English for the students of economic faculties

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English for the students of economic faculties (Английский язык для студентов экономических факультетов)

Москва: ПРИОР, 1999

Оглавление

THE ECONOMIC ENVIRONMENT (ЭКОНОМИЧЕСКАЯ СРЕДА)

MEASURING ECONOMIC ACTIVITY (ИЗМЕРЕНИЕ ЭКОНОМИЧЕСКОЙ АКТИВНОСТИ)

THREE ECONOMIC ISSUES (ТРИ ВОПРОСА ЭКОНОМИКИ)

INCOME (ДОХОД)

THE ROLE OF GOVERNMENT (РОЛЬ ПРАВИТЕЛЬСТВА)

THE PRODUCTION POSSIBILITY FRONTIER (ГРАНИЦЫ ВОЗМОЖНОСТЕЙ ПРОИЗВОДСТВА)

ECONOMIC SYSTEMS (ЭКОНОМИЧЕСКИЕ СИСТЕМЫ)

MARKETS (рынки)

POSITIVE AND NORMATIVE ECONOMICS (ПОЗИТИВНАЯ И НОРМАТИВНАЯ ЭКОНОМИЧЕСКИЕ ТЕОРИИ)

MICROECONOMICS AND MACROECONOMICS (ТЕОРИЯ МИКРОЭКОНОМИКИ И МАКРОЭКОНОМИКИ)

РRIСЕ AND DEMAND (ЦЕНА И СПРОС)

PRICE, INCOME AND DEMAND (ЦЕНА, ДОХОД И СПРОС)

ELASTIC AND INELASTIC DEMAND (ЭЛАСТИЧНЫЙ И НЕЭЛАСТИЧНЫЙ СПРОС)

A MODEL OF THE ECONOMY (МОДЕЛЬ ЭКОНОМИКИ)

INJECTIONS (ВЛИВАНИЕ ДЕНЕГ В ЭКОНОМИКУ)

WITHDRAWALS (ИЗЪЯТИЯ ДЕНЕГ ИЗ КРУГООБОРОТА)

INFLATION (ИНФЛЯЦИЯ)

THE IMPACT OF INFLATION ON BUSINESS (ВЛИЯНИЕ ИНФЛЯЦИИ НА БИЗНЕС)

CAN INFLATION BE BENEFICIAL (МОЖЕТ ЛИ ИНФЛЯЦИЯ БЫТЬ БЛАГОТВОРНОЙ)?

MONEY AND BANKING (ДЕНЬГИ И БАНКОВСКОЕ ДЕЛО)

THE ROLE OF BANKS (РОЛЬ БАНКОВ)

MODERN BANKING (СОВРЕМЕННАЯ БАНКОВСКАЯ СИСТЕМА)

MONEY AND THE RETURN IT EARNS (ДЕНЬГИ И ДОХОД, КОТОРЫЙ ОНИ ПРИНОСЯТ)

INTEREST RATES AND BOND PRICES (СТАВКА ПРОЦЕНТА И ЦЕНЫ НА ОБЛИГАЦИИ)

THE MONEY SUPPLY AND THE DEMAND FOR MONEY (ПРЕДЛОЖЕНИЕ И СПРОС НА ДЕНЬГИ)

THE MONEY MARKET (РЫНОК ДЕНЕГ)

MARKETS AND INTEREST RATES (РЫНКИ И НОРМА ПРОЦЕНТА)

PRIMARY AND SECONDARY MARKETS (ПЕРВИЧНЫЙ И ВТОРИЧНЫЙ РЫНКИ)

MONETARY POLICY (КРЕДИТНО-ДЕНЕЖНАЯ ПОЛИТИКА)

THE ECONOMIC ENVIRONMENT (ЭКОНОМИЧЕСКАЯ СРЕДА)

The economy comprises millions of people and thousands of firms as well as the government and local authorities, all taking decisions about prices and wages, what to buy, sell, produce, export, import and many other matters. All these organizations and the decisions they take play a prominent part in shaping the business environment in which firms exist and operate.

The economy is complicated and difficult to control and predict, but it is certainly important to all businesses. You should be aware that there are times when businesses and individuals have plenty of funds to spend and there are times when they have to cut back on their spending. This can have enormous implications for business as a whole.

When the economy is enjoying a boom, firms experience high sales and general prosperity. At such times, unemployment is low and many firms will be investing funds to enable them to produce more. They do this because consumers have plenty of money to spend and firms expect high sales. It naturally follows that the state of the economy is a major factor in the success of firms.

However, during periods when people have less to spend many firms face hard times as their sales fall. Thus, the economic environment alters as the economy moves into a recession. At that time, total spending declines as income falls and unemployment rises. Consumers will purchase cheaper items and cut expenditure on luxury items such as televisions and cars.

Changes in the state of the economy affect all types of business, though the extent to which they are affected varies. In the recession of the early 1990s the high street banks suffered badly. Profits declined and, in some cases, losses were incurred. This was because fewer people borrowed money from banks, thus denying them the opportunity to earn interest on loans, and a rising proportion of those who did borrow defaulted on repayment. These so-called "bad debts" cut profit margins substantially. Various forecasters reckoned that the National Westminster Bank's losses in the case of Robert Maxwell's collapsing business empire amounted to over ?100 million.

No individual firm has the ability to control this aspect of its environment. Rather, it is the outcome of the actions of all the groups who make up society as well as being influenced by the actions of foreigners with whom the nation has dealings.

