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Price and Value

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1. Prices is the quantity of payment given by one party to another in return for goods or services. Economics theory says that in a free market economy the market price reflects interaction between supply and demand. In turn these quantities are determined by the marginal utility of the asset to different buyers and to different sellers. In reality, the price is depended by other factors, such as tax and other government regulations.

2. Price is not the same thing as value. Things are ‘valuable’ because people think they are, and for no other reason. The ‘value’ which an individual places on a commodity can’t be measured; its value will be different for different people. The economist is interested only in ‘value in exchange’. The economic worth of value of a good can only be measured in some kind of market transaction which reveals the value of the good in terms of what is offered in exchange for it. Nowadays practically all exchanges represent an exchange of goods and services for money, and prices in terms of money are the market value of the things.

3. Although prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen. Prices arise in exchange transactions. Any effective arrangement for bringing buyers and sellers into contact with one another is defined as a market. Face to face contact between buyers and sellers is not a requirement for a market to be able to operate efficiently. In the foreign exchange market, buyers and sellers are separated by thousands of miles.

 

Iх. Прочтите абзац № 1 и ответьте письменно на следующий вопрос:

What does the market price reflect?

Вариант 4

I. Поставьте предложения в вопросительную и отрицательную формы:

1. Computer making industry is developing rapidly.

2. Many companies often operate a bonus system for monthly and weekly-paid

staff.

3. Without surplus goods, there were no profits or saving in the 18th century.

II. Прочитайте предложения (1-4) и вставьте в пропуски словосочетания (a-d):

a) attends b) went c) has been d) are helping1. Three temporary employees -------- out this month. 2. Mister Brown never ------- a meeting. He always sends me. 3. Sarah --------to the trade fair on Thursday . 4. Your advice ------- always ------ extremely helpful. Занесите свои ответы в таблицу



 

       

 

 

III.Раскройте скобки, употребляя сравнительную степень прилагательных. Переведите предложения на русский язык

 

1. Variable costs can rise at a much (slow) rate than production.

2. In some market structures, companies have (much) control over price.

3. If one company has a (large) share than any other, it can affect price.

IV. Вставьте в пропуски (1-4) предлоги (a-d):

A) for b) at c) in d) with

1.He travelled to Japan -------2001. 2.They haven”t been very successful ------the past ten days. 3.She”s never worked ------a difficult person before. 4.When she travels all day, she can”t sleep-----night. Занесите свои ответы в таблицу

 

       

 

 


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