Лекция: Market Economy.

The pillars of free enterprise—private property, the price system, market competition, and entrepreneurship—are essential to the operation and success of a market economic system. The rights to own and exchange property and to make a profit give individuals and businesses incentives to use their resources wisely. Prices provide consumers and producers with the information they need to make economic decisions. Market competition, like private proper­ty, provides incentives to use resources wisely and produce goods and services people want and will pay for.

Economists use a circular flow model to highlight basic features of a free enterprise economy. The model shows how the voluntary exchanges between households and businesses answer the what, how, and who questions and create flows of money, products, and resources. Money makes exchange of products and resources easier. Money is a medium of exchange, a store of value, and a measure of value.

Entrepreneurship is important for the growth of an economy over time. Entrepreneurship is the willingness and ability to see opportunities and to develop them into new products for the market. It also involves risk-taking and innovation as well as good management.

Most people agree on several broad economic goals. These include full employment, economic growth, price stability, economic freedom and security, equity, and efficiency.

Topical Vocabulary:

Free enterprise – свободное (частное) предпринимательство

Private property – частная собственность

Price system – система цен

Market competition – рыночная конкуренция

Entrepreneur (ship) – предприниматель (ство)

To own – владеть

To make a profit – извлекать прибыль

Consumer – потребитель, покупатель

Producer – производитель

Incentive – заинтересованность, стимул

Goods – товары

Services – услуги

Circular flow – круговой поток

Value – стоимость, цена (ценность)

Full employment – полная занятость

Equity – справедливость, собственность в бизнесе