VOCABULARY NOTES

to comprise - включать в себя, составлять

local authorities - местные органы власти

to take (syn. to make) decisions - принимать решения

to play a prominent part - играть заметную (значительную) роль

to shape the environment - формировать обстановку, среду, окружение

to predict (syn. to forecast) - предсказывать

to be aware - осознавать, знать

to cut back on spending - сокращать расходы

enormous implications - большое значение, смысл, влияние

general prosperity - всеобщее процветание

to enable smb to do smth - делать возможным для кого-то, позволять кому-либо что-либо делать

consumers - потребители

to alter - изменяться

a recession - упадок

total spending - общие, суммарные расходы

to decline - снижаться

income - доход

unemployment - безработица

to purchase (syn. to buy) - покупать

to cut expenditure - сокращать расходы

luxury items - предметы роскоши

to affect (syn. to influence smb. smth) - влиять

the extent - степень

to some extent - в некоторой степени

the high street banks - центральные банки

to suffer badly - сильно пострадать

profits - прибыль

to incur (syn. to bear, to suffer) losses - нести убытки, потери

to borrow from - занимать, брать взаймы

to deny the opportunity - лишать возможности

to deny - отрицать

to earn interest - получать процентный доход

loans - ссуды, займы

to default on repayment - не выполнять обязательств по выплате (долгов, процентов и т. п.)

a debt - долг

profit margins - размеры прибыли

the outcome of the actions - результат действий

to make up society - составлять общество

to have dealings - иметь торговые (деловые) связи

Assignments (задания)

I. Suggest the Russian equivalents

the government and local authorities; firms experience high sales; their sales fall; total spending declines as income falls; luxury items; the high street banks suffered badly; to earn interest on loans; so-called "bad debts"

II. Replace the parts in italics by synonyms

The economy comprises millions of people; losses were incurred; the nation has dealings; changes in the state of the economy affect all types of business;

profits declined; losses amounted to over ? 100 million.

III. Increase your vocabulary

There is a set of words related to the word economics. In a table we can show them like this.



Econom	у
	ics
	ic	al	ly
	ist

Each word has a different use. Try to put the right word in the blanks in these sentences:

1. Marx and Keynes are two famous __.

2. Those people are studying the science of__.

3. We sometimes call a person's work his __ activity.

4. People should be very __ with the money they earn.

5. The __ system of a country is usually called the national __.

6. The people in that town live very __.

Translate into English

1. Состояние экономики очень тревожное.

2. Экономическая политика правительства часто подвергается справедливой критике.

3. Она очень экономная хозяйка.

4. Мировая экономика - это наука, которая изучает состояние экономики в разных странах мира.

5. Моя новая машина гораздо экономичнее старой.

The table shows how words are formed around the verb to produce.

Produc	e	r
	t	iv(e)	ity
		ion

Use these words in the suitable blanks in the sentences below:

1. The company __ a new commodity every year.

2. The company's newest __ is a special blue soap powder.

3. The __ of soap powders met last year to discuss prices.

4. That factory is not as __ now as it was 5 years ago.

5. The __ of that factory has gone down over the last 5 years.

6. The manager of the factory has decided that they must increase their of packets of soap powder.

Translate into English

1. В этом году наша компания изготовила (выпустила) вдвое больше автомобилей, чем в прошлом.

2. Производители этой модели оборудования не смогли найти для нее рынка сбыта.

3. Эта фирма известна своей высококачественной продукцией.

4. Производство нового самолета начнется в следующем году.

5. Они работают очень много, но все их усилия не слишком продуктивны.

6. Руководство ищет эффективные способы повышения производительности труда.

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

1. The economy is complicated and difficult to __.

2. When the economy __, firms experience high sales and __.

3. The economic environment __ as the economy moves into __.

4. Changes in the state of the economy __ all types of business.

5. During a __ fewer people borrowed money from banks, thus __ to earn interest on __.

6. So-called "bad debts" cut __ substantially.

7. The economic __ is __ of all the groups who make up society as well as __ of the actions of foreigners with whom the nation __.

V. Translate into English

to affect smb, smth

1. Перемена погоды плохо повлияла на выступление спортсменов.

2. Эта новость сильно на него подействовала.

3. Рост цен повлиял на спрос.

4. Его мнение не повлияет на мое решение.

to deny

1. Она рассердилась, узнав, что лишена возможности его видеть.

2. Она ни в чем себе не отказывает.

3. Мы лишены возможности уплатить по счету в срок.

to some, what, such an, a certain extent

1. В некоторой степени вы правы.

2. В какой степени ему можно верить?

3. Ковер был грязный до такой степени, что невозможно было понять, какого он был цвета.

4. В определенной степени я согласен с вами.

VI. Find in the text English equivalents for the following

играть заметную роль; формировать среду; сокращать расходы на... (2 вар.); сократить размеры прибыли; переживать подъем; переживать тяжелые времена; прийти в упадок; доходы падают (2 вар.); нести убытки; состояние экономики; иметь большое значение для бизнеса в целом;

отсюда, естественно, следует; лишать возможности; результат действий;

не выполнять обязательств по уплате.

VII. Answer the questions

1. What does the economy comprise?

2. What's a boom in the economy? What characterises the state of the economy at that time?

3. What happens when the economy moves into a recession?

4. What are "bad debts"?

5. What happened to some banks in the early 1990s and why?

VIII. Translate using all the active possible

1. Состояние экономики (экономической среды) имеет большое значение для успешной деятельности фирм.

2. Когда экономика находится на подъеме, то фирмы продают больше товаров, что ведет к получению больших прибылей и процветанию.

