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There is not enough of everything to go around – у світі немає всього у достатній кількості.

Essential vocabulary

1. Balance v – to establish equal or appropriate proportions of elements – бути/знаходитись у рівновазі, збалансовувати. To balance out – приводити до рівноваги. Syn. to be in/at equilibrium.

2. Do without v – to manage in spite of not having something – обходитись без. To do without any help – обходитися без сторонньої допомоги. Syn. to manage without.

3. Empty-handed adj – having failed to obtain what was asked for – з порожніми руками. To go empty-handed – залишатися/йти без покупок.

4. Equal v – to be or become equal to – дорівнювати, відповідати. Syn. to be equal (to), to match.

5. Excess n – the amount or degree by which one thing or quantity exceeds another – надлишок, надмір, перевищення, надмірність. Excess demand – надмірний/ надлишковий попит, надлишок попиту, excess supply – надмірна/надлишкова пропозиція, надлишок пропозиції.

6. On an/the average – taking an amount or figure that represents the result of adding several quantities together and dividing the total by the number of quantities – у середньому. Syn. at an/the average.

7. Ration v – to distribute relatively scarce resources from among competitive users when demand exceeds supply – нормувати, розподіляти, to ration scarce resources – розподіляти/нормувати обмежені ресурси. Syn. to allocate, to distribute.

Vocabulary exercises

Exercise 1. Read, translate into Ukrainian in written form and memorize the definitions of the following economic terms and concepts.

Equilibrium: A condition of a market in which buyers’ and sellers’ plans exactly coincide, so that the quantity supplied exactly equals the quantity demanded at a current price.	________________________________________________________________________________________________________________________________________________________________________________________________________________________
Equilibrium price: the price at which the quantity of goods or services offered by suppliers is exactly equal to the quantity that is demanded by purchasers in a particular time period.	________________________________________________________________________________________________________________________________________________________________________________________________________________________
Excess demand (shortage): the amount of a product that could be sold at a price lower than the market price.	________________________________________________________________________________________________________________________________________________
Excess supply (surplus): the amount of a product available at a price higher than the market price.	____________________________________________________________________________________________________________
Market price: the price that prevails in a market and at which commodities are actually exchanged for money.	________________________________________________________________________________________________________________________________________________
Price: the money value of goods and services.	________________________________________________________________________
Price system: an economic system in which resources are allocated as a result of the interaction of the forces of supply and demand.	____________________________________________________________________________________________________________________________________________________________________________________

Exercise 2. Give the Ukrainian equivalents for the following.

1. the pricing of goods and services – ____________________________________

2. price-directed market economies – ____________________________________

3. the interaction of supply and demand – _________________________________

4. a unit of goods or services – _________________________________________

5. to make production and consumption decisions – _________________________

6. to put a similar limit on – ___________________________________________

7. at prices above the equilibrium price – ________________________________

8. to balance out the market – __________________________________________

9. the rationing effect of prices – ________________________________________

10. to send messages to suppliers and potential suppliers – ____________________

11. by responding to the consumer demand – _______________________________

12. the quest for greater efficiency – ______________________________________

13. to assign values to the work – ________________________________________

Exercise 3. Find the English equivalents for the following.

1. вкрай хотіти певні товари – ________________________________________

2. лежати в основі – _________________________________________________

3. за такої системи/при такій системі – _________________________________

4. об’єднати два поняття – ___________________________________________

5. бути обмеженим законом попиту – __________________________________

6. за цінами нижчими за рівноважну ціну – _____________________________

7. криві перетинаються – ____________________________________________

8. витискувати виробників з ринку – ___________________________________

9. рівень обсягу виробництва – _______________________________________

10. бажання виробників мати прибуток – ________________________________

11. досягти успіхів у конкурентній боротьбі – ____________________________

12. бути наділеним талантом, вмінням, інтелектом, освітою або спеціальною підготовкою – ________________________________________________________

Exercise 4. Match these nouns/noun phrases, prepositions (if necessary) and nouns/noun phrases as they occur together in the text. Translate the expressions they make into Ukrainian.

