4. After a particular market is defined… terms… its product and its geographic area, the economist can study the workings… demand and supply… that particular market.

5. As the price… a good increases, consumers can buy less… all goods, including… the good whose price has risen.

6. Opportunity costs and amounts paid… all resources are included… total costs.

7. The output… beer… Russia's largest beer maker, Baltika Brewery, grew… 30 percent… 1999… the previous year.

8… 1999, industrial production… Russia increased… 7.9 percent but the output… agricultural sector decreased… 0.6 percent compared… 1998 level.

9. Every field, economics… particular, has its «schools» and groups. «Liberal» economists believe… market system opportunities. But they also believe… government support and regulation… an economy. «Classical liberals» or the «Chicago Group» rely… people's private choices as the rational basis… the economic system. «Radical» economists, including… Marxists and other critics, believe that free-market capitalism must result… depressions and mass unemployment. They assume that governments must ran… all economic units and make all economic decisions.

б) Кратко охарактеризуйте три основные школы экономической мысли, о которых говорится в пункте 9.

Аудиторная работа № 2

12. а) Ответьте на вопросы к тексту Theory of Supply.

1. What is the principal assumption of the supply theory?

2. What is the difference between profit and revenue?

3. What is included in costs of production?

4. How do firms get maximum profits?

5. When are profits the highest?

6. When should firms close down?

7. What is the relationship between marginal revenue, marginal cost and output?

8. What is market supply? What is market supply important for?

б) Подумайте и скажите:

1. Why is it necessary to know the effect of a price change on the whole output rather than the supply of individual firms for making economic forecasts?

2. Can you give an example of technology influencing the quantity supplied?

13. Раскройте скобки и выберите подходящее по смыслу слово из предлагаемых вариантов.

1. Farmers may (own / earn /run) more revenue from a bad harvest (урожай) than from a good harvest.

2. A rise in the income of consumers will typically result in an equivalent increase in (corresponding /total /alternative) consumer expenditure.

3. Statistics show the greatest increase in the number of jobs in the American non-production sector, among government workers (in terms of / elsewhere /in particular) today.

4. Don't forget to calculate the (marginal cost /costs /opportunity cost) of the man's labour, that is, the money that he could (own /earn /offer) by working elsewhere.

5. In Marxist theory, proletariat is the social class of workers who have to sell their (corresponding /own /total) ability to work.

6. If we want to understand how firms make output decisions, we must analyze how they determine (revenues /output /amounts) snd(commodities /costs /profits).

14. Составьте предложения из двух подходящих по смыслу частей.

1. Market demand is

2. An improvement in technology is a change that

3. Profits are

4. As long as the total demand and the total supply of the commodity remain equal,

5. Part of a company's profits is put back into the business rather than

6. Examining how revenues and costs change with the level of output produced and sold,

7. With inflation, people have to increase expenditure because

8. Profit depends on

9. Opportunity cost is the amount

a. revenues minus costs.

b. the firm can select the output level maximizing its profit.