Consumption, take account of, manager, state, environment, include, capital, macroeconomics, economy

In a simplistic ... in which individuals or families produce primarily for their own ..., economy-wide phenomena are of little importance. On the other hand, the complex financial … and production process that characterizes an advanced economy in the 1980s requires individual decision makers ... both the current economic environment and forecasts of the economic environment. Decisions that require an understanding of the overall functioning of the economy ... business decisions such as whether firm should sell bonds or stock to raise new ... and individual decisions such as whether to change jobs or purchase a new home. Whether a person «wears the hat» of an entrepreneur, a business ..., or a head of a household, it is important to be aware of the ... of the economy as a whole. Specific factors that determine the advisability of these and other decisions are studied as part of ... .

Ex.14.Add an appropriate preposition to each of the following sentences where indicated.

1. This refers ... the interactive effect of the parts of the system working together.

2. They decorated the house regardless ... cost.

3. Economic forms range ... the mixed private enterprise ... completely controlled economies.

4. Everyone, irrespective ...means or occupation, shall have an equal opportunity.

5.This function is basically performed ... the price mechanism.

6.This simply means that demand ... and supply ... goods and services interact.

7. Gradual change is preferable ...sudden, large-scale change.

8. Such a system affects ... every link in the distribution chain.

9.They have to satisfy their wants and needs ... the consumption of such products and services.

10.It has also made it easier ...the same time.

11.The political system is coupled ... the economic system.

12.Organization must have access .. modern technology.

13.All organizations depend ... supply of labour force.

14.The economic system is concerned ... the allocation of scarce resources.

15. We must try to cope ... our problems.

16.The entrance door gives access ... the living room.

Ex.15. Open the brackets.

The Price System

Who (to tell) workers where (to work) or what occupation to choose? Who (to declare) haw many cars should (to produce) and how many homes should (to built)? Who (to specify) the predominant style of women’s dresses or men’s suits?

The greater the degree of competition the more these matters (to decide) impersonally and automatically by the price system or the market system. This may ( to view) as a system of rewards and penalties. Rewards (to include) profits for firms and people who (to succeed). Penalties (to include) losses, or probably bankruptcy, for those who (to fail). The price system (to be) fundamental to the traditional concept of market economy.

The price system basically (to operate) on the principle that everything that (to exchange) – every good, every service, and every resource – (to have ) its price. In a free market with many buyers and sellers, the prices of these things (to reflect) the quantities that sellers (to make) available and the quantities that buyers (to wish) (to purchase).

Thus, if buyers (to want) (to purchase) more of a certain good than suppliers (to have) available, its price (to rise). This (to encourage) suppliers (to produce) and (to sell) more of it. On the other hand, if buyers (to want) (to purchase) less of a certain good than suppliers (to prepare) (to sell), its price (to fall). This (to encourage) buyers (to purchase) more of it.

This interaction between sellers and buyers in a competitive market, and the resulting changes in prices, (to be) what most people (to refer) to by the familiar phrase “supply and demand”.

1.Read the text once again and answer the following question: “What role does the price system play in the market economy?”

Ex. 20. Let’s review the core concepts of economics. Translate the following into Russian.

1. Economics is the study of how people, individually and collectively, allocate their limited resources to try to satisfy their unlimited wants.

2. Scarcity occurs because human wants exceed the production possible with our limited time and resources.

3. Agoodis any item or service that satisfies a human want and, in so doing, adds to human happiness.

4. Production entails using technology to apply energy to materials in ways that make the materials more valuable, or that otherwise help satisfy human wants.

5. Labourresources are the physical and mental talents that people can make available for production.

6. Opportunity costis the value of the best alternative surrendered when a choice is made.

7. Absolute pricesare prices in terms of some monetary unit.

8. Relative pricesare the prices of goods or resources in terms of each other, and are computed by dividing their absolute prices by one another.

9. Economic efficiencyis achieved when we produce the combination of outputs with the highest attainable total value, given our limited resources.

10. Inputsare resources used in the production process, such as labour and raw or semifinished materials.

11. Outputsare transformed materials; the results of production.

12. Demandis the quantity of a specific good that people are willing and able to

buy during a specific period, given the choices available.

13. Supplyrefers to the quantity of a specific good that sellers will provide under alternative conditions during a given period.

14. Market equilibriumoccurs at the price-quantity combination where the quantities demanded and supplied are equal.

15. Asurplusis the excess of the quantity supplied over quantity demanded when the price is above equilibrium.

16. Gross Domestic Product (GDP) is the total market value of goods and services produced within a country during some period, usually one year.

17. Gross National Product (GNP)is the value of all output produced by resources owned by the citizens of a country.

18. Economic growthis a positive quantitative change in an economic system; occurs when a society acquires greater productive capacity that can be used for consumption or investment.

19. Capitalis all physical improvements made to natural resources that facilitate production, including buildings and all machinery and equipment.

20. Wealthis the value of the assets owned by an individual or a group of individuals.

U N I T 2

Date: 2016-04-22; view: 1248