supply schedule	of to for	a commodity
a price		the country’s citizens
Nature		cut jeans
a profit		quantity
a signal		greater effciency
an equilibrium		motive
an interaction		sellers
the quest		needs and wants

Exercise 5. Match the verbs/verbal phrases, prepositions (if necessary) and nouns/noun phrases as they occur together in the text. Translate the expressions they make into Ukrainian.

to ration	by in at to into with	competitive activity
to lead		the heart of any society
to bring		scarce resources
to succeed		his wage
not to be set		the market
to introduce		equilibrium
to lie		government
to bring		new production methods
to buy		a decrease

Exercise 6. Copy out from the texts the sentences containing the following words and word-combinations and translate these sentences into Ukrainian.

1. most democracies – __________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. make production and consumption decisions – ____________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. to find equilibrium prices – ____________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4. are in equilibrium – __________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. the price is bid up – __________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6. the level of output – __________________________________________________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

7. the quest for – ______________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8. buy a desired product – _______________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Exercise 7. Fill in the gaps with the correct forms of the words from the box. Translate them into Ukrainian paying attention to the words in bold type.

a price, to price, pricey, priceless

1. He sold the house at a good ___________. 2. It must be done at any __________. 3. You can’t put _________ on that sort of loyalty. 4. This restaurant is a bit __________ for me. 5. The government usually sets _________ for public utility services. 6. Ask the builder to give you _______ for the work. 7. I can’t afford it at that _________. 8. Fresh strawberries are now available at _________ of 5 $. 9. _________ of cigarettes is set to rise again. 10. These goods __________ too high. 11. What _________ all your promises now? 12. You look absolutely _________ in that hat. 13. Supply and demand determine _________ in a market economy. 14. In a free market _________ is determined by the market forces of demand and supply.

Exercise 8. Match the synonyms. The number of synonyms is given in brackets.

1. знаходитись в рівновазі (6) ________________________________________

2. в середньому (2) __________________________________________________

3. дорівнювати (2) __________________________________________________

4. економічна ефективність виробництва (2) ____________________________

5. розподіляти (3) ___________________________________________________

6. об’єднувати (4) ___________________________________________________

7. надлишок (3) ____________________________________________________

8. обходитись без чогось (2) __________________________________________

9. повідомляти когось (3) ____________________________________________

10. пошук чогось (3) _________________________________________________

11. структура (2) ____________________________________________________

a surplus	to balance	on the average	an excess quantity supplied
a structure	the search for	to be in balance	to be balanced	to ration
to match	to join	to do without	the quest for	to be equal in amount
to distribute	to balance out	to allocate	to unite
productive efficiency	the excess supply	to bring together	to manage without	to carry information to
to combine	to equal	the pursuit for	at an average	to be equal
production efficiency	to send a message to	a framework	to inform	to be in/at equilibrium

Exercise 9. Translate the words in brackets into English.

In economic theory, the price resulting from __________________ (взаємодії пропозиції та попиту) is known as __________________________ (рівноважна або ринкова ціна). Market price can be represented graphically as _____________ ______________________ (точка перетину кривих пропозиції та попиту).

We may think of demand as ____________________ (ринкову силу) tending ____________________ (підвищувати ціну товару), and of supply as a force tending ____________________ (знижувати ціни). When these two market forces __________________________ (урівноважують одна іншу), the price _________ ____________ (а ні зростають, а ні падають), but will be stable.

Thus, _________________ (рівновага існує) when the quantity supplied ________________________ (точно дорівнює величині попиту).

If the price is set too high, ________________________ (надмірна пропозиція) will be created within the economy and there will be _________________________ (неефективність розподілу ресурсів) and ______________________________ (економічна неефективність виробництва). _____________________ (постачальники) are striving _________________________ (запропонувати більше товарів на продаж), hoping ________________________ (збільшити надходження), but those consuming the goods will find ______________________ (що вироби менш привабливі) and purchase less because ___________________ _________ (ціна занадто висока).

