4.3 Прочитайте текст и определите, относятся ли данные утверждения к Веблену (V), Найту (k), или к обоим (b).

1. Supported laissez faire economics. K

2. Taught Economics at the University of Chicago. B

3. Predicted the separation of ownership from management of business organizations. V

4. Coined the term “leisure class”. V

5. Believed business profits were earned in return for accepting the uncertainties of the market. K

6. Opposed laissez faire economics. V

7. Believed consumers made unwise choices. V

8. Supported the consumer’s right to determine what should be on the market. K

9) Believed that people in business could gain profits by giving consumers

what they wanted.K

10) Believed that people in business could gain profits by limiting production.V

11) His ideas are still influential today.B

4.4 Дополните таблицу глаголами, существительными и прилагательными.

Verb	Noun	Adjective
1) consume	consumer___ consumption___
2) compete_	competition competitor	_ competitive
3) produce	_product___ production	productive_
4) manufacture	manufacturer
5)	certainty uncertainty	certain
6)	reason	reasonable

4.5 Дополните фразы из текста данными словами.

basic, social, class, decisions, free, loss, consumer, wasted, demanded

1. _social behavior

2. unwise _ choices _

3. leisure class

4. quantity _demanded

5. wasted_ resources

6. basic_ necessities

7. _free enterprise

8. financial _loss_

9. _consumer demand

4.6 Дайте развернутые ответы на вопросы в письменной форме.

1. What did Veblen mean by “conspicuous consumption”? Consider whether it is a factor in today’s economy. Provide evidence to support your opinion.

Veblen ment by “conspicuous consumption” the tendency of the wealthy to buy goods and services to impress others. It is a factor in today’s economy. Some people buy cheap things such as cars, yachts and planes in order to impress other people.

2. What distinction did Knight make between risk and uncertainty? Consider how a business might limit risk or uncertainty and prevent financial loss.

Knight distinguished between risk (which can be predicted and against which one can be insured) and the uncertainty of events that cannot be predicted. For example, business faces the risk of damage of the goods and can be insured against it. And to limit risk of uncertainty the businessmen have to produce different types of goods.

UNIT 5