Vocabulary notes

injection инъекция, вливание (напр., денег в экономику)

to arise from проистекать, являться результатом

to assume предполагать, считать

thus таким образом

they can be generated through это может происходить посредством

assets имущество, активы

layman непрофессионал, неспециалист

an economist referring to investment говоря о вложениях, экономист

paper financial assets имущество, вложенное в ценные бумаги

stock акция, ценная бумага; запас, ассортимент

there is no overall impact on the economy большого влияния на экономику это не окажет

net investment чистые инвестиции

gross investment валовые капиталовложения

worn out изношенный

depreciation обесценение (денег), снашивание (в результате износа и морального устаревания)

total целое, сумма, итог

to term (syn/ to call) называть

rate of interest процентная ставка

rate of growth скорость роста

decade десятилетие

the level… has fluctuated уровень колебался

has been a very substantial total составило очень значительную суму

this heading covers под этим заголовком рассказывается

to result in (syn. To lead to, to cause, to entail) приводить к чему-либо; иметь своим результатом

this will lead to a variety of spending это повлечет за собой самые раз­нообразные затраты

surveyor землемер, топограф

major financial items основные статьи расходов

social security benefits льготы социального обеспечения

to tend to иметь тенденцию

rapidly быстро, скоро

pursuing such policies проведение такой политики

undesirable side-effects нежелательные побочные явления

as a result of the spending decisions как результат решения покупать или нет

withdrawal утечка, изъятие

the amount … varies количество … бывает различным

over time иногда, время от времени

roughly приблизительно

the UK's trade is recorded in the balance of payments figures торговля Великобритании отображена в данных платежного баланса

annual accounts ежегодные отчеты

rarely, if ever редко или почти никогда

the balance of payments accounts are split into статьи (разделы) платежного баланса разделяются на

current account счет текущих операций

capital account счет движения капиталов

indisputably бесспорно

to bolster поддерживать, укреплять

promote employment in a range of industries обеспечивают занятость в ряде отраслей

innovation новшество, нововведение

notably особенно

Assignments

VII. Suggest the Russian equivalents

which does not arise from; they can be generated through; government spending (expenditure); an economist referring to investment; paper financial assets; capital stock; extra spending that has not originated in the circular flow; the level… has fluctuated; a very substantial total; government spending results in…: construction workers (materials); social security benefits; the current (capital) account; domestic employment; they generate a satisfying standard of living

VIII. Replace the parts in italics by synonyms

does not arise from the spending; it was unrealistic to assume; increase the size of the circular flow; there are three recognized ways; there is no overall impact on the economy; to replace capital stock that is worn out or obsolete; this heading covers; this will lead to a variety of spending; rapidly; over time; accounts are split into; indisputably; exports bolster the circular flow and promote employment

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

1. An injection is simply an addition to, which does not arise from the spending of households.

2. Investment is on productive capital goods.

3. An economist referring to investment doesn’t mean the purchase of,

such as or__.

4. Some investment is necessary to replace capital stock that is or.

5. Economic statistics show us that the level of in the UK economy over the recent years.

X. A decision to build a new motorway will lead to. which would not
have taken place otherwise.

7. Major financial items are the provision of and.

8. The amount the UK imports varies but will be roughly the same

proportion

9. If you look at the UK’s trade figures you will see that does the value of exports equal the value of imports.

10. Exports__________ the circular flow and employment in of industries.

XI. Find in the text English equivalents for the following

предполагать; товары производственного назначения, основные фонды; неспециалист; чистые инвестиции, валовые инвестиции; объем основных фондов; изношенный; делать вложения; за последние несколько десятилетий; имеет много форм; это потребует значительных затрат; ос­новные статьи финансирования; побочные явления; очень редко; пла­тежный баланс; промышленность, работающая на экспорт; обесценение основных фондов, амортизация

XII. Give explanations in English

physical assets; paper financial assets; stock; shares; capital goods; capital stock; social security benefits; the balance of payments accounts

XIII. Answer the questions

1.What is an injection?

2.What is expenditure?

3.What are net and gross investments?

