VI. Match the words in the left-hand column with their synonyms.
ГOCУДАРСТВЕННЫЙ УНИВЕРСИТЕТ– ВЫСШАЯ ШКОЛА ЭКОНОМИКИ
ФАКУЛЬТЕТ ЭКОНОМИКИ
КАФЕДРА АНГЛИЙСКОГО ЯЗЫКА
Барановская Т.А., Васильева И.Б., Зайцева В.С., Захарова Л.А.,
Кашкарова Т.П., Ласточкина Т.И., Поспелова Т.Б., Суворова Ю.А.
УЧЕБНО-МЕТОДИЧЕСКОЕ ПОСОБИЕ
К учебнику
“ECONOMICS” by C.St.J.Yates
для студентов 1 курса
Москва 2010
ПРЕДИСЛОВИЕ
Настоящее пособие является дополнением к учебнику ‘Economics’ by Christopher St J. Yates, который содержит большое количество специальной лексики, но не предлагает достаточного количества тренировочных упражнений для ее закрепления.
Данное пособие ставит своей задачей помочь студентам более эффективно усваивать экономические термины и оперировать ими в речи.
UNIT 1
THREE ECONOMIC ISSUES
I. Find the following words and word-combinations in the texts and translate them into Russian.
a) an instruction manual; to make sense; to allocate scarce resources; oil and its derivatives; basic inputs; household products; utensils; in comparison with; cheap and abundant; abrupt change; to encourage; on an assumption; cutbacks in the quantity demanded; small reduction in sales; the upheaval price shocks inflicted; commuters form car-pools; to bid up prices; to contemplate solar energy; a shift away from expensive oil-using products towards less oil-intensive substitutes; ripples throughout the entire economy; price slump persists
b) governments provide such services as national defence; the administration of justice; social security; to impose taxes; residual component; to raise tax revenues; correspondingly; the scale of governmental activity; the government ensures...; the regulations the government imposes; safety requirements; to make the economy inefficient; it is commonly asserted
II. Find in the texts English equivalents for the following:
a) использование нефти неуклонно росло; предметы домашнего обихода; экономическая деятельность; увеличить(поднять) цену; экономить на чем-то; предвидеть, предсказывать; быть зависимым от нефти; существенное повышение цен; искусственные заменители; реагировать на цены; увеличиваться в шесть раз; производственный процесс; экономичное воздушное судно; размышлять, обдумывать; выросший (увеличившийся) доход; сложная, взаимозависимая система; возмущение, беспокойство (сбой); расширяться; сокращаться; привлекать дополнительные трудовые ресурсы
b) налоговая политика правительства; рассмотреть более подробно; противопожарная служба; осуществлять трансфертные платежи; пособия по безработице; продовольственные карточки; расходы правительства финансируются путем налогообложения; правительственный заем; в конце концов, наконец; выплаты по социальному обеспечению; гарантировать
III. Explain in English what is meant by:
economic activity was organized on the assumption of cheap and abundant oil; oil price shocks; people respond to prices; every firm will try to reduce its use of oil-based products; a disturbance anywhere in the economy ripples throughout the entire economy; scarce resource; necessities of life; world income distribution; major oil countries; transfer payments; the government affects the three central economic questions
IV. Listening
1. Listen to the lecture in parts, answering questions in the textbook.
2. Listen to the lecture, making notes.
V. Match the words (1 – 5) with their corresponding definitions (a – e):
1. commodity
2. revenue
3. slump
4. shift
5. substitute
a. a change in the way people think about something, in the way something is done
b. a product that can be sold to make a profit, especially one in its basic form before it has been used or changed in an industrial process
c. something new or different that can be used instead of something else
d. a sudden fall in the price, value, or number of something
e. money that a business or organization receives over a period of time, especially from goods and services
X. Read the text and choose the correct word or words from A, B, C or D to fill in each gap.
Edible oil prices
Navinbhai Shah, President of the Bombay Oilseeds and Oil Exchange, reported this week that edible oil prices have remained high in India throughout the summer. According to Mr Shah, this is because (1) ____ of festivals such as Dussehra and Diwali are taking place and the (2) ____ for edible oils is always at its greatest at this time. Shah predicts, however, that (3) ____ are likely to fall next month when the new oilseed crop starts arriving.
Traders said palm oil was (4) ____ at Rs 27,000 a tonne in the domestic markets, while groundnut oil fetched the higher price of Rs 35,000 a tonne. Industry officials said domestic edible oil prices had also (5) ____ in line with Malaysian palm oil prices. Malaysian prices have (6) ____ because it seems that El Nino, which is a weather phenomenon that can disrupt weather worldwide, had (7) ____ the oilseed crop in some parts.
