8. Discuss with your partner why economic statistics plays an important part for the economy of the country.

9. Note the layout of a business letter.

1. Reliance holdings finance group

88 Martins Lane London ec2v 6bh Telephone 01-58803782

2. Your ref: July 2011

Our ref: SC/MR

3. 13 July 2011

4. Oliver Green and Co. Ltd.

25 King Edward VII St.

Edindurgh M24 5BD

5. Attention: Mr. P James

6. Dear Sirs

7. Thank you for your letter of 11^th July, asking for an up-to-date list of addresses of our branches.

We have pleasure in enclosing this brochure, showing the location of all our branches and agencies at home and abroad.

8. Yours faithfully

S.S. Carson

S.S. Carson

Group Manager

Reliance Holdings

9. Enc

10. cc: D. Dube

10. Put the sentences in the business letter in the correct order. Food machines

1. Thank you for your letter. I am afraid that we have a problem with your order. Unfortunately, the manufacturers of the part you wish to order have advised us that they cannot supply it until November. Would you prefer us to supply a substitute, or would you rather wait until the original parts are again available?

2. Dear Mr. Sawyer.

3. James Sawyer, Sales Manager, Electro Ltd, Perry Road Estate, Oxbridge UN54 42KF.

4. 6 Pine Estate, Bedford Road, Bristol, UB28 12BP Telephone 9036 174369 Fax 9036 36924.

5. 8 August 2012.

UNIT 3

1. Read the text and translate it into Russian paying attention to the vocabulary notes. The role of market

Reports in the press tend to say "the market did this" or "the market expected good news on the economic front", as if the market were a single living entity with a single conscious mind. This is not, of course, the case. To understand reports of market behaviour you have to bear in mind the way the market works.

A market is simply a mechanism, which allows individuals or organizations to trade with each other. Markets bring together buyers and sellers of goods and services. In some cases, such as a local fruit stall, buyers and sellers meet physically. In other cases, such as the stock market, business can be transacted over the telephone, almost by remote control. There's no need to go into these details. Instead, we use a general definition of markets.

A market is a shorthand expression for the process by which households' decisions about consumption of alternative goods, firms' decisions about what and how to produce, and workers' decisions about how much and for whom to work are all reconciled by adjustment of prices.

Prices of goods and of resources, such as labour, machinery and land, adjust to ensure that scarce resources are used to produce those goods and services that society demands.

Much of economics is devoted to the study of how markets and prices enable society to solve the problems of what, how and for whom to produce. Suppose you buy a hamburger for your lunch. What does this have to do with markets and prices? You chose the cafe because it was fast, convenient and cheap. Given your desire to eat, and your limited resources, the low hamburger price told you that this was a good way to satisfy your appetite. You probably prefer steak but that is more expensive. The price of steak is high enough to ensure that society answers the "for whom" question about lunchtime steaks in favour of someone else.

Now think about the seller's viewpoint. The cafe owner is in business because, given the price of hamburger meat, the rent and the wages that must be paid, it is still possible to sell hamburgers at a profit. If rents were higher, it might be more profitable to sell hamburgers in a cheaper area or to switch to luxury lunches for rich executives on expense accounts. The student behind the counter is working there because it is a suitable part-time job, which pays a bit of money. If the wage were much lower it would hardly be worth working at all. Conversely, the job is unskilled and there are plenty of students looking for such work, so owners of cafes do not have to offer very high wages.

Prices are guiding your decision to buy a hamburger, the owner's decision to sell hamburgers, and the student's decision to take the job. Society is allocating resources – meat, buildings, and labour – into hamburger production through the price system. If nobody liked hamburgers, the owner could not sell enough at a price that covered the cost of running the cafe and society would devote no resources to hamburger production. People's desire to eat hamburgers guides resources into hamburger production. However, if cattle contracted a disease, thereby reducing the economy's ability to produce meat products, competition to purchase more scarce supplies of beef would bid up the price of beef, hamburger producers would be forced to raise prices, and consumers would buy more cheese sandwiches for lunch. Adjustments in prices would encourage society to reallocate resources to reflect the increased scarcity of cattle.

There were several markets involved in your purchase of a hamburger. You and the cafe owner were part of the market for lunches. The student behind the counter was part of the local labour market. The cafe owner was part of the local wholesale meat market and the local market for rented buildings. These descriptions of markets are not very precise. Were you part of the market for lunches, the market for prepared food or the market for sandwiches to which you would have turned if hamburgers had been more expensive? That is why we have adopted a very general definition of markets, which emphasizes that they are arrangements through, which prices influence the allocation of scarce resources.