I. Information for study.

 

Text A

 

Прочтите следующую информацию и запишите и запишите на полях основные термины, связанные с тематикой текста.

 

PLANNED ECNOMIES

 

Until the late 1980s and early 1990s many Eastern European countries such as Romania, Poland and Russia could be described as PLANNED or COMMAND ECONOMIES. Today, examples might include Cuba and North Korea. Government has a vital role in a planned economy. It plans, organizes and co-ordinates the hole production process. This is unlike a market economy, where planning and organizing is carried out by firms. Another difference is that resources in planned economies belong to the state. Individuals are not permitted to own property, land and other non-labour means of production.

 

What to produce. This decision is made by government planners. They decide the type and mix of goods and services to be produced. Planners make assumptions about consumers' needs. For example, they decide how many cars, how much milk, how many shirts and how much meat should be produced. Planners then tell producers, such as farms and factories, exactly what to produce.

 

How to produce. Government also tells producers how to produce. Input-output analysis is often used to make plans. For example, with a given level of tehnology, the state may know the land, labour, tractors and fertilizer (inputs) needed to make 1 million tones of wheat (the output). If an area needs 20 million tones, it is possible to work out the inputs needed. A complex table is drawn up which helps planners calculate the resources needed to meat the various output targets. Plans are often for 5,10 or 15 years.

 

How are good and services allocated? Goods and services are distributed to consumers through state outlets. People purchase goods and services with money they earn. Prices are set by the planners and cannot change without state instruction. Sometimes there are restrictions on the amount of particular goods and services which can be bought by any one individual, cars for example. Some goods and services, like education and health care, are provided free by the state.

 

 

MIXED ECONOMIES

 

In reality, no country has an economy which is entirely planned or free market. Most economic systems in the world have elements of each system.

   They are known as MIXED ECONOMIES. In mixed economies some resources are allocated by the government and the rest by the market system. All Western European countries have mixed economies. The public sector in mixed economies is responsible for the supply of public goods and merit goods. Decisions regarding resource allocation in the public sector are made by central or local government. In the private sector production decisions are made by firms in response to the demands of consumers.

   In the public sector, public goods and merit goods are provided free when used and are paid for by taxes. Examples might be roads, health care and street lighting. In mixed economies the state usually provides a minimum standard of living for those unable to work. In the  UK the Welfare State provides benefits, such as unemployment benefit and sickness benefit. In the public sector the state will own a significant proportion of production factors.

   In the private sector individuals are also allowed to own the means of production. Businesses are set up by  individuals to supply a wide variety of goods and services. Competition exists between these firms. As a result, there will tend to be choice and variety. One of the roles of the government is to ensure that there is fair competition in private sector. All private sector goods and services are allocated as in the market system described earlier.

   What should be the 'degree of mixing' in this type of economy? The government will decide how much business activity there will be in the private sector and how much in the public sector. Some countries, like Sweden, allow the government to play a major role in the supply of goods and services than others, like the UK. For example, in Sweden the government spends around 60 per cent of national income, whilst in the UK the government spends around 40 per cent. In countries where the government plays an important economic role, social provision will tend to be greater, taxes higher and the distribution of wealth and income more equal. In countries where the private sector plays the most important economic role, social provision will tend to be lower with fewer free goods and services at the point of sale. Also, taxes will be lower and the distribution of wealth and income less equal. For example, in the last decade, income tax rates have fallen in the UK and fewer services have been supplied by the state. The distribution of income has changed in favour of the 'wealthy' during this time.

 

II. Exercises

 

1.     Переведите текст на русский язык, используя словарь в конце урока. Обратите внимание на перевод терминов.

 

2.     Найдите в тексте ответы на заданные вопросы и запишите их.

1)     What are the differences between a market economy and a planned economy?

2)     Who makes decisions about what to produce in the countries with planned economies?

3)     Who decides how to produce in the countries with planned economies?

4)     How are goods and services allocated in the countries with planned economies?

5)     Who allocates resources in the countries with mixed economy?

6)     What kinds of goods are provided free in the public sector of the countries with mixed economy?

7)     What is the role of government in the private sector of mixed economies?

8)     How are goods and services allocated in the private sector of mixed economies?

9)     How does social provision depend on the 'degree of mixing' in the countries with mixed economy?

 

3.     К выделенным жирным шрифтом словам в тексте подберите слова, противоположные по значению, из следующего списка:

 

4.     Образуйте существительные от данных глаголов при помощи суффиксов -er, -ence, -ice, -ion. Проверьте их по тексту. Переведите их.

 

5.     Образуйте существительные от данных прилагательных при помощи суффиксов -ity, -ty, -ness. Проверьте их по тексту и переведите.

real, active, sick, busy, proper

 

6.     Подчеркните в тексте А предложения, соответствующие по смыслу данным ниже.

1)           В странах с плановой экономикой государство играет важную роль. Оно планирует, организует и координирует процесс производства.

2)           Некоторые товары и услуги, такие, как образование и здравоохранение предоставляются государством бесплатно.

3)           В странах с плановой экономикой ресурсы принадлежат государству.

4)           Товары и услуги распределяются через государственные торговые точки.

5)           Частные лица не могут владеть землей и другими средствами производства.

6)           В странах со смешанной экономикой некоторые ресурсы распределяются правительством, а другие - посредством рыночной системы.

7)           В частном секторе решения о производстве принимают фирмы в соответствии с потребительским спросом.

8)           Государство обычно обеспечивает прожиточный минимум для тех, кто не может работать.

9)           В частном секторе частные лица имеют право владеть средствами производства.

10)      Государство должно гарантировать честную конкуренцию в частном секторе.

 

7.     Изложите краткое содержание текста А на английском языке в письменной форме.

 

III. Vocabulary to text A

 

amount	количество
assumption	допущение, предположение
benefit	пособие
sickness benefit	пособие по болезни
unemployment benefit	пособие по безработице
to calculate	подсчитывать
to carry out	выполнять
to describe	описывать
to distribute	распределять
distribution	распределение
to ensure	обеспечить, гарантировать
equal	равный
fair	честный, справедливый
fertiliser	удобрение
free	бесплатный
health care	здравоохранение
in favour (of)	в пользу
to include	включать
input	ввод
inputs	затраты на производство
means of production	средства производства
mix (of goods)	ассортимент (товаров)
to mix	смешивать
mixed economy	смешанная экономика
outlet	торговая точка, магазин
output	выход, выпуск продукции
point of sale	магазин
to permit	позволять
public goods	товары общественного пользования
public sector of economy	государственный сектор экономики
private sector of economy	частный сектор экономики
production factors	факторы производства
property	собственность
regarding	относительно
response	ответ
responsible	ответственный
the rest	остальные
restriction	ограничение
to set prices	устанавливать цены
significant	значительный
social provision	социальное обеспечение
to spend	тратить
standard of living	уровень жизни
to supply	обеспечивать
target	цель, мишень
tax	налог
income tax	подоходный налог
variety	разнообразие
various	различный
vital	жизненно важный
welfare	благосостояние, благотворительность
wealthy	богатый

 

IV. Test

 

1.      Выберите из колонки справа по смыслу слова, пропущенные в предложениях.

1)     Government has a … role in a planned economy. 2)     Individuals are not permitted to … property, land and other means of production. 3)     They decide the type and … of goods and services to be produced. 4)     A table helps planners calculate the resources needed to meet the various output… . 5)     People purchase goods and services with money they … . 6)     In the … sector production decisions are made by firms. 7)     In the public sector, public goods and merit goods are provided free and are paid for by … . 8)     Taxes will be lower and the distribution of wealth and … less equal. 9)     One of the roles of the government is to ensure that there is … competition in the private sector. 10)Businesses are set up by individuals to supply a wide … of goods and servies.

a)     earn b)    fair c)     income d)    mix e)     own f)      private g)     public h)     supply i)       targets j)       taxes k)     variety l)       vital

 

2.      Выберите существительное, которое может следовать за данным глаголом.

1) to make     a) decision                      2) to meet       a) taxes

                      b) discussion                                      b) targets

                      c) consumption                                   c) trials

 

3) to set up    a) property                     4) to spend      a) input

                      b) benefit                                                  b) income

                      c) business                                                c) insurance

 

5) to plan      a) production                            6) to purchase  a) aims

                     b) precision                                                b) options

                     c) permission                                             c) goods

 

3.      Выберите из приведенного списка термины, соответствующие данным определениям.

1)     minimal of material comfort with which a person or class may reasonably be content; 2)     allowance, to which a person is entitled; 3)     to obtain as reward of labour; 4)     contribution levied on persons, property or business for support of government; 5)     toil tending to supply wants of community; 6)     periodical receipts from one's business, lands, work, investments; a country having national health service, national insurance and other social services.

a)     benefit b)    to earn c)     income d)    labour e)     standard of living f)      tax g)     welfare state

 

 

I.  Information for study.

 

Text A

 

Прочтите следующую информацию и запишите на полях основные термины, связанные с тематикой текста

 

 

MICROECONOMICS AND MACROECONOMICS

 

1.  Many economists specialize in a particular branch of the subject. For example, there are labour economists, energy economists, monetary economists, and international economists. What distinguishes these economists is the segment of economic life in which they are interested. Labour economics deals with problems of labour market as viewed by firms, workers, and society as a whole. Urban economics deals with city problems: land use, transport, congestion, and housing. However, we need not classify branches of economics according to the area of economic life in which we ask the standard questions «what», «how», and «for whom». We can also classify branches of economics according to the approach or methodology that is used. The very broad division of approaches into microeconomics and macroeconomics cuts across  the large number of subject groupings cited above.

 

Microeconomic analysis offers a detailed treatment of individual decisions about particular commodities.

For example, we might study why individual households prefer cars to bicycles and how producers decide whether to produce cars or bicycles. We can then aggregate the behaviour  of all households and all firms to discuss total car purchases and total car production. Within a market economy we can discuss the market for cars. Comparing this with the market for bicycles, we may be able to explain the relative price of cars and bicycles and the relative output of these two goods. The sophisticated branch of microeconomics known as general equilibrium theory extends this approach to its logical conclusion. It studies simultaneously every market for every commodity. From this it is hoped that we can understand the complete pattern of consumption, production, and exchange in the whole economy at a point in time.

 

2.  If you think this sounds very complicated you are correct. For many purposes, the analysis becomes so complicated that we tend to loose track of the phenomena in which we were interested. The interesting task for economics, a task that retains an element of art in economic science, is to devise judicious simplifications which keep the analysis manageable without distorting reality too much. It is here that microeconomists and macroeconomists proceed down different avenues. Microeconomists tend to offer a detailed treatment of one aspect of economic behaviour but ignore interactions with the rest of the economy in order to preserve the simplicity of the analysis. A microeconomic analysis of miners’ wages would emphasize the characteristics of miners and the ability of mine owners to pay. It would largely neglect the chain of indirect effects to which a rise in miners’ wages might give rise. For example, car workers might use the precedent of the miners’ pay increase to secure higher wages in the car industry, thus being able to afford larger houses which burned more coal in heating systems. When microeconomic analysis ignores such indirectly induced effects it is said to be partial analysis.

 

3.  In some instances, indirect effects may not be too important and it will make sense for economists to devote their effort to very detailed analyses of particular industries or activities. In other circumstances an alternative simplification must be found.

Macroeconomics studies the interactions in the economy as a whole. It deliberately simplifies the individual building blocks of the analysis in order to retain a manageable analysis of the complete interaction of the economy.

 

For example, macroeconomists typically do not worry about the breakdown of consumer goods into cars, bicycles, televisions, and calculators. They prefer to treat them all as a single bundle called ‘consumer goods’ because they are more interested in studying the interaction between households’ purchases of consumer goods and firms’ decisions about purchases of machinery and buildings.

 

II. Exercises

 

1.   Переведите текст A на русский язык, используя словарь в конце урока, обращая внимание на перевод терминов.

 

2. Найдите в тексте ответы на поставленные вопросы и запишите их:

1)  What distinguishes different kinds of economists ?

2)  What branches of economics can you enumerate and what do they deal with ?

3)  How can we classify branches of economics ?

4)  What analysis offers a detailed treatment of individual decisions about particular commodities ?

5)  What does general equilibrium theory study ?

6)  What do microeconomists tend to offer ?

7)  Why do microeconomists ignore interactions with the rest of the economy?

8)  When is microeconomic analysis called partial analysis ?

9)  When does it make sense for economists to devote their effort to very detailed analyses of particular industries or activities ?

10)What does macroeconomics emphasize ?

 

3. К выделенным жирным шрифтом словам в тексте подберите слова, близкие по значению, из следующего списка:

 

4. Подчеркните в тексте A предложения, соответствующие по смыслу данным ниже.

1)  Макроэкономика изучает взаимодействия в экономике в целом.

2)  Экономика труда занимается проблемами рынка с точки зрения фирм, рабочих, общества.

3)  Общая теория равновесия изучает одновременно каждый рынок для каждого товара.

4)  Макроэкономика рассматривает все товары как единое целое под названием “потребительские товары”.

5)  Микроэкономический анализ подробно изучает индивидуальные решения о приобретении отдельных товаров.

6)  Мы можем классифицировать экономистов в соответствии с той отраслью экономики, которой они занимаются.

7)  Микроэкономика подробно рассматривает какой-либо один аспект экономического развития, но игнорирует взаимодействия с остальными областями экономики, чтобы сохранить простоту анализа.

8)  Макроэкономика намеренно упрощает отдельные строительные блоки анализа, чтобы можно было анализировать взаимодействия в экономике.

 

5. Изложите краткое содержание текста A на английском языке в письменной форме, используя следующие слова:

            this text considers.., deals with.., concerns..., discusses..

6. Выскажите свое мнение по содержанию текста А, используя       следующие выражения: “I believe”, “I think”, “My opinion is that…”.

