Вопрос № 1057978 - Английский язык

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Advertising
1. Advertising is one of the largest industries. It is an important means of promoting the goods that are being produced as well as new lines in business. There are specialized firms dealing with advertising, different kinds of mass media (TV, radio, newspapers, cinema, journals, magazines, posters) are used for advertising goods. Special leaflets, booklets and other printed matter about goods may be published for the same purpose. Participation in fairs and exhibitions helps to promote the goods as well.
2. Advertising benefits consumers and the economy in a number of ways: it provides us with information about prices, appearance of certain new goods and services, and their availability; advertising often results in lower prices because by creating mass markets, advertising enables producers to reduce the costs of their products and pass those savings on to the consumers; advertising stimulates competition, and competition benefits all of us; advertising pays most of the cost of magazines and newspapers, and all of the cost of commercial radio and TV.
Advertising helps the economy as a whole by stimulating consumer demand. Consumer spending has a direct effect on the health of the economy. Advertising helps to keep that spending at healthy levels.
3. Not everyone agrees that advertising benefits the economy. Critics list the following points of its disadvantages: the information contained in advertising does not inform and often misleads the consumer; because it costs money to advertise, this cost is added to the price consumers pay; consumers are tempted to spend money for products they do not really need; radio and TV are not really free because the cost of advertising on them is also passed on to the consumer.
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In what way does the economy benefit from advertising?

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Advertising
1. Advertising is one of the largest industries. It is an important means of promoting the goods that are being produced as well as new lines in business. There are specialized firms dealing with advertising, different kinds of mass media (TV, radio, newspapers, cinema, journals, magazines, posters) are used for advertising goods. Special leaflets, booklets and other printed matter about goods may be published for the same purpose. Participation in fairs and exhibitions helps to promote the goods as well.
2. Advertising benefits consumers and the economy in a number of ways: it provides us with information about prices, appearance of certain new goods and services, and their availability; advertising often results in lower prices because by creating mass markets, advertising enables producers to reduce the costs of their products and pass those savings on to the consumers; advertising stimulates competition, and competition benefits all of us; advertising pays most of the cost of magazines and newspapers, and all of the cost of commercial radio and TV.
Advertising helps the economy as a whole by stimulating consumer demand. Consumer spending has a direct effect on the health of the economy. Advertising helps to keep that spending at healthy levels.
3. Not everyone agrees that advertising benefits the economy. Critics list the following points of its disadvantages: the information contained in advertising does not inform and often misleads the consumer; because it costs money to advertise, this cost is added to the price consumers pay; consumers are tempted to spend money for products they do not really need; radio and TV are not really free because the cost of advertising on them is also passed on to the consumer.
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Competition and Market Conditions
1. Competition is the economic rivalry that occurs among businesses when producers in a given industry attempt to gain a larger share of the market. Economists use the term «market structure» to describe how competitive specific industries are. Perfect competition and pure monopoly are the opposite extremes of the market structure continuum.
2. Perfect competition has many sellers of the same product, while pure monopoly has only one. Perfect competition exists when there are many buyers and sellers, none of whom control prices. In contrast, pure monopoly exists when a single firm controls the total production or sale of a good or service.
3. The most competitive type of industry is that with perfect competition. Four conditions must be present in the market structure for perfect competition to exist.
First: a particular good or service must have many sellers and buyers available. In addition, each seller must account for just a small share of the overall sales in the market. The goal of these sellers is to attract enough buyers to their businesses to earn a profit.
Second: the good or service offered by one competing firm must be similar or identical to those offered by other firms. In such a situation, buyers may choose freely from the selection.
Third: buyers must have easy access to information on the products and prices available. This information allows buyers to make intelligent choices about which goods to purchase based on price and quality.
Fourth: entrance to and exit from the industry must be relatively easy and inexpensive. In a purely competitive market structure, firms can easily enter a profitable industry or leave an unprofitable one.
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Buyers have the real opportunity to choose which goods to purchase in the industry with …

