English for the students of economic faculties

welfare payments - государственные пособия (напр., по безработице, по страхованию)

since (syn. as, for, because) - поскольку, так как

to contribute to - вносить вклад в

large-scale government activity - широкомасштабная деятельность правительства

to raise (syn. to bring up) a question - поднять вопрос

to be inevitable - неизбежно

to lie at the heart of economics - быть в самом центре экономики

Assignments

I. Suggest the Russian equivalents

to obey safety requirements; governments take a larger/smaller share; to make the economy inefficient; measures of government spending; interest on the national debt; total spending; to allocate resources between competing demands

II. Replace the parts in italics by synonyms

it's generally declared; managers of factories must obey the requirements;

Government directly influence what is produced; to bring up a question; to collect taxes; Government's expenditure is financed by imposing taxes.

III. Find the terms in the text, -which describe the following:

money paid to people without asking for a service in return

money paid to people when they stop working

money paid to people who have no work

money owed by the government of a country

money received by governments from taxation

money a worker keeps after paying taxes

IV. Using the information in the text, say if these statements are correct or incorrect

Governments do not make free transfer payments.

Food stamps are an example of a transfer payment.

Most government income comes from borrowing.

Japan raises more taxes than Italy.

Japan spends very little on defence.

The poor get more of what is produced through taxation and transfer payments.

Governments do not affect how goods are produced.

Nobody questions the scale of government economic activity.

Many people believe that high taxes result in people not wanting to work so hard.

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

1. Having mentioned the effect of government __ on the income distribution, it's necessary to examine in greater detail the role of the government in society.

2. Government expenditure is chiefly financed by __ taxes.

3. Italy's government spending is large and it needs to __ correspondingly large tax revenues.

4. These differences in the scale of government activity relative to __ reflect differences in the way different countries allocate their resources among __ uses.

5. By taxing the rich and making transfers to the poor, the government __ that the poor are allocated more of what is produced than would otherwise be the case.

6. Managers of factories and mines must __ safety requirements.

7. Offices and factories are __ in attractive residential parts of the city. , 8. __ of government activities in the modern economy is highly controversial.

9. Different __ will certainly affect the questions what, how and for whom.

10. A large government sector makes the economy inefficient, reducing the number of goods that can be __ allocated to consumers.

11. __ that high tax rates reduce the incentive to work.

12. Welfare payments and unemployment benefit are more likely to reduce _ to work since they actually contribute to __.

VI. Find in the text English equivalents for the following

пенсии за выслугу лет; пособие по безработице; продовольственные карточки (талоны); облагать налогом; правительственные займы; налоговая политика правительства; распределение доходов; переводные (трансфертные) платежи; взимать налоги; собирать налоговые поступления; принято считать (по всеобщему утверждению); уменьшать заинтересованность в работе; целевой (плановый) чистый доход после уплаты налогов.

VII. Answer the questions

1. What are transfer payments? Give some examples.

2. Using Tabl. 1 compare the UK and the USA on the same basis.

3. In what way can governments affect what and for whom is produced?

4. Why does a large government sector make the economy inefficient?

5. What are the two possibilities of responding to high tax rates on the part of workers?

6. What is the possible outcome of large-scale government activity?

7. Summarise in your own words the arguments for and against high taxes.

VIII. Translate using the active possible

1. Переводные платежи, к которым относятся социальное обеспечение, выплата пенсий за выслугу лет, пособия по безработице и т.д., непосредственно влияют на налоговую политику правительства.

2. Правительственные расходы (2 варианта) в основном финансируются за счет налогообложения, поэтому, чем больше сумма расходов (2 варианта), тем больше налоговых поступлений необходимо государству.

3. Степень участия государства в делах экономики может быть большей или меньшей.

4. Таким образом, государство играет важную роль в распределении ограниченных ресурсов общества.

THE PRODUCTION POSSIBILITY FRONTIER (ГРАНИЦЫ ВОЗМОЖНОСТЕЙ ПРОИЗВОДСТВА)

Let's turn to the most important tool for an economist - the production possibility frontier. This frontier shows the maximum combinations of output that the economy can produce, if it uses all its available scarce resources.

The easiest way to explain it is to complete a figure. First, the vertical axis or line, is labelled "food output". The units of food output run from nought at the bottom to 25 at the top, entering the units of food output in fives: 0, 5, 10, etc. Along the horizontal axis (or the bottom line) we have units of film output. Let's enter in the units of film output in fives again, this time up to 30.

