Ex.23. Read the text again and answer the following questions.

Ex.22. Read the text and decide whether the following statements are true (T) or false (F). Correct the false statements.

Ex.21. Read the text. Choose the best sentence A-J to fill each of the gaps 1-10. Do not use any letter more than once. There is an example at the beginning.

0.When sellers want to sell some items badly enough, they will lower their prices.

 

AWhen prices are low enough, they send a "buy" signal to buyers (consumers), who can now afford the things they want.

B If pork prices are high, people are tempted to shift away from pork to hamburger, and if pork prices are low, people are tempted to shift from hamburger to pork.

C Producers strive for efficiency as a way of increasing their profits.

D The same trip will cause a person with a high income to cut back on a very different set of options.

E Left shoes and right shoes are an example.

F Blue jeans were once another example-people with higher incomes bought them less frequently than people with lower incomes.

G To do this, we will assume that all other factors are held constant.

H The amount of this wage determines how much the worker has to spend.

IThe lessit costs to produce an item, the more likely it is that its producers will earn a profit.

J When the price of a product goes up, the amount of other things that a person must give up in order to buy the product rises.

1. Prices are not very important in our economy.

2. Sellers always lower prices for the goods they sell.

3. Prices carry information to buyers and sellers.

4. When prices are low, buyers will buy less.

5. Sellers can earn profit when prices are high enough.

6. Prices encourage business people to produce less if the prices are low.

7. Efficient firms will produce less with fewer raw materials.

8. All of us will benefit if producers increase their profits through efficiency.

9. Prices tell who receives the economy’s output.

10. What the worker can buy will depend upon the economic situation in the country.

11. The amount of income a person receives doesn’t affect the cost of buying.

12. Increases in people's incomes raise consumption of most products.

13. Prices of related goods also influence how much of a product people buy.

14. Jeans were a symbol of "upper-class" clothes.

15. The number of consumers in the market and their expectations about future prices, incomes, and quality changes are other factors that influence the amount of a particular product that people are willing to buy.

1. Why is the US described as a price-directed economy?

2. What happens when prices go up?

3. How can people get benefit from efficient work of some firms?

4. How can the prices determine who will receive the things produced?

5. What is the most obvious cost a person bears ?

6. Why does price reflect cost? Give an example.

7. In what way does the amount of income a person receives affect the cost of buying an item?

8. What are the normal goods and inferior goods? Give examples.

9. What is the difference between substitutes and complements?

10. What are some other factors that influence the amount of a particular product that people are willing to buy?

 

TEXT C: TWO FACTORS THAT AFFECT LABOUR SUPPLY AND DEMAND