The new oilseed crop normally starts arriving from late October, and imports start to come down from November as domestic (8) ____ increase. The government (9) ____ that the winter oilseed output will be about 13.46 million tons (10) ____ with more than 14 million tons the previous year.
1. A the majority B a number C the number D the amount
2. A order B enquiry C demand D request
3. A costs B values C interests D prices
4. A stated B quoted C told D repeated
5. Arisen B burst Cexpanded D gained
6. A raised B elevated C gone up D highlighted
7. Abroken B injured C effected D affected
8. A numbers B supplies C records D issues
9. Acalculates Bintends Cvalues D recommends
10. Aconfronted B measuredC compared D assessed
XI. Translate into English.
1.Мы можем рассматривать цены как ключевой элемент для уравновешивания спроса на товары и услуги и имеющегося предложения.
2.Один из наиболее важных вопросов экономики сегодня - это неравенство в распределении дохода как между государствами так и между индивидами в государстве.
3.Внезапное повышение цен в 1973-74 и 1979-80 годах значительно повлияло на мировую экономику, заставив производителей приспосабливаться к новым экономическим условиям.
4.До 1973 года экономическая деятельность во всех странах базировалась на предположении о том, что нефть является дешевым и избыточным продуктом. Резкое изменение ситуации в результате внезапного повышения цен на нефть привело к перевороту в мировой экономике.
5.Чтобы преодолеть проблему недостаточности (нехватки) ресурсов, экономике приходится сосредотачиваться на том виде экономической деятельности, где она функционирует наиболее эффективно.
6.Разные экономические системы мира резко отличаются друг от друга по соотношению ролей правительства и рынка в управлении экономикой. Помимо финансирования государственного сектора производства правительство осуществляет ряд программ социального страхования и социального обеспечения.
7.Рыночная система представляет собой сложную, запутанную систему связей, посредством которой бесчисленные свободно выбранные решения учитываются и взаимно уравновешиваются.
8.Ряд экономистов утверждает, что стремление осуществить большее равенство в распределении доходов может ослабить стимулы к труду, к инвестированию, техническому прогрессу, т.е. затормозить экономический рост страны.
9.На прошлой неделе цены на нефть немного выросли после того, как король Саудовской Аравии Фадх заявил, что его страна готова сократить добычу нефти.
10.Страны ОПЕК заявляют, что они несут ответственность за цены на нефть на мировом рынке и отвечают за его стабильность.
11.Экономическая теория использует логический анализ, в основе которого лежат экономические принципы, чтобы объяснить события, предвосхитить возможные последствия и рекомендовать тот или иной способ действий.
XIV. Speaking.
1. You’re participants of the OPEC summit debating the problem of the price rise.
2. You’re debating the problem of high taxes.
UNIT 2
IV. Listening
1. Listen to the lecture in parts, answering the questions in the textbook.
2. Listen to it again, taking notes.
3. Give an explanation of the diagram you’ve drawn.
V. Match the words (1 – 5) with their corresponding definitions (a – e):
1.facility
2.trade-off
3.yield
4.expense
5.output
a.an amount of money that you get from an investment, especially bonds
b.the amount of goods or services produced by a person, machine, factory, company
c.a balance between two situations in order to get an acceptable result
d.a place or a large building which is used to make or provide a particular product or service
e.an amount of money that a business or organization has to spend on something
XI. Tasks for thought.
1. A tribe living on a tropical island includes five workers whose time is devoted either to gathering coconuts or to collecting turtle eggs. Regardless of how many other workers are engaged in the same occupation, a worker may gather either 20 coconuts or 10 turtle eggs a day.
a) Draw the production possibility frontier for coconuts and turtle eggs.
b) Suppose that a new climbing technique is invented making the harvesting of coconuts easier. Each worker can now gather 28 coconuts a day. Draw the new production possibility frontier.
2. Figure I shows a society’s production possibility frontier for cameras and watches.
a) Identify each of the following combinations of the two goods as being either efficient, inefficient, or unattainable: 60 cameras and 200 watches;
60 watches and 80 cameras;
300 watches and 35 cameras;
300 watches and 40 cameras;
58 cameras and 250 watches.
b) Suppose the society is producing 300 watches and 40 cameras, but wishes to produce an additional 20 cameras. How much output of watches must be sacrificed to enable these extra cameras to be made?
Cameras
 |
60
40
| |
 |
100 200 300 400
Watches
3. Have a look at Figure II and associate each of the points (A, B, C, D) with one of the following statements:
a) A combination of goods which cannot be produced by society given its current availability of resources and state of technology.
b) The combination of goods produced by an economy with full employment which wishes to devote its resources mainly to the production of investment goods.
c) A combination of goods produced by an economy in recession.
d) The combination of goods produced by an economy with full employment which wishes to devote its resources mainly to the production of goods for consumption.