3. Упадок экономики характеризуется сокращением объема производства и сбыта продукции. Отсюда, естественно, следует, что доходы предприятий снижаются и они несут убытки.

4. Результатом деятельности всех субъектов производства (групп общества) является формирование той или иной экономической среды в которой развивается бизнес.

5. У фирмы не было возможности увеличить расходы на рекламу в результате чего она потеряла часть рынка сбыта.

MEASURING ECONOMIC ACTIVITY (ИЗМЕРЕНИЕ ЭКОНОМИЧЕСКОЙ АКТИВНОСТИ)

There are a large number of statistics produced regularly on the operation of the world's major economies. The UK's economy is no exception in this respect. You will probably have noticed that often the headlines in newspapers or important items on television news programmes relate to economic data and the implications for individuals and businesses. A prime example of this occurs when interest rates are increased: the media responds by highlighting the adverse effects on businesses with debts and householders with mortgages.

Data is provided on a wide range of aspects of the economy's operation. Statistics are available to show.

* the level of unemployment

* the level of inflation

* a country's trade balance with the rest of the world

* production volumes in key industries and the economy as a whole

* the level of wages

* raw material prices, and so forth.

The main statistics illustrating the economy's behaviour relate to the level of activity in the economy. That is, they tell us whether the economy is working at fall capacity using all or nearly all, available resources of labour, machinery and other factors of production or whether these resources are being under-utilized.

The unemployment figures for the economy give an indicator of the level of activity. As the economy moves towards a recession and a lower level of prosperity it is likely that unemployment figures will rise. An alternative measure of the level of activity is national income statistics, which show the value of a nation's output during a year. Economists use the term Gross National Product to describe this data. Changes in the level or trends of such key data have great significance for businesses, as we shall see later.

There are numerous sources of data on the economy of which we can make use. The government publishes much through the Treasury, Department of Trade and Industry, the Bank of England and the Department of Employment. The Central Statistical Office, which was established during the Second World War, publishes about half of the government's economic data.

Much of this is contained in its annual publication, "The Annual Abstract of Statistics". It also publishes the equally valuable "Social Trends" annually. Additionally, private organizations, such as the banks, building societies and universities, publish figures on various aspects of the economy's performance.

Economic statistics are presented in many forms, the most common being graphs and tables. Although these statistics can be valuable in assisting managers, they should be treated with some caution when predicting the future trend of the economy and thus helping the business to take effective decisions.

VOCABULARY NOTES

to measure - измерять, рассчитывать, оценивать

economic activity - экономическая деятельность

is no exception in this respect - в этом отношении не является исключением

important items - важные вопросы, проблемы

to relate to - относиться к чему-либо, иметь отношение; рассказывать

by highlighting the adverse effects on... - в первую очередь освещая неблагоприятное влияние на...

householder - домовладелец, домохозяин

household - домашнее хозяйство

mortgage - закладная

data - данные

on a wide range of aspects - по самым разнообразным аспектам

statistics are available to show - статистика показывает

trade balance - торговый баланс

key industries - основные отрасли промышленности

wages - заработная плата (рабочих)

salary - оклад, жалованье (служащих)

raw material prices - цены на сырье

at full capacity - на полную мощность

available resources - доступные, имеющиеся в наличии ресурсы

labour - труд

machinery - оборудование

factors of production - производственные факторы, факторы производства (труд, земля, природные ресурсы, капитал)

to be under-utilized - не использоваться полностью

unemployment figures - количество безработных

indicator -- показатель

national income - национальный доход

the value of a nation's output - оценка объема производства страны

Gross National Product (GNP) - валовой национальный продукт (ВНП)

trend - направление, тенденция, тренд

the Tresuary - Государственное казначейство. Министерство финансов (в Великобритании)

the Department of Employment - Министерство по вопросам занятости (в Великобритании)

the Central Statistical Office - Центральное статистическое управление

to contain - содержать

equally valuable - такой же важный

building societies - англ. строительные общества (специализированные сберегательные учреждения)

graphs and tables - графики и таблицы

to assist - помогать, оказывать помощь

they should be treated with some caution - к этим данным следует относиться с некоторой осторожностью

Assignments

I. Suggest the Russian equivalents

important items on TV programmes relate to economic data and the implications for individuals and businesses; a prime example; the adverse effects; householders; statistics are available to show; available resources of labour; at full capacity; key industries; key data; the value of a nation's output;

the Treasury; building societies; they should be treated with some caution;

trend (find it in 3 sentences)

II. Replace the parts in italics by synonyms

a large number of, the operation of the world's major economies; headlines relate to; the implications for individuals and businesses; by highlighting the adverse effects on businesses; these resources are being under-utilized; figures give an indicator of, changes have great significance for; numerous; additionally;

economic statistics are presented in many forms

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

1. The headlines in newspapers often __ economic data and __ for individuals and businesses.

2. The statistics tell us whether the economy is working __ using all or nearly all, __ resources of labour, machinery and other factors of production or whether these resources are being __.

3. Economists use the term __ to describe the value of a nation's output during a year.

4. Although these statistics can be __ in assisting managers, they should __ with __ when __ the future trend of the economy.

IV. Find in the text English equivalents for the following

много (многочисленные); в этом отношении; средства массовой информации; подчеркивать, выделять; закладные; объем производства; сырье; не полностью используется; уровень занятости; валовой национальный продукт; опубликовать в каких-либо источниках

V. Increase your vocabulary

it is likely (unlikely) that...

smb is likely (unlikely) to be (to do smth)

1. Эта статистика, возможно, будет опубликована в ежегоднике Центрального статистического бюро.