 

III. Vocabulary to Text A

 

according (to)	-	в соответствии (с)
to aggregate	-	суммировать
approach	-	подход, метод
area	-	область
behaviour	-	поведение, развитие
to believe	-	полагать
branch	-	отрасль
breakdown	-	распад
bundle	-	пучок
chain	-	цепь
circumstance	-	обстоятельство
to cite	-	цитировать
commodity	-	товар
to compare	-	сравнивать
complicated	-	сложный
to concern	-	касаться
congestion	-	перенаселение
conclusion	-	заключение
consumer goods	-	потребительские товары
to cut across	-	проходить через
to deal (with)	-	заниматься, иметь дело
deliberately	-	преднамеренно
to devise	-	придумать
to distinguish	-	различать
to distort	-	искажать
division	-	разделение
effect	-	следствие
effort	-	усилие
exchange	-	обмен
to extend	-	доводить, расширять
general equilibrium theory	-	общая теория равновесия
to give rise	-	1.         дать толчок; 2.          вызвать
heating system	-	система отопления
housing	-	жилищное строительство
to increase	-	увеличивать
indirect	-	косвенный, побочный
individual	-	отдельный
to induce	-	вызывать
instance	-	пример
interaction	-	взаимодействие
to interact	-	взаимодействовать
judicious	-	закономерный
to keep	-	1.         поддерживать; 2.         сохранять
to loose track	-	потерять нить
to make sense	-	иметь смысл
manageable	-	выполнимый
mine	-	шахта
to neglect	-	пренебрегать
owner	-	владелец
partial	-	частичный
particular	-	определенный, конкретный
pattern	-	модель
to pay	-	платить
to preserve	-	сохранить
to proceed	-	отправляться
producer	-	производитель
relative	-	относительный
to retain	-	сохранять
to secure	-	обеспечить
to simplify	-	упрощать
simplicity	-	простота
simplification	-	упрощение
sophisticated	-	усложненный
subject grouping	-	предметная группировка
to treat	-	рассматривать
treatment	-	исследование
urban	-	городской
to view	-	рассматривать
as a whole	-	в целом

 

IV. Test

 

1.     Выберите из колонки справа  по смыслу слова, пропущенные в предложениях.

 

1)  Urban economics  ... city problems.	a)    market
2)  We can classify  ...  of economics according to the methodology that is used.	b)   households c)   commodity
3)  Within a market economy we can discuss the … for cars.	d)   effects e)    branches
4)  Macroeconomics … the individual building blocks of the analysis.	f)     deals with g)   g) interactions
5)  We can study why … prefer car to bycycles.	h)   consumer i)      purchase
6)  General equilibrium theory studies simultaneously every market for every  ...  .	j)      macroeconomics k)   microeconomics
7)  When microeconomic analysis ignores indirectly induced  ...  it is said to be partial analysis.
8)  Microeconomics ignores  ...  with the rest of the economy in order to preserve the simplicity of the analysis.
9)  Macroeconomists do not worry about the breakdown of  ...  goods into cars, bicycles, televisions and calculators.
10)... treats the interaction in the economy as a whole.

 

2. Выберите существительное, которое может следовать за данным глаголом.

1) to distort           a) the effort;                             b) the meaning;                             c) the exchange.	2) to loose            a) congestion;                             b) circumstance;                             c) track.
3) to pay               a) wages;                             b) jobs;                             c) goods.	4) to devise           a) housing;                             b) simplifications;                             c) divisions.
5) to consume       a) chains;                             b) branches;                             c) goods.

 

3. Выберите из приведенного списка термины, соответствующие данным определениям.

a) economics which deals with problems of the labour market;	1. urban economics; 2. commodities;
b) economics which deals with city problems; c) a detailed treatment of individual decisions about particular commodities; d) things that meet needs or are wanted or can be traded;	3. consumer goods; 4. labour economics; 5. macroeconomics; 6. microeconomics.
e) a study of the interactions in the economy as a whole;
f) goods bought by households (not by firms).

 

 

I.  Information for study.

 

Text A

 

Прочтите следующую информацию и запишите на полях основные термины, связанные с тематикой текста.

 

MACROECONOMICS

THE OVERALL PICTURE

 

1. Macroeconomics is the study of the economy as a whole. Macroeconomics is concerned not with the details  - the price of cigarettes relative to the price of bread, or the output of cars relative to the output of steel - but with the overall picture. We shall study issues such as the determination of total output of the economy, the aggregate level of unemployment, and the rate of inflation or growth of prices of goods and services as a whole.

 

2. The distinction between microeconomics and macroeconomics is more than difference between economics in the small and economics in the large, which the Greek prefixes micro- and macro- suggest. The purpose of the analysis is also different.

 

3. A model is a deliberate simplification to enable us to pick out the key elements of a problem and think about them clearly. Although we could study the whole economy by piecing together our microeconomic  analysis of each and every market, the resulting model would be so cumbersome that it would be hard to keep track of all the economic forces at work. Microeconomics and macroeconomics take different approaches to keep the analysis manageable.

 

4. Microeconomics places the emphasis on a detailed understanding  of particular markets. To achieve this amount of detail or magnification, many of the interactions with other markets are suppressed. In saying that a tax on cars reduces the equilibrium quantity of cars we ignore the question of what the government does with the tax revenue. If the government has to borrow less money, it is possible that interest rates and exchange rate will fall and that improved international competitiveness of UK car producers will actually increase the equilibrium output of cars in the UK.

 

5. Microeconomics is a bit like looking at a horse race through a pair of binoculars. It is great for details, but sometimes we get a clearer picture of the whole race by using the naked eye. Because macroeconomics is concerned primarily with the interaction of different parts of the economy, it relies on a different simplification to keep the analysis manageable. Macroeconomics simplifies the building blocks in order to focus on how they fit together and influence one another.

 

6. Macroeconomics is concerned with broad aggregates such as the total demand for goods by households or the total spending on machinery and buildings by firms. As in watching the horse race through the naked eye, our notion of the individual details is more blurred but we can give our full attention to the whole picture. We are more likely to notice the horse sneaking up on the rails.

 

THE ISSUES

 

7.     We now introduce some of the main issues in macroeconomics.

8.     Inflation. The annual inflation rate is the percentage increase per annum in the average price of goods and services. The Retail Price Index (RPI) is a weighted average of the prices households pay for goods and services. The percentage annual growth in the RPI is the most commonly used measure of inflation in the UK.

9.     What causes inflation? The money supply? Trade Unions? Why do people mind so much about inflation? Does inflation cause unemployment? These are among the questions you must think over.

10.  Unemployment. Unemployment is a measure of the number of people registered as looking for work but without a job. The unemployment rate is the percentage of the labour force that is unemployed. The labour force is the number of people working or looking for work. It excludes all those, from rich landowners to heroin addicts, who are neither working nor looking for work.

11.  Unemployment is now high. Why has it increased so much recently? Is high unemployment necessary to keep inflation under control, or could the government create more jobs?

12.  Output and Growth. Real Gross National Product (real GNP) measures the total income of the economy. It tells us the quantity of goods and services the economy as a whole can afford to purchase. It is closely related to the total output of the economy. Increases in real GNP are called “economic growth”.

13.  What determines the level of real GNP? Does unemployment mean that real GNP is lower than it might be? Why do some countries grow faster than others?

14.  Macroeconomic Policy. Almost every day the newspapers and television refer to the problems of inflation, unemployment, and slow growth. These issues are widely discussed; they help determine the outcome of elections, and make some people interested in learning more about macroeconomics.

15.  The government has a variety of policy measures through which it can try to affect the performance of the economy as a whole. It levies taxes, commissions spending, influences the money supply, interest rates, and the exchange rate, and it sets targets for the output and prices of nationalized industries.

 

II. Exercises

 

1. Переведите текст A на русский язык, используя словарь в конце урока, обращая внимание на перевод терминов.

 

2. Найдите в тексте ответы на поставленные вопросы и запишите их.

1)  What does macroeconomics study?

2)  What is the distinction between microeconomics and macroeconomics?

3)  What can you say about a model as a tool of economic analysis?

4)  What does microeconomics place the emphasis on in the course of analysis?

5)  What example is used in the text to show the difference between microeconomics and macroeconomics?

6)  What is macroeconomics primarily concerned with in the course of analysis?

7)  What are the main issues in macroeconomics?

8)  What do economists most commonly use to measure inflation?

9)  What is unemployment and unemployment rate?

10)What is labour force?

11)Who is excluded from the labour force?

12)What does Real Gross National Product (GNP) measure?

13)How are increases in real GNP called?

14)What are the policy measures through which the government can try to affect the performance of the economy as a whole?

 

3. К выделенным жирным шрифтом словам в тексте подберите слова, противоположные по значению, из следующего списка слов:

 

 

4. Образуйте существительные от данных глаголов при помощи суффиксов -ance, -ing, -ion, -th. Проверьте по тексту. Переведите их:

 

 

5. Подчеркните в тексте A предложения, соответствующие по смыслу данным ниже.

1)  Безработица - это показатель количества людей, которые ищут работу, но не имеют ее.

2)  Валовый национальный продукт определяется общим доходом хозяйства страны.

3)  Индекс розничных цен - это средняя цена, которую покупатели платят за товары и услуги.

4)  Мы могли бы изучать экономику всей страны, объединяя микроэкономический анализ отдельных рынков.

5)  Макроэкономика изучает взаимодействие различных отраслей экономики.

6)  Увеличение валового национального продукта называется экономическим ростом.

7)  Люди, которые не работают и не ищут работу, не входят в состав рабочей силы.

8)  Возрастание суммы денег в обращении вызывает рост инфляции.

6. Изложите краткое содержание текста A на английском языке в   письменной форме.

7. Прочтите список ключевых слов к тексту B.

Concept                                          понятие

To refer(to)                                    относиться(к)

Media                                             средства массовой информации

Key term                                        ключевой термин

Gross National Product (GNP)   валовый национальный продукт

Value                                              стоимость

Aggregate Price Level                  совокупный уровень цен

Measure                                         мера

Average                                         средний

On average                                    в среднем

Level                                              уровень

Inflation                                         инфляция

Unemployment Rate                     уровень безработицы

Percentage                                     процентное отношение

Labour force=workforce              рабочая сила

In line                                             в соответствии

To be out of work                          не иметь работы

Working age                                  трудоспособный возраст

To inherit                                       унаследовать

 

8. Прослушайте текст В на кассете 2 - 3 раза и постарайтесь понять его. 

9. Дайте краткое изложение текста B на русском языке.

10. Прочтите утверждения и выберите те, которые соответствуют содержанию текста B[6]:

1) Macroeconomic concepts refer to the economy as a whole.

2) Microeconomic concepts are of more public interest than macroeconomic concepts.

3) Gross National  Product is the value of all goods and services produced in the economy over a given period.

4) The prices of different goods should always move in line with one another.

5) The Aggregate Price Level tells us what is happening to prices on average.

6) When the price level is falling, we say that the economy is going through an inflation.

7) By the labour force we mean the people who are of working age.

 

III. Vocabulary to Text A

 

to achieve	-	достигнуть
aggregate	-	совокупность, совокупный
to blur	-	затуманить
to borrow	-	занять (деньги)
to cause	-	вызывать
closely related	-	тесно связанный
commission	-	уполномочивать
competitiveness	-	конкурентоспособность
cumbersome	-	неуклюжий
deliberate	-	преднамеренный
determination	-	определение
distinction	-	различие
economy	-	народное хозяйство
emphasis	-	акцент, ударение
to enable	-	дать возможность
equilibrium output	-	равновесный объем производства
equilibrium quantity	-	равновесное количество
exchange rate	-	обменный курс
to exclude	-	исключать
greedy	-	жадный
Gross National Product	-	валовый национальный продукт
heroin addict	-	наркоман
to ignore	-	пренебрегать
inflation rate	-	темп развития инфляции
interest rate	-	процентная ставка
issue	-	проблема
to keep track	-	следить
landowner	-	землевладелец
at large	-	в целом
in the large	-	в большом масштабе
to levy	-	облагать налогом
magnification	-	увеличение
to mind	-	возражать
money supply	-	сумма денег в обращении
naked eye	-	невооруженный глаз
notion	-	представление
outcome	-	результат
overall	-	полный
performance	-	работа
to pick out	-	выбрать
to piece together	-	соединять
to price	-	назначить цену
primarily	-	главным образом
to reduce	-	уменьшать
to refer (to)	-	ссылаться (на)
to rely (on)	-	полагаться (на)
Retail Price Index	-	индекс розничных цен
to seek	-	пытаться
in the small	-	в малом масштабе
spending	-	расходы
supply	-	предложение, запас
to suppress	-	подавлять
tax revenue	-	налоговые поступления
unemployment	-	безработица
unemployment rate	-	уровень безработицы
wage claim	-	требование повысить заработную плату
to weight	-	взвешивать

 

 

IV. Test

 

1. Выберите из колонки справа  по смыслу слова, пропущенные в предложениях.

1)  The rate of ... depends on the growth of prices of goods and services.	a) spending b) unemployment
2)  An ... is what people earn.	c) performance
3)  The equilibrium output of cars in the UK will increase if international ... of UK car producers improves.	d) household e) concerned f) income
4)  Macroeconomics studies the total demand for goods by households or the total ... on machinery by firms.	g) issues h) variety i) competitiveness
5)  The world income is the total of all the incomes ... by all the people in the world.	j) inflation k) deliberate
6)  A model is a ... simplification of reality.	l) earned
7)  The government can affect the ... of the economy by means of policy measures.
8)  Some economists say that high ... is necessary to keep inflation under control.
9)  Microeconomics is ... with detailed understanding of particular markets.
10)Many macroeconomic ... are often discussed in newspapers and on TV.

 

2. Выберите существительное, которое может следовать за данным глаголом.

 

1) to keep             a) track;                             b) sum;                             c) look.	2) to borrow                   a) tax;                             b) money;                             c) cost.
3) to look for        a) weight;                             b) world;                             c) work.	4) to achieve         a) detalization;                             b) macroeconomics;                             c) economy
5) to set                a) piece;                             b) price;                             c) issue.	6) to levy              a) taxes;                             b) prices;                             c) races.

 

3. Выберите из приведенного списка термины, соответствующие данным определениям.

 

a) the percentage of the labour force that is unemployed;	1.   labour force; 2.   retail price index;
b) the percentage increase in the average price of goods and services;	3.   unemployment; 4.   inflation rate;
c) increases in real Gross National Product;	5.   unemployment rate;
d) the number of people working or looking for work;	6.   economic growth.
e) a measure of the number of people registered as looking for work but without a job;
f) a weighted average of the prices households pay for goods and services.