4.What are the main influences on the amount of investment? Can you add anything else?

5.Speak on government expenditure and its forms.

6. What have you learnt about the UK’s exports and imports?

7. Why are exports an engine of economic growth?

VII. Translate the following sentences using all the active possible

1. В последнее время процентная ставка крупных банков сильно ко­леблется и это влияет на состояние инвестиций в промышленности.

2. Неспециалисту трудно понять, что такое товары производственного назначения и основных фондов.

3. Создание новых отраслей, работающих на экспорт, потребует больших затрат, включая социальную защиту работников. Но именно это и обеспечивает занятость населения страны.

4. В Великобритании ежегодно публикуются статистические данные о состоянии платежного баланса страны.

5. Чтобы создать новые рабочие места, нужны немалые капиталовложения.

6. Конкуренция способствует развитию технического прогресса.

7. Что увеличивает кругооборот доходов?

8. Инъекции - это потоки денежных средств, направленные на приобретение национального продукта, созданного внутри страны, и не связанные с потребительскими расходами населения на его покупку. Такие потоки образуются капиталовложениями, правительственными закупка­ми и платежами за товары и услуги, проданные за границу.

Unit 14.

WITHDRAWALS (ИЗЪЯТИЯ ДЕНЕГ ИЗ КРУГООБОРОТА)

Withdrawals (or leakages) are that part of the circular flow, which are not passed on as spending with UK firms. This is income, which individuals, firms or governments take out of the circular flow with the likely result that the level of economic activity in the economy ckxbhes. The three forms that withdrawals can take are:

* Savings

* Imports

* Taxation

Savings. Сбережения

Both businesses and individual citizens can take the decision not to spend all of the income that they receive. A number of factors are thought to determine the level of savings at any one time. Interest rates obviously influence the saver's decision since they represent the return on his or her savings. Many economists believe that decisions to save are taken in response to periods of economic uncertainty: the more worried people are about interest rates, job security and so on, the more they are likely to save. Alternatively, there is evidence that when money is losing value quickly, as in a period of inflation, people tend to purchase consumer durable goods such as televisions and washing machines.

Another factor is social change. Previous generations placed great store by saving in order to carry out major purchases; this is less common today perhaps due to the ready availability of credit.

Imports. Импорт

You will know that expenditure by UK inhabitants on goods and services imported from abroad will remove those funds from the domestic circular flow and will cause a decrease in the level of economic activity. Periodically, the UK has spent too freely on imports and earnings from exports have been insufficient to cover this. Many factors encourage us to purchase imports: some are favourable to the economy in the long term, whilst others are harmful. If imports of raw materials increase due to the growth of a domestic industry, then this indicates an expanding economy, which should sell more exports in the future in order to pay for the increased expenditure. However, if the imports are the consequence of UK citizens preferring foreign goods on grounds of, for example, price or quality, then the impact may be liamiful as jobs are lost in domestic industries.

Taxation. Налогообложение

Funds are withdrawn from the circular flow in the form of taxation by the government. It levies two types of tax:

* Direct taxes, such as income tax, corporation tax (on profits) and other taxes on income or wealth;

* Indirect taxes, such as VAT and customs and excise duties, which are levied on spending by all of us

If the authorities withdraw funds through taxation and then fail to spend this tax revenue, the circular flow whT reduce the level of activity in the economy.

Taxation policy has been substantially altered by the Conservative government in the 1980s and early 1990s. It has reduced direct taxes because of the belief that taxation of this kind reduces the incentive to work and so dampens the spirit of enterprise in the economy. Indirect taxes, such as VAT, have been increased to make up for some of the revenue lost from direct taxes. The government has thus transferred the tax burden from direct to indirect taxes. The total burden of taxation has hardly altered.