2. Вряд ли эти цифры говорят о низком уровне занятости.

3. Похоже, что эти производственные мощности используются не полностью.

4. Может быть, экономика будет работать на полную мощность, если будут использованы все факторы производства.

VI. Give explanations in English

media; householders; mortgages; trade balance; wages; building societies

VII. Answer the questions

1. Why does the media relate to economic data and the implications for individuals and businesses?

2. What aspects of the economy's operation are statistics available to show?

3. What do statistics show?

4. What are the sources of data on the economy in the UK? In Russia?

5. What is the GNP?

6. Why should statistics be treated with some caution?

VIII. Translate using all the active possible

1. К официальным статистическим данным по уровню инфляции в стране следует относиться с осторожностью.

2. Валовой национальный продукт - это совокупность товаров и услуг, произведенных национальной экономикой за год.

3. Объем производства продукции в ключевых отраслях промышленности в значительной степени показывает уровень активности населения.

4. Если в экономике отмечается падение производства, то следствием этого становится рост безработицы и понижение уровня зарплаты.

5. Средства массовой информации сообщили об отрицательном влиянии на производство увеличившейся процентной ставки.

THREE ECONOMIC ISSUES (ТРИ ВОПРОСА ЭКОНОМИКИ)

Three economic issues

Economics is the study of how people choose to allocate scarce resources to satisfy their unlimited wants. The main problem in economics is the question of allocating scarce resources between competing uses. In this section three economic issues are discussed to show how society allocates its scarce resources between competing uses. In this connection the question what, how and for whom to produce is of great significance.

The oil price shocks

Oil is an important commodity in modem economies. Oil and its derivatives provide fuel for heating, transport, and machinery, and arc basic inputs for the manufacture of industrial petrochemicals and many household products ranging from plastic utensils to polyester clothing. From the beginning of this century until 1973 the use of oil Increased steadily. Over much of this period the price of oil fell in comparison -with the prices of other products. Economic activity was organized on the assumption of cheap and abundant oil.

In 1973 - 74 there was an abrupt change. The main oil-producing nations, mostly located in the Middle East but including also Venezuela and Nigeria, belong to OPEC -- the Organisation of Petroleum Exporting Countries. Recognizing that together they produced most of the world's oil, OPEC decided in 1973 to raise the price at which this oil was sold. Although higher prices encourage consumers of oil to try to economize on its use, OPEC countries correctly forecast that cutbacks in the quantity demanded would be small since most other nations were very dependent on oil and had few commodities available as potential substitutes for oil. Thus OPEC countries correctly anticipated that a substantial price increase would lead to only a small reduction in sales. It would be very profitable for OPEC members.

Oil prices are traditionally quoted in US dollars per barrel. Fig. 1 shows the price of oil from 1970 to 1986. Between 1973 and 1974 the price of oil tripled, from $2,90 to $9 per barrel. After a more gradual rise between 1974 and 1978 there was another sharp increase between 1978 and 1980, from $12 to $30 per barrel. The dramatic price increases of 1973 - 79 and 1980 - 82 have become known as the OPEC oil price shocks, not only because they took the rest of the world by surprise but also because of the upheaval they inflicted on the world economy, which had previously been organized on the assumption of cheap oil prices.

People usually respond to prices in this or that way. When the price of some commodity increases, consumers will try to use less of it but producers will want to sell more of it. These responses, guided by prices, are part of the process by which most Western societies determine what, how and for whom to produce.Consider first how the economy produces goods and services. When, as in the 1970s, the price of oil increases six-fold, every firm will try to reduce its use of oil-based products. Chemical firms will develop artificial substitutes for petroleum inputs to their production processes; airlines will look for more fuel-efficient aircraft; electricity will be produced from more coal-fired generators. In general, higher oil prices make the economy produce in a way that uses less oil.

Oil price ($ per barrel)



Figure 1. The price of oil. 1970 - 86

How does the oil price increase affect what is being produced? Finns and households reduce their use of oil-intensive products, which are now more expensive. Households switch to gas-fired central heating and buy smaller cars. Commuters form car-pools or move closer to the city. High prices not only choke off the demand for oil-related commodities; they also encourage consumers to purchase substitute commodities. Higher demand for these commodities bids up their price and encourages their production. Designers produce smaller cars, architects contemplate solar energy, and research laboratories develop alternatives to petroleum in chemical production. Throughout the economy, what is being produced reflects a shift away from expensive oil-using products towards less oil-intensive substitutes. The for whom question in this example has a clear answer. OPEC revenues from oil sales increased from $35 billion in 1973 to nearly $300 billion in 1980. Much of this increased revenue was spent on goods produced in the industrialized Western nations. In contrast, oil-importing nations had to give up more of their own production in exchange for the oil imports that they required. In terms of goods as a whole, the rise in oil prices raised the buying power of OPEC and reduced the buying power of oil-importing countries such as Germany and Japan. The world economy was producing more for OPEC and less for Germany and Japan. Although it is the most important single answer to the 'for whom' question, the economy is an intricate, interconnected system and a disturbance anywhere ripples throughout the entire economy,

In answering the 'what' and 'how' questions, we have seen that some activities expanded and others contracted following the oil price shocks. Expanding industries may have to pay higher wages to attract the extra labour that they require. For example, in the British economy coal miners were able to use the renewed demand for coal to secure large wage Increases. The opposite effects may have been expected if the 1986 oil price slump had persisted.

