	- эффективный (действительный, платежеспособный) спрос
frequently	- часто
incapacity	- неспособность, несостоятельность
inversely	- обратно, обратно пропорционально
obstacle	- препятствие
preference	- предпочтение
quantity	- количество
receipt	- получение, приход
reject	- отказывать
response	- ответ
scale	- шкала
slope	- наклон, склон
steeply	- круто
surplus	- излишек, остаток, прибавочный
to be in demand	- пользоваться спросом
to meet/to satisfy demand	- удовлетворять спрос

Read and translate the text.

Most people think of demand as being the desire for a certain economic product. That desire mustbe coupled with the ability and willingness to pay. Effective demand, that is desire plus ability and willingness to pay, influences and helps to determine prices.

In economics the relationship of demand and price is expressed by the Law of Demand. It says that the demand for an economic product varies inversely with its price. In other words, if prices are high the quantities demanded will be low. If prices are low the quantities demanded will be high.

The correlation between demand and price does not happenby chance.For consumers price is an obstacle to buying, so when prices fall, the more consumers buy.

The demand for some products is such that consumers do care about changes in price when they buy a great many more units of product because of a relatively small reduction in price.The demand for the product is said to be elastic.

For other products the demand is largely inelastic. This means that a change in price causes only a small change in the quantity demanded. A higher or lower price for salt, for example, probably will notbring aboutmuch change in the quantity bought because people can consume just so much salt.

Evenif the price were cut in half, the quantity demanded might not rise very much. Then too, the portion of a person's yearly budget that is spent on salt is so small that even if the pricewere to double, it would not make much difference in the quantity demanded.

 

Find equivalents.

the Law of Demand	соединяться
to be coupled with	случайно
to bring about	определять цену
by chance	способность и желание платить
5. to determine prices	вызывать, осуществлять
6. ability and willingness to pay	закон спроса
7. effective demand	другими словами
reduction in price	сокращения в цене
inversely	обратно, наоборот
changes in price	количественный спрос
in other words	эффективный спрос
the quantity demand	изменения в цене

Match the synonyms.

by chance, to double the price, an obstacle, to consider, efficient, a cut in price, to bring about, to happen, by accident, a relationship, to cause, effective, to raise the price a hundred per cent, a barrier, to think, to occur, a correlation, a reduction in price.

Match the antonyms.

ability, higher price, to cut, to supply, to demand, inelastic, to consume, to raise, least, to couple, small, large, inversely, to part, incapacity, to produce, most, elastic, directly, lower price.

5. Fill in the blanks with prepositions or adverbs if necessary:

1. Most... people think... demand as being the desire... a certain economic product. 2. In economics the relationship... demand and price is expressed... the Law... Demand. 3. It says that the demand... an economic product varies inversely... its price. 4. The demand... some products is such that consumers do care... changes... price when they buy a great many more units... product... a relatively small reduction... price. 5. The correlation... demand and price does not happen... chance. 6. A higher or lower price... salt probably will not bring... much change... the quantity bought because people can consume... so much salt.

Translate the sentences paying attention to the italicized words.

1. Demand for fish has exceeded supply this month. 2. The demand for milk is inelastic because it is a necessity. 3. It is impossible to satisfy all their demands. 4. They demanded that the decision should be revised. 5. Children are so demanding: they need constant attention. 6. The workers are demanding better pay. 7. This sort of work demands great patience. 8. Good secretaries are always in demand. 9. The worker's demands for higher pay were rejected by the employers. 10. He is in great demand as a singer.

Define which of the following items best completes the statement.

The demand of a good is elastic when

a. total receipts increase with each decrease in price.

b. total receipts decrease with each decrease in price.

c. price changes have no effect upon total receipts.

d. the demand curve shifts upward to the right.

 

2. What will happen in a competitive market if the quantity supplied is greater than the quantity demanded?

a. consumers will demand more goods.

b. suppliers will increase their output of goods.

c. the market price will go down.

d. the market price will go up.

3. As a result of an increase in price, total sales of a product increased by $1,000. The demand for the product was

a. elastic.

b. inelastic.

c. diminishing.

d. all of the above.

Answer the following questions.

1. What do most people think of demand? 2. What is an effective demand? 3. What does it help to do? 4. What is expressed by the Law of Demand? 5. What does the Law of Demand say? 6. The correlation between demand and price does not happen by chance, does it? 7. Is price an obstacle to buying for consumers? 8. What does the elastic demand consist in? 9. What does the inelastic demand for products mean?