Read each paragraph and find the sentence(s) that reveal(s) the idea of the title

Task 22

Copy out the topic sentence in each paragraph.

Task 23

State the meaning of the words while and as at the beginning of the sentence.

Task 24

Single out words and expressions connected with shares.

Task 25

Give answers (2-3 sentences) to the questions in the titles.

Task 26

Say what you have learnt from the text about types of shares.

Task 27

Recognize the difference between A-shares and B-shares.

Task 28

By comparing the words with -ed ending, state if it is past Simple or Past Participle.

Task 29

Answer the questions:

1. What is budget?

2. What are the types of budget?

3. What does a share mean?

4. What are the types of shares?

5. Who can get shares and how many?

6. What is the difference between A-shares and B-shares?

7. Does financial reform influence shares?

8. Are there (if any) restrictions to get shares?

9. Budget makers prefer to operate at a deficit. Give pros and cons.

10. What is the difference between a surplus budget and a balanced budget?

Task 30

Make a plan to retell the text.

Task 31

Write a brief summary of the text. Use the following:

Task 32

Points for discussion:

1. What is the common denominator for stating the prices of all goods and services?

2. Give the definition of the price elasticity of demand. Explain it in your own words.

3. How is price determined by demand and supply?

4. What causes price to change?

5. What elasticity, other than own price, would be useful for a corporate economist? In what situations would you use elasticity?

UNIT 6

Invest a few moments in thinking. It will

pay good interest. (Unknown)

You get recessions, you have stock market declines. If

you don't understand that's going to happen, then you're

not ready, you won't do well in the markets. (Peter Lynch)

GOODS AND MARKETS

Pre-reading tasks

Task 1

Practice the reading of the following words:

Task 2

Make sure you can read these words correctly and say what words in the Russian language help you (to) guess their meaning:

product; radical; opposite; normal; factor; future; result; negative; positive; proportionally; constant; style; symbol; brand; elite; accessories; regional

Task 3

Give the initial forms of the following words:

tempted; held; prices; poorer; rises; less; falls; older; performed; grew; making; known; taken; slowly

Task 4

Learn to recognize the following international words:

hamburger; college; factor; complement; focus; interval; vegetarian; organic; collection; components; perfume; segment; chocolate; percent; company; information

Task 5

Read and translate the following words paying attention to the stress displacement:

product - production; symbol - symbolic; tempted - temptation; assume - assumption; probably - probability; public - publicity; sense - sensitivity; model - modeling; consider - consideration

Text A

GOODS AND MARKETS

Task 6

Read the text and be ready to do the exercises.

Increases in people's incomes raise consumption of most products. These products are called normal goods. There are some products, however, that people use less of as their income increases; these products are called inferior goods. Public transportation is an example--as people's incomes rise, they stop riding the bus and drive their own cars.

Prices of related goods also influence how much of a product people buy. Goods that are substitutes satisfy the same set of goals or preferences. An example of a substitute for hamburger is pork. The opposite of a substitute is a complement, a good that helps complete another in some way. Catsup and hamburger buns are complements to hamburger, and if they are priced low enough, consumption of hamburger may rise. Sometimes goods are such good complements that they are sold together and we think of them as a single item. Left shoes and right shoes are an example.

Normal Good

For most items, having a higher income would result in you consuming more items. In other words, quantity demanded rises as incomes rise. There is a positive association between quantity demanded and income. This can also be said as having a positive income elasticity of demand.

Inferior Good

These goods are not of poorer quality than other goods, as is suggested by the adjective "inferior." Instead, they are simply goods that you consume less of if your income rises. There is a negative association between quantity demanded and income. This can also be said as having a negative income elasticity of demand.

Neither Normal Nor Inferior

There are some items that are not inferior goods. These are usually necessities that all people use. Luxury goods are said to have high income elasticity of demand: as people become wealthier, they will buy more and more of the luxury good.A luxury good may become a normal good or even an inferior good at different income levels, e.g. a wealthy person stops buying increasing numbers of luxury cars for his automobile collection to start collecting airplanes (at such an income level, the luxury car would become an inferior good).

Socioeconomic significance

Certain manufactured products attain the status of "luxury goods" due to their design, quality, durability or performance that are remarkably superior to the comparable substitutes. There are also goods that are perceived as luxurious by the public simply because they play a role of status symbols as such goods tend to signify the purchasing power of those who acquire them. These kinds of goods are the objects of a socio-economic phenomenon called conspicuous consumption.Luxury brands

A luxury brand or prestige brand is a brand for which a majority of its products are luxury goods. It may also include certain brands whose names are associated with luxury, high price, or high quality, though few, if any, of their goods are currently considered luxury goods.

Market trends

The three dominant trends in the global luxury goods market are globalization, consolidation,and diversification. Globalization is a result of the increased availability of these goods, additional luxury brands, and an increase in tourism. Consolidation involves the growth of big companies and ownership of brands across many segments of luxury products. In economics a necessity good is a type of normal good. Like any other normal good, when income rises, demand increases. But the increase for a necessity good is less than proportional to the rise in income. Necessity goods are goods that we can't live without and won't likely cut back on even when times are tough, for example food, power, water and gas.

Most necessity goods are usually produced by a public utility. Stocks of private companies producing necessity goods are known as defensive stock. Defensive stock is stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market.

Difference Between Necessities and Luxury

With the development of Science and Technology, many of our comforts have become our necessities. Earlier when the computer was invented, it was used only for the purpose of data storage and calculus. However today it has become our prime necessity. Digital cameras were once considered as a luxury, at least in the third world countries, but now, we no longer see those old cameras instead we see digital cameras, because of many of their advantages

Who knows what may seem today as a luxury invention may become an important part of our life tomorrow.

Task 7

Date: 2015-12-11; view: 1002