Suppose we have an economy with only food and film industries. Now, if we put all the workers into producing food, we shall produce 25 units of food, but no units of film. We can mark this on the diagram with point A - no film, 25 units of food. It means point A comes on the vertical line at the number 25. Now, at the other extreme, if the economy puts all its workers into producing film, it will produce 30 units, but it will not produce any food. So, the next point is on the bottom, horizontal line, at 30 units. Let's label it as point E.

These two points, A and E, arc the two extreme points of the production possibility frontier. Let's put in three more points. Point В is where the economy is producing 22 units of food and 9 units of film. Point С is where the economy is producing 17 points of both film and food. And, finally, point D is where we have 10 units of food and 24 units of film. Now draw a line joining all these points together, from A to E. The line drawn is not a straight line, it's a concave curve. It is this concave curve that is called the production possibility frontier.

The production possibility frontier represents a trade-off. More of one commodity, food or film, means less of the other, and this is because of the law of diminishing returns. It states that if, in the production of a commodity, one factor of production is increased by stages while the other factors are kept unchanged, the stage will sooner or later be reached where each farther addition to the increasing factor will produce a smaller and smaller increase in output.

In our example, movements from A to B, to С and so on along the curve involve the transfer of one or more workers from one industry to the other, say, from food production to film production. The number of workers in the film industry increases, and so does the film output, but on the whole each additional worker produces less additional film. That is to say, each transfer reduces output per person in the film industry. At the same time a decrease in the food industry can be observed. So with each transfer we get less additional film output and have to give up increasing amounts of output. That's why a society faces the problem of choosing between different products, as the scarcity of available resources does not allow it to increase the production of one good without decreasing the production of the other. As all the resources are scarce, points outside the frontier (point F in the example) represent the level of production unattainable at the given stage of development. On the contrary, it is inefficient to produce within the frontier (point G in the example), as it means poor management of production. By moving on to the frontier, society could have more of some goods without having less of any other good.

VOCABULARY NOTES

a tool - инструмент

output - объем производства

a figure - чертеж, рисунок

the vertical axis (line) - вертикальная ось

to label - обозначить

food output - количество произведенных (объем производства) продовольственных товаров

nought - ноль

the horizontal axis (the bottom line) - горизонтальная ось

film output - количество произведенной (объем производства) пленки

at the other extreme - на другом полюсе

to draw a line joining all these points together - провести линию, соединяющую все эти точки

a straight line - прямая линия

a concave curve - вогнутая кривая (ant. convex - выпуклый)

a trade-off - альтернатива, выбор

the law of diminishing returns - закон сокращающейся доходности

the production of a commodity - производство товара

by stages - постепенно

each further addition - каждое последующее дополнение

an increase in output - увеличение объема производства

to involve the transfer - включать в себя, подразумевать перемещение

to reduce output per person - сокращать выработку на одного человека

additional output - дополнительный объем производства

amounts of output - объем производства, количество произведенной продукции

good - зд. благо

outside the frontier - за пределами границы

the level of production unattainable - уровень производства, недостижимый...

on the contrary - напротив

within the frontier - внутри границы

poor management of production - плохая организация производства

Assignments

I. Suggest the Russian equivalents the most important tool for the economist; the production possibility frontier;

the maximum combinations of output; to involve the transfer of workers

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

1. The production possibility frontier is the most important __ for an economist.

2. This frontier shows the maximum combinations of __ that the economy can produce, if it uses __.

3. To complete a figure of __ we need to draw __ together.

4. The line drawn is not __, it's __. It is this concave curve that is called __.

5. The production possibility frontier represents __.

6. More of one __, food or film, means __ of the other, and this is because of__.

7. It states that if, in __, one __ is increased __ while the other factors are kept __, the stage will be reached where __ to the increasing factor will produce __.

8. The number of workers in the film industry __, and so does the film __, but on the whole each __ worker produces __ additional film.

9. Each transfer __ in the film industry.

10. That's why a society faces the problem of __ between __, as ___ does not allow it __ the production of one good without __ the production of the other.

III. Draw a figure, complete it, mark all the points (from A to G) and explain it in English making use of the following phrases

a vertical axis (line), a horizontal axis (a bottom line), to label, to enter in the units in 5s, to draw a line

IV. Find English equivalents

прямая линия; вогнутая (выпуклая) кривая; именно эта кривая называется границей производственных возможностей; альтернатива, выбор;

закон сокращающейся доходности; увеличивать (уменьшать) выработку на одного человека; вертикальная ось; обозначить; горизонтальная ось;

провести линию, соединяющую все эти точки; производственный фактор, фактор производства; включать в себя, подразумевать перемещение;

дополнительный объем производства

V. Explain in English

a trade-off; the law of diminishing returns

VI. Answer the question

What does the production possibility frontier show?

