Comments

1. perishable goods — товари, що швидко псуються

2. overproduction — перевиробництво; надвиробництво

3. household goods — господарські товари; предмети домашнього вжитку

Vocabulary exercises

I. Give the Ukrainian equivalents for the following words and

word-combinations. Use them in the sentences of your own:

perishable/non-perishable goods; particular commodity; a rise in prices; on the other hand; overproduction; to go out of business; to reduce production; to encourage producers; to create difficulties; household goods; to lead to a glut on the market; changes in prices; to suit market conditions; market prices.

II. Change the sentences according to the pattern:

Pattern: He told me something. The prices will change.

He told me that the prices would change.

1. The government anticipated something. The workers will demand higher wages. 2. The management decided something. The new factory will be located in a different city. 3. The development committee arranged something. The meetings will be held at regular intervals over the next two years. 4. They told him something. The committee will meet next week. 5. The economists expected something. The prices will fluctuate considerably.

3. Say whether these statements are true or false and if they are

false say why:

1. Bananas are a typical example of goods that easily deteriorate. 2. Steel can be stored for a long time without losing its value. 3. The actual stock of cars in a factory is usually the same as the supply of cars available on the market. 4. According to the Law of Supply, a rise in prices tends to reduce supply. 5. If prices fall locally, production will be reduced throughout the world. 6. When there is a glut on the market, demand decreases and prices fall. 7. Changes in prices lead to a change in the quantity of a commodity. 8. Supply is «elastic» because market prices rise and fall.

IV. Change the italicized verb into a noun and fill in the blanks:

1. The government encourages private enterprise. Their ___________ sometimes takes the form of financial help. 2. It is sometimes necessary to adjust the quantity of goods flowing to the market. This __________ is made according to market conditions. 3. Some economists are interested in measuring changes in the price of essential commodities. This ____________ extends over a period of years. 4. The management tried to assess the amount of money needed for the plan. The ____________ was to be made by a special committee. 5. He arranged the committee meeting. His ____________ were very efficient. 6. He decided to invest his capital in the new enterprise. His __________ might be very profitable.

V. Answer the following questions:

1. What are perishable goods? 2. What two things are usually the same in quantity? 3. What happens when the Law of Supply operates? 4. What does a rise in prices encourage? 5. What does a fall in prices cause? 6. What serious effect may a fall in prices have on some producers? 7. What can overproduction lead to? 8. What happens when the supply of a commodity is adjusted to suit market conditions? 9. What kinds of goods belong to the category of commodities that can be adjusted easily? 10. What is meant by «elastic» supply?