2017-11-01
762
Markets and government
1. Markets play a key role in coordinating the choices of individuals with the decisions of business. In modern market economies goods and services are supplied by both business and government. Hence we call them mixed economies. Some products or services are available to those who wish to buy them and have the necessary income – as in cases like coffee and wireless services. Other services are provided to all people through government programs like law enforcement and health care. In a mixed economy goods and services are supplied both by private suppliers and government. Markets offer the choice of a wide range of goods and services at various prices. Individuals can use their incomes to decide the pattern of expenditures and the bundle of goods and services they prefer. Businesses sell goods and services in the expectation that the market price will cover costs and yield a profit.
2. The market also allows for specialization and separation between production and use. Rather than each individual growing her own food, for example, she can sell her time or labour to employers in return for income. That income can then support her desired purchases. If businesses can produce food more cheaply than individuals the individual obviously gains from using the market – by both having the food to consume, and additional income with which to buy other goods and services.
3. Much of microeconomics and macroeconomics focuses upon the role of government: how it manages the economy through fiscal and monetary policy, how it redistributes through the tax-transfer system, how it supplies information to buyers and sets safety standards for products.
VIII. Answer the questions:
1. Why do the businesses sell goods and services?
2. What does the market allow?
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3. What do microeconomics and macroeconomics focus upon?
Variant X
I. Complete the sentences (1- 9) with the words (a-i):
A) surplus b) wealth c) value d) household e) currencies f) origin g) payment
H) ties i) audits.
1. His personal ……… is estimated at $15 billion.
2. The ……….of the money that financed the deal was unclear.
3. His research has been of little practical……..
4. Water quality is another key issue at the ………… level.
5. Currently outside …..…….are a normal and regular part of business practice.
6. Offers usually state the terms of ………..
7. Britain has got very sound economic…..……with various countries of the world.
8. If a country sells more goods than it buys, it will have a ………….
9. The exchange rates for various ……..…. change every day.
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II. Match (1-9) with (a-i) to make up sentences:
| 1. Economic growth enables the possibility to deal with 2. Consumer services are intangible products or actions 3. Monopolies restrict free trade, 4. Stricter controls on air pollution 5. The standard of living by country depends on 6.Economists conclude that allowing free trade in an economy 7. Women are disproportionately responsible 8. A monopoly is simply a market with only one seller. 9. Scarcity of economic resources | a) preventing the market from setting prices. b) many serious problems of poverty and homelessness. c) that are typically produced and consumed simultaneously. d) who's doing the measuring. e) would help to reduce acid rain. f) for child-care and home duties. g) improves welfare for society overall. h) forces people to make tradeoffs. i) with only one seller. |
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