Vocabulary notes

significant faults значительные недостатки

at one extreme at the other extreme на одном полюсе... на другом

to exercise considerable economic freedom of choice иметь значительную экономическую свободу выбора

restriction ограничение

whilst (syn. while) в то время как, пока

state-controlled industry промышленность, контролируемая государством

to avoid disadvantages избегать недостатков

to enjoy the benefits иметь преимущества, пользоваться преимуществами

to interact взаимодействовать

to solve economic problems решать экономические проблемы

a share of the output доля в объеме производства

essential items товары и услуги первой необходимости

a range of businesses зд. ряд компаний, фирм

Assignments

I. Suggest the Russian equivalents

an intermediate system has developed; to supply essential items; the government controls a share of the output

II. Replace the parts in italics by synonyms

significant faults; a range of products; whilst others are used in response to the demands of consumers

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

1. Command and market economies both have.

2. contains elements of both market and planned economies.

3.____________________________ we have a command economy, which does not,_____ we have a free market, where individuals without.

4.__________ Some countries are__________ to command economies, while others are to free market economies.

5.____ It is just between market and planned elements that in all the economies of the world.

6._________________ The aim of mixed economies is the disadvantages of both systems while_____________ the benefits that they both offer.

7. In a mixed economy the government and the private sector in.

8. The state controls__ through, and, and intervenes to supply

9. The Conservative government switched many state-owned businesses to being privately owned as part of its.

IV. Find in the text English equivalents for the following

избегать недостатков; частный сектор; налогообложение; централизо­ванно принимать экономические решения; на одном полюсе на дру­гом...; без ограничений; взаимодействовать в решении проблем; пользоваться благами; правительство, возглавляемое...

V. Increase your vocabulary

to enjoy to have as an advantage иметь, пользоваться) to enjoy a boom to enjoy a high standard of living to enjoy a basic standard of living to enjoy the benefits

VI. Make some sentences of your own with the above expressions. Translate:

1. Иметь хорошее здоровье.

2. Все граждане государства должны иметь равные права.

3. Эта пьеса очень популярна.

VI. Check your grammar

It is (was)... that (who) именно

It is the intention of the planners that there should be enough goods and services for all.

is these disadvantages that have led to many countries abandoning planned economies.

It is consumers who decide what is to be produced.

It is just the balance between market and planned elements that alters.

Rewrite the following sentences using the emphatic construction

1. Television was invented in this century.

2. Mathematicians have solved complicated problems with the help of computers.

3. I first saw this play on TV.

4. Two doctors made this discovery.

5. Owing to the rain we couldn't come.

VII. Answer the questions

1. Are there really pure examples of planned and market economies in the world?

2. What's a mixed economy? What's its aim?

3. What type of economy is the UK? is Russia now?

VIII. Translate into English using all the active possible

1. В реальной действительности экономические системы располагают­ся где-то между чисто рыночной и плановой экономикой.

2. Смешанная экономика - это система, при которой частная собствен­ность и рынок, а также правительство и общественные институты, энергич­но участвующие в обеспечении экономической стабильности и перераспре­делении доходов, взаимодействуют в решении экономических проблем.

Unit 6.

MARKETS (РЫНКИ)

The Role of Market (Роль рынка)

Reports in the press tend to say "the market did this" or "the market expected good news on the economic front", as if the market were a single living entity with a single conscious mind. This is not, of course, the case. To understand reports of market behaviour you have to bear in mind the way the market works.

A market is simply a mechanism, which allows individuals or organizations to trade with each other. 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. There's no need to go into these details. Instead; we use a general definition of markets.

A market is a shorthand expression for the process by 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.

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.

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 cafe 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.

Now think about the seller's viewpoint. The cafe owner is in 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 cafes do not have to offer very high wages.

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 cafe 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.

There were several markets involved in your purchase of a hamburger. You and the cafe owner were part of the market for lunches. The student behind the counter was part of the local labour market. The cafe 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 hambuigers 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.