 

 

I.  Information for study.

 

Text A

 

Прочтите следующую информацию и запишите на полях основные термины, связанные с тематикой текста.

 

THE ROLE OF THE MARKET

 

1. Markets bring together buyers and sellers of goods and services. In some cases, such as a local fruit stall, buyers and sellers meet physically. In other cases, such as the stock market, business can be transacted over the telephone, almost by remote control. We need not go into these details. Instead, we use a general definition of markets.

2. A market is a shorthand expression for the process by which households’ decisions about consumption of alternative goods, firms’ decisions about what and how to produce, and workers’ decisions about how much and for whom to work are all reconciled by adjustment of prices.

3. Prices of goods and of resources, such as labour, machinery and land, adjust to ensure that scarce resources are used to produce those goods and services that society demands.

4. Much of economics is devoted to the study of how markets and prices enable society to solve the problems of what, how, and for whom to produce. Suppose you buy a hamburger for your lunch. What does this have to do with markets and prices? You chose the café because it was fast, convenient and cheap. Given your desire to eat, and your limited resources, the low hamburger price told you that this was a good way to satisfy your appetite. You probably prefer steak but that is more expensive. The price of steak is high enough to ensure that society answers the ‘for whom’ question about lunchtime steaks in favour of someone else.

5. Now think about the seller’s viewpoint. The café owner is in the business because, given the price of hamburger meat, the rent and the wages that must be paid, it is still possible to sell hamburgers at a profit. If rents were higher, it might be more profitable to sell hamburgers in a cheaper area or to switch to luxury lunches for rich executives on expense accounts. The student behind the counter is working there because it is a suitable part-time job which pays a bit of money. If the wage were much lower it would hardly be worth working at all. Conversely, the job is unskilled and there are plenty of students looking for such work, so owners of cafés do not have to offer very high wages.

6. Prices are guiding your decision to buy a hamburger, the owner’s decision to sell hamburgers, and the student’s decision to take the job. Society is allocating resources - meat, buildings, and labour - into hamburger production through the price system. If nobody liked hamburgers, the owner could not sell enough at a price that covered the cost of running the café and society would devote no resources to hamburger production. People’s desire to eat hamburgers guides resources into hamburger production. However, if cattle contracted a disease, thereby reducing the economy’s ability to produce meat products, competition to purchase more scarce supplies of beef would bid up the price of beef, hamburger producers would be forced to raise prices, and consumers would buy more cheese sandwiches for lunch. Adjustments in prices would encourage society to reallocate resources to reflect the increased scarcity of cattle.

7. There were several markets involved in your purchase of a hamburger. You and the café owner were part of the market for lunches. The student behind the counter was part of the local labour market. The café owner was part of the local wholesale meat market and the local market for rented buildings. These descriptions of markets are not very precise. Were you part of the market for lunches, the market for prepared food, or the market for sandwiches to which you would have turned if hamburgers had been more expensive? That is why we have adopted a very general definition of markets which emphasizes that they are arrangements through which prices influence the allocation of scarce resources.

 

II. Exercises

 

1. Переведите текст на русский язык, используя словарь в конце урока, обращая внимание на перевод терминов.

2. Найдите в тексте ответы на поставленные вопросы и запишите их.

1)  What is the role of markets?

2)  Give a general definition of markets.

3)  How do prices influence the use of scarce resources?

4)  What is much of economics devoted to?

5)  By what means does the society allocate resources into the production of certain goods?

6)  What markets are involved in the process of buying and selling a hamburger?

3. К выделенным жирным шрифтом словам в тексте подберите близкие по значению слова из следующего списка:

 

4. Подчеркните в тексте предложения, соответствую­щие по смыслу данным ниже.

1)  Рынки объединяют покупателей и продавцов.

2)  Иногда сделки заключаются по телефону.

3)  Экономисты исследуют, каким образом рынки и цены помогают обществу решать проблемы, что, как и для кого производить.

4)  Цены определяют ваше решение купить товар и решение продавца его продать.

5)  Рынок - это механизм, посредством которого цены влияют на распределение ограниченных ресурсов.

6)  Общество направляет ресурсы на производство товаров посредством системы цен.

7)  Хозяин кафе ведет дело, потому что, при данных ценах на мясо, арендной плате и зарплате рабочих, можно получать прибыль от продажи гамбургеров.

 

5. Изложите краткое содержание текста А в письменной форме на английском языке.

 

III. Vocabulary to Text A

 

ability	-	способность
to adjust	-	приспосабливаться
adjustment	-	установление, приспособление
alternative	-	альтернативный, взаимоисключающий
arrangement	-	устройство
to bid up price	-	набавлять цену
cheap	-	дешевый
to contract a disease	-	заболеть
convenient	-	удобный
conversely	-	с другой стороны
definition	-	определение
to demand	-	требовать
description	-	описание
desire	-	желание
to devote	-	посвятить
to emphasize	-	подчеркнуть
executive	-	должностное лицо, руководитель
on expense accounts	-	за счет фирмы
expensive	-	дорогой
expression	-	выражение
goods	-	товары
to guide	-	руководить
to influence	-	влиять
labour market	-	рынок труда
limited	-	ограниченный
local	-	местный
luxury	-	роскошный
machinery	-	техника
to offer	-	предлагать
outlay	-	издержки
part-time job	-	работа c неполным рабочим днем
precise	-	точный
to prepare	-	приготовить
price	-	цена
to produce	-	производить
production	-	производство
to raise	-	повышать
to reallocate	-	перераспределять
to reconcile	-	примирять
remote control	-	дистанционное упрaвление
rent	-	арендная плата
return	-	доход
to run a business	-	вести дело, управлять
society	-	общество
stall	-	ларек
stock market	-	фондовая биржа
supplies	-	запасы
to switch	-	переключаться
to transact	-	заключать сделку
unskilled	-	неквалифицирован-ный
wage	-	заработная плата
wholesale	-	оптовый
to be worth	-	стоить

 

 

IV. Test

 

1. Выберите из колонки справа по смыслу слова, пропущенные в предложениях.

 

1) Markets are arrangements through which ... influence how we allocate resources. 2) At one extreme we have the ... economy which doesn’t allow individuals to make economic decisions.   3) Markets in which ... do not intervene are called free markets. 4) In a free market individuals are free to ... their own interests. 5) The government controls a share of the ... through taxation, transfer payments, etc. 6) In a mixed economy, the government and the private sector ... in solving economic problems. 7) Prices of goods and of resources adjust to ensure that scarce resources are used to ... those goods and services that society demands. 8) If rents were higher it might be more ... to sell hamburgers in a cheaper area. 9) Adjustment in prices would encourage society to ... resources to reflect the increased scarcity of cattle. 10) The student is working there because it is a suitable ... job.

a) interact b) pursue c) part-time d) purchase e) prices   f) reallocate g) command h) profitable i) reduce j) produce k) governments l) output

 

 

2. Выберите существительное, которое может следовать за данным глаголом:

 

1) to transact         a) business;                             b) basis;                             c) resources.	2) to allocate         a) solutions;                             b) resources;                             c) executives.
3) to raise             a) pieces;                             b) steaks;                             c) prices.	4) to produce        a) guides;                             b) grants;                             c) goods.
5) to satisfy           a) demands;                             b) economy;                             c) services.	6) to bid up           a) works;                             b) prices;                             c) resources.

 

 

3. Выберите из приведенного списка термины, соответствующие данным определениям.

 

а) money for which a thing is bought or sold; b) a place where people meet for buying and selling; c) excess of return over outlay; d) means of satisfying a need; e) things that are bought and sold; f) to manufacture goods from raw materials.

1. resource; 2. goods; 3. to produce; 4. price; 5. market; 6. profit.

 

 

I. Information for study.

 

Text A

 

Прочтите следующую информацию и запишите на полях основные термины, связанные с тематикой текста.

 

DEMAND AND  SUPPLY

 

Demand is the quantity of a good buyers wish to purchase at each conceivable price.

Thus demand is not a particular quantity, such as six bars of chocolate, but rather a full description of the quantity of chocolate the buyer would purchase at each and every price which might be charged. The first column of Table 2 shows a range of prices for bars of chocolate. The second column shows the quantities that might be demanded at these prices. Even when chocolate is free, only a finite amount will be wanted. People get sick from eating too much chocolate. As the price of chocolate rises, the quantity demanded falls, other things equal. We have assumed that nobody will buy any chocolate when the price is more than £0.40 per bar. Taken together, columns (1) and (2) describe the demand for chocolate as a function of its price (Table 2).

Supply is the quantity of a good sellers wish to sell at each conceivable price.

Again, supply is not a particular quantity but a complete description of the quantity that sellers would like to sell at each and every possible price. The third column of Table 2 shows how much chocolate sellers wish to sell at each price. Chocolate cannot be produced for nothing. Nobody would wish to supply if they receive a zero price. In our example, it takes a price of at least £0.20 per bar before there is any incentive to supply chocolate. At higher prices it becomes increasingly lucrative to supply chocolate bars and there is a corresponding increase in the quantity of bars that would be supplied. Taken together, columns (1) and (3) describe the supply of chocolate bars as a function of their price.

 

TABLE 2. the DEMAND FOR AND SUPPLY OF CHOCOLATE

(1)	(2)		(3)
PRICE	DEMAND		SUPPLY
(£/bar)	(million bars/year)		(million bars/year)
0.00	200		0
0.10	160		0
0.20	120		40
0.30	80		80
0.40	40		120
0.50	0		160
0.60	0		200
0.70	0		240

 

Notice the distinction between demand and the quantity demanded. Demand describes the behaviour of buyers at every price. At a particular price such as £0.30, there is a particular quantity demanded, namely 80 million bars/year. The term ‘quantity demanded’ makes sense only in relation to a particular price. A similar distinction applies to supply and quantity supplied.

In everyday language, we would say that when the demand for football tickets exceeds their supply some people will not get into the ground. Economists must be more precise. At the price charged for tickets, the quantity demanded exceeded the quantity supplied. Although the size of the ground sets an upper limit on the quantity of tickets that can be supplied, a higher ticket price would have reduced the quantity demanded, perhaps leaving empty space in the ground. Yet there has been no change in demand, the schedule describing how many people want admission at each possible ticket price. The quantity demanded has changed because the price has changed.

We must recognize that the demand schedule relating price and quantity demanded and the supply schedule relating price and quantity supplied are each constructed on the assumption of ‘other things equal’. In the demand for tube tickets, the ‘other things’ were the cost of alternative modes of transport. In the demand for football tickets, one of the ‘other things’ that is important is whether or not the game is being shown on television. If it is, the quantity of tickets demanded at each and every price will be lower than if the game is not televised. To understand how a market works, we must first explain why demand and supply are what they are. (Is the game on television? Has the ground capacity been extended by building a new stand?) Then we must examine how the price adjusts to balance the quantities supplied and demanded, given the underlying supply and demand schedules relating quantity to price.

  Let us think again about the market for chocolate described in Table 2. Other things equal, the lower...(чем ниже...)the price of chocolate, the higher... (тем выше...)the quantity demanded. Other things equal, the higher the price of chocolate, the higher the quantity supplied. A campaign by dentists warning of the effect of chocolate on tooth decay, or a fall in household incomes, would change the ‘other things’ relevant to the demand for chocolate. Either of these changes would reduce the demand for chocolate, reducing the quantities demanded at each price. Cheaper cocoa beans, or technical advances in packaging chocolate bars, would change the ‘other things’ relevant to the supply of chocolate bars. They would tend to increase the supply of chocolate bars, increasing the quantity supplied at each possible price.

 

II. Exercises

 

1. Переведите текст на русский язык, используя словарь в конце урока.

 

2. Найдите в тексте ответы на следующие вопросы и запишите их.

1) What is a market?

2) What 2 kinds of market did you learn about from the text?

3) What economic functions do these kinds of market perform?

4) Can the price and quantity be considered separately?

5) What do prices guide?

6) What do we need to do to understand the process of the prices’ action at a typical market?

7) What are the essential features on which a model of a typical market should concentrate?

8) What can we study, after making a model, to see how a market works in practice?

9) What is demand?

10) What is supply?

11) What is the distinction between demand and the quantity demanded?

12) What is the distinction between supply and the quantity supplied?

 

3. К выделенным жирным шрифтом словам в тексте подберите близкие по значению слова из следующего списка:

 

4. Подчеркните в тексте предложения, соответствующие по смыслу данным ниже.

1) При помощи рынка продавцы и покупатели входят в контакт для обмена товарами и услугами.

2) Цены устанавливаются так, чтобы уравновесить спрос и предложение.

3) По мере того, как цена на товар растет, спрос на этот товар падает.

4) На фондовой бирже работают посредники, которые заключают сделки от имени своих клиентов.

5) При слишком низкой цене у продавцов нет стимула поставлять товар.

6) Чтобы понять, как работает рынок, необходимо изучить поведение покупателей и поведение продавцов.

7) Цены влияют на общество, определяя его выбор, что, как и для кого покупать.

8) Спрос - это количество товара, которое покупатели хотят купить по каждой возможной цене.

9) Предложение - это количество товара, которое продавцы хотят продать по каждой возможной цене.

 

5. Образуйте существительные от данных глаголов с помощью суффиксов -ion, -ment.Проверьте их по тексту и переведите их.

 

6. Образуйте наречия от данных прилагательных с помощью суффикса -ly и переведите их

 

7. Изложите краткое содержание текста А на английском языке в письменной форме.

 

8. Прочтите список ключевых слов к тексту В:

 

eduilibrium - равновесие

equilibrium price - равновесная цена

specifically - в особенности

to combine - объединять

opposite - противоположный

intermediate - промежуточный

equilibrium quantity - равновесное количество

shortage - нехватка, дефицит

excess demand - избыточный спрос

to realize - понимать

excess supply - избыточное предложение

stock - запас

to bring about - осуществлять

expensive - дорогой

naturally - естественно

to clear - освободить, распродавать

move - шаг

price-cutting - снижение цены

to reach - достигать

in reverse - задним ходом

to run out - заканчиваться

to ration – нормировать

 

9. Прослушайте текст В на кассете 2 - 3 раза и постарайтесь понять его.

