1. Complete the definition
Economy is Economics is An economist is
a) In ordinary view price is…………………………..…………
b) In alternative view is price is…………………………………..
c) a system of……………………….………………
2. Translate the following words and word combinations into English
1. стоимость упущенной выгоды 6. потребительский рынок
2. продавец 7. товары и услуги
3. первоначальная цена 8. номинальная цена
4. цена продажи 9. цена предложения
5. коэффициент обмена 10. финансовый рынок
3. Read and translate the text
Price
In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services.
In all modern economies, the overwhelming majority of prices are quoted in (and the transactions involve) units of some form of currency. Although in theory, prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen.
Price can sometimes alternatively refer to the quantity of payment requested by a seller of goods or services, rather than the eventual payment amount. This requested amount is often called the asking price or selling price, while the actual payment may be called the transaction price or traded price. Likewise, the bid price or buying price is the quantity of payment offered by a buyer of goods or services, although this meaning is more common in asset or financial markets than in consumer markets.
Economists sometimes define price in a more general or abstract sense to the widely understood definition above. According to this view, price is defined as the ratio between the quantity of goods that are exchanged for each other in a transaction.
For example, consider the case of two people exchanging goods, say 5 apples for 2 loaves of bread. An economist might say that the price of apples was 2/5 = 0.4 loaves of bread. Likewise, the price of bread would be 5/2 = 2.5 apples. Hence if we consider that currency is simply another type of good like apples or bread, then this conception forms the general case of the widely held definition outlined above.
However it is far from clear that this generalisation serves any useful purpose at all. As noted above, in all real economies prices are virtually always quoted in (and transactions always involve) units of currency. Hence, an alternative view is that the most basic and general definition of price is that involving exchange of goods or services for money, and that the exchange ratio between two goods is simply derived from the two individual prices.
The exchange ratio is sometimes referred to as the real price, while the price quoted in money referred to as the nominal price.
This distinction is sometimes made to make sense of inflation. When all prices are quoted in terms of money units, and the prices in money units change more or less proportionately, the ratio of exchange may not change much. In the extreme case, if all prices quoted in money change in the same proportion, the relative price remains the same.
It is now becoming clear that the distinction is not useful and indeed hides a major confusion. The conventional wisdom is that proportional change in all nominal prices does not affect real price, and hence should not affect either demand or supply and therefore also should not affect output. The new criticism is that the crucial question is why is there more money to pay for the same old real output. If this question is answered, it will show that dynamically, even as the real price remains exactly the same, output in real terms can change, just because additional money allow additional output to be traded. The supply curve can shift such that at the old price, the new higher output is sold. This shift if not possible without additional money.
From this point of view, a price is similar to an opportunity cost, that is, what must be given up in exchange for the good or service that is being purchased. For example, if x=1 and y=2, the relative price of x in terms of y is 2, and the price of y in terms of x is 0.5.
4. Match the words and their definitions
| 1. output | a. an amount of money that must be paid |
| 2. transaction | b. the amount of goods or work produced |
| 3. buyer | c. what you earn by working and can use to buy things |
| 4. payment | d. a business deal or action, such as buying or selling something |
| 5. money | e. someone who buys something |
5. Translate the following words and word combinations into Russian
1. supply and demand 6. real price
2. goods and services 7. transaction price
3. traded price 8. unit of currency
4. nominal price 9. relative price
5. barter 10. asset
6. Choose the right variant
1. Price is the ………….. given in return for goods or services.
a) barter b) output c) quantity of payment
2. Proportional change in all nominal prices does not affect ………….
a) payment b) real price c) bid price
3. The eventual payment amount requested by a seller is often called …………..
a) asking price b) real price c) nominal price
4. What must be given up in exchange for the good or service that is being purchased is called ……………
a) real price b) nominal price c) opportunity cost
5. In all real economies prices are virtually always quoted in …………..
a) units of currency b) exchange goods c) coins
7. Answer the following questions
1. What is price?
2. What is called asking price?
3. What is opportunity cost?
4. What is price measured by?
5. What is the difference between real price and nominal price?
8. Express your opinion on the following questions
1. What is a price? What factors influence the price?
2. Why are the prices for goods changing?
3. Imagine you own a food store. Your competitor from a nearby food store decreased the price for the same food products by 2%. What can you do not to lose your customers?