VOCABULARY NOTES

to bear in mind (syn. to keep in mind) иметь в виду

a local fruit stall фруктовый ларек

stock market фондовая биржа, рынок акций

to transact business (syn. to make a deal) совершать сделку

by remote control при помощи дистанционного управления

to go into details вдаваться в подробности

a general definition общее определение

a shorthand expression краткое, рабочее выражение (определение)

households' decisions решения домохозяйств

to reconcile приводить в соответствие, согласовывать

by adjustment of prices посредством корректировки цен

to demand требовать

given (syn. taking into account, consideration) при условии, что..., учитывая

limited resources ограниченные ресурсы

to satisfy one's appetite удовлетворять аппетит

to answer the question in favour of smb else решать вопрос в пользу кого-либо другого

the seller's viewpoint точка зрения продавца

the cafe owner владелец кафе

the rent арендная плата

to switch to luxury lunches переключиться на дорогие обеды

rich executives состоятельные служащие

behind the counter за прилавком

suitable подходящий

to suit подходить

part-time job (ant. full-time job) работа с неполной занятостью

a bit of money (ant. scads of money) немного денег

it would hardly be worth working at all вряд ли вообще имеет смысл работать

conversely (syn. on the opposite, on the contrary) наоборот, напротив

unskilled job неквалифицированная работа

to guide one's decision влиять на чье-либо решение

through the price system через систему цен

to cover the cost покрывать расходы

to run the cafe содержать кафе

to devote resources выделять ресурсы

to guide resources into hamburger production направить ресурсы на производство гамбургеров

cattle крупный рогатый скот

to contract a disease подхватить болезнь

thereby следовательно, таким образом

to reduce the economy's ability снижать возможности экономики

competition состязание, конкуренция

to purchase scarce supplies скупать дефицитные ресурсы

to reallocate resources перераспределять ресурсы

to reflect the scarcity отражать дефицит

to be involved in быть задействованным в

the local labour market локальный рынок труда

the local wholesale market локальный оптовый рынок

the local market for rented buildings локальный рынок аренды помещений

precise descriptions of markets - точные описания рынков

to adopt a definition принять определение

to adopt a child in a family принять ребенка в семью, усыновить

to emphasize подчеркнуть, выделить

arrangements through, which prices influence smth структуры (механизмы), посредством которых цены влияют на что-либо

Assignments

I. Suggest the Russian equivalents

a single living entity with a single conscious mind; a shorthand expression; to be reconciled by adjustment of smth; a suitable part-time job; to offer high wages; to guide smb's decision; to cover the cost of smth

II. Replace the parts in italics by synonyms

at a distance, of the neighbourhood, carried out, done; ask for, make certain that; buy, illness, managing, put up; rareness

III. Increase your vocabulary

Using words from paragraph 5 ("Much of economics..."), complete the following statements:

1. I quite like lamb but really I beef.

2. He was a very keen student. He most of the time to his studies.

3. I don't like the canteen, but it's more than going out to a cafe.

4. I'm not in of long and expensive lunches.

5. Please that your essays reach me on time.

6. A good degree should you to get a job.

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

1.______________________________ To understand reports of market behaviour you have to______________________________ the way the market works.

2._ On the stock market, business can be transacted over the telephone,
almost by.

3.________ A market is a expression for the process by which households decisions about consumption of alternative goods, firms' decisions about what and how to produce, and workers' decisions about how much and for whom to work are all by.

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

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

6._____________________________________ Society answers the "for whom" question about lunchtime steaks _____________________ someone else.

7.____________________________________ The cafe owner is in business because it is still possible to sell hamburgers_______________.

8.____ If rents were higher, it might be more profitable to sell hamburgers in a cheaper area or_____ to__ lunches.

9.___________________________ The student is working there because it is a suitable, which pays a bit of money.