Producer goods
 |
*D
*C
*A
*B
0 Computer goods
UNIT 3. MARKETS
IV. Listening.
Listen to the lecture twice. Be ready to give an oral summary of it.
V. Match the words (1 – 8) with their corresponding definitions (a – h):
1. stock exchange
2. labour market
3. insurance market
4. bond market
5. retail market
6. wholesale market
7. futures market
8. expense account
a.the number of people who are available to work, considered together with all the available jobs
b.a place where goods are sold to the general public for their own use, not for resale
c.the activities connected with buying and selling shares in companies
d.a place where contracts to buy or sell shares, goods, or currency at an agreed price to be delivered in the future are agreed
e.a system that allows you to get back from your employer any of your own money that you have spent while working
f.selling goods (especially in large quantities) to shopkeepers, for sale to the public
g.a place where interest-bearing securities, redeemed after a fixed period, are traded
h.a place where financial protection for property, life, health, etc. against specified risks (accident, fire, theft, loss, damage, death, etc.) is provided
VI. Match the words in the left-hand column with their synonyms:
1. to run
2. to reflect
3. to bring together
4. to look for
5. to demand
a) to meet
b) to require
c) to show
d) to operate
e) to search for
Match the words in the left-hand column with their antonyms:
1. to demand
2. convenient
3. to adopt
4. to bring together
5. satisfied
a) awkward
b) to reject
c) to offer
d) to scatter
e) dissatisfied
XI. Tasks for thought.
1. Which of the following statements are normative, and which are positive?
a) The price of oil more than tripled between 1973 and 1974.
b) In the early 1990s, the poor countries of the world received less than their fair share of world income.
c) The world distribution of income is too unjust, with poor countries having 58 per cent of the world population, but receiving only 4 per cent of world income.
d) One of the goals of the structural economy reforms in Russia is to raise the consumption level of society.
e) Since the 1970s inflation has fallen in most Western economies, but the
unemployment rate has increased.
f) Our government ought to introduce policies to reduce the unemployment rate.
g) Smoking is antisocial and should be discouraged.
h) The imposition of higher taxes on tobacco will discourage smoking.
2. Which of the following statements would not bе true for а pure “command economy"?
а) Firms choose how much labour to employ.
b) The distribution of income is government-controlled.
с) The government decides what should bе produced.
d) Production techniques are not determined by firms.
е) А government planning office decides what will bе produced, and for whom it will bе produced.
3. Figure 1 shows society's choice between social services and private goods in the fопn of а production possibility frontier. The three points А, В, С represent economies in which the government plays а more or less active role. Match each of the points with the most appropriate of the descriptions of hypothetical economies:
а) An economy in which the government intervenes as little as possible, providing only the minimumnecessary amounts of essential services.
b) An economy in which the government takes а great deal of responsibility, taxing at а high level and providing considerable social services.
с) An economy in which the government provides morethan the minimum necessary amounts of social services, but leaves room for a private sector.
 |
25 A
•
• B
• C
5 10 15 20 25
XII. Speaking.
1. Discuss advantages and disadvantages of each of the three types of economies.
2. The ‘cold war' era has vanished and countries - members of NATO are withdrawing their military bases from а number of poor countries. Discuss роssiblе consequences for these countries' economies.
3. Canada has a mainly market economy, but there are also some sectors, such as public education, that are set up along socialist lines of public ownership and control.
a) Can you think of three other such sectors?
b) Why do you think these semi-socialist sectors were created? What benefits do they offer? Why were Canadians not content just to leave them to the market?
c) What characteristic problems do these socialist sectors face? That is, are there recurrent patterns in the complaints that people make about them?
UNIT 4
IV. Listening
1. Listen to the lecture.
2. Do the tasks given in the textbook.
3. Listen to the lecture again, take notes to bе ready to write а summary of it.
V. Match the words (1 – 10) with their corresponding definitions (a – j):
1. monetary
2. urban
3. unemployment
4. building blocks
5. inflation
6. approach
7. methodology
8. Gross Domestic product
9. Gross National Product
10. sweep something under the carpet
a) the total value of all the goods and services that a country produces in a year, including income received from money invested in other countries, but not income paid to foreign investors
b) relating to towns and cities, or happening there
c) [usually plural] one of the basic parts that something is made from and cannot exist without
d) the total value of the goods and services that a country produces in a year, not including income received from money invested in other countries
e) an economic process in which prices increase so that money becomes less valuable
f) relating to a country’s money and to the systems that a country uses for controlling its money supply
g) a situation in which some people do not have work and do not have an income
h) a particular way of thinking about or dealing with something = view, mind, perspective, viewpoint, logic
i) the methods and principles used for doing a particular kind of work, especially scientific or academic research
j) try to avoid dealing with a problem
VI. Match the words in the left-hand column with their synonyms:
1. aggregate
2. particular
3. simultaneous
4. deliberate
5. retain
6. judicious
7. methodology
a) a. intended
b) b. add up
c) c. keep
d)d. concurrent
e) e. specific
f) f. system
g) g. reasoned
Match the words (1 – 5) with their antonyms (a – e):