Use the following phrases
To my mind … In my experience …
In my opinion … As far as I understand …
On the one hand, …on the other hand From my point of view …
If my memory serves me right … If I am not mistaken …
It seems to me that … Personally, I think …
My personal view is that … I am sure/certain/convinced that …
The fact is that … This proves that …
It is obvious that … There is no doubt that …
9. Read the model letter and pay attention to the notes
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Bryan&Co., 16 Kensington Gardens, London 10th April 2000 The Marketing Manager Messrs Cook&Brothers Ltd., 17 High Street Somersetville, Kent
Dear Sirs, Re:our order B-67 It is now over 6 weeks since we sent in the above order, and we are still awaiting delivery. We regret that unless you are able to give us an assurance of delivery within the next two weeks, we shall be obliged to cancel the order. Please treat this matter as urgent. Yours faithfully T.Kelvin Marketing Manager |
Notes –
a) The opening ‘It is now over (more than) 6 weeks since we…’ emphasizes the time the writer has been waiting. ‘More than’ and ‘almost’ are more formal than ‘over’ and ‘nearly’.
b) ‘We are awaiting delivery’ is more formal than ‘We are waiting for delivery’.
c) ‘unless you are able’ = if you are able. The former is more emphatic.
d) The final sentence ‘Please …’ combines politeness with urgency and slight annoyance.
10. Compose letters out of the following:
1) It/now/almost/month/since/you agreed/ install/ the equipment/ we/ purchased/ you/ April. We regret/ unless/ the equipment/ installed/ two weeks/ we / obliged/ report/ Head Office. Please/ treat/ matter/ urgent;
2) …more/ three months…you/ expressed/ interest/ setting up/ joint venture/ we … awaiting/ your comments/ draft scheme. We … you/ prepared/ let us know these/ near future/ we/ obliged/ seek/ other arrangements. Please treat…;
3) …more/ 4 months/ you became/ our agents/ we not yet received/ one good order. Unless/ you/ able/ sell/ more/ our goods/ we / obliged/ seek/ services/ another agent. Please treat….
11. Read the model letter and pay attention to the notes
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Midland Bank Aval Ltd., 135-141 Cannon Street London 16th October 2ooo E.R.Frederics, Brown&Smith Ltd., 79 Park Avenue, London
Dear Sirs, We write to draw your attention to the fact that our statement of account dated 5th October is still awaiting settlement. As payment is now considerably overdue, we must ask you to remit the sum in question without delay. Yours faithfully, S.Johnson Manager, Accounts Dept. |
Notes –
a) ‘Draw your attention to the fact that’ is more emphatic than simply ‘draw your attention to smth.’.
b) ‘Overdue’ - the time allowed for settlement has passed.
c) Possible variations of ‘to remit the sum in question’ are ‘ to remit the above sum’, ‘ to send (forward) your remittance for the above sum’.
d) ‘Without delay’ conveys more urgency than ‘as soon as possible’ and sounds less like an order than ‘immediately’.
12. Compose letters out of the following:
1) We/ write/ draw/ attention/ fact/ we still/ awaiting/ delivery/ order.
As/ goods/ urgently/ required/ we/ must/ ask you/ arrange/ delivery/ without delay;
2) ... attention/ fact ... above account/ awaiting settlement. As/ we/ not able/ extend/ credit/ longer/ we must .../ remit/ sum/ ...delay;
3) ...fact/ above order/ awaiting confirmation. As/ we/ unable/ dispatch/ this/ received/ we must...confirm/ delay.
13. Read the model letter and the notes
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26th November 2000 The Sales Manager, Spenlow&Jorkens Ltd., 10-14 Pegotty Street
Dear Sir, Further to our letter of 14th November, we write to advise you of the results of the market research. The findings of the report, a copy of which we enclose herewith, are favourable and clearly indicate that there is a market here for your produce. It will, however, take a little time to introduce your goods to the market. If you are prepared to accept recommendations in the report, we are willing to begin negotiations with a view to rendering your assistance in the above. Your cooperation here will be much appreciated. As to your request of 10th November, in which you ask for more favourable terms, we regret, therefore, that at present we are unable to offer more than the terms agreed last year. Apart from the fact, we are, nevertheless, willing to consider your case in the future, provided that you are prepared to order a little more. We trust that our proposals will be acknowledged with a substantial order.