10.______________________________ Society is allocating resources into hamburger production_____________________________ the price system.

11. If nobody liked hamburgers, the owner could not sell enough at a price that of running the cafe and society would no resources to hamburger production.

12.___ If cattle, competition to purchase more scarce supplies of beef would the price of beef.

13._________________________ Adjustments in prices would encourage society resources to reflect the increased scarcity of cattle.

14. There were several markets your purchase of a hamburger.

15. The student behind the counter was part of the local market.

16. The cafe owner was part of the local meat market and the local

market for buildings.

17._ We a very general definition of markets, which emphasizes that they are through, which prices influence the allocation of scarce resources.

V. Check your grammar

verb + infinitive (want to do) verb + ing (enjoy playing) verb + infinitive or ing (the meaning sometimes changes): He remembered (= did not forget) to book a table. I remember (= recall) seeing that film 5 years ago.

Open the brackets:

1. He suggested (go) into the country on Sunday.

2. I'm sorry I forgot (return) your book yesterday.

3. Stop (make) that noise! I can't work!

4. Which definition would you use (describe) markets?

5. You must avoid (make) unnecessary mistakes.

6. Try (understand) the difference between microeconomics and macroeconomics.

7. Try (pay) more attention to what I say.

8. Would you mind (lend) me your notes?

9. Tomorrow I intend (discuss) the matter with you.

10. Serious illness prevented him from (take) the exam.

11. I am looking forward to (study) economics.

VI. Find in the text English equivalents for the following

поведение рынка; рынок ценных бумаг; проводить сделку, операцию; иметь что-то общее с чем-либо; с учетом чего-либо (принимая во внима­ние); в пользу кого-либо другого; прибыльно продавать; переключиться на что-либо; неквалифицированная работа; распределять ресурсы по­средством системы цен; сокращать возможности экономики; набавлять цену; перераспределять расходы; оптовый рынок; механизмы (структу­ры), посредством которых цены влияют на распределение.

VII. Explain in English

rent; profit; expense account; part-time job; labour market; wholesale (meat) market

VIII. Answer the questions

1. What example is given of a market where sellers and buyers actually meet?

2. How are households' decisions on what to buy reconciled?

3. Why do prices adjust?

4. What problems do markets and prices solve for society?

5. Why is the cafe owner in business?

6. Why don't cafe owners have to pay high wages?

7. What makes society put resources into hamburger production?

8. What would consumers do if hamburger prices rose?

9. How many markets are you involved in if you buy a hamburger? What are those markets?

10. Enumerate all the components comprising the concept of "Market".

11. What does the term "resources" comprise?

12. In what way can prices guide your decision to buy some goods?

13. In what way can prices guide a person's decision to take a job?

IX. Translate using all the active possible

1. Рынок ценных бумаг, как и любой рынок вообще, где совершаются сделки, представляет собой механизм (структуру), посредством которого цены регулируют (2 варианта) распределение ограниченных ресурсов в обществе.

2. Потребности различных групп общества приводятся в соответствие путем изменения (регулирования) цен на товары и ресурсы - труд, капи­тал (оборудование), землю.

3. Ваше решение о покупке на ленч гамбургера имеет непосредствен­ное отношение к вопросу о рынках и ценах, поскольку, к примеру, по­вышение цен на мясо и, соответственно, переключение продавцов - вла­дельцев кафе на более дорогие обеды может привести к тому, что вопрос "для кого производить" будет решаться в пользу других, более богатых потребителей.

4. Многие студенты ищут работу в кафе, поскольку она занимает у них лишь часть времени и не требует квалификации, несмотря на то, что владельцы кафе предлагают невысокую плату за такой труд.

5. Если бы возможности экономики по производству мясопродуктов сократились, цена на мясо возросла бы, и покупатели стали бы покупать сандвичи с сыром, то есть корректировка цен побудила бы общество к перераспределению ресурсов.