The OPEC oil price shocks example illustrates how society allocates scarce resources between competing uses.

A scarce resource is one for which the demand at a zero price would exceed the available supply. We can think of oil as having become more scarce in economic terms when its price rose.

VOCABULARY NOTES

to allocate resources - распределять ресурсы

scarce resources - ограниченные, скудные ресурсы

scarcity - дефицит

to satisfy unlimited wants - удовлетворять неограниченные потребности

competing uses - конкурирующие сферы использования

to be of great significance - иметь большое значение

commodity (syn. good) - товар, предмет широкого потребления

modern economy - современная экономика

oil and its derivatives - нефть и нефтепроизводные

to provide fuel for heating and transport - обеспечивать топливом системы теплоснабжения и транспорт

basic inputs - основные составляющие

to range from... to... - от... до...

plastic utensils - изделия из пластика

polyester clothing - одежда из синтетических тканей

to increase [-z], v. steadily - постоянно увеличиваться

increase [-s], n. - увеличение

over much of this period - большая часть этого периода

in comparison with (syn. as compared with) - по сравнению с

on the assumption of - исходя из предположения (допущения)

abundant oil - нефть, имеющаяся в изобилии, избытке

an abrupt change - резкое изменение

oil-producing nations - страны, производящие нефть

to be located in - располагаться в

to belong to - принадлежать

OPEC (the Organization of Petroleum Exporting Countries) - ОПЕК (Организация стран - экспортеров нефти)

to raise the price - повышать цену

(о encourage consumers - побуждать, поощрять потребителей

to economize on its use - экономить на использовании

to forecast correctly - правильно прогнозировать

cutbacks in quantity demanded - сокращения требуемого количества

to be dependent on oil - быть зависимым от нефти

to be available (syn. to be in stock; ant. to be out of stock) - иметься в наличии potential substitutes - потенциальные (возможные) заменители

to anticipate - предсказывать, предвидеть, прогнозировать

substantial price increase [-s] - существенное, значительное повышение цен

to lead (led, led) to (syn. to cause, to entail, to result in) - привести к

reduction in sales - сокращение продаж

to be profitable for - быть прибыльным, выгодным

OPEC members -- страны - члены ОПЕК.

to quote prices in US dollars per barrel - назначать, котировать цены в долларах США за баррель

to triple ['tripl] - возрастать в три раза, утраивать

a gradual rise - постепенное увеличение

sharp, dramatic increase - резкое повышение

to take by surprise - застать врасплох

upheaval [i:] - переворот

to inflict upheaval on the world economy - наносить удар по (причинять ущерб) мировой экономике

to respond to prices - реагировать на цены

a producer - производитель

to determine what, how and for whom to produce - определять что, как и для кого производить

to increase six-fold - возрастать в шесть раз

oil-based products - нефтепродукты

artificial substitutes for petroleum - искусственные заменители бензина production processes - производственные процессы

fuel-efficient aircraft - самолет с экономичным расходом топлива

oil-intensive products - продукты с высоким содержанием нефти

switch to - переключиться на

commuters - жители пригорода, регулярно приезжающие в город на работу или учебу

car-pools - группа людей, договорившихся по очереди обслуживать друг друга автомашиной

to choke off the demand - задушить спрос

substitute commodities - товары-заменители

to bid up the price - наращивать цену

to encourage production - стимулировать производство

to contemplate solar energy - рассматривать (обдумывать) вопрос об использовании солнечной энергии

to reflect a shift away from... towards (to)... - отражать переход (смену, замену) от... к...

OPEC revenues - доходы стран - членов ОПЕК

nearly $300 billion - почти 300 миллиардов долларов

industrialized Western nations - индустриальные (промышленные) западные страны

in contrast - по контрасту

oil-importing nations - страны, импортирующие нефть

to give up the production - отказаться (прекратить) от производства

in exchange for - в обмен на

to require - требовать

the buying (syn. purchasing, spending) power - покупательная способность

an intricate interconnected system - сложная взаимосвязанная система

a disturbance - нарушение равновесия, отклонение, срыв

to ripple throughout the entire economy - прокатиться волной через всю экономику

some activities expanded/contracted - некоторые виды деятельности расширились/сократились

to pay higher wages to attract the extra labour - платить более высокую зарплату для привлечения дополнительной рабочей силы

to renew - восстанавливать, возобновлять

demand for - спрос на

to secure wage increases - добиваться повышения зарплаты

price slump - резкое снижение цен

to persist - сохраняться, продолжать существовать

to exceed - превышать

the available supply - имеющееся предложение

to become more scarce in economic terms - стать более скудным, недостаточным в экономическом смысле

Assignments

I. Suggest the Russian equivalents

to increase steadily; try to economize on the use of...; to choke off the demand;

to encourage consumers to purchase smth; to encourage the production of...

II. Replace the parts in italics by synonyms

three economic questions; to give a share of resources; to have scarce supplies of raw materials; a sudden change; realising that; potential replacements; to encourage people who use oil; price increases six times; try to cut down on the use of oil

III. Find in the text antonyms for the following words rare, scarce; outputs; expensive; exports; straightforward; get, acquire; not to need; getting smaller

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

1. Economics is the study of how people choose __ scarce resources to satisfy their __.

2. Economic activity was organized on the assumption of__ oil.

3. In 1973 - 74 there was an __ change in oil prices.

4. __ countries correctly forecast that __ in the quantity demanded would be small.

