经贸英语第二章学习资料

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1、3河北农业大学经贸英语课程学习资料CHAPTER2TheShiftingBoundaryBetweenMarketsandGovernmentPartOneDefinitionsandConcepts1)Laissez-faireItisadoctrinethattranslatesas“leaveusalone”,statesthatgovernmentshouldinterfereaslittleaspossibleineconomicaffairsandleaveeconomicdecisionstotheinte

2、rplayofsupplyanddemandinthemarketplace.2)WelfarestateWelfarestateisoneinwhichmarketsdirectthedetailedactivitiesofday-to-dayeconomiclifewhilegovernmentsregulatesocialconditionsandprovidepensions,healthcare,andotheraspectsofthesocialsafetynet,forwhichgovernmentsass

3、umedasteadilyexpandingeconomicrole,regulatingmonopolies,collectingincometaxes,andtakingonsuchtasksasprovidingsupportfortheelderly.3)AmarketAmarketisamechanismbywhichbuyersandsellersinteracttodeterminethepriceandquantityofagoodorservice,inwhicheverythinghasapricet

4、hatisthevalueofthegoodintermsofmoneyrepresentingthetermsonwhichpeopleandfirmsvoluntarilyexchangedifferentcommodities.4)MarketmechanismMarketmechanismisatermfromeconomicsreferringtotheuseofmoneyexchangedbybuyersandsellerswithanopenandunderstoodsystemofvalueandtime

5、tradeoffstoproducethebestdistributionofgoodsandservices.Theuseofthemarketmechanismdoesnotimplyafreemarket:therecanbecaptiveorcontrolledmarketswhichseektousesupplyanddemand,orsomeotherformofchargingforscarcity,bothinsocialsituationsandinengineering.Themarketmechan

6、ismassumesperfectcompetitionandisregulatedbydemandandsupply.Equilibriumiswhenthetwoaxiscross5)MarketEquilibriumMarketequilibriumrepresentsabalanceamongallthedifferentbuyersandsellers.Inotherwords,Marketpriceadjustsuntilquantitydemandedequalsquantitysupplied.6)Pro

7、fitsProfitsarenetrevenues,orthedifferencebetweentotalsalesandtotalcosts.Afinancialbenefitthatisrealizedwhentheamountofrevenuegainedfromabusinessactivityexceedstheexpenses,costsandtaxesneededtosustaintheactivity.Anyprofitthatisgainedgoestothebusiness'sowners,whoma

8、yormaynotdecidetospenditonthebusiness.7)Specialization/Absoluteadvantage/ComparativeadvantageSpecializationisamethodofproductioninwhicheachpersonconcentrateson