VII. Translate into English using all the active possible

1. Граница производственных возможностей -- это предел в потном использовании ресурсов общества при существующем уровне развития технологии, когда увеличение производства одного блага требует сокращения производства другого.

2. Такое состояние экономики может быть отражено на графике в виде кривой, представляющей различные комбинации производства благ при максимальном использовании имеющихся ресурсов и существующем уровне технологии.

3. На графике изображена кривая, каждая точка которой показывает количество одного блага, производимого при полном использовании всех ресурсов, взамен другого блага.

4. Точки за пределами границы производственных возможностей показывают уровень производства, недостижимый при данном количестве ресурсов и имеющейся технологии.

5. Точки внутри границы показывают, что производство организовано неэффективно и есть неиспользованные ресурсы, например, рабочая сила.

6. Отсюда следует естественный вывод, что в современной экономике, когда неограниченных ресурсов практически нет, развитие технологии играет значительную роль и имеет огромное значение для экономики в целом.

ECONOMIC SYSTEMS (ЭКОНОМИЧЕСКИЕ СИСТЕМЫ)

There are a number of ways in which a government can organize its economy and the type of system chosen is critical in shaping environment in which businesses operate.

An economic system is quite simply the way in which a country uses its available resources (land, workers, natural resources, machinery etc.) to satisfy the demands of its inhabitants for goods and services. The more goods and services that can be produced from these limited resources, the higher the standard of living enjoyed by the country's citizens.

There are three main economic systems:

Planned economics (Плановая экономика)

Planned economies are sometimes called "command economies" because the state commands the use of resources (such as labour and factories) that are used to produce goods and services as it owns factories, land and natural resources. Planned economies are economies with a large amount of central planning and direction, when the government takes all the decisions, the government decides production and consumption. Planning of this kind is obviously very difficult, very complicated to do, and the result is that there is no society, which is completely a command economy. The actual system employed varies from state to state, but command or planned economies have a number of common features.

Firstly, the state decides precisely what the nation is to produce. It usually plans five years ahead. It is the intention of the planners that there should be enough goods and services for all.

Secondly, industries are asked to comply -with these plans and each industry and factory is set a production target to meet. If each factory and farm meets its target, then the state will meet its targets as set out in the five-year plans. You could think of the factory and farm targets to be objectives which, if met, allow the nation's overall aim to be reached.

A planned economy is simple to understand but not simple to operate. It does, however, have a number of advantages:

Everyone in society receives enough goods and services to enjoy a basic standard of living.

Nations do not waste resources duplicating production.

The state can use its control of the economy to divert resources to wherever it wants. As a result, it can ensure that everyone receives a good education, proper health care or that transport is available.

Several disadvantages also exist. It is these disadvantages that have led to many nations abandoning planned economies over recent years:

There is no incentive for individuals to work hard in planned economies.

Any profits that are made are paid to the government.

Citizens cannot start their own businesses and so new ideas rarely come forward.

As a result, industries in planned economies can be very inefficient. A major problem faced by command or planned economies is that of deciding what to produce. Command economies tend to be slow when responding to changes in people's tastes and fashions. Planners are likely to underproduce some items as they cannot predict changes in demand. Equally, some products, which consumers regard as obsolete and unattractive, may be overproduced. Planners are afraid to produce goods and services unless they are sure substantial amounts will be purchased. This leads to delays and queues for some products.

VOCABULARY NOTES

inhabitants - жители, население

to own - владеть

natural resources - природные ресурсы

a large amount - большой объем

central planning and direction - центральное планирование и руководство

consumption - потребление

obviously - очевидно

complicated - сложный

to have a number of common features - иметь ряд общих черт

intention - намерение

to comply with - подчиняться

a production target to meet - производственная задача (задание), которую надо выполнить

an objective - цель, задача

an overall aim - общая цель

to enjoy a basic standard of living - иметь основной уровень жизни

to duplicate production - дублировать производство

to divert - отвлекать (напр., ресурсы на другие цели)

to abandon - отказываться от чего-либо

a major problem faced by command or planned economies - основная проблема, стоящая перед командной или плановой экономикой

changes in tastes and fashions - изменения вкусов и моды

to underproduce - недопроизводить

to regard smth as - воспринимать что-либо, относиться к чему-либо как...

obsolete (syn. out of date) - устарелый, вышедший из употребления

to overproduce - перепроизводить

delays and queues - зд. перебои (с товарами) и очереди

Assignments

I. Suggest the Russian equivalents

each factory is set a production target to meet; to divert resources to wherever it wants; new ideas rarely come forward; tend to be slow when responding to changes

II. Replace the parts in italics by synonyms

obsolete products; it can ensure that...; it can be very inefficient

There is no incentive for individuals to work hard in planned economies.