5. Most nations are very dependent on oil and have few commodities available as __ for oil.

6. Oil prices are traditionally __ in US dollars per barrel.

7. The price of oil __, from $2.90 to $9 per barrel.

8. There was another __ between 1978 and 1980, from $12 to $30 per ban-el.

9. The dramatic price increases inflicted __ on the world economy.

10. These responses, __ prices, are part of the process by which most Western societies __ what, how and for whom to produce.

11. Chemical firms will develop __ for petroleum inputs to their production processes; airlines will look for more __ aircraft.

12. Finns and __ reduce their use of__ products.

13. Commuters form __ or move closer to the city.

14. High prices not only __ for oil-related commodities; they also encourage consumers to purchase __.

15. OPEC __ from oil sales increased from $35 billion in 1973 to nearly $300 billion in 1980.

16. The rise in oil prices raised __ of OPEC.

17. The economy is an __, interconnected system and a __ anywhere ripples throughout the entire economy.

18. __ industries may have to pay higher wages to attract the __ labour that they require.

19. A scarce resource is one for which the demand at a zero price would __ the available supply.

V. Find in the text English equivalents for the following

распределять ресурсы; ограниченные ресурсы; значительное повышение цен повлечет за собой несущественное снижение объема продаж; цена возросла в три раза; резкий подъем; резкий взлет цен; возросшие доходы; повысить/понизить покупательную способность; повышать заработную плату для привлечения дополнительной рабочей силы

VI. Explain in English

prices are quoted; a gradual rise; a sharp increase; household; commuters;

commodities

VII. Check your grammar

Present Tenses

Use the following verbs to complete the paragraph below:

concern, base, discuss, be, show, take up, hope for, say, offer, wish, live, suggest, provide, govern

Students __ economics for different reasons. Some __ a career in business, some __ for a deeper understanding of government policy, and some ___ about the poor or the unemployed. This book __ an introduction, which__ that economics__ a live subject. It__ real insights into the world in which we __. The material that we__ in this book __ by two ideas. The first __ that there __ a body of economics, which has to be learned in any introductory course. The second __ on the belief that modem economics is more readily applicable to the real world than traditional approaches __.

Past Tenses

Write the following sentences out in full, like this:

Keynes/famous/ his/ day/ economist/ own/ a/in... (be) Keynes was a famous economist in his own day

1915/ Treasury/ London/ in/ he/ in/ the/... (join)

best-known/ 1935/ his/ book/ in... (publish)

public/ war/ during/ he/ service/ the/ to... (recall)

5th/ in/ Cambridge/ June/ Keynes/ 1883/ on... (bear)

student/ he/ distinguished/ a... (be)

instrumental/ the IMF/ in/ the/ 1944/ World Bank/ he/ in/ and/ starting... (be)

Cambridge University/ to/ 1902/ he/ in... (go)

a/ he/ as/ Cambridge/ teacher/ to... (return)

time/ he/ a/ economist/ by/ as/ this/ brilliant... (accept)

also/ heavy/ his/ he/ by/ workload... (exhaust)

The General Theory of Employment, Interest and Money/ it... (call)

1919/ in/ he/ with/ Treaty of Versailles/ he/ because/ the... (resign, disillusion)

April/ on/ 21st/ he/ 1946... (die)

book/ conventional/ this/ thinking/ enemies/ many/ and/ him... (go against, make)

Arrange the sentences you have made into a single paragraph.

VIII. Answer the questions

1. What are the three main questions of the economy?

2. What do you need in order to understand economics?

3. What happened to the price of oil from 1900 to 1973?

4. What did OPEC decide in 1973?

5. Why was there only a small reduction in oil sales?

6. What is an oil price shock? What did the oil price shocks lead to?

7. How do people respond to a higher price for a commodity?

8. What effect do higher oil prices have on the economy?

9. What happens throughout the economy when there are high oil prices? 10 What 2 effects did high prices have on oil-importing countries?

11. When did oil become scarce?

12. What is a scarce resource?

IX. Translate using all the active possible

1. Решение вопроса о распределении ограниченных ресурсов в экономике (обществе) зависит от того, что именно, каким способом и для кого данное общество намерено производить.

2. Цены на нефть стабильно растут и отсюда, естественно, следует что потребители нефти пытаются более экономно ее использовать

3. Невероятный скачок цен на нефть в 70-х годах привел к резкому изменению экономической среды в целом. Однако результатом этого было лишь несущественное снижение объема продаж.

4. Резкое снижение спроса на нефть способствовало росту производства заменителей нефти.

5. Расширяющиеся отрасли производства для привлечения дополнительной рабочей силы вынуждены повышать уровень заработной платы Возросшие доходы поднимают покупательную способность общества.

6. Возросшие доходы поднимают покупательную способность. Одновременно для привлечения дополнительной рабочей силы расширяющиеся отрасли производства вынуждены повышать уровень заработной платы.

economic system market money income

INCOME (ДОХОД)

The second of the three economic issues is the question of income, that is, income distribution, the way in which income - that's what people earn - is distributed or shared around.

You, and your family, have an income. You have an annual income, that is what you earn in a year. This income allows you to enjoy various goods and services. It means you have a certain standard of living. Your standard of living, of course, includes what you think of as necessary to your life, things like food, water, somewhere to live, health and education. But your income doesn't just cover the necessities of life. It also includes recreation, whether that's sport or TV or a holiday. Your income will be less than some of your neighbours', but it will be more than some of your other neighbours'. Your neighbours mean not just people living in your own country, but also people living in other countries.

