The Role of Market (setting the text)

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MARKETS (MARKETS)
The Role of Market (The role of the 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 behaviour 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. ......

Assignments
I. Suggest the Russian equivalents
a single living entity with a single conscious mind; a shorthand expression; to be reconciled by adjustment of smth; a suitable part-time job; to offer high wages; to guide smb's decision; to cover the cost of smth

II. Replace the parts in italics by synonyms
at a distance, of the neighbourhood, carried out, done; ask for; make certain that; buy, illness, managing, put up, rareness

IV. Fill in the gaps with the words and expressions from the text
1. To understand reports of market behaviour you have to ... the way the market works.
2. On the stock market, business can be transacted over the telephone, almost by ....
3. A market is a ... 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 ... by ....
4. Much of economics is devoted to the study of how markets and prices ... society to solve the problems.
5. ... your desire to eat, and your limited resources, the low hamburger price told you that this was a good way to ... your appetite.
6. Society answers the "for whom" question about lunchtime steaks ... someone else,
7. The cafe owner is in business because it is still possible to sell hamburgers ....
8. If rents were higher, it might be more profitable to sell hamburgers in a cheaper area or ... to ... lunches.
9. The student is working there because it is a suitable ..., which pays a bit of money.

Additional information

10. Society is allocating resources into hamburger production ... the price system.
11. If nobody liked hamburgers, the owner could not sell enough at a price that ... of running the cafe and society would ... no resources to hamburger production.
12. If cattle ..., competition to purchase more scarce supplies of beef would ... the price of beef.
13. Adjustments in prices would encourage society ... resources to reflect the increased scarcity of cattle.
14. There were several markets ... your purchase of a hamburger.
15. The student behind the counter was part of the local ... market.
16. The cafe owner was part of the local ... meat market and the local market for ... buildings.
17. We ... a very general definition of markets, which emphasizes that they are ... through, which prices influence the allocation of scarce resources.

VI. Find in the text English equivalents for the following
market behavior; the securities market; carry out the transaction, the transaction; have anything to do with anything; considering anything (taking into vnima¬nie); to someone else; profitably sell; switch to anything; unskilled work; allocate resources po¬sredstvom price system; reduce the capacity of the economy; bid up the price; reallocate expenses; the wholesale market; mechanisms (structures) by which influence the distribution rates.

VI. Find in the text English equivalents for the following
market behavior; the securities market; carry out the transaction, the transaction; have anything to do with anything; considering anything (taking into vnima¬nie); to someone else; profitably sell; switch to anything; unskilled work; allocate resources po¬sredstvom price system; reduce the capacity of the economy; bid up the price; reallocate expenses; the wholesale market; mechanisms (structures) by which influence the distribution rates.

VII. Answer the questions
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 do not 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".
11. What does the term "resources" comprise?
12. In what way can prices guide your decision to buy some goods?
13. In what way can prices guide a person's decision to take a job?

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