Топик: Темы для экзамена в Финансовой академии, 1 курс
The items are sold one at a time, buyers mast quickly decided what price they are willing to pay. Imagine now that you want to buy electric popcorn maker on the auction. In order to get it you will have to outbid all the others who want it. New popcorn maker costs about $14 and you decided you are willing to go as high as $10 but not hire. At first you look into your wallet. Only $5 is there. But you know that you have $15 on the desk at home, and you know that your friend can lend you some money. And what factors so far have influence you? You decision is the result of your tastes, your available cash income, your wealth, your credit. You have also had to think of the price of substitutes and the price of related items.
And on the auction you buy. The cost of popcorn maker is $9.
The popcorn demand schedule illustrates the low of demand, which indicates that as the price of an item increases, a smaller quantity will be bought.
The degree to which changes in price cause changes in quantity demanded is called elasticity of demand. There are two main kinds of the elasticity of demand, it is highly elastic and inelastic. Highly elastic means that demand changes when the price changes and inelastic means when people buy nearly the same amount even though the price of smth. changes.
There are two main reasons for elasticity of demand. The first concerns the relationship between income and the cost of the product. The second reason why demand is elastic concerns whether or not substitute product is available.
№5. Markets and monopolies.
Whenever people who are willing to sell a commodity contact people willing to buy it, a market for that commodity is created. Buyers and sellers meet in person, or they may communicate by letter, by phone or through their agents. In a perfect market there can be only one price for a given commodity: the lowest price which sellers will accept and the highest which consumers will pay. Competition influences the prices prevailing in the market. Although in a perfect market competition is unrestricted and sellers are numerous, free competition and large numbers of sellers are not always available in the real world. In some markets there may only be one seller or a very limited number of sellers. Such a situation is called a "monopoly". It is possible to distinguish in practice four kinds of monopoly.
State planning and central control of the economy often mean that a state government has the monopoly of important goods and services. A different kind of monopoly arises when a country has control over major natural resources or important services. Such monopolies can be called natural monopolies. Legal monopolies occur when the law of a country permits certain producers, authors and inventors a full monopoly over the sale of their own products. These types of monopoly are distinct from the sole trading opportunities. This action is often called "cornering the market" and is illegal in many countries.
In the market systems, competition answers the basic questions of what, how, for whom, and how much. Competition among producers is for the highest profits. Competition among consumers is for the best goods and services at the lowest prices.
In a market economy three basic resources - land, labour and capital - are bought and sold for the best price. Market for labour is constantly changing.
№6. Economic Growth.
If you spent all the money you have now, you might be able to buy many of the things you want. But you realise that by saving some now, you will save more for the future. Societies also must save some of what they produce today in order to have more for tomorrow. Every society must produce capital goods as well as consumer goods to meet future economic needs. Long-range economic growth depends on the continued production of capital goods (goods used to produce other items).
Everyone who works contributes to the growth of capital resources. Suppose you earn $72 a week. Your labour must be valuable enough to earn more than just the money to cover your wages. Your labour may earn your company $100 a week. Since you are paid $72, you are helping the company to collect $28 a week. Some, or all, of this money can be used for capital resources. Company can use this money to replace old tools and equipment for example. The manager may decide to replace the old tools, hire more help, or expand the shop.
In recent years, many people have argued that economic growth is a mixed blessing. The advantages of growth are fairly clear. As people produce more goods and services, the average standard of living goes up. Bat there is some disadvantages: (1) use of natural resources that cannot be replaced, (2) generation of waste products, (3) destruction of natural environments, (4) uneven growth among different groups in society.
In the past, growth has allowed poor people to improve their economic conditions. Nevertheless, continuing economic growth at the pace of today may permanently damage our world, polluting air, land, and waters, and using up natural resources. Growth, however, sometimes provides solution to the problems.
№13 The cost of growth.
Long-range economic growth depends on producing capital goods. Everyone who works contributes to the growth of capital resources. Your labor must be valuable enough to earn more than just the money to cover your wages. In recent years many people have argued that economic growth is a mixed blessing. As people produce more goods and services the standard of living goes up. Growth also keeps people employed and earning income. It provides people with more leisure time, since they can decrease their working hours without decreasing their income. But what are the disadvantages: use of natural resources that can’t be replaced, generation of waste products, destruction of natural environments, uneven growth among different groups of society.
In the past, growth has allowed poor people to improve their economic conditions.
So, if our natural, human, capital resources are overused now to promote economic growth, future growth may be much slower.
Growth, however, provides solutions to the problems.
№7. The nation's economy. GNP. Economic indicators.
Economists study different sides of the economy in different ways. Microeconomics is the part of economics that analyses specific data affecting an economy. Macroeconomics is the branch of economics that analyses interrelationships among sectors of the economy.
Macroeconomists measure gross national product, or GNP, which is the value of all goods and services produced for sale during one year. Three factors limit the types of products counted.
First, only goods and services produced during a specific year are counted Second, economists count a product or a service only in its final form. Third, GNP includes only goods sold for the first time. When goods are resold or transferred, no wealth is created.
One way in which economists measure GNP is the flow-of-product approach. Using this method, they count all the money spent on goods and services to determine total value. Each time a new product is sold, GNP increases.
Spending for products falls into four categories. The first, and the largest, consumer spending, includes all expenditures of individuals for final goods and services. Called personal consumption expenditures, this category accounts for about 65 per cent of GNP. The second category includes all spending of businesses for new capital goods. It accounts for about 13 % of GNP. The third category includes spending of all levels of government. Government purchases of goods and services account for about 21 per cent of GNP. The fourth category is net exports of goods and services, about 1% of GNP.
Another way of determining GNP is the earnings-and-cost approach. This method accounts for alt the money received for the production of goods and services, it mea-sures receipts. Figuring gross national product by counting what people receive requires calculating what the entire country earns for the goods it makes and the services it performs. Included in earnings are such things as business profits, wages and salaries, and taxes' the government receives for its services. Also counted are interest on deposits, money received as rent, and any other forms of income.
Business and government planners, investors, and consumers make decisions based on their expectations of future economic performance. To help predict expansion or contraction of the economy, government economists identified a number of indicators. They fall into three categories: leading, coincident, and lagging. Leading economic indicators rise or fall just before a major change in economic activity. Coincident economic indicators change at about the same time that shifts occur in general economic activity. Lagging economic indicators rise or fall after a change in economic activity.
Following and interpreting all economic indicators is time-consuming. The US Commerce Department, therefore, lists a composite index, or single number, for each of the three sets of indicators. These composite indexes are an average of all the indicators in each category.