Just as you and your family have an income, so nations, different countries, also have an income -- the national income, it's often called. A national income is not the money the government gets. The national income is the sum total of the incomes of all the people living in that country, in other words, everyone's income added together. In the same way one can think of world income as the total of all the incomes earned by all the people in the world.

Concerning the distribution of national and world income, some questions are to be asked: who, in the world, gets what share of these incomes? The distribution of income, either in the world or in a country, tells us how income is divided between different groups or individuals. Table 1 shows the distribution of world income. There are three headings down the left-hand side of the table: income per head, percentage of world population and percentage of world Income. In poor countries, like India, China and the Sudan, the income per head is only one hundred and fifty-five pounds per year. But at the same time, they have fifty point seven per cent of the world's population. These poor countries only have five per cent of the world's income.

In middle-income countries the income per head is eight hundred and forty pounds, that's in countries like Thailand and Brazil. In the major oil countries, like Kuwait and Saudi Arabia, it's seven thousand, six hundred and seventy. In industrial countries it's six thousand, two hundred and seventy.

Turning to middle-income countries again, they have twenty-five point one per cent of world population, with fourteen point two per cent of world income. The major oil countries have point four per cent of population, the industrial countries fifteen point six. The oil countries have one point five per cent of world income, the industrial countries sixty-four point eight.

The first economic question is for whom does the world economy produce? As the table shows, it produces essentially for the people living in the rich industrial countries. They get sixty per cent of the world's income, although they only have sixteen per cent of its population. This suggests an answer to the second question, that is of what is produced. The answer is that most of world production will be directed towards the goods and services that these same rich industrialised countries want.

The third question is how goods arc produced. In poor countries, with little machinery, not very much technical training and so on, workers produce much less than workers in rich countries. And poverty is very difficult to escape. It continues on and on. And this goes some way towards accounting for the differences in national incomes. It accounts for an unequal distribution of income, not just between countries but also between members of the same country, although there individual governments can help through taxation. In other words, governments can act to help distribute income throughout their population.

VOCABULARY NOTES

income distribution - распределение дохода

an annual income - годовой доход

a certain standard of living - определенный уровень жизни

to cover the necessities of life - охватывать основные жизненные потребности

recreation - отдых, досуг

national income - национальный доход

share of income - доля, часть дохода

income per head - доход на душу населения

percentage of world population - процент мирового населения

percentage of world income - процент мирового дохода

essentially - в основном, большей частью

world production - мировое производство

rich industrialised countries - богатые промышленные страны

not very much technical training - недостаточное техническое обучение

to escape - зд. избежать

to account for (syn. to explain) - объяснять

the differences in national incomes - различия в национальных доходах

unequal distribution of income - неравное распределение дохода

throughout population - среди населения

Assignments

I. Suggest the Russian equivalents

income is shared around; income doesn't just cover the necessities of life; to suggest an answer to the question; to direct the production towards the goods and services; individual governments

II. Fill in the table with the data from the text Table 1. The distribution of world income

	Poor countries	Middle-income countries	Major oil countries	Industrial countries	Soviet bloc
Income per head
% of world
population % of world income

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

1. You have __, that is what you earn in a year.

2. Your income doesn't just __ the necessities of life.

3. It includes __, whether that's sport or TV or a holiday.

4. __ is the sum total of the incomes of all the people living in that country.

5. __ is the total of all the incomes earned by all the people in the world.

6. In poor countries __ is only one hundred and fifty-five pounds per year.

7. In __ countries the income per head is eight hundred and forty pounds.

8. Most of world production __ towards the goods and services that these same rich industrialised countries want.

9. In poor countries, with __, not very much technical training workers produce much less than workers in rich countries.

10. This goes some way towards __ the differences in national incomes.

IV. Find English equivalents

распределение доходов; ежегодный доход; определенный уровень жизни;

национальный доход; мировой доход; доля национального дохода; доход на рушу населения; процент мирового населения; страны со средним уровнем дохода; в основном; скудное техническое оборудование; недостаточное техническое образование; объяснение разницы в уровнях национальных доходов; неравное распределение доходов; избежать бедности

V. Give the definition of income distribution

VI. Give the definition of national Income

VII. Answer the questions

1. What countries are called poor?

2. For whom and what does economy produce?

3. What is the role of governments in distributing incomes?

VII. Translate into English using all the active possible

1. Национальный доход -- это общая сумма, полученная населением в виде заработной платы, ренты, процента и прибыли в течение определенного периода, обычно в течение одного года.

2. Источники неравенства - это причины, вызывающие неравенство в распределении дохода. Поскольку существуют два основных источника доходов - трудовые доходы и доходы от собственности, источники неравенства разделяют на 2 группы: источники, вызывающие неравенство в трудовых доходах; и источники, вызывающие неравенство в доходах от собственности. В развитых странах источниками неравенства в трудовых доходах являются, в основном, образование и профессия. Доходы от собственности еще более дифференцированы, чем доходы от трудовой деятельности, поскольку обусловлены неравенством в распределении богатства. Основными источниками неравенства в доходах от собственности являются предпринимательская деятельность и наследство.

THE ROLE OF GOVERNMENT (РОЛЬ ПРАВИТЕЛЬСТВА)

Having mentioned the effect of government tax policy on the income distribution, it's necessary to examine in greater detail the role of the government in society In every society governments provide such services as national defence, police, public education, firefighting services, and the administration of justice. In addition, governments through budget make transfer payments to some members of society.

