supply
competition
factors of
production
1.
The natural resources, labor, capital goods, and entrepreneurship that go into
producing goods and services.
2.
A period of increased spending that causes a rapid rise in prices.
3.
The contest among businesses to win customers.
4.
The amount or quantity of goods and services consumers is willing and able
to buy at various prices.
5.
The account or quantity of goods and services that producers will provide at
various prices.
Exercise 2.Match the sentence halves.
1 We're trying to break into
2 You should carry out
3 If you would like to place
4 If you can't meet
5 They've quoted
6 Let us know if you want us
to arrange
7 It's essential to comply with
a) all regulations if
you want the delivery
to go through without problems.
b) the delivery date, let us know as soon
as possible.
c) insurance cover for the shipment.
d) a market survey before you make a
major investment.
e) the Japanese market.
f) an order, press one now.
g) us a very good price for the consignment.
Task 2. Reading
Government Spending
Our society needs highways and schools
to operate effectively and
efficiently. Through their elected officials, people in a democracy make known
their social wants that government should help to satisfy. The public welfare, or
well-being of society, is the "business" of government. Government operates or
runs with taxes paid by the people.
You can look at it this way. A part of your income goes for taxes to
buy public goods and services. The rest of your income you use to buy goods and
services in the marketplace.
For most public goods and services, the consumer
is not charged a fee
covering the full cost of the item. As examples, parents do not have to pay tuition
to send their children to schools.
The charges for public health services generally are far below costs.
Government uses taxes from all the people to make up the difference between
actual costs and what users pay.
There are a number of reasons why government provides goods and
services. Running courts, making and enforcing laws,
and providing for the
security of our nation are services that government should provide. These
services are part of the governing process. They would be impossible for
business to provide.
Government provides some services simply because business has
found them to be unprofitable. For instance, the
government has taken over
passenger rail service in many parts of the country.
Sometimes people want the government, rather than a business, to
provide
a
service
because
it
is
more
convenient
and
because
the use of the service won't be limited.
A transfer payment is money received by people who are not currently
producing goods or services in exchange for it.
Transfer payments are made for retirement,
disability, health and
hospital expenses for the elderly, unemployment benefits, and assistance to
families when the wage-earner has died large area of government spending is for
defense.
Another large part of the federal budget goes
tо pay the interest on The
national, or public, debt. The national debt is the total of a l l loans made to the
federal government by individuals or groups of individuals. For instance, you
can buy a Treasury note or a bond. In effect, you are lending money to the federal
government for its operations.