It led to many nations abandoning planned economies over recent years.

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

1. The type of system chosen is __ in __, in which businesses operate.

2. An economic system is the way in which a country uses its __ to satisfy the demands of__for goods and services.

3. The more goods and services that can be produced, the higher the standard of living __ by the country's citizens.

4. The state __ factories, land and __.

5. Planned economies are economies with __ of __, when the government __ all __, decides __ and __.

6. The actual system employed __ from state to state, but command or planned economies have __.

7. It is __ that there should be enough goods and services for all.

8. Industries are asked __ these plans and each industry and factory is set __.

9. The factory and farm targets are __ which, if met, allow the nation's __ to be reached.

10. Nations do not waste resources __.

11. The state can use its control of the economy __ to wherever it wants.

12. It is __ that have led to many nations __ planned economies over recent years.

13. There is no __ for individuals to work hard in planned economies.

14. Industries in planned economies can be very __.

15. Command economies tend to __ when __ to changes in people's tastes and fashions.

16. Planners are likely __ some items as they cannot __ changes in demand.

17. Some __ and unattractive products may be __.

18. This leads to __ for some products.

IV. Find in the text English equivalents/or the following

имеющиеся в распоряжении ресурсы; управлять использованием ресурсов; управление экономикой; отказываться от плановой экономики;

иметь высокий жизненный уровень; иметь общие черты; подчиняться 5-летнему плану; значительное количество; ставить производственные задачи; полученная прибыль; стимул к эффективной работе; перебои и очереди; реагировать на изменения спроса; предсказывать изменения спроса; основная проблема, стоящая перед...

V. Answer the questions

1. What's an economic system?

2. What does a standard of living depend on?

3. What's a planned economy? What are its main features?

4. Give the advantages of a planned economy.

5. Give the disadvantages of a planned economy.

6. What causes delays and queues for some products?

7. What can you add to the list of advantages and disadvantages of a planned economy?

VI. Translate using the active possible

1. Если хозяйство плановое, то работа промышленности подчиняется плану, в котором государство определяет производственные задачи и планирует развитие на 5 лет вперед.

2. В плановой экономике покупатели лишены возможности влиять на производство товаров.

3. Поскольку значительная доля полученной прибыли должна быть выплачена государству, то в условиях плановой экономики стимулы работать эффективно невелики.

4. Промышленность часто выпускает непривлекательные и старомодные товары, поскольку невозможно предсказать изменения моды на 5 лет вперед.

5. Государство в условиях плановой экономики может гарантировать своим гражданам образование и медицинское обслуживание.

6. Все крупные решения, касающиеся объема используемых ресурсов, структуры и распределения продукции, производства и потребления, принимаются центральным плановым органом.

MARKET ECONOMICS (РЫНОЧНАЯ ЭКОНОМИКА)

The best examples of this type of economy are to be found in small South-East Asian states like Hong Kong and Singapore, though even they are not pure examples of market economies. Even they contain some businesses owned and run by the state.

In a true market economy the government plays no role in the management of the economy, the government does not intervene in it. The system is based on private enterprise with private ownership of the means of production and private supplies of capital, which can be defined as surplus income available for investment in new business activities. Workers arc paid wages by employers according to how skilled they are and how many firms wish to employ them. They spend their wages on the products and services they need. Consumers are willing to spend more on products and services, which are favoured. Firms producing these goods will make more profits and this will persuade more firms to produce these particular goods rather than less favoured ones.

Thus, we can see that in a market economy it is consumers who decide what is to be produced. Consumers will be willing to pay high prices for products they particularly desire. Firms, which are privately owned, see the opportunity of increased profits and produce the new fashionable and favoured products.

