Read the text and see if your ideas are right.
Everyone is familiar with the way prices of goods and services behave in the marketplace. They usually go up. The phenomenon of rising prices is called inflation. Since the economy includes multitudes of prices, and all do not rise or fall at the same time, it is convenient to use the concept of an average price and describe inflation as a continuing rise in the level of the average price, or the general price level.
The inflation rate is the rate of change (or the percentage change) in the general price level over a specified time period, usually a year. An increase in the inflation rate means that prices are rising at a faster rate. A decrease in the inflation rate means that prices in general are not rising as quickly as before; it does not mean that prices are falling. The term disinflation is often used to describe a declining inflation rate. If prices in general do not change, a situation of zero inflation exists.
Rapidly rising prices may lead to a situation called hyperinflation. Many countries have experienced hyperinflation, some very recently, with inflation rates reaching hundreds of percentage points in a matter of months.
The phenomenon of falling prices is known as deflation. It is the opposite of inflation.
Economies have also experienced a situation known as stagflation. This occurs when a high rate of inflation is accompanied by a high level of unemployment This presents a dilemma for policy makers, as attempts to cure one problem invariably make the other one worse. The cherished goal of every country has been to keep both problems under control to avoid the heavy costs they inflict on people.
Inflation and the purchasing power of money are inversely related. Inflation causes the purchasing power of money to fall. The purchasing power of money (also known as the value of money) is the amount of goods and services that one unit of money can buy. When prices rise, the same goods cost more in terms of dollars, and the dollar's value in terms of those goods falls.
Inflation is commonly measured with the aid of a price index. A price index is a statistical device to measure price changes between a base period and a subsequent period. Economists use many different price indices. The consumer price index (CPI) is the most popular index for tracking inflation in the United States. The CPI measures the average change in the prices paid by urban consumers for a fixed basket of goods and services. The statistics for this index are compiled by the Bureau of Labor Statistics of the U.S. Department of Labor, which publishes them monthly.
|
|
|
1. Notes to the text:
attempt - попытка
invariably - неизменно
to inflict - причинять
subsequent - последующий
indices - индексы
2. Match the following English expressions to their Russian ones:
1. rising prices a. рост инфляции
2. convenient to use b. обратно пропорционально связанный
3. the inflation rate c. потребительская корзина
4. inversely related d. удобно использовать
5. commonly measured e. обычно измеряется
6. basket of goods f. повышающиеся цены
3. Read the text again and answer the questions:
1. What is inflation?
2. What is inflation rate?
3. What is hyperinflation?
4. What is stagflation?
5. What is purchasing power of money?
6. What is price index?
4. Agree or disagree with the following statements:
1. An increase in the inflation rate means that prices to decrease at a faster rate.
2. The phenomenon of falling prices is known as hyperinflation.
3. The term disinflation is often used to describe a declining inflation rate.
4. Inflation and the purchasing power of money are directly proportionally related.
5. Economists use are not a lot of different price indices.
5. Discuss in pairs:
1. Inflation.
2. Deflation.
3. Differences between Inflation and Deflation.
Unit 8.
The economic system.
Discuss in pairs:
1. What is economic system?
2. What functions of economic system do you know?
Read the text and see if your ideas are right.
There are many forms of economic order, ranging from the mixed private enterprise system to partially or completely controlled economies. Regardless of their form, however, economic system is the system that a society uses for allocation and distribution of scarce resources. Private enterprise means that decisions about what and how much to produce are left to the discretion of owners and managers. In controlled economies such decisions are the responsibility of some governmental agency. There is, of course, no economy today that is completely free of governmental influence, nor is this condition necessarily undesirable. There are many beneficial services and protections available from government. The question then is a matter of degree. Irrespective of the form of economic order, it performs certain valuable functions in the life of organizations of all types.
|
|
|
Among the functions of the economic order the most important one is to provide some means of resource allocation. In a private enterprise this function is basically performed by the price mechanism. This simply means that demand for and supply of goods and services interact to set their market price. In the case of regulated utilities, there are governmental agencies such as public service commission’s that determine the rates that may be charged by utility companies. These rates are set at the level that will allow a fair return on investments made by the companies. This form of regulated monopoly is considered, on balance, preferable to unchecked competition. This is true because of efficiency reasons. In taking actions in the area of employment, government is attempting to control the economy in such a fashion as to help the business community operate at the level of production that will yield full employment.
Without a system of distribution economy simply could not exist. A major part of this distribution system is credit. Economy flourishes on credit or extended methods of payment. Such a system literally affects every link in the distribution chain from the supplier of raw materials to the ultimate consumer. Without this vital financing function being performed, the economy would doubtless be forced to a lower order of production.
Economic goals for a nation include price stability, full employment, economic growth, and equitable distribution of income. Price stability contributes to the efficient allocation of resources and facilitates long-term planning. Full employment means that jobs are available for those seeking work. Higher standards of living require increased output per person (economic growth per capita). An equitable distribution of income means that the fruits of the economy are divided in a way that seems fair to the majority of the people. With the long-run trend toward a more sophisticated, highly integrated economic system, it is becoming increasingly important for an individual decision maker to be aware of the macroeconomic environment.
|
|
|
1. Notes to the text:
regardless - независимо
scarce - недостаточный
undesirable - нежелательный
irrespective - безотносительный
flourish - расцвет
equitable - равноправный
sophisticated - сложный
increasingly - все более и более
2. Match the following English expressions to their Russian ones:
1. Scarce resources a.расширенные методы
2. Governmental influence b.просто означает
3. Economic order c.правительственное влияние
4. Simply means d.правительство пытается
5. Government is attempting e.недостаточные ресурсы
6. Extended methods f.экономический строй
3. Read the text again and answer the questions:
1. What is economic system?
2. What are three main concepts of economic system?
3. What functions does economic order perform?
4. What do economic goals for a nation usually include?
4. Agree or disagree with the following statements:
|
|
|
1. A major part of distribution system is credit.
2. Economic goals do not include equitable distributions of income.
3. In controlled economies decisions about what and how much to produce are left to the discretion of owners and managers.
4. Price stability facilitates long-term planning.
5. Government to control the economy in such a fashion that yield to the partial employment.
5. Discuss in pairs:
1. Forms of economic order.
2. The functions of economic order.
3. Economic goals.
Unit 9.
Prologue to economics.
Discuss in pairs:
1. What is macroeconomics?
2. What is microeconomics?
Дата добавления: 2018-05-12; просмотров: 394; Мы поможем в написании вашей работы! |
Мы поможем в написании ваших работ!