Transfer payments are payments made to individuals without requiring the provision of any service in return. Examples are social security, retirement pensions, unemployment benefits, and, in some countries, food stamps. Government expenditure, whether on the provision of goods and services (defence, police) or on transfer payments, is chiefly financed by imposing taxes, although some (small) residual component may be financed by government borrowing. Tabl. 2 compares the role of the government in four countries.

Tabl. 2. Government Spending as a Percentage of National Income

Country	Purchase of goods and services	Transfer payments	Debt interest	Total
	%	%	%	%
UK	23,0	17,2	5,1	45,3
Japan	14,9	12,7	4,6	32,2
USA	20,1	12,2	4,8	37,1
Italy	27,0	23,0	9,2	59,4

In each case, we look at four measures of government spending as a percentage of national income: spending on the direct provision of goods and services for the public, transfer payments, Interest on the national debt, and total spending.

Italy is a "big-government" country. Its government spending is large and it needs to raise correspondingly large tax revenues. In contrast, Japan has a much smaller government sector and needs to raise correspondingly less tax revenue. These differences in the scale of government activity relative to national income reflect differences in the way different countries allocate their resources among competing uses.

Governments spend part of their revenue on particular goods and services such as tanks, schools and public safety. They directly affect what is produced. Japan's low share of government spending on goods and services in Tabl. 2 reflects the very low level of Japanese spending on defence.

Governments affect for whom output is produced through their tax and transfer payments. By taxing the rich and making transfers to the poor, the government ensures that the poor are allocated more of what is produced than would otherwise be the case; and the rich get correspondingly less.

The government also affect how goods are produced, for example through the regulations it imposes. Managers of factories and mines must obey safely requirements even where these are costly to implement, firms are prevented from freely polluting the atmosphere and rivers, offices and factories are banned in attractive residential parts of the city.

The scale of government activities in the modem economy is highly controversial. In the UK the government takes nearly 40 per cent of national income in taxes. Some governments take a larger share, others a smaller share. Different shares will certainly affect the questions what, how and for whom, but some people believe that a large government sector makes the economy inefficient, reducing the number of goods that can be produced and eventually allocated to consumers.

It's commonly asserted that high tax rates reduce the incentive to work. If half of all we earn goes to the government, we might prefer to work fewer hours a week and spend more time in the garden or watching TV. That is one possibility, but there is another one: if workers have in mind a target after-tax income, e.g. to have at least sufficient to afford a foreign holiday every year, they will have to work more hours to meet this target when taxes are higher.

Whether on balance high taxes make people work more or less remains an open question. Welfare payments and unemployment benefit arc more likely to reduce incentives to work since they actually contribute to target income. If large-scale government activity leads to important disincentive effects, government activity will affect not only what, how, and for whom goods are produced, but also how much is produced by the economy as a whole.

This discussion of the role of the government is central to the process by which society allocates its scarce resources. It also raises a question. Is it inevitable that the government plays a prominent part in the process by which society decides how to allocate resources between competing demands? This question lies at the heart of economics.

VOCABULARY NOTES

having mentioned - упомянув, рассмотрев

government tax policy - налоговая политика государства

to examine in greater detail - рассмотреть более подробно

to provide service - оказать услугу

national defence - национальная оборона

firefighting service - противопожарная служба

administration of justice - отправление правосудия

to make transfer payments - осуществлять трансфертные платежи

without requiring the provision of any service in return - не требуя ответных услуг

social security - социальное обеспечение (за счет государственных налогов) retirement pensions - пенсии за выслугу лет

unemployment benefit (syn. dole) - пособие по безработице

to be, live on the dole - жить на пособие по безработице

food stamps - талоны на продовольствие

to impose taxes - облагать налогами

residual component - остаточная часть

to be financed by government borrowing - финансироваться правительственными займами

direct provision of goods and services for the public - прямое (непосредственное) снабжение (обеспечение) граждан товарами и услугами

interest on the national debt - проценты по национальному долгу

correspondingly - соответственно

the scale of government activity - размах (масштаб) государственной деятельности

relative to - в отношении чего-либо

to reflect differences - отражать различия

to affect directly - непосредственно влиять

low share - низкая (малая) доля

to affect through tax and transfer payments - оказывать воздействие через систему налогообложения и трансфертные платежи

to ensure that - обеспечивать такое положение, при котором...

than would otherwise be the case - как было бы в противном случае

to impose regulations - издавать административные положения, постановления, распоряжения

to obey safety requirements - соблюдать требования безопасности

to be costly to implement - использование (применение) обходится дорого

to pollute freely - безнаказанно загрязнять

to ban (syn. to prohibit) - запрещать

residential parts of the city - жилые части города

to be highly controversial - быть крайне неоднозначным

a large/small share - большая/малая доля, часть

to share - делить, разделять с кем-либо, e.g. I) to share smb's views, 2) to share a room with a classmate

to make the economy inefficient - снижать эффективность экономики, делать экономику неэффективной

eventually (syn. at last) - в конце концов, в конечном счете

it's commonly asserted - принято считать, по всеобщему утверждению

the incentive to work - стимул, мотивация к работе

to earn (money) - зарабатывать (деньги)

to earn one's living - зарабатывать на жизнь

a target after-tax income - целевой, базовый, чистый доход (после выплаты налогов)

at least sufficient to afford a foreign holiday - быть достаточным, по крайней мере, для того, чтобы провести отпуск за границей

to meet a target - достичь цели

on balance - с учетом всего вышесказанного, в конечном счете