1. urban
2. indirect
3. broad
4. emphasize
5. relative
a) a. straight
b) b. depreciate
c) c. unrelated
d) d. rural
e) e. narrow
VII. Fill in the gaps.
interaction; adjustments; market economy; government regulations; employment; cost conditions; considered; skills and training; tend; exceeds; available; result; insufficient; increase; to purchase; raw materials; decline; forced; frictional unemployment; dissatisfaction; labour force
Normal 1) ____ to changing demand and supply conditions for different products and services in а 2) _______ result in the loss of jobs for some people. Other workers quit their jobs because of 3) _____ or for other personal reasons. In а healthy есоnomy, these people should be able to find new jobs within a few weeks. While they are seeking 4) ____ they constitute a frictional unemployment bloc in the 5) ____ . Unemployment levels of 3-4% were in the past 6) ____ normal due to 7) _____ and those unemployable for one reason or another.
When a whole industry or region has less business because of changing consumer tastes or changing 8) ____ , some workers lose their jobs. There may not be enough jobs immediately 9) _______ in other industries to employ them, or they may not have the 10) _____ necessary to take jobs in other industries. This structural unemployment may 11) _____ in extended periods without work for some people.
The most serious and widespread unemployment, however, is cyclical unemployment, which occurs when there is inadequate aggregate (total) demand for goods and services. If there is 12) ____ spending in the economy 13) ____ all of the goods and services that could be produced, workers will not be able to find jobs. Those workers without jobs are 14) _____ to cut back their consumption, and this results in a further 15) _______ in output and in a further 16) _____ in unemployment.
Just as unemployment may be caused by insufficient demand, inflation may the result of too much demand. If demand 17) ____ the capacity of the economy to produce at full employment, prices will rise. Inflationary expectations and speculation 18) ____ to accelerate demand-pull inflation even more.
Another cause of inflation can be an increase in the costs of production. Shortages of 19) _____ , higher wages, or 20) _____ raise prices. The 21) ____ between demand-pull and cost-push inflation can result in an inflationary spiral.
Macroeconomic analysis
Macroeconomic analysis broadly focuses on three things: national output, unemployment and inflation. Output, the most important concept of macroeconomics, refers to the total amount of goods and services a country produces, commonly known as the gross domestic product. The figure is like a snapshot of the economy at a certain point in time.
When referring to GDP, macroeconomists tend to use __ (1) __ GDP, which takes inflation into __ (2) __, as opposed to nominal GDP, which __ (3) __ only changes in prices. The nominal GDP figure will be higher if inflation goes up from year to year, so it is not necessarily indicative of higher output levels, only of higher prices.
The one __ (4) __ of the GDP is that because the information has to be collected after a specified time period has finished, a figure for the GDP today would have to be an estimate. GDP is nonetheless like a stepping stone into macroeconomic analysis. Once a __ (5) __ of figures is collected over a period of time, they can be compared, and economists and investors can begin to decipher the business __ (6) __, which are made up of the __ (7) __ periods between economic recessions (slumps) and expansions (booms) that have occurred over time.
From there we can begin to look at the reasons why the cycles took place, which could be government policy, consumer behavior or international phenomena, among other things. Of course, these figures can be __ (8) __ across economies as well. Hence, we can determine which foreign countries are economically strong or weak.
Based on what they learn from the past, analysts can then begin to __ (9) __ the future state of the economy. It is important to remember that what determines human behavior and __ (10) __ the economy can never be foreseen completely.
1. A. real B. retail C. nominal D. normal
2. A. attention B. account C. confidence D. possession
3. A. retains B. reflects C. receives D. rebuilds
4. A. advantage B. advance C. backside D. drawback
5. A. line B. graphic C. series D. numbers
6. A. cycles B. circles C. rounds D. pattern
7. A. alternating B. altering C. constant D. substantial
8. A. changed B. compared C. assumed D. predicted
9. A. forecast B. make up C. consist D. foremost
10. A. endlessly B. accidentally C. concluded D. ultimately
XI. Tasks for thought.
1.Which of the following statements аге the concern of microeconomics and which of macroeconomics?
a) Along with other Western economies, the UK faced а sharp rise in the unemployment rate in the early 1980s.
b) The imposition of higher taxes оп tobacco will discourage smoking.
c) с) Unemployment among building labourers rose sharply in the early 1980s.
d) An increase in а society's aggregate income is likely to bе reflected in higher consumer spending.
e) А worker who has а received а рау rise is likely to buy more luxury goods.
f) А firm will invest in а machine if the expected rate of return is sufficiently high.
g) High interest rates in an economy may bе expected to discourage aggregate investment.
h) The level of gross national product in the UK is higher this year than in 1981.
i) Our government is performing the price liberalization policy.
j) Minimum wages level in Russia is about 80 rubles.
k) A student's grant depends оп his family's income per head and his personal income.
l) Tax rate decrease leads to encouraging business activity in а country.