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Types of Money
1. To be used as money, an item must have certain characteristics: durability (the ability to be used over and over again), portability (the ability to be carried from one place to another and transferred from one person to another), divisibility (the ability to be divided into smaller units), stability in value (people who save money are confident that it will have approximately the same value when they want to buy something with it as it had when they put it into savings), acceptability (people are willing to accept money in exchange for their goods or services). Money comes in all shapes and sizes. The items used as money are a reflection of the society in which they are used. Money as a rule includes coins, paper money, checks and near money.
2. Checks or checkbook money usually make up more than 70 percent of the nation’s money supply, and nearly 90 percent of the transactions in most countries are completed by writing checks. Because checks are payable to the holder of the check on demand, checking accounts are often called demand deposits. Checks are representative money because they stand for the amount of money in a person’s account. They are generally accepted because the bank must pay the amount of the check when it is presented for payment. Checks, therefore, are considered money because they are a medium of exchange, a standard of value, and a store of value.
3. Other financial assets are very similar to money. These assets, such as savings accounts and time deposits, are called near money and are not usually considered part of the nation’s money supply. Bills of exchange are examples of near money. Though they are easily accessible, these accounts cannot be used directly to buy goods or pay debts. Depositors, for example, cannot pay bills directly from their savings accounts. Since funds in these accounts can be easily converted into cash, however, they are considered near money.
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Savings accounts are …

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Pricing Methods
1. Price is a very important weapon that can be used to persuade consumers to buy. Price is one of many factors that determine the demand for a product. What are the most common pricing methods adopted by firms?
2. Cost-plus pricing is a very simple pricing method and is perhaps the most common. A firm may calculate its average costs of producing a product and simply add a profit «mark up», say 10 %, on to average costs. This mark-up could be changed to allow for the effects of competition and economic conditions, e.g. where there is a lot of competition this mark-up may be lowered or when business is good the mark-up could be raised.
3. Marginal-cost pricing differs from the above in that the firm looks not at its average costs but marginal costs, i.e. the firm calculates the additional cost of producing the next unit or set of units of output and the firm charges a price (plus a ‘mark-up’) according to the marginal cost. A typical example is found in the shoe repair business. There appear to be no standard prices for repairing shoes. What tends to happen is that the cobbler examines the shoes and makes a quick estimate of how much material and time it will take to repair them. Larger shoes, those made of leather and those in greater disrepair have a higher marginal cost and therefore a higher price is charged for their repair.
4. Price discrimination: several firms are able to charge different prices for a similar product. This is known as price discrimination. British Rail (BR), for example, charges different consumers such as businessmen and women, children, senior citizens and students different prices and also charges different prices according to the time of journey, e.g. peak, off-peak, weekly and week-end.
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When different prices are charged for a similar product we can speak of …

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Advertising
1. Advertising is one of the largest industries. It is an important means of promoting the goods that are being produced as well as new lines in business. There are specialized firms dealing with advertising, different kinds of mass media (TV, radio, newspapers, cinema, journals, magazines, posters) are used for advertising goods. Special leaflets, booklets and other printed matter about goods may be published for the same purpose. Participation in fairs and exhibitions helps to promote the goods as well.
2. Advertising benefits consumers and the economy in a number of ways: it provides us with information about prices, appearance of certain new goods and services, and their availability; advertising often results in lower prices because by creating mass markets, advertising enables producers to reduce the costs of their products and pass those savings on to the consumers; advertising stimulates competition, and competition benefits all of us; advertising pays most of the cost of magazines and newspapers, and all of the cost of commercial radio and TV.
Advertising helps the economy as a whole by stimulating consumer demand. Consumer spending has a direct effect on the health of the economy. Advertising helps to keep that spending at healthy levels.
3. Not everyone agrees that advertising benefits the economy. Critics list the following points of its disadvantages: the information contained in advertising does not inform and often misleads the consumer; because it costs money to advertise, this cost is added to the price consumers pay; consumers are tempted to spend money for products they do not really need; radio and TV are not really free because the cost of advertising on them is also passed on to the consumer.
Ответьте на вопрос:
In what way does the economy benefit from advertising?