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Now lets speak about work people. By the type of work people do workers fall into one of four broad categories

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1. White collar workers are people who do jobs in offices, for example as secretaries, teachers, and insurance agents.

2. Blue collar workers are people who do jobs in factories or outdoors.

3. Service workers provide services to other individuals or businesses.

4. Farmworkers are people who work on their own farms or those of others.

In the market system a person's income is determined by how the market values that person's resources and skills.

People do a big mistake when they say that income is same as wealth. Wealth is any resource that can be used to produce income. An individual's possessions, such as a house, a car, or a stereo, are part of that person's wealth. Each of these could be sold to produce income.

Now if we want to understand it we have to consider two women who receive an income of $25,000 a year. One earns all of her income working at a bank. The other receives her $25,000 income from dividends on stock worth $250,000. The second woman is much wealthier than the first women.

At the end of my presentation I have to say that spending becomes income for someone else.

№6. Markets and monopolies.

Whenever people who are willing to sell a commodity contact people willing to buy it, a market for that commodity is created. Buyers and sellers meet in person, or they may communicate by letter, by phone or through their agents. In a perfect market there can be only one price for a given commodity: the lowest price which sellers will accept and the highest which consumers will pay. Competition influences the prices prevailing in the market. Although in a perfect market competition is unrestricted and sellers are numerous, free competition and large numbers of sellers are not always available in the real world. In some markets there may only be one seller or a very limited number of sellers. Such a situation is called a "monopoly". It is possible to distinguish in practice four kinds of monopoly.

State planning and central control of the economy often mean that a state government has the monopoly of important goods and services. A different kind of monopoly arises when a country has control over major natural resources or important services. Such monopolies can be called natural monopolies. Legal monopolies occur when the law of a country permits certain producers, authors and in­ventors a full monopoly over the sale of their own products. These types of monopoly are distinct from the sole trading opportunities. This action is often called "cornering the market" and is illegal in many countries.

In the market systems, competition answers the basic questions of what, how, for whom, and how much. Competition among producers is for the highest profits. Compe­tition among consumers is for the best goods and services at the lowest prices.

In a market economy three basic resources - land, labour and capital - are bought and sold for the best price. Market for labour is constantly changing.

№7. Pricing policies.

Everybody, who wants to start his own business, must know, that it’s very important to attract the customers. There are many ways to do it. For example, to introduce new items of goods.

Economists say that the most important thing for sellers is to charge the appropriate price for goods. There are two types of pricing policy: price emphasis(полит акцентиров Р для стимул сбыта) and price de-emphasis(Робразов на осн ощу-й цен-ти тов).

Price emphasis policy emphasizes low prices. And this encourages sales. We must know that it has a weak point, because this policy doesn’t provide extra services. But it let sellers get more money, because this price determines a big number of sales.


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