2. Which of the following statements and why do not belong to the economics studying.
а) maximum demand satisfaction.
b) unlimited desires.
с) unlimited resources.
d) efficient usage of resources.
3. Which of the following statements would not be true for a “pure” command economy?
а) Firms choose how much labour to employ.
b) The distribution of income is government-controlled.
c) The government decides what should be produced.
d) Production techniques are not determined by firms.
e) A government planning office decides what will be produced, how it will be produced, and for whom it will be produced.
XIV. Speaking.
1. Give your comments оп the following statements.
а) Economics would bе out of need if all people could satisfy their unlimited desires.
b) All individuals at the age of 16 and above belong either to the employed or to the unemployed.
2. Your grandparents have а country house and every year go there and plant vegetables, berries, fruit trees. Do they рursuе their self-interests?
3. Let's assume, that in an есоnоmу the labour productivity has suffered а decline. Will it affect labour market (employment and unemployment rates; real wages, given the labour market is in the equilibrium).
IV. Listening
1. Listen to the lecture.
2. Do the tasks given in the textbook.
3. Listen to the lecture again, take notes to bе ready to write а summary of it.
How the Dow?
In 1896, Charles H. Dow developed what is today known as The Dow Jones Industrial Average (DJIA). It was ___1___ of 12 companies that were traded on the New York Stock Exchange. By watching this ” average” of the prices of a dozen large and ___2___ stocks, investors were able to gouge how the entire market was doing. The DJIA and its sister index, The Dow Jones Transportation Average, gave new ___3___ to the stock market.
Dow’s inventions made investing more understandable and ___4___ for those investors who previously were unsure or untrusting of it.
Though it has changed greatly over the years – including ___5___ to 30 companies and using much more ___6___ methods to calculate and deliver its values in real time – “The Dow”___7___ the world’s single most quoted and most watched index. It has truly become “the market’s measure “for investors around the globe.
Nowadays The Dow Jones Global Indexes (DJGI) family is a ___8___ global index series designed to provide a complete range of portfolio-management and ___9___ tools. The indexes are ___10___ to be broad yet investable, targeting 95% market capitalization coverage.
| A compiled | B composed | C contained | D devised | |
| A distinct | B uncommon | C deduced | D diverse | |
| A credibility | B conformity | C sincerity | D dependence | |
| A liable | B essential | C adjustable | D accessible | |
| A widening | B expanding | C enriching | D comprising | |
| A complicated | B hard | C difficult | D corresponding | |
| A retains | B survives | C remains | D waits | |
| A deliberate | B comprehensive | C simplified | D relevant | |
| A upgrading | B extending | C comprising | D benchmarking | |
| A drawn | B plotted | C designed | D fitted |
Индекс розничных цен (RPI)
Индексом розничных цен является ежемесячный показатель изменения среднего уровня цен на розничном рынке. При этом цены на предметы роскоши обычно во внимание не принимаются.
Индекс розничных цен является наиболее распространенной в Великобритании мерой инфляции, которая рассчитывается с 1947 года (Индекс CPI начал рассчитываться лишь с 1996 года). Правительство использует индекс RPI для индексации пенсий, социальных выплат, а также выплат по облигациям (gilts), защищенным от инфляции.
RPI чрезвычайно важен для понимания и прогнозирования инфляционной ситуации в Великобритании, так как является определяющим индикатором для подписания договоров по заработной плате. Чем выше темпы роста розничных цен, тем быстрее будет расти заработная плата, что приведет к значительному росту инфляции. Этот индекс будет индикатором инфляционных ожиданий британцев. Банк Англии очень пристально следит за этим индексом.
Являясь одним из основных показателей инфляции, RPI очень важен для рынка, однако однозначно описать его влияние на рынок сложно. Чаще всего в условиях здоровой экономики рост RPI ведет к росту британской валюты и одновременно к негативной динамике на фондовых площадках, так как это в свою очередь вызывает рост процентных ставок в стране и делает инструменты этой страны более доходными и выгодными для приобретения. Однако по классической макроэкономической теории рост инфляции – это чаще всего негатив, поэтому в долгосрочной перспективе это может привести к снижению национальной валюты и к падению фондовых индексов через последующее охлаждение экономики.
