Ex. 24. Discussion questions.

1. What role do producers play in an economy?

2. What problems does every economy face?

3. How is the problem of " what, how and for whom to produce" solved
in a market economy?

4. How do buyers and producers respond to changes in prices?

5. How is a market created?

6. What is a perfect market?

7. How do monopolies begin?

8, What do businesses compete for?

9. How do supply and demand influence each olher?

10. What affects supply/demand?

11. What factors affect price?

12. Do governments coordinate the work of business in a market econo­
my?

13. Is government intervention considered necessary?

14. Can you give some examples of the role of government in the econo­
my?

15. Do local authorities play an important role in the life of communities?

16. What powers/responsibilities are usually given to local government?

Read for More Information

Ex. 25. a) Read aloud Ihe text given below.

I,) Look up tbe words you do not know in the dictionary-

_c) Read and translate the words: theoretical, structure, potential, patent, copyright,
talent, strategic, investment, harriers, instrument, substitute, plastics, technologies,
to exploit, to minimise.

d) Compare jour translation with a partner.

_e) Explain how monopolies begin anil how they affect the market.

Monopolies

Pure monopoly is a theoretical market structure where there is only one seller of a commodity or service, where entry into the industry is closed to potential competitors, and where the seller has complete control over Ihe quan-tiiy of goods offered for sale and the price at which goods are sold,

Monopolies may begin by the granting of a patent or a copyright, by the possession of a superior skill or talent, or by the ownership of strategic capital. The huge capital investment necessary to organise a firm in some countries is _a barrier to entry in these monopolistic fields and, thus, provides established corporations in these industries with potential monopoly power.

At the same time, in recent years, many large U.S. corporations, viewed by many as the chief instrument of monopoly, have become vulnerable to new forms of competition. U.S. consumers can buy goods from foreign producers. In the case of automobile, they can purchase products made by Honda, Toy­ota, or Volvo, to name a few. The U.S. Government has tried to minimise the danger of monopolies through legislation.

Unit3

I. Business and Government

Ex. 26. a) Read aloud the lc\l given below.

b) Look up the words you do not know in the dictionary.

c) Find and translate the sentences containing gerunds.

d) How can monopolies be broken up?