Fundamentals of Economics. Доловова Н.Н - 20 стр.

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ANNE : I think the worst offenders are the cosmetic manufacturers. The women's
magazines are full of their advertisements.
MAVIS : You're not opposed to the use of make-up, are you?
ANNE : No, I use both face powder and lipstick. But I don't buy the widely advertised
kinds. Mine cost less than half the prices of the kinds you see advertised
everywhere—and they're just as good.
DAVID : I heard a good story about a firm of face-cream manufacturers the other day.
They put a new kind on sale at 5/- a jar. It didn't sell at all well. So they gave it a. new
name, packed it in a new kind of jar, put up the price to 10/-, and spent thousands of
pounds on advertising it. In a few months it was selling almost faster than they could
manufacture it.
JACK: Lots of people firmly believe the more something costs, the better it must be.
Your story proves what I said earlier, doesn't it? Goods could be much cheaper if the
advertising costs were cut down.
DAVID: I'm not sure that that's always true. If advertising results in higher sales the
manufacturers may be able to use mass production. That usually means lower costs
and cheaper goods.
ANNE : Won't there be mass production anyway, if the article is something that
everybody needs?
MAVIS: Motor-cars are mass produced. The motor-car manufacturers spend millions
on advertising.
JACK : That's because there's so much competition. If there were only one company
mass producing cars, advertising would be unnecessary and the cost could be saved.
DAVID: That raises quite a different question—whether competition serves any useful
purpose. We'd better not start discussing that or we'll never get home this evening.
Answer the questions
1. Why does David call Anne and Jack ‘a couple of young highbrows’?
2. Do you agree that nowadays many advertisements are untrue?
3. Do people sometimes follow the advertisements and buy things they don’t
need?
4. Do you follow the motto ‘to keep up with the neighbors’?
5. Is Anne for or against expensive make-up?
6. What story did David tell about a firm of face-cream manufacturers?
7. Does the price always reflect the quality of goods? Give your own examples.
8. Does advertising always result in higher sales?
9. Why does Jack say that so many advertisements are obviously untrue?
10. Are mass produced goods cheaper or more expensive?
Fill in the gaps using the words given
(hire, reduction central role, improvement, probability, adverse, legislation,
ambiguous, policies, )

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