Не стоит забывать, что рост инфляции – это в первую очередь рост цен и удешевление национальной валюты. Это в свою очередь ведет к падению потребления. Показатель не слишком изменчив (волатилен) и достаточно хорошо поддается прогнозированию. В условиях ожидания роста или снижении процентных ставок изменение показателя в одну или другую сторону может привести к достаточно сильному изменению валютного курса.
XIV. Speaking:
1. In a small country a disastrous earthquake occurred. It had destroyed the greater part of industrial and agricultural areas. Consider the possible ways of restoring the economy of the country, and what short-term, and long term consequences may take place.
2. Say whether the behavior is rational or not if:
a) a person prefers smoking to going in for sports;
b) a talented actress in the prime of her fame quits everything and becomes a nun;
c) a world tennis-championship winner gives half of his prize for charitable purposes.
3. When analyzing people’s behaviour we use an abstract model of ‘homo economicus’. Give your reasons why it is suitable.
IV. Listening
1. Listen to the lecture.
2. Do the tasks given in the textbook.
3. Listen to the lecture again, take notes to bе ready to write а summary of it.
V. Match the terms with their definitions:
| 1. equation 2. equality 3. notation 4. to scatter 5. to reproduce | a. a short expression given in the written form; b. spread over a wide area or a long period of time; c. the situation when smth obtain the same advantages; d. to make smth happen in the same way it happened before; e. statement in mathematics that shows that two totals or amount are equal; |
VI. Match the words with their synonyms:
| 1. sensitive 2. capture 3. ignore 4. conclusive 5. determinant | a. apprehend b. neglect c. decisive d. resolving factor e. responsive |
XV. Speaking.
1. You are aware of the fact that crime may be related to economic factors. In particular, you believe it may have something to do with people not getting jobs.
a) How would you test your idea? What data would you want and why?
b) Where would you look for the data?
c) What ‘other things equal’ problem would you want to keep in mind?
2. You are on the university theatre advisory board and have to help set the price for tickets. Your aim is the maximum possible revenue for the theatre. Describe the model of the relationship between the price of tickets and total revenue.
Market Equilibrium
Equilibrium ___1___ in a market when the price has no ___2___ to change. Only at the market equilibrium price do buyers buy the quantity they want and sellers get to sell the quantity they want.
At any price ___3___ than the equilibrium price, there will be a surplus. Sellers will want to supply more goods than buyers want to buy. The market is not in equilibrium because the sellers who cannot sell all they want will ___4___ buyers by lowering the price.
At any price lower than the equilibrium price, there will be a ___5___. Buyers will want to buy more goods than sellers want to sell. The market is not in equilibrium. Buyers who cannot purchase all they want will seek to ___6___ sellers to supply more by bidding the price ___7___.
When the market is in equilibrium buyers are actually buying the most they want to at that price and sellers are actually selling the most they ___8___ to at that price. The quantity demanded equals the quantity supplied. Since everyone is actually buying or selling what they want to, no one has any ___9___ to change the price.
This reflects the law of one price. In any given market, all units tend to trade at the same price. Sellers who try to charge more ___10___ business. Any buyers who try to buy for less will not find willing sellers. So all buy and sell at the market clearing price.
| A | occurs | B | happens | C | comes up | D | arises | |
| A | course | B | tendency | C | idea | D | power | |
| A | before | B | above | C | higher | D | lower | |
| A | pursue | B | find | C | aim at | D | seek | |
| A | shortage | B | surplus | C | disadvantage | D | excess | |
| A | enable | B | induce | C | allow | D | ask | |
| A | of | B | on | C | up | D | down | |
| A | achieve | B | assume | C | attend | D | intend | |
| A | incentive | B | privilege | C | purpose | D | preference | |
| A | start | B | lose | C | are in | D | transfer |
XII. Translate into English.
1. В рыночной экономической системе ресурсы распределяются посредством обмена товарами и услугами между производителями и потребителями.
2. Производитель, который может производить товар или услугу с меньшим количеством затрат производственного фактора (factor inputs), т.е. земли, труда и капитала, по сравнению с другим производителем имеет абсолютное преимущество.
3. Чем более специализированной и независимой становится экономическая деятельность, тем большую важность приобретает ровное функционирование экономической системы для того, чтобы координировать производство и распределение.
4. Определителями спроса являются потребительские вкусы и предпочтения, уровень доходов населения, наличие товаров - заменителей и их цены, а также цены и наличие комплиментарных товаров.
5. Снижение цен на товар вызывает повышение спроса на него и снижение его предложения, что приводит к образованию дефицита на рынке.
6. Модель спроса и предложения объясняет взаимодействие предпринимательского сектора и сектора домашних хозяйств в экономике.
7. Координация принимаемых решений на рынке обеспечивается равновесной ценой и равновесным количеством каждого товара (блага).
8. Цены как результат взаимодействия предложения и спроса сообщают важную информацию, необходимую для согласования решений, принимаемых домашними хозяйствами и фирмами.
