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entity with a single consciousmind. This is not, of course, the case. To understand reportsof market behaviour you have to bear in mind the way themarket works.

A market is simply a mechanism, which allows individualsor organizations to trade with each other. Markets bringtogether buyers and sellers of goods and services. In somecases, such as a local fruit stall, buyers and sellers meetphysically. In other cases, such as the stock market,business can be transacted over the telephone, almost byremote control. There's no need to go into these details.Instead, we use a general definition of markets.

A market is a shorthand expression for the process by whichhouseholds' decisions about consumption of al-ternativegoods, firms' decisions about what and how to produce, andworkers' decisions about how much and for whom to workare all reconciled by adjustment of prices.

Prices of goods and of resources, such as labour,machinery and land, adjust to ensure that scarce resourcesare used to produce those goods and services that societydemands.

Much of economics is devoted to the study of how marketsand prices enable society to solve the problems of what,how and for whom to produce. Suppose you buy ahamburger for your lunch. What does this have to do withmarkets and prices? You chose the cafe because it wasfast, convenient and cheap. Given your desire to eat, andyour limited resources, the low hamburger price told you thatthis was a good way to satisfy your appetite. You proba-blyprefer steak but that is more expensive. The price of steak ishigh enough to ensure that society answers the "for whom"question about lunchtime steaks in favour of someone else.

Now think about the seller's viewpoint. The cafe owner is inbusiness because, given the price of hamburger meat, therent and the wages that must be paid, it is still possible tosell hamburgers at a profit. If rents were higher, it might bemore profitable to sell hamburgers in a cheaper area or toswitch to luxury lunches for rich executives on expenseaccounts.. The student behind the counters working therebecause it is a suitable part-time job, which pays a bit ofmoney. If the wage were much lower it would hardly beworth, working at all. Conversely, the job is unskilled andthere are plenty of students looking for such work, soowners of cafes do not have to offer very high wages.

Prices are guiding your decision to buy a hamburger, theowner's decision to sell hamburgers, and the student'sdecision to take the job. Society is allocating resources –meat, buildings, and labour – into hamburger productionthrough the price system. If nobody liked hamburgers, theowner could not sell enough at a price that covered the costof running the cafe and society would devote no resources tohamburger production. People's desire to eat hamburgersguides resources into hamburger production. However, ifcattle contracted a disease, thereby reducing the economy'sability to produce meat products, competition to purchasemore scarce supplies of beef would bid up the price of beef,hamburger producers would be forced to raise prices, andconsumers would buy more cheese sandwiches for lunch.Adjustments in prices would encourage society to reallocateresources to reflect the increased scarcity of cattle.

There were several markets involved in your purchase of ahamburger. You and the cafe owner were part of the marketfor lunches. The student behind the counter was part of thelocal labour market. The cafe owner was part of the localwholesale meat market and the local market for rentedbuildings. These descriptions of markets are not veryprecise. Were you part of the market for lunches, the marketfor prepared, food or the market for sandwiches to which youwould have turned if hamburgers had been moreexpensive? That is why -we have adopted a very generaldefinition of markets, which emphasizes that they arearrangements through, which prices influence the allocationof scarce resources.

Fill in the gaps with the words and expressions from the text

1 To understand reports of market behaviour you have to …the way the market works

2. ...On the stock market, business can be transacted over the telephone, almost by … . 3. ...A market is a … expression for the process by which households’ decisions about consumption of goods, firms’ decisions about what and how to produce, and workers’ decisions about how much and for whom to work are all … by ….

4. Much of economics is devoted to the study of how markets and prices … society to solve the problems.

5. …. your desire to eat and your limited resources, the low hamburger price told you that this was a good way to … your appetite.

Union. All the states were different from each other and developed in different ways. The Northern states built factories and plants, and they also had a bigger population. The Southern states grew crops, which they then sold to Europe. The Southerners had huge cotton fields, where black slaves worked. There were about three and a half million slaves in the Southern states.

As you know, although it was written in the Declaration of Independence that all men are created equal, these words were not true for the slaves. They lived in terrible conditions and had to work day and night. Even some Southerners understood that slavery was inhuman, but without it they were afraid their whole way of life would be destroyed.

The Northerners were strongly against slavery; a lot of them helped slaves escape from their owners. They also tried to pass new laws to abolish slavery. This idea became more and more popular, which didn't suit many people in the South. The Southern states felt that their own country was against them, and they started to think of breaking away from the United States.

When the time for the next elections came, it was clear that the most important question would be slavery. There were four candidates, but a Northerner called Abraham Lincoln won the election. In his inaugural address Lincoln warned the Southerners that they shouldn't destroy the union of the states, but they didn't listen. In February 1861 eleven Southern states formed their own union, which was called the Confederacy, but Abraham Lincoln wouldn't let them split up the country. And so the Civil War began.

The North (their army was called the Union Army) was actually more powerful than the South: as you remember, they had more men, and their factories produced weapons and supplied the Northern army with everything it needed. But the Confederacy had one big advantage: they didn't have to invade the North, they just had to protect their own land and homes. At that time a lot of people thought that it would be possible. So at first, the Confederacy had more luck: their men were better trained and fought with more spirit. Just as in the Revolutionary War. Americans from the South were once again fighting for their independence. The Union soldiers were getting tired. After they lost some important battles, the anti-slavery idea wasn't enough to inspire them any more. The Southerners felt that just one more big victory would be enough to win the war.

It was all decided here in Gettysburg in June 1863. The three-day battle was terrible and took the lives of more than fifty thousand men. On the fourth day, the Confederate commander, General Lee, had to admit that he had lost the battle.

After the battle, the American President, Abraham Lincoln, came to Gettysburg to honour the memory of those who had died there. He made a speech there, which later became famous as "The Gettysburg Address". In that speech Lincoln told his countrymen that it was for them to make sure "that the dead shall not have died in vain and that this nation, under God, shall have a new birth of freedom and that government of the people, by the people, for the people, shall not perish from the earth." Two years later the Confederacy finally surrendered to the Union. As a result of the war, slavery was abolished and the United States of America was one country again.

1. The profession of a lawyer is one of the (important) in the law-governed state.2. Lawyers’ salaries are (great) than those of many other professionals. 3. The (little) the evidence, the (difficult) to find a murderer. 4. In England the volume of unwritten law is (large) than the volume of written law. 5. There is a (great) difference between the world’s systems of law. 6. The interpretation of the Courts remains till either a (high) Court decides that this interpretation was wrong or Parliament passes another law. 7. One of the (early) codes – the Code of Hebrew law is contained in the Book of Exodus of the Bible.

character exactly by his handwriting. So one lady friend decided to give it test.

B) The lady was surprised. She smiled and explained that this was Balzacs own exercise book which he used when he was a little boy.

C) She brought him a young boys exercise book. She said she wanted to know what Balzac thought of the boys character.

D) Balzac, the famous French writer, was a man of great talent. He was very proud of his ability to tell a persons character by his or her handwriting.

E) He decided to tell the truth. The boys exercise book showed that it was written by a bad , lazy fellow with no respect to other people.

F)She told him that the boy wasnt her son and asked him to tell her the truth. Balzac studied the boys handwriting very carefully.