Yours faithfully, R.Folkner Executive Director |
Notes –
a) ‘Further to our letter’ - a frequent opening to refer to a previous letter.
b) Placing ‘However’ at the head of the sentence we achieve more emphasis. Compare: ‘However, it will take a little time...’ ‘It will, however, take a little time...’
c) ‘Nevertherless’ - a more emphatic form of ‘however’.
d) ‘ With a view to’ means ‘with the intention of’, which shows the intention of the writer.
e) ‘Your cooperation will be much appreciated’. A commonly used phrase to invite cooperation. Note that when ‘cooperation’ is followed by the preposition ‘in’ it calls for the use of the gerund. ‘Your cooperation in resolving the outstanding issues would be much appreciated’.
f) The construction ‘apart from the fact’ is very useful for emphasizing two points the writer wishes to make. ‘Apart from the fact that we haven‘t got your confirmation yet, we are prepared to …‘
g) ‘provided that’ - ‘on condition that’. Note that both are much stronger than if’.
14. Compose letters out of the following:
1) Further/ letter .. we/ write/ advise/ results/ meeting/ partners. The conclusions/ reach/ enclosed/ report/ indicate/ not all problems/ resolved. It/ however/ require/ more efforts/ settle/ remaining issues. If/ you/ prepared/ revise/ certain items/ we/ willing/ resume the talks/ with a view/ reach/ consensus. Your/ prompt/ reply/ appreciate. As to/ request/ establish/ contacts with Brown & Co/ we/ regret/ therefore/ that/ at present/ it im-possible/ since/ the company/ undergo/ radical restructing. Nevertheless/ we / willing/ assist/ you/ arranging/ contracts/ provided/ you/ prepared/ wait/ little longer. We/ trust/ delay/ cause/ inconvenience;
2) Further/ letter ... we/ write/ advise/ decisions/ taken/ last meet-. ing. The general opinion/ in favour/ opening/ our branch/ London. It/ be/ a few months/ however/ before/ it/ be operative. If/ therefore/ you/ prepared/ accept/ our representation/ on/ a temporary basis/ we/ willing/ do our best/ represent/ interests/ with a view/ expanding/ your clientele. We/ look forward/ receiving/ your comments/ above proposal;
3) ...letter../write... result/ exhibition/ held/ these/ two weeks. Most contracts/ comments/ which/ we/ enclose/ herewith/ signify/ recognition of your product. It take/ a longer time/ however/ meet the demand/ since/ market/ vast and fluctuating. Nevertheless, if/ you/ prepared/ accept/ our recommendation/ we/ willing/ continue/ studying the market/ and/ supplying/ data on the conditions and trends. We look...
15. Insert prepositions where necessary:
Dear Sirs,
I refer ... the telex of Mr. Francis dated... March 19th, 2001, and write personally to apologize... the last minute postponement... our visit... Moscow ...March 21st Given the number and relative importance... the topics which we wished to discuss...you, it was considered... my colleagues in Vienna to be more appropriate if I were party... the discussions.
I look ...our meeting... the revised date...Wednesday April 18th, again ...11:30 a.m.
One ...the major topics we had...discussion was your telex dated January 5th, 2001 ... our Head Office instructing...us...the new procedures. You are aware that...date we have not been complying...this instruction and Mr Francis ...his recent telex indicated I would write ...you...this subject.
I look forward ... discussing this further...you when we meet... Moscow... April 18th.
Best regards, Yours faithfully,
16. Write the inquiry letter for the following letter using useful phrases
You have received a letter from the Organizing Committee of the conference you would like to take part in. Write a letter to Dan Craft, in your letter ask the following:
a) the date of the conference;
b) the exact address of the conference;
c) the deadline for applying papers.
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Sergey Ivanov 14, Kuznetskaya Street, Moscow, Russia 452450
Dear Mr. Ivanov, We invite you to take part in the 9th Annual European Financial Services Conference – “A new deal between finance and society” - will focus on the reform of the financial services sector since the crisis of 2008, at both an EU and a global level. Sessions will focus on:
Now widely regarded as the premier annual financial services gathering in Brussels, the European Financial Services Conference brings together more than 400 senior bankers and policy-makers from around the world to debate issues affecting European and global financial markets. Registration is free of charge but with interest expected to be very high, we advise you to register early to secure your place.
For more information contact: Dan Craft Director Forum Europe 18, High Street Cardiff UK
Best regards, Dan Craft |