9. Повышение спроса на товар неизбежно приводит к росту цен на него, и это стимулирует поставщиков в очень короткие сроки увеличить предложение товара для продажи.
10. Если производитель предполагает, что увеличившийся спрос не является временным явлением, то он начнет вкладывать средства в расширение производства, чтобы обеспечить таким образом долговременные поставки.
XIII. Translate the following text into English:
Возьмем статическую картинку. На графике 6 представлены две кривые: DD -- кривая спроса и SS --кривая предложения. Увеличение количества денег в обращении, грубо говоря, означает сдвиг кривой DD -- вправо вверх. И, как мы видим, уровень цен при этом заметно повышается. Впрочем, видно и то, что масштаб этого повышения зависит от того, на каком участке кривой предложения мы находимся. Если на том, что ближе к горизонтальному, то цены растут слабо, если на том, что ближе к вертикальному, то сильно.
Но если мы делаем не моментальный и даже не краткосрочный снимок нашей экономики, мы должны иметь в виду, что не только кривая спроса, но и кривая предложения может смещаться - сдвигаться вправо-вниз и разворачиваться. Это означает, что теперь хозяйство в состоянии произвести больше товара, потратив столько же денег, и (при развороте) что на увеличение спроса хозяйство будет реагировать интенсивным расширением предложения. Такие сдвиги кривой предложения происходят (опять-таки в общем) благодаря инвестициям, модернизации, инновациям, то есть тоже в результате некоего вливания денег в хозяйство. И на том же графике 6, сдвигая кривую SS одновременно с кривой спроса DD, мы можем увидеть, что если увеличение денег сопровождается сдвигом кривой предложения (или приводит к нему), то инфляция оказывается существенно меньше, чем в случае, если кривая SS остается на одном и том же месте.
Эти графические опыты позволяют нам сделать следующий логический вывод: реальное количество денег в экономике России растет постоянно, но существует некоторый уровень их роста, который позволяет сдвигать кривую предложения, то есть инвестировать, модернизировать и прочее. И когда этот уровень преодолевается, инфляция снижается; когда же темп роста денежной массы оказывается недостаточно высоким, рост количества денег в обращении приводит только к росту цен.
XIV. Answer the following questions:
1.Why do we hold price constant when we talk about increasing or decreasing demand?
2.Is it the same when people are willing to (1) buy more at each price and (2) pay a higher price for each quantity?
3.If consumers buy fewer burner covers for their stoves when their income goes up, are burner covers a normal good or an inferior good?
4.When the price of a good's complement goes up, what happens to the demand for the good?
5.How does the supply curve move vertically when supply increases or "goes up"? What do up and down refer to in demand and supply diagrams?
XV. Speaking.
1. Sketch a diagram showing the demand and supply curves for a commodity. Suppose that the price of the commodity is set at a level which is above the market clearing price. How will producers and consumers perceive this market situation? How are they likely to react? How would your analysis differ if the market price were to be set below the equilibrium level?
2. Discuss some of the ways in which a change in the demand or supply conditions in a market may spill over and affect conditions in another market. Provide some examples of such spillover effects.
UNIT 8 SUPPLY AND DEMAND (2)
I. Find the following word-combinations in the texts and translate them into Russian.
a) depicts the relation between price and quantity demanded; related goods; in everyday language; substitutes and complements; time goods; technological advances; when income rises; nasty cuts of meat; social attitudes; the emphasis on health and fitness
b) moreover, fancy equipment, to provide an incentive, an improvement in technology, enable firms, allow more output from the same inputs, stringent safety regulations, to extract surface mineral deposits
II. Find in the texts English equivalents for the following:
a) прочие факторы, имеющие отношение к кривым спроса; связанные товары; грубо говоря; более точное определение понятия «субститут»; дополняющие друг друга товары; имеет тенденцию к сокращению; скоропортящиеся продукты; прогресс в технологии; товары низкого качества; низкосортное мясо; могут позволить себе тратить больше; вкусы и предпочтения потребителя; спортивное снаряжение
b) (продукт) доступный при более низкой цене; сдвиг в кривой спроса; увеличить (расширить) выпуск продукта; стоимость вводимых факторов производства; усовершенствование системы очистки; семена, устойчивые к болезням; назначать повышенную цену
III. Say what is meant by:
everyday English; holding other things constant while speaking about the relation between price and quantity demanded; substitute; complement; the price is prohibitively high; the technological advance enables the new product to be made available at a much lower price; a normal good; an inferior goods; fancy equipment; to work overtime; time goods; improvement in mass production packaging techniques; less wastage; requires expensive landscaping; the ensuing scarcity will bid up the price
