lOMoAR cPSD| 49431889 READING 8:
II.1. Fill in each gap in the passage with one of the words in the box enough profit based cost essential
efficient functional described able depend for fully ingredients receive afford
THE FUNCTIONS OF PRICES IN A MARKET ECONOMY
Prices are key (1) ………....... in a market economy because they make things happen. If buyers
want to own some items badly enough, they will pay more (2) ………....... them. When sellers
want to sell some items badly enough, they will lower their prices.
Prices play an important role in a market economy. The role of prices to a market economy is so
(3) ………....... that without it, a market economy cannot operate, buying and selling would not
happen. A market economy such as the U.S is often (4) ………....... as a “price-directed economy”. Let us see why.
Prices act as a signals to buyers and sellers. They carry information to buyers and sellers. When
prices are low (5) ………......., they send a “buy” signal to buyers (consumers), who can now
(6) ………....... the things they want. When the prices are high enough, they send a “sell” signal
to sellers (retailers), who can now earn a (7) ………....... at the new price.
Prices encourage (8) ……….......production. They also encourage business people to produce their
goods at the lowest possible cost. The less it costs to produce an item, the more likely it is that its producers will make a profit.
Finally, prices help determine who will receive the economy’s output of goods and services. The
price that a worker (9) ………....... for doing a job is called wage. The amount of this wage
determines how much the worker has to spend. What the worker can buy with those wages will
(10) ………......., in turn, upon the prices of the goods and services the worker would like to own. 1………....... 2……….......... 3……….......... 4……….......... 5……….......... 6………....... 7……….......... 8……….......... 9……….......... 10………..........
II.2. According to the text, circle the correct answers A, B, C, or D
1. When are consumers willing to pay more for the products? lOMoAR cPSD| 49431889
A. When they want to own them badly enough
B. When they want to sell them badly enough
C. When they are in a market economy D. When the price is too low
2. Why are prices considered as a signal to producers and consumers? A. Because they send
signals to consumers when the prices are low
B. Because they send signals to producers when the prices are high
C. Because producers and consumers have enough information about the products basedonly on prices D. Both A & B
3. What do prices encourage producers to do?
A. They encourage producers to produce more goods
B. They encourage producers to produce goods at lowest possible prices
C. They encourage producers to sell more goods at highest possible prices D. Both B & C
4. What does the amount of salary of workers determine?
A. It defines the amount of money workers have
B. It defines the amount of money workers want
C. It defines the amount of money workers have to spendD. It defines the amount of money workers want to spend
5. How many functions of prices are there in the article? A. 1 B. 2 C. 3 D. 4 READING 9
II.1. Fill in each gap in the passage with one of the words in the box profits same little judgment expensive lOMoAR cPSD| 49431889
enough different decisions wage approve much fight now decides current
U.S. fast-food workers stop working
Fast-food workers in 58 restaurants in the USA did not go to work on Thursday. They went
on strike for more money. The workers get paid the minimum (1) ………....... of $7.25. This has
not changed since 2009. The workers cannot live on that. The price of everything has gone up but
their wages have stayed the (2) ………....... for five years. The workers want $15 an hour. This is
double their (3) ………....... rate. Julio Wilson works at a pizza restaurant. He told the BBC he
earns $9 an hour. It isn't (4) ………....... for himself and his five-year-old daughter. He said: "I
know I'm risking my job, but it's my right to (5) ………....... for what I deserve."
McDonald's and Burger King spoke about the strike. Both said higher wages would mean
more (6) ……….......burgers. They said they did not make (7) ………....... about workers' pay in
most of their restaurants. The restaurants are independent franchises, so the manager
(8) ………....... about wages. McDonald's (9) ………....... were over $5.5 billion in 2011. The
National Restaurant Association say wages are low because the staff are young and have
(10) ………....... work experience. It says only five per cent of workers get the minimum wage
and most of those are part-timers. It adds that half are teenagers. 1………....... 2……….......... 3……….......... 4……….......... 5……….......... 6………....... 7……….......... 8……….......... 9……….......... 10………..........
II.2 According to the text, circle the correct answers A, B, C, or D
1. Why did the U.S fast-food workers stop working?
A. Because their salary were $7.25 per hour
B. Because they wanted to have more money
C. Because workers in 58 restaurants went for strikeD. Because they didn’t have to go to work on Thursday
2. How long has the wage been unchanged? A. For 2 years B. For 3 years C. For 4 years D. For 5 years lOMoAR cPSD| 49431889
3. What is correct about the expected rate of wages?
A. Two times as much as the current wages
B. Three times as much as the current wages
C. Four times as much as the current wages
D. Five times as much as the current wages
4. According to McDonald's and Burger King, who’re in charge of paying to staff? A. The Director B. The brand’s managers
C. The owners of the brandD. The restaurants’ managers 5. Why are wages low?
A. Staff are young and are part-timers
B. Staff are young and don’t have much work experience
C. Staff are part-timers and are teenagers D. Both B and C