 

10. Напишите краткое изложение текста на русском языке.

 

11. Выберите утверждения, которые соответствуют содержанию текста Вх):

1) At low prices the demand for chocolate bars exceeds the quantity supplied.

2) If the price is high the demand is also high.

3) At some intermediate price the quantity demanded just equals the quantity supplied.

4) At the equilibrium price the demand for the goods exceeds the quantity supplied.

5) When economists say there is excess demand they really mean the quantity demanded exceeds the quantity supplied at this price.

6) If the quantity demanded equals the quantity supplied, we have a shortage of goods.

7) If the quantity supplied exceeds the quantity demanded, sellers will be left with stock they can’t sell.

 

12. Выскажите свое мнение по содержанию текстов А и В.

 

III. Vocabulary to Text A

 

admission	–	допуск
advance	–	прогресс, достижение
auction	–	аукцион
to bid (against)	–	предлагать цену (на аукционе)
to bring together	–	свести вместе
on behalf (of)	–	от имени
campaign	–	кампания
capacity	–	вместимость
to charge (a price)	–	назначить (цену)
chiefly	–	главным образом
cocoa beans	–	бобы какао
conceivable	–	возможный
corresponding	–	соответствующий
decay	–	разрушение
to equal	–	равняться
to exceed	–	превышать
to fall	–	падать
finite	–	ограниченный
force	–	сила; фактор
ground	–	спортивная площадка
incentive	–	стимул
intermediary	–	посредник
lucrative	–	выгодный, прибыльный
namely	–	а именно
other things equal	–	при прочих равных
packaging	–	упаковка
to perform	–	выполнять
quantity demanded	–	требуемое количество
quantity supplied	–	предлагаемое кол-во
range	–	диапазон
to relate	–	устанавливать отношение, относиться
to recognize	–	признать
to rise	–	подниматься
sale	–	продажа
schedule	–	таблица, схема
set	–	набор, система
space	–	место
stand	–	трибуна
to stock	–	хранить на складе
stockbroker	–	биржевой маклер
superficially	–	внешне, поверхностно
to underlie	–	лежать в основе
to warn	–	предостерегать

 

IV. Test

 

1. Выберите из колонки справа по смыслу слова, пропущенные в предложениях.

 

1) At the London Stock Exchange stockbrokers ... business on behalf of clients. 2) When supply is much greater than demand traders cut prices until the ... price is reached. 3) To understand how a market works in practice, we must study the interaction of ... and supply.   4) When the quantity demanded ... the quantity supplied, the sellers may run out of stock. 5) ... supply happens when the price of a commodity is too high.   6) At high prices it becomes very ... to supply the goods. 7) To balance the market, the traders must ... intermediate price. 8) At the auctions buyers ... against each other with the seller taking a passive role. 9) Some markets do not bring buyers and sellers together and operate through ... . 10) When the price is too low, there is no ... to supply the commodity.

a) exceeds b) lucrative c) transact d) bid e) intermediaries f) equilibrium   g) underlie h) incentive i) demand j) charge   k) capacity l) excess

 

2. Выберите существительное, которое может следовать за данным глаголом:

1) to bring together       a) the buyers;                                     b) the prices;                                     c) the sales.	2) to charge          a) spaces;                             b) stocks;                             c) prices.
3) to exceed          a) the goods;                             b) the quantity;                             c) the quality.	4) to increase        a) the intermediary;                               b) the supply;                               c) the equilibrium.
5) to adopt            a) a definition;                             b) an allocation;                             c) an auction.

 

3. Выберите из приведенного списка термины, соответствующие данным определениям.

а) gathering of buyers and sellers to exchange commodities or services; space or building used for it; b) the quantity of commodities sellers wish to sell at each possible price; c) the quantity of commodities buyers wish to purchase at each possible price; d) amount or number being measurable; e) state of balance; f) buying and selling transaction.

1. demand; 2. equilibrium; 3. sale; 4. market; 5. supply; 6. quantity.

 

 

I.   Information for Study.

 

Text A

 

Прочтите следующую информацию и запишите на полях основные термины, связанные с тематикой текста.

 

THE PRICE OF RELATED GOODS

 

Suppose, we study the demand for tube travel. A rise in bus fares or petrol prices would increase the quantity of tube travel demanded at each possible price. In everyday language, we think of buses and private cars as substitutes for the tube. Loosely speaking, this means that a journey may be made by bus or car instead of by tube. More precisely, an increase in the price of buses or cars will lead to an increase in the demand for tube travel. Economists use an even more precise definition of substitutes but everyday language gives the right idea of what we mean. Similarly, everyday language suggests that petrol and cars are complements because you cannot use a car without also using petrol. A rise in the price of petrol tends to reduce the demand for cars.

  How do these ideas about substitutes and complements relate to the demand for chocolate bars? Clearly, other sweets (mint drops and jelly babies) are substitutes for chocolate. We expect an increase in the price of other sweets to increase the quantity of chocolate demanded at each possible chocolate price, as people substitute away from other sweets towards chocolate. If people buy chocolate to eat at the cinema, films would be a complement for bars of chocolate. A rise in the price of cinema tickets would reduce the demand for chocolate since fewer people will go to the cinema. Nevertheless, it is difficult to think of a lot of goods that are complements for chocolate. This suggests, correctly, that most of the time goods are substitutes for each other. Complementarity, while present in many instances, is usually a more specific feature (record players and records, coffee and milk, shoes and shoelaces).

  Before we leave the influence of prices of related goods on the demand for a particular commodity, it should be noted that the development of new products can be viewed within this framework. Technological advances that make possible hand calculators, low fuel consumption cars, or low-calorie beer affect the demand for related goods. One way to think about this is to say that the new product had always been available, but previously its price had been prohibitively high so that nobody could afford it. The technological advance enables the new product to be made available at a much lower price. This will stimulate demand for goods that are complements to the new product (video games may increase the demand for televisions on which they can be played in the home) but reduce the demand for substitutes for the new product (being able to watch films on a home video reduces the demand for going to the cinema).

 

CONSUMER INCOMES

 

Demand is also influenced by consumer income.When incomes rise, the demand for most goods increases. Typically, consumers buy more of everything. However, there are exceptions.

A normal good is a good for which demand increases when incomes rise. An inferior good is a good for which demand falls when incomes rise.

As their name suggests, most goods are normal goods. An example of an inferior good might be cheap but nasty cuts of meat. As household incomes rise, households spend absolutely less on cheap cuts and more on better cuts of meat such as steaks. Inferior goods are typically cheap but low-quality goods which people would prefer not to buy if they could afford to spend a little more.

 

TASTES

 

We must also consider consumer tastes or preferences. In part, these are shaped by convenience, custom, and social attitudes. When the Beatles and the Rolling Stones first became popular, the demand for haircuts suddenly fell. The fashion for the mini-skirt reduced the demand for textile material. More recently, the emphasis on health and fitness has increased the demand for jogging equipment, health foods, and sports facilities while reducing the demand for cream cakes, butter, and cigarettes.

 

II. Exercises

 

1. Переведите текст на русский язык, используя словарь в конце урока, обращая внимание на перевод терминов.

 

2. Найдите в тексте ответы на поставленные вопросы и запишите их.

1) What three “other” things are relevant to demand curves?

2) What is the relation between bus fares or petrol prices and the quantity of tube travels?

3) What is the relation between buses and private cars and the tube?

4) Why is petrol a complement for a car?

5) What are substitutes for chocolate bars?

6) Why can films be a complement for chocolate bars?

7) How do technological advances affect the demand for complements to a new product?

8) How do technological advances affect the demand for substitutes for a new product?

9) What happens to the demand for normal goods when consumer incomes rise?

10) What happens to the demand for inferior goods when consumer incomes rise?

11) What do consumer tastes depend on?

 

3. К выделенным жирным шрифтом словам в тексте подберите близкие по значению слова из следующего списка:

 

4. Подчеркните в тексте A предложения, соответствующие по смыслу данным ниже:

1) Увеличение платы за автобус или цены на бензин приводит к увеличению спроса на метро.

2) Автобусы и частные машины являются заменителями метро.

3) Машины и бензин дополняют друг друга, т.к. нельзя использовать машины без бензина.

4) Многие вещи взаимно дополняют друг друга, как, например, проигрыватели и пластинки, кофе и молоко, ботинки и шнурки, так что это явление очень часто встречается.

5) Так как цены на сопутствующие товары влияют на спрос на определенный товар, то разработки новых товаров можно рассматривать  с этой точки зрения.

6) Когда доходы потребителей растут, увеличивается спрос на хорошие товары.

7) На товары низкого качества спрос падает при росте доходов потребителей.

8) Потребительские вкусы зависят от удобств, обычаев и общественного положения.

 

5. Образуйте наречия от данных прилагательных. Переведите их.

 

6. Изложите краткое содержание текста А на английском языке в письменной форме.

 

7. Прочтите список ключевых слов к тексту В:

shifts - сдвиги, изменения

underlying factors - основополагающие факторы

to draw (drew) - чертить

to shift - сдвинуться

to sketch - рисовать

transition - переход

to put upward pressure - оказывать давление снизу вверх

to single out - выделить

 

TABLE 3. ICE-CREAM PRICES AND CHOCOLATE DEMAND

 

Price of	Demand for chocolate
Chocolate	Low ice-cream price		High ice-cream price
(£/bar)	(million bars/year)		(million bars/year)
0.00	200		280
0.10	160		240
0.20	120		200
0.30	80		160
0.40	40		120
0.50	0		80

 

FIGURE 4. ICE-CREAM PRICES AND CHOCOLATE DEMAND

 

8. Прослушайте 2-3 раза и постарайтесь понять текст В на кассете. Обратите внимание на таблицу 3 и рисунок 4.

 

9. Дайте краткое изложение текста на русском языке.

 

10. Выберите утверждения, которые соответствуют содержанию текста Вх) :

1) Ice-cream could not be a substitute for chocolate.

2) At each chocolate price there is a larger quantity demanded of chocolate when ice-cream prices are low.

3) When the price of ice-cream rises people substitute chocolate for ice-cream and we have excess demand for chocolate.

4) The effect of  excess demand is that the price of chocolate bars rises until it reaches a new equilibrium price.

5) The higher price reduces the quantity demanded.

6) A normal good is a good for which demand reduces when incomes rise.

7) People always tend to buy cheap goods if their incomes are low.

8) When incomes rise, the demand for most goods falls.

 

III. Vocabulary to Text A1

 

attitude	-	позиция, положение
available	-	доступный
complement	-	дополнение
complementarity	-	свойство товаров быть дополнением друг к другу, взаимодополнение
custom	-	обычай
cut	-	кусок (мяса)
to depict	-	описывать
to encounter	-	встретить
exception	-	исключение
fitness	-	здоровье (хорошее состояние)
framework	-	рамки
fuel	-	горючее
heading	-	заголовок
inferior	-	низкокачественный
loosely speaking	-	проще говоря
nasty	-	плохой
previously	-	ранее
prohibitive	-	препятствующий
related goods	-	сопутствующие товары
to shape	-	формировать
substitute	-	заменитель
to substitute	-	заменять
taste	-	вкус

 

IV. Test

 

1. Выберите из колонки справа по смыслу слова, пропущенные в предложениях.

1) This table ... the relation between bus fares and petrol prices. 2) Cars and buses can be ... for the tube. 3) If people buy chocolate to eat at the cinema, films would be a ... for bars of chocolate. 4) If you look at this Figure you will see that the increase in ice-cream prices leads to the ... in the demand curve. 5) In the following unit you will ... more examples of complements. 6) When their incomes rise, ... buy more of everything. 7) An example of an ... good can be nasty cuts of meat. 8) ... depend on convenience, custom, and social attitudes. 9) People would prefer not to buy inferior goods if they could ... to spend a little more. 10) Technological advances enable the new product to be ... at a much lower price.

a) shift b) consumers c) inferior d) depicts e) afford f) substitutes g) tastes h) available i) complement j) encounter k) precise l) exception

 

2. Выберите существительное, которое может следовать за данным глаголом:

 

1) to stimulate       a) demands;                             b) customs;                             c) substitutes.	2) to afford           a) a product;                             b) an effect;                             c) an advance.
3) to watch           a) incomes;                             b) films;                             c) tastes.	4) to shape            a) substitutes;                             b) consumers;                             c) tastes.
5) to encounter      a) tastes;                             b) definitions;                             c) health.	6) to shift              a) a quantity;                             b) a price;                             c) a curve.

 

3. Выберите из приведенного списка термины, соответствующие данным определениям.

 

a) a good for which demand increases when incomes rise; b) a good for which demand falls when incomes rise; c) a thing performing some function instead of  another thing; d) a thing which cannot be used without the other one; e) personal preference for a particular good; f) to be able to spend money for something you are willing to buy.

1. a substitute; 2. to afford; 3. a normal good; 4. an inferior good; 5. a complement; 6. taste;

 

 

I.   Information for Study.

 

Text A

 

Прочтите следующую информацию и запишите на полях основные термины, связанные с тематикой текста.

 

OUTPUT SUPPLY

REVENUES, COSTS, AND PROFITS

 

A firm’s revenue is the amount it earns by selling goods or services in a given period such as a year. The firm’s costs are the expenses incurred in producing goods or services during the period. Profits are the excess of revenues over costs.

 

Thus we can write

 

Profits = revenues - costs

(1)

 

Although these ideas are simple, in practice the calculation of revenues, costs, and profits for a large business is complicated. Otherwise we would not need so many accountants. We begin with a simple example.

Rent-a-Person is a firm that hires people whom it then rents out to other firms that need temporary workers. Rent-a-Person charges £10 per hour per worker but pays its workers only £7 per hour. During 1987 it rented 100 000 hours of labour. Business expenses, including leasing an office,  buying  advertising  space,  and  paying  telephone  bills,  came  to  £200 000. Figure 5 shows the income statement or profit-and-loss account for 1987. Profits or net income before taxes were £100 000. Taxes to central government (corporation tax) plus taxes to local government (rates assessed on some of the property the firm owned) came to £25 000. Rent-a-Person’s after-tax profits in 1987 were £75 000.

