Ⅰ. Translate the following paragraphs into Chinese ( 40 points )
1. An industry is a natural monopoly when a single firm can supply a good or service to an entire market at a lower cost than could two or more firms. A natural monopoly arises when there are economies of scale over the relevant range of output. In this case, a single firm can produce any amount of output at least cost. That is, for any given amount of output, a larger number of firms lead to less output per firm and higher average total cost. When a firm is a natural monopoly, it is less concerned about new entrants eroding its monopoly power. Normally, a firm has trouble maintaining a monopoly position without ownership of a key resource or protection from the government. The monopolist’s profit attracts entrants into the market, and these entrants make the market more competitive. By contrast, entering a market in which another firm has a natural monopoly is unattractive. Would-be entrants know that they cannot achieve the same low costs that the monopolist enjoys because, after entry, each firm would have a smaller piece of the market.
2. If there were no government rules, banks would probably keep only a small fraction of their deposits in the form of reserves. In fact, American banks are today required to keep substantially more reserves than are necessary for meeting customers’ needs. These legal reserve requirements are a crucial part of the mechanism by which the Fed (the U.S.’s central bank) controls the supply of bank money. Legal reserve requirements are set high in order to allow the central bank to control the money supply. Reserve requirements help the central bank conduct its open-market operations by ensuring a stable demand for reserves. By setting reserve requirements above the level that banks desire, the central bank can determine the level of reserves and can thereby control the money supply more precisely. The net effect is an increase in the Federal Reserve’s control over short-term interest rates.
Ⅱ. Translate the following paragraph into English ( 20 points )
Ⅲ. Writing ( 300 ~ 350 words ) ( 40 points )
Most of the emerging market economies have been among the upper-middle-income economies, but the risk of falling into “middle-income trap” which has been perplexing many developing economies has been emerging gradually. It is believed that China will be able to successfully cross the “middle-income trap” and to join the list of high income economies. What is your opinion?