Such a system is, at first view, very attractive. The economy adjusts automatically to meet changing demands. No planners have to be employed, which allows more resources to be available for production. Firms tend to be highly competitive in such an environment. New advanced products and low prices are good ways to increase sales and profits. Since all firms are privately owned they try to make the largest profits possible. In a free market individual people are free to pursue their own interests. They can become millionaires, for example. Suppose you invent a new tend of car. You want to make money out of it in your own interests. But when you have that car produced, you are in fact moving the production possibility frontier outwards. You actually make the society better-off by creating new jobs and opportunities, even though you become a millionaire in the process, and you do it without any government help or intervention.

Not surprisingly there are also problems. Some goods would be underpurchased if the government did not provide free or subsidised supplies. Examples of this type of good and service are health and education. There are other goods and services, such as defence and policing, that are impossible to supply individually in response to consumer spending. Once defence or a police force is supplied to a country then everyone in this country benefits.

A cornerstone of the market system is that production alters swiftly to meet changing demands. These swift changes can, however, have serious consequences. Imagine a firm, which switches from labour-intensive production to one where new technology is employed in the factory. The resulting unemployment could lead to social as well as economic problems.

In a market economy there might be minimal control on working conditions and safety standards concerning products and services. It is necessary to have large-scale government intervention to pass laws to protect consumers and workers.

Some firms produce goods and then advertise heavily to gain sufficient sales. Besides wasting resources on advertising, firms may also duplicate one another's services. Rival firms, providing rail services, for example, could mean that two or more systems of rail are laid.

Finally, firms have to have confidence in future sales if they are to produce new goods and services. At certain times they tend to lack confidence and cut back on production and the development of new ideas. This decision, when taken by many firms, can lead to a recession. A recession means less spending, fewer jobs and a decline in the prosperity of the nation.

VOCABULARY NOTES

to own and run (syn. to manage, to operate) businesses - владеть и управлять бизнесом

to intervene - вмешиваться

private enterprise (syn. entrepreneurship) - частное предпринимательство

private ownership (syn. property) of the means of production - частная собственность на средства производства

public property, common ownership - общественная собственность

personal property - личная собственность

state-owned property, state ownership - государственная собственность

private supplies of capital - частный капитал

surplus income available for investment in new business activities - дополнительный доход (излишек дохода), который можно вложить (инвестировать) в новое дело (бизнес)

to employ - использовать; предоставлять работу, нанимать

employer - работодатель

employee - служащий

employment - занятость

unemployment - безработица

to persuade - убеждать

at first view (syn. at first sight) - на первый взгляд

to adjust automatically - автоматически приспосабливаться; приводиться в соответствие

competitive - конкурентоспособный

to make the largest profits possible - получить наибольшую возможную прибыль

to pursue one's own interests - преследовать свои интересы

to make money out of it - заработать деньги на этом

to move the production possibility frontier outwards - продвинуть вперед предел производственных возможностей

to make the society better-off - сделать общество более состоятельным

to create new jobs and opportunities - создать новые рабочие места

to underpurchase (ant. to overpurchase) - недостаточно раскупать

to provide free or subsidized supplies - обеспечить бесплатное или субсидированное (дотированное) предоставление (товаров, услуг)

in response to (syn. in answer to) - в ответ на

a cornerstone - краеугольный камень

to alter swiftly - быстро меняться

consequences - последствия

labour- intensive production - трудоемкое производство

working conditions - условия работы

safety standards - нормы техники безопасности

large- scale intervention - широкомасштабное вмешательство

to pass laws - принимать законы

to gain sufficient sales - добиться достаточного объема продаж

rival firms - фирмы-конкуренты, соперники

to have confidence - иметь уверенность

to lack confidence - не хватать уверенности

Assignments

I. Suggest the Russian equivalents

new advanced products; products which are favoured; they try to make the

largest profits possible; provide free or subsidized supplies; produce goods and

then advertise heavily; a firm which switches from labour- intensive production a new one; a decline in the prosperity of the nation 77. Replace the parts in italics by synonyms

businesses owned and run by the state; products and services, which are favoured; at first view; production alters swiftly ill. Fill in the gaps -with the words and expressions from the text

1. Small South-East Asian states like Hong Kong and Singapore contain some businesses __ by the state.

2. The system is based on __ with __ of __.

3. Private supplies of capital can be defined as __ available for __ in __.

4. Consumers are willing to spend more on products and services, which __.

5. More profits will __ more firms to produce those particular goods that are favoured.

6. In a market economy it is __ who decide what is to be produced.

5. __ firms see the opportunity of __ and produce the new fashionable and favoured products.