VOCABULARY NOTES

leakage утечка

which are not passed on as которые рассматриваются не как...

with the likely result that в результате чего может; результатом чего может

savings сбережения, накопления

a number of factors are thought to determine считается, что ряд факторов определяет

the return on his or her savings отдача, процент, доход от... сбережений

there is evidence that очевидно, что

to place great store by придавать большое значение

due to благодаря, из-за

to remove from удалить, изъять

insufficient to cover недостаточный для покрытия (расходов)

to encourage smb to do smth побуждать кого-то сделать что-то

in the long term (ant. in the short term) в (отдаленном) будущем

domestic industry национальная промышленность

to withdraw изымать, выводить, удалять

to levy взимать, облагать (о налогах)

direct (indirect) taxes прямые (косвенные) налоги

income tax подоходный налог

corporation tax (on profits) налог с прибыли (доходов) корпораций

VAT (value added tax) НДС (налог на добавленную стоимость)

customs duty таможенная пошлина

excise duty акцизный сбор

and then fail to spend this tax revenue а затем не могут распорядиться (потратить) этими налоговыми поступлениями

has been substantially altered была значительно изменена

and so dampens the spirit of enterprise и таким образом подавляет дух предпринимательства

to make up for компенсировать, восполнять

tax burden бремя налогов

Assignments

I. Suggest the Russian equivalents

withdrawals, which are not passed on as speiiding with UK firms; a number of factors are thought to determine the level of savings; job security; another factor is social change; generations placed great store by saving; will remove those funds from the domestic circular flow and will cause a decrease; direct (indirect, corporation, income) taxes; the tax revenue; taxation of this kind reduces the incentive to work and so dampens the spirit of enterprise; the tax burden

II. Replace the parts in italics by synonyms

with the likely result that...; decisions are taken in response to economic uncertainty; alternatively; consume durable goods; UK inhabitants; if the authorities fail to spend this tax revenue; will cause a decrease on the level of economic activity; earnings from exports have been insufficient, if imports increase due to the growth of industry; substantially, because of the belief that.

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

1. Interest rates influence the saver's decision since they represent on his savings.

2. Previous generations saving in order to carry out major purchases.

3. Expenditures on goods and services imported from abroad those

funds from__________ and will cause in the level of economic activity.

4. If imports of raw materials increase due to the growth of, then this indicates.

5. Funds are withdrawn from the__________ by the government, which two types of tax.

6. Indirect taxes include VAT and.

7. Direct taxes reduce__________ to work and so dampen in the economy.

8. The government has transferred from direct to indirect taxes.

IV. Find in the text English equivalents for the following

доходы от сбережений; очевидно, что...; подталкивать, побуждать; в конце концов; это означает рост экономики; на том основании, что; на­лог на добавленную стоимость; акцизный сбор; восполнять

V. Find English explanations

the return on one's savings; taxes (direct, indirect, income, corporation, on wealth, VAT); excise duties; the tax revenue

VI. Answer the questions

1. What are withdrawals? Name their forms.

2. When do people decide to save?

3. What is the reason for purchasing imports?

4. Why can buying imports be hanriful?

5. What are direct and indirect taxes?

6. Why did the Conservative government reduce direct taxes in the 1980s and increase indirect ones?

7. Make conclusions from the Circular Flow Model.

VII. Translate into English using all the active possible

1. В ответ на увеличение правительством налогов предприниматели приняли решение поднять цены на потребительские товары. Подобное налогообложение явно не способствует развитию торговли.

2. Считается, что на решение покупать или не покупать импортные товары влияет целый ряд факторов: цены, качество и т. д.

3. Выпуская хорошие товары, предприниматели побуждают население покупать их, а не откладывать деньги, что может привести к падению уровня экономической активности.

4. Многие люди, пытавшиеся получить большой процент со своих денег, положенных на депозит в разные сомнительные банки, оказались обманутыми.

5. В некоторых странах акцизный сбор с продажи алкогольных на­питков является очень доходной статьей.

6. В России налог на добавленную стоимость был введен в январе 1992 года.

7. Изъятия - это часть национального дохода, которая не использует­ся населением для покупки потребительских благ, произведенных в стране. Изъятия состоят, таким образом, из сбережений, чистых налогов и затрат на покупку импортных товаров. Изъятия равны инъекциям.

Unit 15.

INFLATION (ИНФЛЯЦИЯ)

Inflation is generally defined as a persistent rise in the general price level with no corresponding rise in output, which leads to a corresponding fall in the purchasing power of money.