Now we can discuss some of the complications in calculating profits.

 

OUTSTANDING BILLS

 

People do not always pay their bills immediately. At the end of 1987, Rent-a-Person has not been paid for all the workers it hired out during the year. On the other hand, it hasn’t paid its telephone bill for December. From an economic viewpoint, the right definition of revenues and costs relates to the activities carried out during the year whether or not payments have yet been made.

 

This distinction between economic revenues and costs and actual receipts and payments raises the important concept of cash flow.

A firm’s cash flow is the net amount of money actually received during the period.

Profitable firms may still have a poor cash flow, for example when customers are slow to pay their bills.

Part of the problem of running a business is that cash flow at the beginning is bound to be slow. Set up costs must be incurred before revenues start to flow in. That is why firms need financial capital to start the business. If the business prospers, revenues will build up and eventually there will be a healthy cash inflow.

 

CAPITAL AND DEPRECIATION

 

Physical capital is the machinery, equipment, and buildings used in production.

Rent-a-Person owns little physical capital. Instead, it rents office space, typewriters, and desks. In practice, businesses frequently buy physical capital. Economists use ‘capital’ to denote goods not entirely used up in the production process during the period. Buildings and lorries are capital because they can be used again in the next year. Electricity is not a capital good because it is used up entirely during the period. Economists also use the terms ‘durable goods’ or ‘physical assets’ to describe capital goods.

How should the cost of a capital good such as typewriters be treated in calculating profits and costs? The essential idea is that it is the cost of using rather than buying a piece of capital equipment that should be treated as part of the firm’s costs within the year. If Rent-a-Person leases all its capital equipment, its costs include merely the rentals paid in leasing capital goods.

Suppose however that Rent-a-Person buys eight typewriters at the beginning of the year for £1000 each. It should not count £8000 as the cost of typewriters in calculating costs and profits for that year. Rather the cost should be calculated as the reduction in the value of the typewriters over the year. Suppose the wear-and-tear on the typewriters over the year has reduced their value from £1000 to £700 each. The economic cost of the use of eight typewriters over the year is £2400 (8 ´ £300). This amount of depreciation is the cost during the year.

 

Depreciation is the loss in value resulting from the use of machinery during the period.

The cost during the period of using a capital good is the depreciation or loss of value of that good, not its purchase price.

The existence of depreciation again leads to a difference between economic profits and cash flow. When a capital good is first purchased there is a large cash outflow, much larger than the depreciation cost of using the good during the first year. Profits can be high but cash flow low. However, in subsequent years the firm makes no further cash outlay, having already paid for the capital goods, but must still calculate depreciation as an economic cost since the resale value of goods is reduced still further. Cash flow will now be higher than economic profit.

The consequence of treating depreciation rather than purchase price as the true economic cost is thus to spread the initial cost over the life of the capital good; but that is not the reason for undertaking the calculation in this way. Rent-a-Person could always have sold its typewriters for £5600 after one year, restricting its costs to £2400. The fact that the firm chose to keep them for reuse in the next year indicates that the latter strategy is even more profitable. Hence the true economic cost of using the typewriters in the first year can be at most £2400.

 

II. Exercises

 

1. Переведите текст на русский язык, используя словарь в конце урока.

2. Найдите в тексте ответы на поставленные вопросы и запишите их.

1)  What is a firm’s revenue?

2)  What are the firm’s costs?

3)  What are the firm’s profits?

4)  How can you calculate profits?

5)  What is the difference between economic revenues and costs and actual receipts and payments?

6)  When may profitable firms have a poor cash flow?

7)  Why do firms need financial capital to start a business?

8)  What goods are included into physical capital?

9)  How should the cost of a capital good be treated in calculating profits and costs?

10)What is depreciation?

11)When is the firm’s cash flow higher than economic profit?

12)What is the best way of calculating the true economic cost of a capital good?

3. К выделенным жирным шрифтом словам в тексте подберите слова, противоположные по значению, из следующего списка:

4. Найдите в тексте предложения, соответствующие по смыслу данным ниже, и запишите их в тетрадь.

1)  Износ - это снижение стоимости основного фонда в результате его использования в данный период времени.

2)  Основной капитал - это оборудование, не полностью использованное в производственном процессе за данный период времени.

3)  При закупке основного капитала требуется большой расход наличности.

4)  При подсчете прибылей и убытков учитывается фактическая деятельность фирмы в течение целого года, а не выплата и поступление наличных денег.

5)  При ведении дела поток наличности вначале бывает незначительным.

6)  Для того, чтобы начать дело, фирме нужен финансовый капитал, так как предстоят учредительские расходы.

7)  После подсчета чистого дохода необходимо вычесть налоги, которые фирма платит государству.

8)  Расходы предпринимателей включают арендную плату за помещение, покупку места для рекламы, оплату счетов за телефонные переговоры и зарплату служащих.

5. Образуйте существительные от данных глаголов. Проверьте их по тексту. Переведите их.

6. Образуйте наречия от данных прилагательных. Переведите их:

7. Изложите краткое содержание текста А на английском языке в письменном виде.

8. Прочтите список ключевых слов к тексту В:

income statement - баланс, балансовый отчет

proceed - продолжать

flow of money - денежный поток

trading operations - коммерческие операции

balance sheet - баланс, балансовый отчет

to list - перечислять

assets - активы

liabilities - пассивы, обязательства

to go through - тщательно разобрать

on the left -слева

cash - наличность

to owe - быть должным

customer - клиент

accounts receivable - счета дебиторов, дебиторская задолженность

inventories - товарные запасы

warehouse - склад

originally - первоначально

to be worth - стоить

to add up - складывать

on the right - справа

accounts payable - счета кредиторов, кредиторская задолженность

salary - заработная плата

mortgage - закладная

to negotiate - совершать сделку

insurance company - страховая компания

bank loan - банковская ссуда

shorter-term - краткосрочный

cash needs - потребность в наличных деньгах

debt - долг

net worth - собственный капитал (предприятия)

excess - избыток

to wonder - интересоваться

shareholder - акционер

take-over bid  - предложение о покупке контрольного пакета акций компании

prospects - перспективы

growth - рост

proven record - проверенная репутация

to bid - предлагать цену

going concern - функционирующее предприятие

customer loyalty - приверженность клиентуры

intangibles - нематериальные активы

goodwill - “цена” нематериальных активов фирмы, репутация фирмы

 

9. Прослушайте и постарайтесь понять текст В.

10. Напишите краткое изложение текста на русском языке.

11. Прочтите утверждения и выберите те, которые соответствуют содержанию текста Вх):

1)  The income statement shows the flow of money during a given year.

2)  The balance sheet lists the assets the firm owns and its liabilities.

3)  The balance sheet gives us a picture of the firm during the whole time of its existence.

4)  ‘Net worth’ of the firm is the excess of its assets over its liabilities.

5)  Assets are what the firm owes and liabilities are what the firm owns.

6)  Making a take-over bid you are buying not only the firm’s assets but also its goodwill.

 

III. Vocabulary to Text A

 

account	-	счет
accountant	-	бухгалтер
actual	-	фактический
advertising	-	реклама
advertising space	-	место для рекламы
after-tax profit	-	прибыль за вычетом налогов
to assess	-	облагать налогом
bound	-	обязательный
to build up	-	накапливать
business expenses	-	расходы предпринимателей
capital goods	-	недвижимое имущество компании, товары длительного пользования
cash flow	-	приток наличности
cash inflow	-	поступление наличности
cash outflow	-	расход наличности
to come (to)	-	составлять, равняться
complication	-	осложнение, затруднение
consequence	-	следствие
corporation tax	-	налог на прибыль компании
to denote	-	обозначать
depreciation	-	износ
durable goods	-	товары длительного пользования
entirely	-	полностью
equipment	-	оборудование
existence	-	существование
expenses	-	расходы
to flow in	-	поступать (о наличности)
to hire	-	нанимать
immediately	-	немедленно
income statement	-	балансовый отчет
to incur	-	нести расходы
initial cost	-	начальная стоимость
to lease	-	сдавать или брать в аренду
lorry	-	грузовик
loss of value	-	снижение стоимости
merely	-	просто
net amount	-	сумма нетто
net income	-	чистый доход
output supply	-	предложение продукции
outstanding bills	-	неоплаченные счета
payment	-	платеж
physical assets	-	основные фонды, недвижимое имущество компании
physical capital	-	основной капитал, недвижимое имущество компании
production process	-	производственный процесс
profit-and-loss account	-	балансовый отчет
to prosper	-	процветать
purchase price	-	покупная цена
rates	-	местные налоги
receipt	-	выручка
reduction	-	снижение
to rent	-	арендовать
to rent out	-	сдавать в аренду
rental	-	арендная плата
resale	-	перепродажа
set-up costs	-	учредительские расходы
to spread	-	распространять
subsequent	-	последующий
temporary	-	временный
to undertake	-	предпринимать
value	-	стоимость
viewpoint	-	точка зрения
wear-and-tear	-	износ

 

IV. Test

 

1. Выберите из колонки справа по смыслу слова, пропущенные в предложениях.

1)  The firm’s costs are the ... incurred in producing goods or services. 2)  Set up costs must be ... before revenues start to flow in. 3)  The ... shows a flow of money during a given year. 4)  Profitable firms have a poor ... when customers do not pay their bills immediately. 5)  If the business ... revenues will eventually build up. 6)  The net worth is a ... of firm to its shareholders. 7)  The word ‘capital’ denotes goods not entirely ... in the production process during the period. 8)  The cost during the period of using a capital good is the ... or loss of value of that good.

a)   cash flow b)  liability c)  depreciation d)  expenses e)   assets f)    income statement g)  equipment h)  incurred i)     prospers j)     used up

 

2. Выберите существительные, которые по смыслу могут следовать за данными глаголами:

1) to incur             a) incomes;                             b) assets;                             c) expenses.	2) to hire               a) workers;                             b) payments;                             c)goods.
3) to assess           a) bills;                             b) rates;                             c) nets.	4) to restrict          a) costs;                             b) effects;                             c) reasons.
5) to build up        a) activities;                             b) flows;                             c) revenues.

 

3. Выберите из приведенного списка термины, соответствующие данным определениям.

a)   excess of revenues over costs; b)  the amount a firm earns by selling goods or services in a given period; c)  the expenses incurred in producing goods or services during a period; d)  the net amount of money actually received during the period; e)   goods not entirely used up in the production process; f)    the loss in value resulting from the use of a capital good during the period; payment for hiring a good or service.

1.   rental; 2.   profits; 3.   revenue; 4.   cash flow; 5.   costs; 6.   physical capital; 7.   depreciation.

 

 

I. Information for study.

 

Text A

 

Прочитайте следующую информацию и запишите на полях основные термины, связанные с тематикой текста.

 

DECISION MAKING IN BUSINESS

 

Businesses are DECISION MAKING units. The decisions that they make might include:

 

§ what to produce;

§ where to locate the premises;

§ what method of production to use;

§ what price should be charged;

§ what wages should be paid;

and many others.

 

 

Why do businesses make decisions? In each case above there are a number of choices a firm may make. For example, the choice might be to locate a new warehouse in Exeter, Plymouth or Torquay. This is an example of a strategic decision because it can affect the profitability and survival of the business. Many of the day-to-day decisions taking by business are called tactical decisions. An example might be when and how much stock to order or the setting of sales targets. These short term control decisions are often repeated on a regular basis. A business may also make longer term control decisions, such as planning to employ extra workers in future to take changes in the economy into account.

Decisions made by firms often involve some risk. Strategic decisions are likely to involve the most risk. For example, the decision to sell a new product in a foreign country involves great risk as there are many factors that can affect its success.

Owners, managers and employees are involved in business activity. They  will all make some decisions, although not of equal importance. Major decisions, such as the location of a new plant, will be maid by the owners. Less important decisions, such as the amount of time spent waiting  for a delivery before making an enquiry, are likely to be maid by employees.

The size of the business can affect who makes decisions. In a small firm the owner will make most of the decisions because he or she is the person in control. Some decisions might be delegated if the owner trusts the employees. As a small firm expands, the owner might employ a manager to help run the business and take some responsibility for decision making. In very large businesses decisions are made at many different levels, by different people.

Decisions are often classified into three types.

 

Policy decisions. These are decisions about the general direction and overall policy of the business. They might be the decision to buy another company, the closure of a plant making a loss, or whether or not to launch a new product. These decisions are the responsibility of the board of the directors, who control the business on behalf of the shareholders. In small firms policy decisions are made by the owner, although such decisions are likely to be smaller, such as the opening hours of a local DIY store.

 

Management decisions. Management decisions or executive decisions determine how policy decisions are carried out. An example of such a decision might be deciding the best way to close a loss making branch. For example, should it be closed immediately, gradually, over period of time? Should the closure be negotiated or enforced? Could a management buy-out be considered? Management decisions should ensure that the policy decisions are carried out as efficiently as possible according to the general objectives of the company. Some management decisions might be taken by directors since some directors are also managers in the business.

 

Administrative decisions. Administrators are often office staff or supervisors, they act according to general company policy and under the direction of management. They will have  responsibility for a number of tasks. These may require lower level decisions to be made such as the amount of time allocated to specific tasks or the choice of equipment. It is sometimes argued that the performance of employees can be improved  be letting them become involved in decision making. This is said to improve motivation.

 A business makes decisions in order to achieve objectives. For example, it might decide to launch a new product in order to diversify. Decisions are made at all levels in a business and it is useful to have a flexible process which can be followed by all involved. Figure 6 shows the stages in the decision making process.

 

 

II. Exercises

 

1.     Переведите текст на русский язык, используя словарь в конце урока.

2.     Найдите в тексте ответы на поставленные вопросы и запишите их.

1)     Why do businesses make decisions?

2)     What is the difference between strategic and tactical decisions?

3)     Who makes major decisions in business?

4)     What kind of decisions are usually made by employees?

5)     What kind of decisions are called policy decisions?

6)     Give an example of a management decision. By whom is it taken?

7)     Who may take administrative decisions?

8)     Enumerate the stages of the decision making process.

3.     К выделенным жирным шрифтом словам в тексте подберите слова, противоположные по значению, из следующего списка:

4.     Найдите в тексте предложения, соответствующие по смыслу данным ниже, и запишите их.

