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Markets.The Role of Market.
Reports in the press tend to say "the market did this" or "the market expected good news on the economic front", as if the market were a single living entity with a single conscious mind. This is not, of course, the case. To understand reports of market behavior you have to bear in mind the way the market works. A market is simply a mechanism, which allows individuals or organizations to trade with each other. Markets bring together buyers and sellers of goods and services. In some cases, such as a local fruit stall, buyers and sellers meet physically. In other cases, such as the stock market, business can be transacted over the telephone, almost by remote control. There's no need to go into these details. Instead; we use a general definition of markets. A market is a shorthand expression for the process by which households' decisions about consumption of alternative goods, firms' decisions about what and how to produce, and workers' decisions about how much and for whom to work are all reconciled by adjustment of prices. Prices of goods and of resources, such as labour, machinery and land, adjust to ensure that scarce resources are used to produce those goods and services that society demands. Much of economics is devoted to the study of how markets and prices enable society to solve the problems of what, how and for whom to produce. Suppose you buy a hamburger for your lunch. What does this have to do with markets and prices? You chose the cafe because it was fast, convenient and cheap. Given your desire to eat, and your limited resources, the low hamburger price told you that this was a good way to satisfy your appetite. You probably prefer steak but that is more expensive. The price of steak is high enough to ensure that society answers the "for whom" question about lunchtime steaks in favour of someone else. Now think about the seller's viewpoint. The cafe owner is in business because, given the price of hamburger meat, the rent and the wages that must be paid, it is still possible to sell hamburgers at a profit. If rents were higher, it might be more profitable to sell hamburgers in a cheaper area or to switch to luxury lunches for rich executives on expense accounts. The student behind the counter is working there because it is a suitable part-time job, which pays a bit of money. If the wage were much lower it would hardly be worth working at all. Conversely, the job is unskilled and there are plenty of students looking for such work, so owners of cafes do not have to offer very high wages. Prices are guiding your decision to buy a hamburger, the owner's decision to sell hamburgers, and the student's decision to take the job. Society is allocating resources - meat, buildings, and labour - into hamburger production through the price system. If nobody liked hamburgers, the owner could not sell enough at a price that covered the cost of running the cafe and society would devote no resources to hamburger production. People's desire to eat hamburgers guides resources into hamburger production. However, if cattle contracted a disease, thereby reducing the economy's ability to produce meat products, competition to purchase more scarce supplies of beef would bid up the price of beef, hamburger producers would be forced to raise prices, and consumers would buy more cheese sandwiches for lunch. Adjustments in prices would encourage society to reallocate resources to reflect the increased scarcity of cattle. There were several markets involved in your purchase of a hamburger. You and the cafe owner were part of the market for lunches. The student behind the counter was part of the local labour market. The cafe owner was part of the local wholesale meat market and the local market for rented buildings. These descriptions of markets are not very precise. Were you part of the market for lunches, the market for prepared food or the market for sandwiches to which you would have turned if hamburgers had been more expensive? That is why we have adopted a very general definition of markets, which emphasizes that they are arrangements through, which prices influence the allocation of scarce resources.
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 the cafe owner in business? 6. Why don't cafe owners 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 are you involved in if you buy a hamburger? What are those markets? 10. Enumerate all the components comprising the concept of "Market".
8. Прочитайте и переведите следующий текст, написать основную идею его и ответить на вопросы после текста. Рынки.В роли рыночных. Отчеты в прессе, как правило, говорят "рынок сделал это" или "ожидаемая рыночная хорошие новости на экономическом фронте", как если бы рынок был единственный живое существо с одной сознания. Это не так, конечно, имеет место. Чтобы понять, отчеты о поведении рынка, то должны иметь в виду, как работает рынок.
1. Что Приведен пример рынке, где продавцы и покупатели на самом деле встретиться?
9. Find in the text English equivalents for the following поведение рынка; рынок ценных бумаг; проводить сделку, операцию; иметь что-то общее с чем-либо; с учетом чего-либо (принимая во внимание); в пользу кого-либо другого; прибыльно продавать; переключиться на что-либо; неквалифицированная работа; распределять ресурсы посредством системы цен; сокращать возможности экономики; набавлять цену; перераспределять расходы; оптовый рынок; механизмы (структуры), посредством которых цены влияют на распределение.
9.Найдите в тексте английские эквиваленты для следующих
10. Explain in English rent; profit; expense account; part-time job; labour market; wholesale (meat) market
10.Объясните на английском языке аренда; прибыль; счета расходов; неполная занятость; Рынок труда; Оптовая торговля (мясо) рынок 1.Rent - a tenant's regular payment to a landlord for the use of property or land. Аренда - арендатора регулярная выплата домовладельцу для использования имущества или земли. 2.Profit - a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. Прибыль - финансовая выгода, особенно разница между суммой заработанных и суммы, потраченной при покупке, эксплуатации или изготовления кое-что. 3.Expense account - an arrangement under which sums of money spent in the course of business by an employee are later reimbursed by their employer. Счет расходов - механизм, в рамках которой суммы денег, потраченных в процессе своей деятельности работником позже возмещаются работодателем.
4. Part-time job - form of employment in which the employee's length of working time is less than specified by the employer Неполная занятость – форма занятости, при которой длительность рабочего времени работника меньше, чем установлено работодателем.
5.Labour market – economic environment, which establishes a certain amount of employment and salary level. Рынок труда – экономическая среда, где устанавливается определенный объем занятости и уровень оплаты труда
6. wholesale (meat) market – a place where you can buy and sell the meat in high quantities. Оптовая торговля (мясо) рынок - место, где можно купить и продать мясо в большом колличестве.
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