| minimum rational profit (2) scarcity interests compromises classified agents purchased hand represent factors resources utilization interaction wants efficient |
The Market System
The modern market economy is populated by three types of economic agents, whose _______ constitutes economic activity: consumers, producers, and the government. The main social purpose of the economy is to produce goods and services for the satisfaction of the needs and______of consumers.
Consumers, typically, represent households that provide labour, and other______to produce against an income which they use to purchase consumer goods or to save.
Producers, typically, _______ enterprises or firms that acquire _______of production, or inputs – labour, land, and capital – from households and combine them to produce outputs, or commodities which can be _______ into goods – tangible commodities – and services. The activities of firms move around the sale of their output at a______.
The third basic element, the government, is involved with the economy, on the one hand, as a producer and consumer and, on the other______, as a regulator, supervisor and promoter of economic activities.
The economic ______ are engaged in a complex web of transactions involving factors of production and outputs. However, the volume of the commodities that can be produced and_______is limited by the______ of resources. This fact has two important consequences as regards economic decision-making:
a) the utilization of resources has to be______. In terms of the welfare of economic agents, the______of resources is efficient when every opportunity has been exhausted to make some individuals better off without hurting the______of others;
b) individual economic agents and society as a whole cannot simply use more, they have to make_____between alternative uses.
Given these constraints, consumers, producers, and the government have to make______decisions over available resources. Rational decisions reflect choices that draw maximum______from given resources or obtain desired results with the______efforts or cost.
Words you may need:
constitutev составлять
householdn семья, семейная единица
acquirevприобретать
tangibleadj осязаемый, материальный, реальный
supervisorn контролер
promotern лицо, содействующее какому-л. мероприятию
complex webсложное сплетение
welfaren благосостояние
to be exhausted(зд.) быть использованным
to make smb better off(зд.) поставить кого-л. в более выгодное положение
constraintn ограничение