In this section we shall look briefly at the problems that inflation causes for business and consider whether there are any potential benefits for an enterprise from an inflationary period.

Inflation varies considerably in its extent and severity. Heme, the consequences for the business community differ according to circumstances. Mild inflation of a few per cent each year may pose few difficulties for business. However, hyperinflation, which entails enormously high rates of inflation, can create almost insurmountable problems for the government, business, consumers and workers. In post-war Hungary, the cost of living was published each day and workers were paid daily so as to avoid the value of their earnings falling. Businesses would have experienced great difficulty in costing and pricing their production while the incentive for people to save would have been removed.

Economists argue at length about the causes of, and "cures" for, inflation. They would, however, recognize that two general types of inflation exist:

* Demand-pull inflation

* Cost-push inflation

Demand-pull Inflation. Инфляция спроса

Demand-pull inflation occurs when demand for a nation's goods and services outstrips that nation's ability to supply these goods and services. This causes prices to rise generally as a means of limiting demand to the available supply.

An alternative way that we can look at this type of inflation is to say that it occurs when injections exceed withdrawals and the economy is already stretched (i.e. little available labour or factory space) and there is little scope to increase further its level of activity.

Cost-push Inflation. Инфляция издержек

Alternatively, inflation can be of the cost-push variety. This takes place when firms face increasing costs. This could be caused by an increase in wages owing to trade union militancy, the rising costs of imported raw materials and components or companies pushing up prices in order to improve their profit margins.

VOCABULARY NOTES

a persistent rise неуклонный, постоянный подъем

with no corresponding rise in output не сопроюждаюшийся подъемом производства

briefly коротко, кратко

potential benefits потенциальные выгоды

varies considerably in its extent and severity бывает разной по длительности и остроте

hence следовательно

mild inflation мягкая, низкая инфляция

may pose few difficulties особых проблем не представляет

entails enormously high rates of inflation означает (ведет к) громадный рост инфляции

insurmountable неисчислимые, колоссальные

at length и сейчас

to pull тянуть

demand-pull inflation инфляция, вызванная превышением спроса над предложением, инфляция спроса

to push толкать

cost-push inflation инфляция, вызванная ростом издержек производ­ства, инфляция издержек

to occur происходить

to outstrip обгонять, опережать, превосходить

to stretch натягивать, напрягать

little available labour мало рабочей силы

there is little scope мало возможностей

owing to trade union militancy благодаря воинственности профсоюзов

in order to improve their profit margins чтобы увеличить прибыль (размеры прибыли)

Assignments

I. Suggest the Russian equivalents

inflation varies considerably in its extent and severity; mild inflation of a few%; rate of inflation; insurmountable problems: demand-pull (cost-push) inflation; the economy is already stretched

II. Replace the parts in italics by synonyms

a persistent rise; hence; may pose few difficulties; which entails enormously high rates; at length; inflation occurs when; little scope to increase its level of activity; firms face increasing costs; owing to trade union mihtancy

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

1. Inflation varies considerably in its and.

2. Mild inflation may few difficulties for business.

3. Businesses would have experienced great difficulty in and their

production while for people to save would have been removed.

4. Demand-pull inflation occurs when for a nation's goods and services

____________ that nation's ability to these goods and services.

5. An alternative way that we can look at this type of inflation is to say that it occurs when injections___ withdrawals.

6. An increase in costs for firms, for example, can be caused by an increase in wages trade union mihtancy.

IV. Find in the text English equivalents for the following

повышение (падение) спроса (покупательной способности) и т. д.; ги­перинфляция; запросы опережают возможности экономики предложить товары и услуги; воинственность профсоюзов; уровень прибыли

V. Translate into English using all the active possible

Следует отличать инфляцию спроса от инфляции, обусловленной ростом издержек. Суть инфляции спроса иногда объясняют одной фразой: "Слишком много денег охотятся за слишком малым количеством товаров". Теория инфляции, обусловленной ростом издержек, объясняет рост цен такими факторами, которые приводят к увеличению издержек на единицу продукции.