Ex.23. Read the text again and answer the following questions.

Date: 2015-10-07; view: 464.

1. Why is the US described as a price-directed economy?

2. What happens when prices go up?

3. How can people get benefit from efficient work of some firms?

4. How can the prices determine who will receive the things produced?

5. What is the most obvious cost a person bears ?

6. Why does price reflect cost? Give an example.

7. In what way does the amount of income a person receives affect the cost of buying an item?

8. What are the normal goods and inferior goods? Give examples.

9. What is the difference between substitutes and complements?

10. What are some other factors that influence the amount of a particular product that people are willing to buy?

TEXT C: TWO FACTORS THAT AFFECT LABOUR SUPPLY AND DEMAND