6. The economy __ automatically to meet changing demands.

7. Finns tend to be highly __in such an environment.

7. In a free market individual people are free __.

8. But when you have that car produced, you are moving __.

9. You actually make __ by __, even though you become a millionaire in the process, and you do it without __ or __.

10. Some goods would be __ if the government did not provide __ supplies.

11. Some other goods and services, such as defence and policing, are impossible to __ in response to consumer spending.

12. __ of the market system is that production __ to meet changing demands.

13. If a firm switches from __ to one where new technology __ in the factory, it can lead to __ and __ problems.

14. It is necessary to have __ to pass laws __ consumers and workers.

15. Firms have __ in future sales if they are to produce new goods and services.

16. A recession means __ spending, __jobs and __ of the nation

IV. Find in the text English equivalents for the following

управление экономикой; процветание нации; широкомасштабное вмешательство правительства; принимать законы; быстро меняться; конкурирующие фирмы; автоматически изменяться (приспосабливаться); быть конкурентоспособным; частные фирмы; фирмы, принадлежащие государству и управляемые им; краеугольный камень; иметь серьезные последствия для...;

трудоемкое производство; сокращать производство; быть уверенным в...; не хватает уверенности в...; дорого платить за что-либо

V. Answer the questions

1. What's a market economy?

2. What's the main difference between a market economy and a planned economy?

3. Do changing demands affect production? In what way?

4. What's the mechanism of producing goods and services in a market economy?

5. Give the advantages of a market economy.

6. Give the disadvantages of a market economy.

VI. Translate using all the active possible

1. В рыночной экономике невелика или очень мала необходимость в планировании, контроле и широкомасштабном вмешательстве со стороны государства (правительства) в экономический процесс.

2. В условиях рыночной экономики изменения потребительского спроса играют заметную роль в формировании политики фирм.

3. Чтобы быть конкурентоспособными и увеличивать доходы, фирмы должны постоянно изучать спрос и менять свою деятельность в ответ на его изменения.

4. Чем более модный товар, тем более высокую цену надо за него платить.

5. Некоторые виды услуг, например здравоохранение и образование, не могут быть полностью обеспечены только частными фирмами.

6. Рыночная экономика характеризуется частной собственностью на ресурсы и использованием системы рынков и цен для управления экономической деятельностью.

7. В такой системе каждый ее участник волен преследовать свои собственные интересы; каждая экономическая единица стремится получить наибольший возможный доход на основе индивидуального принятия решений.

MIXED ECONOMICS (СМЕШАННАЯ ЭКОНОМИКА)

Command and market economies both have significant faults. Partly because of this, an intermediate system has developed, known as mixed economies.

A mixed economy means very much what it says as it contains elements of both market and planned economies. At one extreme we have a command economy, which does not allow individuals to make economic decisions, at the other extreme we have a free market, where individuals exercise considerable economic freedom of choice without any government restrictions. Between these two extremes lies a mixed economy. In mixed economies some resources are controlled by the government whilst others are used in response to the demands of consumers.

Technically, all the economies of the world arc mixed: it is just the balance elements between market and planned elements that alters. Some countries are nearer to command economies, while others are closer to free market economies. So, for example, Hong Kong has some state-controlled industry, while Cuba has some privately owned and controlled firms.

The aim of mixed economies is to avoid the disadvantages of both systems while enjoying the benefits that they both offer. So, in a mixed economy the government and the private sector interact in solving economic problems. The state controls the share of the output through taxation and transfer payments and intervenes to supply essential items such as health, education and defence, while private firms produce cars, furniture, electrical items and similar, less essential products.

The UK is a mixed economy: some services arc provided by the state (for example, health care and defence) whilst a range of privately owned businesses offer other goods and services. The Conservative government under Margaret Thatcher switched many businesses from being state-owned and controlled to being privately owned as part of its privatization programme. This has taken the UK economy further away from the planned system.

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 [wailst] (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 element 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 (syn. -- 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

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.

It 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.

1. 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.

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 hamburgers 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.

POSITIVE AND NORMATIVE ECONOMICS (ПОЗИТИВНАЯ И НОРМАТИВНАЯ ЭКОНОМИЧЕСКИЕ ТЕОРИИ)

In studying economics it is important to distinguish two branches of the subject. The first is known as "positive economics", the second as "normative economics".

Positive economics deals with objective or scientific explanations of the working of the economy. The aim of positive economics is to explain how society makes decisions about consumption, production, and exchange of goods. The purpose of this investigation is twofold: to satisfy our curiosity about why the economy works as it does, and to have some basis for predicting how the economy will respond to changes in circumstances.