1)           Решение продавать новую продукцию в зарубежные страны связано с большим риском.

2)           Стратегические решения влияют на рентабельность предприятия.

3)           В маленькой компании большинство решений обычно принимает владелец.

4)           При расширении фирмы владелец иногда нанимает управляющего, который принимает на себя ответственность за принятие решений.

5)           Политические решения принимает совет директоров, который руководит предприятием от имени акционеров.

6)           Управленческие решения должны обеспечивать как можно более эффективное выполнение политических решений в соответствии с общими целями компании.

7)           Иногда говорят, что служащие будут лучше работать, если дать им возможность участвовать в принятии решений.

8)           Решения принимаются на всех уровнях компании.

9)           Повседневные решения, которые принимаются на предприятии, называются тактическими решениями.

10)      Самые важные решения, например, решение о размещении нового завода, принимаются владельцем.

5.     Образуйте существительные от данных глаголов. Переведите их.

6.     Образуйте наречия от данных прилагательных. Переведите их.

7.     Изложите краткое содержание  текста А на английском языке в письменном виде.

 

III. Vocabulary to text A

 

to argue	оспаривать, возражать
board of directors	совет директоров
branch	филиал
buy- out	выкуп доли в предприятии
to carry out	выполнять
closure	закрытие
day- to- day	повседневный
decision making	принятие решений
to delegate	поручить, передать полномочия
delivery	доставка
to diversify	разнообразить
to employ	принять на работу, нанять
employee	служащий
to enforce	принудить, заставить
enquiry	запрос
executive	руководитель
to expand	расширяться
extra	дополнительный
flexible	гибкий
gradually	постепенно
to launch	запустить в производство
level	уровень
likely	вероятный
to locate	разместить
location	местоположение, размещение
long term	долгосрочный
loss	убыток
management	управление, руководство
to negotiate	вести переговоры
objective	цель
official staff	конторский персонал
performance	работа, производительность труда
policy	политика
premises	производственные помещения
profitability	рентабельность
responsibility	ответственность
shareholder	акционер
stage	стадия, этап
stock	запас
supervisor	контролер
survival	выживание
to take into account	принимать в рассчет
to trust	доверять

 

IV. Test

 

1.     Выберите из колонки справа по смыслу слова, пропущенные в предложениях.

1)     The choice might be to … a new warehouse in Exeter, Plymouth or Torquay. 2)     It might decide to … a new product in order to diversify. 3)     The size of the business can affect who makes … . 4)     An example of such s decision might be deciding the best way to close a … making branch. 5)     A strategic decision can affect the profitability and … of the business. 6)     As a small firm …, the owner might employ a manager. 7)     The board of directors controls the business on … of the shareholders. 8)     In small firms … decisions are made by the owner. 9)     Some … decisions might be taken by directors are also managers in the business. The … of employees can be improved by letting them become involved in decision making.

a)     behalf b)    decisions c)     launch d)    locate e)     profit f)      performance g)     policy h)     management i)       survival j)       loss k)     expands

2. Выберите существительные, которые по смыслу могут следовать за данными глаголами.

1) to employ        a) owners                               2) to locate     a) products

                            b) workers                                                      b) profits

                            c) shareholders                                               c) premises

 

3) to carry out     a) decision                              4) to launch    a) a product

                            b) discussion                                                  b) a process

                            c) depreciation                                                c) a price

 

5) to improve      a) preference

                            b) performance

                            c) consequence

 

3.     Выберите из приведенного списка термины, соответствующие данным определениям.

1)     waste resulting from losing; 2)     a decision between alternative goods; 3)     a course of action adopted by government, party, etc; 4)     a person employed for wages; 5)     body of persons carrying on work under manager; 6)     to confer with view to compromise or agreement; 7)     to demand a price for a good or a service; 8)     to keep a person in one's service; 9) to pay a person to give up his or her property.

9)     to buy out 10)to charge 11)to employ 12)choice 13)loss 14)policy 15)staff 16)to negotiate 17)employee

Tapescripts

(тексты, записанные на кассете)

 

Unit 1

 

Text B

 

  This morning we're going to start looking at the second of the three economic issues I mentioned last week. The first you have already read something about, so let's turn to the second. That is the question of income. By that I mean income distribution, the way in which income - that's what people earn - is distributed or shared around.

  Let's look at income more closely. You, and your family, have an income. You have an annual income, that is what you earn in a year. This income allows you to enjoy various goods and services. It means you have a certain standard of living. Your standard of living, of course, includes what you think of as necessary to your life, things like food, water, somewhere to live, health and education. But your income doesn't just cover the necessities of life. It also includes recreation, whether that's sport or TV, or a holiday. Now, as you know, your income will be less than that of some of your neighbours, but it wiil be more than that of some of your other neighbours. By your neighbours, I mean not just people living in your own country, but also people living in other countries.

  Now, just as you and your family have an income, so nations, different countries, also have an income - the national income, it's often called. Now a national income is not the money the government  gets. The national income is the sum total of the incomes of all the people living in that country, in other words, everyone's income added together. In the same way we can think of world income as the total of all the incomes earned by all the people in the world.

  I want now to look at the distribution of world income, and of national income. Then we can ask the questions: who, in the world, gets what share of these incomes? The distribution of income, either in the world or in a country, tells us how income is divided between different groups or individuals. Let's look at this table. I want you to note down the figures I give you at this point, and later we can discuss what they mean. You can see there are three headings down the left-hand side of the table: income per head, percentage of world population and percentage of world income. Let's look  at poor countries first. In poor countries, like India, China and the Sudan, the income per head is only one hundred and fifty-five pounds per year. But at the same time, they have fifty point seven percent of the world's population. These poor countries only have five percent of the world's income. Have you got those figures? Good.

  Now let's complete the table. In the middle-income countries the income per head is eight hundred and forty pounds, that's in countries like Thailand and Brazil. In the major oil countries, like Kuwait and Saudi Arabia, it's seven thousand, six hundred and seventy. In industrial countries it's six thousand, two hundred and seventy. And finally, in Soviet bloc, it's two thousand eight hundred. OK?

  Turning to middle-income countries again, they have twenty five point one percent of world population, with fourteen point two percent of world income. The major oil countries have point four percent of population, the industrial countries fifteen point six and the Soviet bloc eight point two. The oil countries have one point five percent of world income, the industrial countries sixty-four point eight and the Soviet bloc fourteen point five.

 

  Let's come back now to our three questions, the three you read about. The first is for whom does the world economy produce? Well, as you can see, it produces essentially for the people living in the rich industrial countries. They get sixty percent of the world's income, although they only have sixteen percent of its population. This suggests an answer to the second question, that of what is produced. The answer is that most of world production will be directed towards the goods and services that these same rich, industrialised countries want.

 

  Our third question was how goods are produced. In poor countries, workers produce much less than workers in rich countries. And poverty is very difficult to escape. It continues on and on. And this goes some way towards accounting for the differences in national incomes. It accounts for an unequal distribution of income, not just between countries but also between members of the same country, although there individual governments can help through taxation, for example. In other words, governments can act to help distribute income throughout their population.

 

Unit 2

 

Text B

 

  This morning we’re going to continue to look at the role markets and prices play. What we’ve said so far, if you remember, is that markets are arrangements through which prices influence how we allocate resources, scarce resources. To show how important this role is, ask yourselves this question: how would resources be allocated if markets did not exist? If there were no markets? Well, let’s have a quick look at three kinds of economy to help us answer the question.

  Let’s look first at what we call the command economy. The command economy. Now, this kind of economy is a society where the government takes all the decisions. The government decides production and consumption. In practice, that means that a government office, a planning office, decides our three original questions. It decides what will be produced, how it will be produced and also for whom it will be produced. The same planning office then tells households, firms or companies and workers what it has decided.

  Planning of this kind is obviously very difficult, very complicated to do. And the result is that there is no society which is completely a command economy. But in many countries, such as the Soviet Union, there is a large amount of central planning and direction. The state owns factories, for example, and it also owns land. The state makes the most important decisions about what people should consume. It also decides how goods should be produced, and how much people should work.

 

  Let’s turn now to our second kind of economy. This is what we call a free market. Markets in which governments do not intervene are called free markets. Now, in a free market individual people, such as yourselves, are free to pursue their own interests. They can become millionaires, for example. The basic idea behind the free market is this: if you, for example, want to become a millionaire, what do you do? Well, let’s say you invent    a new kind of car. You want to make money out of it, in your own interests. But when you have that car produced, you are in fact moving the production possibility frontier outwards. You actually make society better off, by creating new jobs and opportunities, even though you become a millionaire in the process. And you do it without any government help or intervention. Hong Kong is an example of a free market.

 

  The third kind of economy we’ll look at is what we call the mixed economy. And this means very much what it says. At one extreme we have the command economy, which doesn’t allow individuals to make economic decisions – this is done centrally by the government. At the other extreme we have the free market, where individuals can pursue their own interests without any government restrictions. Between these two extremes lies the mixed economy. In a mixed economy, the government and the private sector interact in solving economic problems. On the one side, the government controls a share of the output. It does this through taxation, transfer payments and providing services such as the police. But at the same time, though with restrictions, individuals are free to pursue their own interests. Most countries are mixed economies, though of course some are nearer to command economies than others. Others are closer to free market economies.

 

Unit 5

 

Text В

 

  This afternoon we’re going to finish looking at macroeconomics. Well, not exactly finish, of course, but finish our short introduction to this branch of economics at any rate. Macroeconomics is probably better known to you, actually, than microeconomics. This is simply because macroeconomic concepts refer to the economy as a whole, and this in turn leads to their getting more coverage in the media - that is, on television, in the newspapers and so on. Microeconomic concepts, on the other hand, because they are of interest only to the particular group they deal with, are of less public interest.

  I want you now to note down three key terms. These terms are three of the most important building blocks of macroeconomics. They are three basic concepts which we use, and you may have already heard them in the media. The first of these is what we call Gross National Product. I’ll say that again: Gross National Product. Have you got that? Good. Gross National Product is often just called G-N-P. Note that down too. Now, GNP is the value of all goods and services produced in the economy. All goods and services produced in the economy over a given period, such as a year, that is.

  The second basic concept is the Aggregate Price Level. The Aggregate Price Level. Got that? Right, I’ll pause for a moment ...  The Aggregate Price Level is a measure. It’s a measure of the average level of prices of goods and services in the economy. The average level of prices of goods and services in the economy. Of course, this average level of prices is relative to the prices of the same goods and services at some fixed date in the past. OK? Good. Now, there is actually no reason why the prices of different goods should always move in line with one another. As you must have noticed, some goods go up in price more sharply than others. Others may hardly move. So the Aggregate Price Level tells us what is happening to prices on average. When the price level is rising, we say that the economy is going through a period of inflation.

  The third concept I want you to understand, and of course note down, is what we call the Unemployment Rate. The Unemployment Rate. OK? Good. The Unemployment Rate is the percentage of the labour force, or workforce, which is out of work, hasn’t got a job. It’s important to understand what we mean by the labour force. By the labour force we mean the people, both men and women, who are of working age - so we don’t include children or those who have retired, stopped working. We also mean those people who in principle would like to work if they could get a job. So we don’t mean people who, although they are of working age, don’t have to work - people who, for example, have inherited from their parents enough money so they don’t have to work at all.

 

Unit 7

 

Text B

 

   It’s equilibrium we’re going to talk about today. Specifically, the market and the equilibrium price. I’ll say that again. The market and the equilibrium price.

 

  Look at Table 2 again, would you? You’ve seen this table before. It describes the demand for and supply of chocolate bars. Let’s say we now want to combine the behaviour of buyers and sellers described in this table. We want to do this in order to model how the market for chocolate bars would actually work. If you look at the table carefully, you will see that at low prices the demand for chocolate bars exceeds, is greater than, the quantity supplied. For example, if the price is ten pence, 160 million bars is the demand – but the number of bars supplied is zero. Notice also that the opposite is true if the price is high. If the price is 70 pence, the demand is zero and the supply is 240 million bars. Do you see what I mean? Good.

 

  Now this is the important point. At some intermediate price... intermediate? It means in the middle. OK? At some intermediate price the quantity demanded just equals the quantity supplied. This we call the equilibrium price. The equilibrium price. If you look at the table again, you’ll see that the equilibrium price for chocolate bars is thirty pence. At a price of thirty pence, demand is for 80 million bars, and that’s the same quantity as sellers want to supply.

 

  In this example, and I want you to note down this term, it’s important you understand it, we call 80 million bars the equilibrium quantity. The equilibrium quantity. At a price below thirty pence, the quantity demanded exceeds the quantity supplied. In other words, people can’t get enough chocolate bars. So we have a shortage. This shortage we call excess demand. Note that down too. Got it? OK, I’ll go on. From our previous discussions, you will, of course, realize that when we economists say there is excess demand we really mean the quantity demanded exceeds the quantity supplied at this price. And I emphasize that.

 

  Now let’s turn to excess supply. Another term you should note. Excess supply. Excess supply happens when, in our example, the price is higher than thirty pence per bar of chocolate. At this price, the quantity supplied exceeds the quantity demanded. This means sellers will be left with stock they can’t sell. Again, of course, economists use the term excess supply to mean excess in the quantity supplied at this price.

 

  Now let’s ask ourselves the question ‘Will the market for chocolate bars automatically be in equilibrium?’ And, if so, ‘What mechanism brings this about?’ Let’s say for the moment that the price for chocolate bars is fifty pence. That is higher than the equilibrium price, of course. At this price, sellers want to sell 160 million bars – but, as you can see from the table, nobody wants to buy chocolate bars at this price. They’re too expensive. So what happens? Well, producers must get their money back, the money they’ve spent on producing these 160 million chocolate bars. So what do they do? They cut, reduce, their prices, naturally, to clear their stock. Say they reduce their price to forty pence. What is the effect? As you can see, this move has two effects. First, it increases the quantity demanded to 40 million bars per year. And second, it reduces the quantity producers want to sell at this price to 120 million bars per year. This price – cutting process will continue until the equilibrium price of thirty pence is reached.