______________________ (надмірний попит) is created when price is set __________________________ (нижче рівноважної ціни). Since _____________ __________ (ціна така низька), too many consumers want to purchase this product but there are too few goods being produced ______________________________ (задовольнити існуючий споживчий попит).

However, as consumers have _______________________ (конкурувати один з іншим) to buy the product ____________________________ (за цією низькою ціною), _______________________ (збільшений попит) will push the price up, forcing producers ________________________(збільшити обсяг виробництва) and bringing the price to ____________________ (до ринкової рівноваги).

In conclusion ___________________________ (зміни попиту або пропозиції) will affect market price. __________________________ (за умови, що нецінові визначники утримуються сталими), ___________________ (збільшення попиту) will result in ________________________ (збільшення ринкової ціни), and a decrease in demand __________________________ (призведе до зниження ринкової ціни). ________________________ (таким же чином), ____________ ______________ (збільшення пропозиції спричинить) a decrease in market price, and a decrease in supply _____________________ (призведе до підвищення ринкової ціни).

Exercise 10. Match the halves of the sentences and translate them into Ukrainian.

When the price in a market rises, quantity demanded falls and	the interaction of supply and demand in a market for a particular commodity.
Market or equilibrium price can be represented graphically as	the quantity supplied will exceed the quantity demanded, driving the price down.
The equilibrium is attained in the market	there will be excess demand.
In a free market economy, prices are set as a result of	the point of intersection of the supply and demand curves.
The price system allocates goods and resources	which are in demand and at reasonable prices operate profitably.
At any price below the equilibrium point,	above the market equilibrium.
The decreased demand makes producers reduce the output,	consumers will buy fewer units than they did at equilibrium.
Surplus occurs when the established price is	when supply of a particular product exactly equals demand for it.
At any price above the equilibrium point,	the quantity demanded will exceed the quantity supplied, driving the price up.
Entrepreneurs who offer for sale those goods and services	in order not to suffer financial losses.
At any prices lower than the market price	by shifting scarce resources such as raw materials and labor to the production of demanded items.
If the market for a certain product is already in equilibrium and producers raise prices,	by rationing them among those buyers who are willing and able to buy them at a given price.
Producers respond to the increased consumer demand	quantity supplied goes up until the equilibrium is reached.

FOR TRANSLATION

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Exercise 11. Match each term in column A with its definition in column B.

A	B
Equilibrium	An excess quantity demanded over quantity supplied that occurs when a price is below the equilibrium price.
Equilibrium price	A mechanism that allocates scarce resources among those buyers and sellers in the marketplace who are willing and able to deal at the going price.
Market price	The quantity of a commodity determined in the market by the intersection of a supply curve and a demand.
Equilibrium quantity	The amount, usually of money when something is bought or sold.
Excess supply	The price of a good or services at which the quantity demanded matches the quantity supplied.
Excess demand	The price at which goods or services and money will actually be exchanged.
Price	An excess quantity supplied over quantity demanded that occurs when a price is above the equilibrium price.
Price system	The market conditions under which market supply and demand balance each other and, as a result, prices become stable.

Exercise 13. Translate the sentences into English using the active vocabulary.

