To earn                        зарабатывать

IV. Test

1.Выберите из колонки справа по смыслу слова, пропущенные в предложениях.[5]

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

1)to solve   a)changes                       2)to use up    a)resources

                   b)problems                                               b)assumptions

                   c)productions                                            c)economies

3)to organize a)quality                         4)to provide  a)choice

                   b)activity                                                   b)service

                   c)validity                                                   c)enterprise

5)to answer a)options                          6)to buy        a)needs

                   b)portions                                                   b)wants

                   c)questions                                                 c)goods

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

Unit 2

I. Information for study.

Text A

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

MARKET ECONOMIES

In MARKET ECONOMIES (also known as CAPITALIST ECONOMIES or FREE ENTERPRISE ECONOMIES) resources are allocated through markets.

The role of government in a free market system is limited. Its main functions are:

§ To pass laws which protect the rights of businesses and consumers and punish offenders;

§ To issue money and make sure that the monetary system operates so that markets work efficiently;

§ To provide certain essential products and services that would not be provided by firms, such as policing, national defence and the judiciary;

§ To prevent firms from dominating the market and to restrict the power of trade unions. These activities will restrict competition and affect the workings of the market.

What to produce. This decision is often made by consumers. Businesses will only produce goods if consumers will buy them and so firm must identify consumers’ needs and respond to them. Firms which produce unwanted products are likely to fail.

Resources will be used to produce those goods and services which are profitable for businesses. If consumers buy more of a particular product prices will tend to rise. Rising prices will attract firms into that industry as they see the chance of profit. For example, in recent years, new firms have set up supplying accommodation for the elderly, to exploit rising demand as the population ages in the UK.

As demand for out of date and unwanted products falls their prices will also fall. Firms will leave these industries due to a fall in profit. They will sell unwanted resources like land, buildings and equipment and make labour redundant. These resources will be used by other businesses. For example, many cinemas have closed down due to a lack of demand. Some of the buildings used as cinemas have been bought by other businesses and used as bingo halls, night clubs or supermarkets.

How to produce. In market economies businesses decide this. Businesses aim to make a profit. They will choose productions methods which reduce their costs. Competition in business forces firms to keep prices low. Consumers will prefer to buy their goods from firms which offer lower prices, although other things such as quality will also influence them.

How are goods and services allocated? Firms produce goods and services which consumers purchase with money. The amount of money consumers have to spend depends on their income and wealth. In market economies individuals own the factors of production. For example, workers earn wages from selling their labour. Owners of capital receive interest, owners of businesses receive profits and owners of land receive rent. All of these can be spent on goods and services. Those individuals with the most money can buy the most products.

In practice there are no pure market economies in the world. However, some countries such as the USA, Japan and Hong Kong have economies which possess many of the characteristics of market economies.

II. Exercises

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

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

1) What are main functions of government in a free market system?

2) How do price force firms to produce the goods which consumers need?

3) Why do firms leave production of unwanted goods and services?

4) How are resources reallocated when demand for unwanted products falls?

5) How does competition affect choice of production methods in market economies?

6) How are goods and services allocated in a free market system?

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

person, to possess, to influence, necessary, house, to work, to defend, old-fashioned, to limit.

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

1) Роль правительства в системе свободного рынка ограничена.

2) Эти действия ограничивают конкуренцию и влияют на работу рынка.

3) Фирмы, которые производят ненужные товары, могут разориться.

4) По мере того, как падает спрос на ненужные и устаревшие товары, цены на них тоже падают.

5) Многие кинотеатры закрылись из-за отсутствия спроса.

6) Предприятия выбирают такие методы производства, которые дают возможность снизить издержки.

7) Рабочие получают зарплату, продавая свой труд.

5. Образуйте существительные от глаголов при помощи суффиксов: -ion, -ing, -er. Проверьте их по тексту и переведите.

to decide, to accommodate, to work, to offend, to own, to populate, to compete 

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

7. Прочтите список ключевых слов к тексту В.

market - рынок

to allocate resources – распределять ресурсы

command economy – командная экономика

government - правительство

to make (to take) a decision – принять решение

production - производство

consumption - потребление

planning office – планирующая организация

central planning – централизованное планирование

direction - руководство

to consume - потреблять

free market – свободный рынок

to intervene - вмешиваться

to pursue - преследовать

to invent - изобретать

production possibility frontier – граница производственных возможностей

to move the frontier outwards – раздвигать границы

better off - богаче

to create - создавать

opportunity - возможность

intervention - вмешательство

mixed economy – смешанная экономика

extreme – крайняя точка

restriction - ограничение

to interact - взаимодействовать

share - доля

output – объем производства, продукция

taxation - налогообложение

transfer payment – государственное пособие, трансфертный платеж

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

9. Запишите краткое изложение текста на английском языке.

10. Прочитайте утверждения и выберите те, которые соответствуют содержанию текста В:

1) Markets are arrangements through which prices influence how the society allocates resources.

2) The command economy is a society where the government does not intervene in production.

3) There is no society which is completely a command economy.

4) In a free market individual people are free to pursue their own interests.

5) In a command economy planning is very easy to do.

6) In a mixed economy the government and the private sector interact in solving economic problems.

III.Vocabulary to text A

IV. Test

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

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

1) to pass a) rights                2) to restrict a) competition

                 b) laws                                          b) accommodation

                c) wayes                                         c) consultation

3) to issue a) money            4) to influence a) services

                b) measure                                     b) containers

                c) power                                         c) consumers

5) to earn a) laws                  6) to own     a) activities

                b) wages                                         b) businessess

                c) workings                                    c) chances

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

Unit 3

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:

market economy, monopoly, public, minor, local, poor, chargeable, input, similar, early

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

to differ, to plan, to serve, to instruct, to educate, to provide, to restrict, to distribute

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

IV. Test

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

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.

Unit 4

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 approachor 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 individualhouseholds prefer cars to bicycles and how producers decide whether to produce cars or bicycles. We canthenaggregate 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 complicatedthat 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:

to advance, field, to invent, to concern, method, to propose, investigation, goods, manufacturers, to sum up, separate, sophisticated, to keep, to neglect.

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

IV. Test

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

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

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

Unit 5

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 spendingon 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:

demand, to increase, in the large, income, in detail, to pay attention.

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

to perform, to spend, to determine, to magnify, to interact, to simplify, to grow, to build.

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.

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

IV. Test

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

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

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

Unit 6

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 solvethe 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 labourmarket. 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:

salary, limited resources, to buy, to distribute, to decide, benefit, to make, to raise (prices), work.

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

IV. Test

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

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

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

Unit 7

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 lucrativeto 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

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 supplyand 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:

possible, profitable, limited, quantity, table, to provide, place, mainly.

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.

to discuss, to recognize, to transact, to arrange, to establish, to assume, to produce, to consume, to interact, to describe.

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

chief, physical, superficial, separate, simultaneous, possible, particular, conceivable, complete, precise.

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

8.Прочтите список ключевых слов к тексту В:

Eduilibrium - равновесие

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