Тест №2

1. .a..I wait here?

a. May b. Have to с. Am to

2. It was so dark, we…c…….see nothing.

a. may b. can c. could

3. The doctor says I…c……..not go out.

a. might b. could c. may

4. …b…..I have some more bread?

a. Should b. Could c. Must

5. …a…… I do anything for you?

с Can

a. May b. Must

6. Nobody…c……to park in front of the theatre.

a. must b. may c. is allowed

7. They…b……..know about it. They are too young.

a. needn't b. can't с must

8. …c……you lend me a dictionary?

a. Should b. Must c. Can

9. Sorry, sir, you …c……..not smoke here.

a. might, b. needn't с may

10. It's very late. You…a……phone them now.

a. shouldn't b haven't to с can't

11. You…b….to visit your parents.

a. should b. ought c. have to

12. Like any top sportsman she…a……….to train very hard.

a.had b.must с should

13. The train isn't late. It…c……….come in time.

a. should b. ought c. is to

14. The policeman said: 'No one…a…….leave the room'

a. is allowed to b. has to с could

15 The water is cold, you..a... swim.

a. haven't to b. must с can't

16.You…b……. to cover the whole distance on foot.

a. can b. have c. must

17. Must I come to the university on Sunday? No, you…a….

a. mustn't b. can't с needn't

18. I'm afraid the weather......b......... change for the worse

a. must b. may с should

19. You……a……….to come here again.

a. have b. must c. should

20. You..a... work hard at your English if you want to know it.

a. must b. is to с may

Модуль 5 Чтение

ЗАДАНИЯ ДЛЯ САМОСТОЯТЕЛЬНОЙ РАБОТЫ ПО ЧТЕНИЮ

UNIT 4

4.1 Подберите правильный перевод к словам и фразам.

1. uncertainty(n) d a) потребление

2. contemporary (adj) e b) богатые люди

3. assumption (n) h c) предметы первой необходимости

4. consumption (n) a d) неопределенность

5. conspicuous consumption j e) современный

6. necessities (n) c f) застраховать(ся)

7. the wealthy (n) b g) зарабатывать

8. earn (v) g h) предположение, допущение

9. purchase (n) i i) покупка

10) insure (v) f j) “показное” потребление

4.2 Прочитайте текст и найдите ответы на вопросы.

1. When was Veblen’s The Theory of the Leisure Class published? It was published in 1899.

2. When did Knight write Risk, Uncertainty and Profit? He wrote this work in 1921.

3. Who coined the term “conspicuous consumption”? The term “conspicuous consumption” was coined by Thorstein Veblen.

4. Should the government decide what would be offered for sale, in Knight’s view? Of course not, Knight concluded, consumer demand ought to determine what goods and services would be provided.

THORSTEIN VEBLEN AND FRANK KNIGHT

CRITIC AND DEFENDER OF THE MARKET SYSTEM

Thorstein Veblen (1857 – 1929)

In 1899 conventional wisdom of the economists of that day was jolted with the publication of Veblen’s The Theory of the Leisure Class. A professor of economics at the University of Chicago, Veblen said much about contemporary economics and social behavior that angered and upset his colleagues.

In what may be his most famous contribution, Veblen challenged the assumptions built into the laws of supply and demand. One of those assumptions was that of ‘consumer sovereignty’. Veblen questioned the assertion that the consumer was a king who demanded and received the best goods and services at the lowest prices. Instead, he argued, consumers were subject to all kinds of social and psychological pressures that led them to make some very unwise decisions.

To illustrate, he coined the term conspicuous consumption to describe the tendency of the ‘leisure class’ (the wealthy) to buy goods and services simply to impress others. This, in turn, led middle class consumers, and even the poor, to imitate the wealthy by buying goods for similar purposes. When that occurred, it was possible for the law of demand to be reversed. Quantity demanded increased at a high price rather than at a low one. For example, the demand for a 1-ounce bottle of an unknown brand of perfume priced at US $1 was likely to be less than the same perfume selling for US $15 an ounce.

As for the other side of the market, Veblen argued that the desire for profits drove business interests into doing unscrupulous things. Some of these included efforts to eliminate competition, restrict output, build ever larger combinations of existing firms, and separate those who owned America’s corporations from those who managed them. This, he predicted, would result in wasted resources and the inability of the economy to reach its full potential. From these observations, Veblen concluded that laissez-faire capitalism was probably destined to be replaced in the long run with a system more attuned to the needs of the People.

Frank Knight (1885 – 1972)

A professor of economics at the University of Chicago, Frank Knight advocated free enterprise and laissez-faire politics. Knight pointed out that except for the basic necessities of life the purchase of anything could be described as ‘conspicuous consumption’. Since, he noted, even Veblen would have conceded that people need more than the bare necessities, who was to say which purchases were reasonable? Should the government or some other higher authority decide what would be offered for sale? Of course not, Knight concluded, consumer demand ought to determine what goods and services would be provided.

Turning to the supply side of the market, Knight defended profits as the driving force behind business. The quest for profit would move business to produce whatever the economy wanted. Meanwhile, the inescapable punishment of financial loss awaited those firms who failed to meet the market’s demands. In his famous work, Risk, Uncertainty and Profit (1921), Knight answered critics who, like Veblen, had questioned the legitimacy of profits.

Profits, he said, were the reward earned by business for accepting the uncertainties of the market. In this he distinguished between risk (which can be predicted and against which one can be insured) and the uncertainty of events that cannot be predicted. Everyone, for example, faces the risk of illness and can be insured against it. But sweater manufacturers can never know with certainty that the styles that they are producing today will still be in demand when they appear in the stores six months from now. Therefore, those manufacturers who guess correctly are entitled to the rewards they earn.

Meanwhile, those who produced the wrong style or color will be motivated to do better next season or face ruin.

Economists and others still debate the issues raised by Thorstein Veblen’s challenges to the market system and Frank Knight’s responses to them.