 

  The same process actually works in reverse. What I mean by that is that if the initial price is below the equilibrium price, say twenty pence, the quantity demanded is 120 million bars. But at this price only 40 million bars are produced. This means, of course, that sellers will quickly run out of stock. They will realise they could have charged higher prices. This gives them a reason to raise prices, so that scarce stocks are rationed. And prices will continue to rise until the equilibrium price is reached. At that point the market clears. At this point, are you all clear...

 

Unit 8

 

Text B

 

  Good morning, everyone. Today we’re going to look at shifts in the demand curve. Shifts? S-H-I-F-T-S. The word basically means changes, but we economists prefer the word shift. So, shifts in the demand curve. You may remember from Table 3 we drew the demand for chocolate bars. We drew it for a given level of three underlying factors: the price of related goods, incomes and tastes. Changes in any of these three underlying factors will change the demand for chocolate.

  Let’s look at these shifts more closely. Take a look at Table 3 here. Can you all see it? Good. Now, this table illustrates the effect of a rise in the price of a substitute for chocolate. I’ve taken ice cream, as you can see in the table. Ice cream could well be a substitute for chocolate. Notice that at each chocolate price there is a larger quantity of chocolate demanded when ice cream prices are high. This is because people substitute chocolate for ice cream.

  Now look at Figure 4. Here I’ve shown the same change in ice cream prices leading to a shift in the demand curve. A shift from the line DD which you can see running from a price of fifty pence to 200 million bars per year, to a new demand curve running from seventy pence to 280 million bars per year. As you can see the entire demand curve has shifted to the right, and this is because a higher quantity is demanded at each price.

  OK so far? Good. Notice also that this shift to the right has changed the equilibrium price. It was thirty pence, and is shown by the letter E. Now it’s forty pence. And the new equilibrium quantity is 120 million bars of chocolate per year.

  Once we’ve reached this point, we can even sketch  how the chocolate market makes this transition from the old equilibrium at E to the new equilibrium. Think about it. Think about the moment the price of ice cream rises. What happens? Well, the demand curve shifts from DD, as you can see. Until the price of thirty pence changes, we now have excess                                  demand at this price. You can see this excess demand EH in the figure. At a price of thirty pence, 160 million bars a year are demanded, but only 80 million bars are supplied.

  What effect does this excess demand have? Well, it puts upward pressure on prices. The price of chocolate bars rises until it reaches the new equilibrium price, which as you can see is forty pence. But, notice this, this higher price reduces the quantity demanded. It reduces it from 160 million bars to 120 million bars.

  What lessons can we learn from this? Well, I suggest the first lesson is this. It is that the quantity of chocolate demanded depends on four things. In addition to the three factors I mentioned at the start of this lecture, prices of related goods, incomes and tastes, demand also depends on its own price. The price of chocolate that is. And this is why, when we draw demand curves, we always choose to single out the price of the commodity itself, in this example the price of chocolate bars. We put the price in the diagram together with the quantity demanded. The other three factors become what we’ve called ‘other things equal’, and any changes of these will shift the position of our demand curves. Now before I go on...

 

Unit 9

 

Text B

 

  The income statement shows the flow of money during the given year. But we also describe the position the firm has reached as a result of all its past trading operations. We call this document the balance sheet. The balance sheet.

  Now, essentially the balance sheet lists the assets the firm owns. It also lists its liabilities. What? L-I-A-B-I-L-I-T-I-E-S. OK? Good. Now by doing this the balance sheet provides us with a picture of the firm at a particular point of time, for example at the end of a year. I’ll now go through a balance sheet with you, so take a moment to look at this. It’s the balance sheet of Snark International on 31st December, 1987.

  Let’s start with assets. Assets are what the firm owns. These assets are listed on the left, as you can see. Snark, this firm, has some cash in the bank. That’s one asset. It’s also owed some money by its customers, who haven’t paid yet. This money is shown as accounts receivable. That’s another asset. Yet another asset is the large inventories it has in its warehouses. Not only that, but it also owns a factory. This factory originally cost a quarter of a million, but notice that, because of depreciation, it’s now only worth two hundred thousand. Of course, it also has other equipment - desks, perhaps, or machinery - which originally cost Snark three hundred thousand. Again because of depreciation, this equipment is now worth a hundred and eighty thousand. So we can say, after adding all these assets up, that Snark is worth five hundred and ninety thousand.

  Now let’s take a look at liabilities. Liabilities are what the firm owes. These liabilities are shown on the right of the balance sheet, as you can see, starting with accounts payable. These are bills that Snark owes but  has not  yet paid. It also hasn’t yet paid some salaries, some fifty thousand pounds’ worth. That’s also a liability. Then, there is a mortgage on the factory of a hundred and fifty thousand which it has negotiated with an insurance company. Finally there is a bank loan. That’s for shorter-term cash needs. Adding all that up, we can see that Snark has liabilities, or debts, of three hundred and fifty thousand. So we can say that the net worth of Snark, note that term ‘net worth’, is two hundred and forty thousand. That’s the excess of its assets over its liabilities.

  Some of you may be wondering why Snark’s net worth is shown as a liability rather than an asset. The reason is simply because the firm is owned by its shareholders. So the net worth is really owed to them. It is a liability of the firm to the shareholders.

  Now let’s imagine you have lots of money and you want to buy Snark. To make what we call a take-over bid, in fact. How much do you think you should offer? Eh? Well, you might think of offering two hundred and forty thousand, which is, after all, the net worth of the company. But I think probably not. Why not? Well, Snark is a live company. It’s got good prospects for future growth. It’s got a proven record. You have to remember you’re not just bidding for its physical and financial assets, less of course its liabilities. You’re actually bidding for the firm as a going concern. You will also get its reputation. Its customer loyalty. And a great many other things, all intangible. All these intangibles, like reputation and customer loyalty, we economists call goodwill.

 

 

In the early 1980s there was a controversy over the “Fares Fair”  policy of cutting bus and tube fares in London. Some people thought low fares would increase passengers and bring in extra revenue for London Transport, which runs the bus and tube services. Others thought that low fares would lead to disastrous losses in running London Transport. Eventually the matter was referred to the courts. Suppose you had been a consultant brought in to analyse the relationship between tube fares and revenue from running the tube: how would you have analysed the problem?

  To organize our thinking, or - as economists describe it - to build a model, we require a simplified picture of reality which picks out the most important elements of the problem. We begin with the simple equation.

 

Total fare collection = fare ´ number of passengers

(1)

 

In this stark form, equation (1) emphasizes, and thus organizes our thoughts around, two factors: the fare and the number of passengers. London Transport directly controls the fare, but can influence the number of passengers only through the fare that is set. (Cleaner stations and better services might also encourage passengers, but we neglect these effects for the moment.)

  It might be argued that the number of passengers is determined by habit, convenience, and tradition, and is therefore completely unresponsive to changes in fares. This is not the view or model of traveller behaviour that an economist would initially adopt. It is possible to travel by car, bus, taxi, or tube, and decisions about a mode of transport are likely to be sensitive to the relative costs of the competing alternatives. Thus in equation (1) we must not view the number of passengers as fixed but develop a ‘theory’ or ‘model’ (we use these terms interchangeably) of what determines the number of passengers. We must model the demand for tube journeys.

  We can study the theory of demand in detail. Applying a little common sense, we can probably work out the most important elements straight away. First, the fare itself matters. Other things equal, higher tube fares reduce the quantity of tube journeys demanded. Of course, what matters is the price of the tube relative to the price of other means of transport  - cars, buses, and taxis. If their prices remain constant, lower tube fares will encourage tube passengers. Rises in the price of these other means of transport will also encourage tube passengers even though tube fares remain unaltered.

  We now have a bare-bones model of the demand for tube journeys. We summarize this model in the formal statement:

 

Quantity of tube journeys demanded = f(tube fare, taxi fare, petrol price, bus fare, ...)

(2)

 

This statement reads as follows. The quantity of tube journeys ‘depends on’, or ‘is a function of’, the tube fare, the taxi fare, petrol prices, bus fares, and some other things. The notation f (1) is just a shorthand for ‘depends on all the things listed inside the brackets’. In equation (2) we have named explicitly the most important determinants of the demand for tube journeys. The row of dots reminds us that we have omitted some possible determinants of the demand for tube journeys in an effort to simplify our analysis. For example, tube demand probably depends on the temperature. It gets very uncomfortable in the underground when it is very hot. Since the purpose of our model is to study changes in the number of tube passengers, it will probably be all right to neglect the weather provided weather conditions are broadly the same every year.

  To answer our original question, it is not sufficient to know the factors on which the demand for tube journeys depends. We need to know how the number of passengers varies with each of the factors we have identified in our model. Other things equal, we assume that an increase in tube fares will reduce tube passengers and that an increase in the price of any of the competing modes of transport will increase tube passengers. To make real progress, we shall somehow have to quantify each of these separate effects. Then, given predictions for bus and taxi fares and the price of petrol, we would be able to use our model to predict the number of tube passengers who would want to travel at each possible tube fare that might be set by London Transport. Multiplying the fare per journey by the predicted corresponding number of journeys demanded at this fare, we could then predict London Transport revenue given any decision about the level of tube fares.

  Writing down a model is a safe way of forcing ourselves to look for all the relevant effects, to worry about which effects must be taken into account and which are minor and can probably be ignored in answering the question we have set ourselves. Without writing down a model, we might have forgotten about the influence of bus fares on tube journeys, an omission that might have led to serious errors in trying to understand and forecast revenue raised from tube fares.

 

  You have read the text. Check your understanding.

1)  What controversy was there in 1980 over the ‘Fares Fair’ policy of cutting bus and tube fares in London?

2)  How would economists organize the solution of fares problem?

3)  How can the equation one organize our thoughts?

4)  What organization directly controls the fares?

5)  How can London Transport influence the number of passengers?

6)  Is the number of passengers responsive to the changes in fares?

7)  What theory or model should an economist develop to solve the problem of the number of passengers?

8)  What is the relationship between fares and demand for tube journeys?

9)  What is the dependence of the quantity of tube passengers on the fares of other means of transport?

10)For what purpose can we use the model given in the text?

11)How could we predict London Transport revenue?

12)What is the importance of building the model?

 

 

Leipzig East Germany's second largest city, has attracted attention from office developers as it changes from a planned to a market system. The city has a shortage of office space. Most of its existing space is obsolete compared with Western standards. Also, if Leipzig is to achieve the status of other German cities, it needs to develop another 2 or 3 million sq.ft of office space. Developers are receiving a number of incentives, including grants, favourable tax treatment, EC regional grants and subsidised  lending rates. Another attractive feature for developers is the state of rents. Because of the shortages rents have risen sharply  and Leipzig is seen as a good investment opportunity by many property speculators.

However, there have been problems as the city copes with the  transition.

§        Pollution from open cast mining in the countryside has disfigured much of Leipzig's building stock.

§        Inadequate building stock has resulted in housing shortages discouraging skilled workers from moving to the city. Hotel shortages have also restricted the number of visitors to Leipzig.

§        Poor transport infrastructure.

§        Many of the young and relatively well educated members of the population have migrated from the city. This has contributed to a population decline from 713,000 to 511,000 over a 50 year period.

§        Land ownership disputes have resulted in delays and frustration as land and property is transferred from the state to the private sector.

§        There has been a flood of goods from West Germany into the city.

 

You have read the text. Answer the questions.

(a)                    How far are the problems facing Leipzig a result of it being formerly part of a planned economy?

(b)                   How might cities such as Leipzig overcome the problems of changing from a planned to a mixed economy?

 

 

THE DETERMINANTS OF PRICE ELASTICITY

 

What determines  whether the price elasticity of demand for a good is high (say, -5) or low (say, -0,5)? Ultimately the answer  must be sought in consumer tastes. If it is  considered  socially essential to own a television, higher  television  prices may have little effect on quantity demanded. If televisions  are considered a frivolous luxury, the demand  elasticity  will be much higher. Psychologists and sociologists may  be able to explain more fully than economists  why  tastes  are  as they are. Nevertheless, as economists, we can  identify some considerations likely to affect consumer  responses to changes in the price of a good. The most important consideration is the ease with which consumers  can  substitute  another  good that  fulfils approximately the same function.

  Consider two extreme cases. Suppose first that the price  of all cigarettes  is raised 1 per cent, perhaps because the cigarette tax has been  raised. Do you  expect the quantity  of cigarettes demanded to fall by 5  per cent or by  0,5 per cent? Probably the latter. People  who can easily quit smoking  have  already done so. A few smokers  may  try to  cut down  but this effect  is unlikely  to be large. In contrast,  suppose  the price  of one particular  brand of cigarettes is increased by 1 per cent, all other brand prices  remaining unchanged. We should now expect a much larger quantity  response from buyers. With so many other  brands available  at  unchanged prices, consumers will switch away from  the more expensive  brand to other brands that basically fulfil the same function of nicotine provision. For a particular cigarette brand the demand elasticity could be quite high.

  Ease of substitution implies a high demand elasticity for a particular good. In fact, our  example suggests a general rule. The more narrowly we define  a commodity (a particular brand of cigarettes rather  than cigarettes in general, or  oil rather than energy as a whole), the larger will be the price elasticity of demand.

 

MEASURING PRICE ELASTICITIES

 

To illustrate these general principles we report estimates of price elasticities of demand in Table 4.3. The table confirms that the demand for general categories of basic commodities, such as fuel, food, or even household durable goods, is inelastic. As a category, only  services such  as haircuts, the theatre, and sauna bath, have an elastic  demand. Households simply do not have much scope to  alter the broad pattern of their purchases.

  In contrast, there is a much wider variation in the demand elasticities for narrower definitions of  commodities. Even then, the demand for some  commodities, such  as dairy produce, is very inelastic. However, particular kinds of services such as entertainment and catering have a much more elastic  demand. Small changes in the relative price of restaurant meals and theatre tickets  may lead households to switch  in large  numbers  between eating  out and going to the theatre, whereas the demand for getting out of the house on a Saturday evening may be relatively insensitive to the price of all Saturday  night activities taken as a whole.