Ціни – це механізм, що використовується для розмі-щення обмежених ресурсів між конкуруючими потре-бами.	_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Цінова система визначає, як ціну товарів та послуг, які люди хочуть придбати, так і розмір прибутку, який люди можуть витратити, щоб купити ці товари та послуги.	_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Ринкові ціни визначають, хто купить товари, а хто піде додому без покупок.	_________________________________________________________________________________________________________________________________________________________
Коли на ринку існує надмірний попит, покупці не можуть купити кількість продукції, яку вони бажають і тому змушені обходитись без неї.	__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Коли на ринку існує надлишок пропозиції, продав-ці не можуть продати ту кількість продукції, яку вони спроможні запропонувати на продаж.	__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Нестача – це перебільшення величини попиту над величиною пропозиції.	_________________________________________________________________________________________________________________________________________________________
Надлишок – це перебіль-шення величини пропозиції над величиною попиту.	________________________________________________________________________________________________________________________________________________________
Рівновага пропозиції та попиту на ринку досягається при ціні, коли сили пропо-зиції і попиту збалансовані.	____________________________________________________________________________________________________________________________________________________________________________________________________________
Перетин кривих пропозиції та попиту показує рівно-важну ціну та рівноважну кількість.	____________________________________________________________________________________________________________________________________________________________________________________________________________
Зміни в особистих при-бутках, зміни у наданні переваги з боку споживачів або зміни цін на товари-супутники або товари-замінники встановлюють нове співвідношення між ціною та величиною попиту.	________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Встановлюється нове спів- відношення між ціною та величиною пропозиції, коли пропозиція знаходиться під впливом таких факторів, як витрати виробництва, кіль-кість продавців на ринку, зміни в очікуваннях вироб-ників щодо майбутньої ринкової кон’юктури.	______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Щоб мати можливість продавати свою продукцію за ринковою ціною та не зазнавати фінансових збит-ків, виробники намагаються зменшити витрати вироб-ництва, змінюючи технології виробництва.	________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Exercise 14. Answer the following questions.

1. 1. What is a price? 2. What is a price system? 3. What is an equilibrium price? 4. What is excess supply? 5. What is a shortage and when does it develop? 6. What does a decrease in demand lead to? 7. What does an increase in supply result in? 8. How is an economic equilibrium represented graphically? 9. What are the main functions of prices? 10. How do prices ration scarce resources? 11. How do prices perform signalling function? 12. How do prices perform motivation function? 13. In what way does the price system provide answers to the question of What to produce? 14. How does the price system provide an answer to the How question? 15. How does the price system distribute society’s output among the people? 16. How does the price system provide answer to the Who question?

B) 1. Why are prices the key ingredients in a market economy? 2. Why does the law of demand put limits on suppliers while consumers are limited by the law of supply? 3. Why cannot producers ignore consumer demand? 4. What is the correlation between prices and production? 5. Why do producers do their best to reduce production costs? 6. What is the producers’ main incentive? 7. Why is it important to find equilibrium prices in markets? 8. What is the difference between scarcity and shortage? 9. Why does the price system determine each person’s income?

Exercise 15. Say whether these statements are true or false. If the statement is false, correct it. You may begin your answers with such commonly accepted phrases as:

• I quite/fully agree with smb/smth.

• Yes, that's quite right.

• As far as I am concerned…

• I don't think that's quite right./That's not quite right/true.

• I am afraid I don't/can’t agree with smb/ smth.

• I'm afraid that's completely wrong.

• I wouldn't say so.

• Oh, no, quite on the contrary.

  1. In economics, the term «price» denotes the consideration in cash for the transfer of something valuable. 2. Prices are always controlled by the government. 3. Price for a commodity is a reflection of supply of and demand for this commodity. 4. All else remaining equal, an increase in demand will result in no change in price. 5. The equilibrium or market price is determined by a government agency. 6. An increase in supply leads to a decrease in both the equilibrium price and equilibrium quantity. 7. The main function of prices is to motivate production. 8. When prices are high enough, they send a signal to sellers (producers), who can now earn a profit at the new price. 9. Producers can earn more revenues by ignoring to the consumer demand than by responding it. 10. Encouraging business people to produce their goods at the lowest possible cost prices provide answer to the question of What to produce. 11. The quest of producers for greater efficiency motivates producers to succeed in competitive activity. 12. People who are endowed with talent, skill, intelligence, education or special training earn less, on the average, than those who are not.

Exercise 16. It’s September now. Your friend and you have come to the market place to buy some tomatoes. To your surprise the prices have considerably grown. Make up and act out the dialogue in which you discuss the possible causes of such changes in the price.

Consider the following factors: import/export, transportation costs, good/ bad harvest, weather, inflation, new government policy, storage expenses, price increases/ decreases.