 

TABLE 4-3. Estimates of Price Elasticities of Demand in the UK

Good (General Category)	Demand Elasticity	Good (Narrower Category)	Demand Elasticity
Fuel and light	-0,47	Dairy produce	-0,05
Food	-0,52	Bread and cereals	-0,22
Alcohol	-0,83	Entertainment	-1,40
Durables	-0,89	Expenditure abroad	-1,63
Services	-1,02	Catering	-2,61

 

  You have read the text. Check your understanding.

1)  At what numerical quantities of the price elasticity is demand elastic or inelastic?

2)  When do economists say that demand is unit - elastic?

3)  What is the key piece of information which is required in setting prices?

4)  What determines whether the price elasticity of demand for a good is high or low?

5)  For what categories of commodities is demand usually inelastic?

6)  What is the most important consideration which affects consumer responses to changes in the price of a good?

7)  What is the demand elasticity for narrower definitions of commodities?

 

The most often used affixes

(Список наиболее употребительных аффиксов)

 

 

Final Test

(итоговый тест)

 

I. К каждому английскому слову подберите русский эквивалент.

 

1.   consumer 2.   commodity 3.   supply 4.   percentage 5.   determinant 6.   stockbroker 7.   transaction 8.   substitute 9.   output 10.return

1.   показатель 2.   предложение 3.   процент 4.   потребитель 5.   прибыль 6.   выпуск продукции 7.   затраты на производство 8.   биржевой маклер 9.   товар 10.заменитель 11.потери 12.сделка

 

II. К каждому русскому слову подберите английский эквивалент.

 

1.   доход 2.   стимул 3.   счет 4.   износ 5.   предпочтение 6.   приоритет 7.   налог 8.   услуги 9.   затраты 10.обязательство

1.   priority 2.   pattern 3.   services 4.   liability 5.   income 6.   depreciation 7.   incentive 8.   account 9.   preference 10.production 11.expenditure 12.tax

 

 

III. Выберите из правой колонки существительное, которое может следовать за данным глаголом.

 

1.   to bid up	a)   taxes b)  prices c)  services
2.   to predict	a) the revenue b) the pattern c) the commodity
3.   to transact	a) choice b) profit c) business
4.   to distribute	a) consumers b) resources c) transactions
5.   to impose	a) taxes b) rates c) interest
6.   to sell at	a) a policy b) a share c) a profit

 

IV. Выберите из каждой строчки два слова, наиболее близкие по значению.

 

1. a) estimate;             b) forecast;             c) priority;       d) prediction.

2. a) spending;          b) outlay;        c) output;         d) service.

3. a) profit;                b) priority;      c) behaviour;    d) benefit.

4. a) to contribute;     b) to afford;     c) to allocate; d) to distribute.

 

V. Выберите правильный перевод данного термина.

 

1. price system

a)   системная цена;

b)  цена системы;

c)  система цен.

 

2. retail price index

a)   коэффициент розничной продажи;

b)  индекс розничных цен;

c)  ценность индекса розничной продажи.

 

3. consumer choice

a)   выбор потребителя;

b)  выбранный потребитель;

c)  выбирающий потребитель.

 

4. stock market

a)   рыночная акция;

b)  акционный рынок;

c)  фондовая биржа.

 

5. tax revenue

a)   доходные налоги;

b)  налоговые поступления;

c)  налог на прибыль.

 

VI. Прочитайте предложение и укажите, какое из данных ниже слов пропущено в нем.

 

1. Economists study how the manufacturers decide whether ... cars or bicycles.

a) to propose;                  b) to produce;       c) to merchandise.

 

2. Nowadays business can be ... over the telephone.

a) transacted;          b) accepted;                   c) involved.

 

3. Profits are the ... of revenues over costs.

a) expense;              b) excess;             c) exchange.

 

4. … decisions determine how policy decisions are carried out.

a) executive;            b) administrative;   c) general.

 

5. The benefit lost from the next best alternative is called the … cost of the choice.

a) ability;                 b) probability;       c) opportunity.

 

VII. Выберите из правой колонки подходящее по смыслу слово, которое можно вставить в данное предложение.

 

1.   To purchase more of one good, the consumer must ... some of the other good. 2.   ... guide our decision to buy the commodity or not. 3.   When markets are not in ... the quantity transacted must be smaller of the quantity supplied and quantity demanded. 4.   The consumer chooses the affordable bundle that maximizes his or her ... . 5.   When the government imposes a tax on a good this will lead to a ... of that good. 6.   The central economic problem is to ... the conflict between people’s demands with society’s ability to produce goods to fulfil these demands. 7.   If the business prospers ... will build up. 8.   Industrial Western countries rely extensively on markets ... resources. 9.   To hold utility ... diminishing quantities of one good must be sacrificed to obtain equal increases in the quantity of the other good.

a)   price rise b)to allocate b)  revenues c)  equilibrium d)  sacrifice e)   utility f)    prices g)  constant h)  affordable i)     reconcile j)     satisfaction

 

VIII. Прочитайте текст, выберите из приведенных в конце текста предложений те, которые по смыслу соответствуют тексту. Например: 1, 5, 6, 7, 8.

 

MONEY AND ITS FUNCTIONS

 

Although the crucial feature of money is its acceptance as the means of payment or medium of exchange, money has three other functions. It serves as a unit of account, as a store of value, and as a standard of deferred payment. We discuss each of the four functions of money in turn.

 

The Medium of Exchange

Money, the medium of exchange, is used in one-half of almost all exchange. Workers exchange labour services for money. People buy or sell goods in exchange for money. We accept money not to consume it directly but because it can subsequently be used to buy things we do wish to consume. Money is the medium through which people exchange goods and services.

To see that society benefits from a medium of exchange, imagine a barter economy.

A barter economy has no medium of exchange. Goods are traded directly or swapped for other goods.

In a barter economy, the seller and the buyer each must want something the other has to offer. Each person is simultaneously a seller and a buyer. In order to see a film, you must hand over in exchange a good or service that the cinema manager wants. There has to be a double coincidence of wants. You have to find a cinema where the manager wants what you have to offer in exchange.

Trading is very expensive in a barter economy. People must spend a lot of time and effort finding others with whom they can make mutually satisfactory swaps. Since time and effort are scarce resources, a barter economy is wasteful. The use of money - any commodity generally accepted in payment for goods, services, and debts - makes the trading process simpler and more efficient.

 

Other Functions of Money

The unit of account is the unit in which prices are quoted and accounts are kept.

In Britain prices are quoted in pounds sterling; in France, in French francs. It is usually convenient to use the units in which the medium of exchange is measured as the unit of account as well. However there are exceptions. During the rapid German inflation of 1922 - 23 when prices in marks were changing very quickly, German shopkeepers found it more convenient to use dollars as the unit of account. Prices were quoted in dollars even though payment was made in marks, the German medium of exchange.

Money is a store of value because it can be used to make purchases in the future.

To be accepted in exchange, money has to be a store of value. Nobody would accept money as payment for goods supplied today if the money was going to be worthless when they tried to buy goods with it tomorrow. But money is neither the only nor necessarily the best store of value. Houses, stamp collections, and interest-bearing bank accounts all serve as stores of value. Since money pays no interest and its real purchasing power is eroded by inflation, there are almost certainly better ways to store value.

Finally, money serves as a standard of deferred payment or a unit of account over time. When you borrow, the amount to be repaid next year is measured in pounds sterling. Although convenient, this is not an essential function of money. UK citizens can get bank loans specifying in dollars the amount that must be repaid next year. Thus the key feature of money is its use as a medium of exchange. For this, it must act as a store of value as well. And it is usually, though not invariably, convenient to make money the unit of account and standard of deferred payment as well.

 

Different Kinds of Money

In prisoner-of-war camps, cigarettes served as money. In the nineteenth century money was mainly gold and silver coins. These are examples of commodity money, ordinary goods with industrial uses (gold) and consumption uses (cigarettes) which also serve as a medium of exchange. To use a commodity money, society must either cut back on other uses of that commodity or devote scarce resources to producing additional quantities of the commodity. But there are less expensive ways for society to produce money.

A token money is a means of payment whose value or purchasing power as money greatly exceeds its cost of production or value in uses other than as money.

A £ 10 note is worth far more as money than as a 3 ´ 6 inch piece of high- quality paper. Similarly, the monetary value of most coins exceeds the amount you would get by melting them down and selling off the metals they contain. By collectively agreeing to use token money, society economizes on the scarce resources required to produce money as a medium of exchange. Since the manufacturing costs are tiny, why doesn’t everyone make £10 notes?

The essential condition for the survival of token money is the restriction of the right to supply it. Private production is illegal.

 

Society enforces the use of token money by making it legal tender. The law says it must be accepted as a means of payment.

 

In modern economies, token money is supplemented by IOU money.

An IOU money is a medium of exchange based on the debt of a private firm or individual.

A bank deposit is IOU money because it is a debt of the bank. When you have a bank deposit the bank owes you money. You can write a cheque to yourself or a third party and the bank is obliged to pay whenever the cheque is presented. Bank deposits are a medium of exchange because they are generally accepted as payment.

 

1.   Money is a medium of exchange.

2.   People accept money not to consume it directly, but because it can be used to buy things they want to consume.

3.   In a barter economy goods are swapped directly for other goods.

4.   In a barter economy there is no double coincidence of wants.

5.   The use of money makes the trading process simpler and more efficient.

6.   In Britain prices are quoted in dollars.

7.   During the rapid inflation in Germany it was convenient to use dollars as the unit of account and not marks.

8.   To be accepted in exchange, money has to be a store of value.

9.   Trading without money is cheaper than using money as a medium of exchange.

10.Since money’s  real purchasing power in Britain is eroded by inflation, there is no better way to store value.

11.During the rapid inflation when prices in the country’s own currency are changing very quickly it is more convenient to use some other stable currency, dollars for example, as the unit of account.

12.There are examples of commodity money, originally goods with industrial uses and consumption uses, which also serve as a medium of exchange.

13.Bank deposits are not a medium of exchange because they are not accepted as payment.

14.Bank deposits are IOU money as they are debts of the bank.

 

Список терминов к тексту

 

1. swap - 1. обмен;

                2. менять, обмениваться;

2.   a store of value - средство накопления ценностей (как функция денег);

3.   a unit of account - единица счета (отчета, учета);

4.   a standard of deffered payment - единица отсроченного платежа (средство погашения долга);

5.   a token money - символические деньги;

6.   legal tender - законное платежное средство;

7.   IOU money - долговая расписка.

(задание)

 

1. Прочтите текст и изложите кратко содержание на английском языке.

 

Marketing starts in a market, where individuals or organized groups who want to buy goods or services meet people who want to sell them. The buyers must have money to spend and a willingness to spend it, or a product or service they themselves are willing to trade. The sellers must have what the buyers want. The first step in marketing is to understand these groups. The marketers must determine the number of buyers, what they want to buy, how, when and where they want to buy it, at what price and what they expect from it. Elaborate techniques of research have been developed to supply this information. Of course marketers have to decide which needs they want to meet. A concept for a product or service may develop long before any marketing research is done, or it may be a response to identifying need.

In part, at least, marketing determines what products and services are to be offered. Historically, marketing experts were supposed to sell any product in any way possible. The techniques of marketing research have now given marketers new ways to learn and analyze the needs and wants of consumers. They can now play a critical role in determining what - as well as how - to market. Most large companies now produce only what their market researchers tell them to sell.

All products were new at one time. Today, a product is new if it is unique, or if it is new for the manufacturer who is entering the market to challenge the existing competition, or if it has had enough substantial design modifications to make it a new product issue. For the manufacturer, merchandising includes selecting the products to be produced, deciding on the size, appearance, form and packaging; and “having the right goods at the right place at the right time at the right price”.

 

  2. Переведите письменно текст с английского языка на русский.

 

Marginal Rate of Substitution

 

We now introduce the concept of the marginal rate of substitution of meals for films.

The marginal rate of substitution of meals for films is the quantity of films the consumer must sacrifice to increase the quantity of meals by one unit without changing total utility.

 

Since consumers prefer more to less, an additional meal tends to increase utility. To hold utility constant, when one meal is added the consumer must simultaneously sacrifice some quantity of the other good (films). The marginal rate of substitution tells us how many films the consumer could exchange for an additional meal without changing total utility. The marginal rate of substitution must be a negative number: it is the ratio of a negative change in the quantity of films to the positive change in the quantity of meals when utility remains unaltered.

Suppose the student begins with a bundle comprising 5 films and no meals. Having already seen 4 films that week, the student probably does not enjoy the fifth film very much. With no meals, the student is very hungry. The utility of this bundle is low: being so hungry, the student cannot really enjoy the films anyway. To obtain the same amount of utility the student could give up a lot of films in exchange for a little food. The marginal rate of substitution is a large negative number and we say that it is high.

Suppose instead that the student is consuming a large number of meals but seeing few films. To obtain the same amount of utility, the student will be reluctant to sacrifice much cinema attendance to gain yet another meal. The marginal rate of substitution is a small negative number and we say that it is low. When the ratio of films to meals is already high the marginal rate of substitution of meals for films is high. It makes sense to sacrifice abundant films for scarce meals. Conversely, when the ratio of films to meals is already low the marginal rate of substitution of meals for films is low. It does not make sense to sacrifice scarce films for yet more meals.

Economists believe that this common-sense reasoning about tastes or preferences is very robust. It will hold in a wide range of circumstances. Indeed, it is sufficiently plausible that it can become a general principle, the third assumption we need to make about consumer tastes. It is called the assumption of a diminishing marginal rate of substitution.

Consumer tastes exhibit a diminishing marginal rate of substitution when, to hold utility constant, diminishing quantities of one good must be sacrificed to obtain successive equal increases in the quantity of the other good.

For example, our student might be indifferent between, that is, be equally happy with, bundle X = (6 films, 0 meals), bundle Y = (3 films, 1 meal), and bundle Z = (2 films, 2 meals). Beginning from bundle X, a move to Y sacrifices 3 films for 1 meal, but a further move from Y to Z sacrifices only 1 film for 1 extra meal. Such tastes satisfy the assumption of a diminishing marginal rate of substitution.

These three assumptions - that consumers prefer more to less, can rank alternative bundles according to the utility provided, and have tastes satisfying a diminishing marginal rate of substitution - are all we shall require. It is now convenient to show how tastes can be represented as indifference curves.