IV. Listening.
1. Listen to the lecture and do the tasks in the textbook.
2. Listen to the lecture again, putting down the important points to give an oral summary.
V. Match the words (1 – 9) with their corresponding definitions (a – i):
1. an input
2. substitutes
3. complementarity
4. the demand curve
5. shift in demand
6. normal good
7. inferior good
8. total costs
9. input prices
a) a relation between two goods or services in which a rise in the price of one decreases demand for the other, because these goods are often purchased and/or used together
b) shows the quantity demanded of a good at various prices, assuming that the nonprice determinants of demand, such as consumers’ income, don’t change
c) a good whose consumption increases with income
d) two goods that compete with each other
e) change in demand curve such that a different quantity is demanded at each price
f) a good for which, other things being equal, an increase in income leads to a decrease in demand
g) the sum of all the expenditure incurred during an accounting period, either within an organization, on a product, or on a process. it is often convenient to analyse the total costs into fixed costs and variable costs .
h) the prices at which the services of factors of production, or supplies of fuels, materials, and intermediate products can be obtained
i) something used to produce the good, such as labour or materials
VI. Match the words in the left-hand column with their synonyms:
| 1. to encounter 2. wastage 3. subsequently 4. the time goods 5. prohibitively | a) consequently b) overwhelmingly c) perishable products d) losses, damages e) come across |
Match the words in the left-hand column with their antonyms:
| 1. precise 2. income 3. upward 4. quarry 5. enable | a) downward b) accumulate c) ban d) rough e) losses |
VII. Fill in the gaps in the following text.
rise, productivity, conceivable, prolonged, rapid growth, predicts, go up, deflation, reverting, level, collapse, average, apparent, falling prices, demand, expects, locked, to fall, consumer prices, downward
Most people take it for granted that prices will always 1)______, and understandably so. A 60-year-old American has seen them 2)______ by more than 1,000% in his lifetime. Yet 3)______ inflation is a recent phenomenon. Until about 60 years ago prices in general were as likely 4)______ as to rise. On the eve of the First World War, for example, prices in Britain were almost exactly the same as they had been at the time of the great fire of London in 1666.
Now the world may be 5)______ to that earlier normality. The prices of many things have fallen over the past 12 months or so. It is 6)______ that the world may be in for a new period of global 7)______ (meaning falling consumer prices) for the first time since the 1930s.
Talk of deflation is certainly at its highest 8)______ since then. Gary Shilling, an American economist, 9)______ that American 10)______ will fall by an 11)______ 1-2% a year over the next decade. In Britain, the Centre for Economics and Business Research 12)______ to see 13)______ in nearest future. Several pundits* reckon that continental Europe is heading for deflation rather sooner.
Just how dangerous would that be? The answer is, it depends. In the 1930s, falling prices 14)______ economies into a 15)______ spiral, in which shrinking 16)______, deepening pessimism, financial distress and the 17)______ inability of governments to put things right led to economic 18)______. But deflation can also take a friendlier form – when it is driven by 19)______ in 20)______, for instance. Look around the world, and you see both kinds of deflation at work, and in some places a mixture of the two.
______________
*pundits – ученый муж (ироническое название для экономических и финансовых аналитиков)
VIII. Give the terms for the following explanations.
1. A good for which demand falls when income increases.
2. Two goods are described thus when an increase in the price of one is generally associated with a fall in demand for the other.
3. The choices made by consumers as to which products to consume.
4. The hours of work that are additional to those formally agreed with the labour force.
5. Rules imposed by governments to control the operation of the market.
6. The manufacture of a product in a very large quantities
7. The means of protecting and selling a product.
8. A good for which demand increases when income rises.
9. Quantity demanded of a good multiplied by its price.
10. The period necessary for complete adjustment to a price change.
IX. Say whether the following statements are true or false. Extend your ideas.
1. A change in the price of a good will cause a shift in its demand curve.
2. An increase in consumers’ incomes will cause an expansion in the demand for all goods.
3. A poor potato harvest will result in higher prices for chips, other things being equal.
4. The price charged for a good is the equilibrium price.
5. An inferior good is one that has been badly produced.
6. If the demand for a good rises following an increase in consumers’ incomes (other things being equal), that good is known as ‘normal’.
7. The imposition of a minimum legal wage will lead to an increase in employment.
8. In everyday parlance, two goods X and Y are known as complements if an increase in the price of X, other things equal, leads to a fall in demand for good Y.
9. The imposition of a pound per unit tax on a good will lead to a pound increase in the price of the good.
10. When the Pope gave permission for Catholics to eat meat on Fridays, the equilibrium price and quantity of fish fell.
X. Complete the sentences using prepositions from the box:
with, from(2), at(4), above, for, than(2), to(6), below, of, in, up, down
1. When the price differs ___1___ the market clearing price, trade occurs ___2___ the smaller of the quantity demanded or the quantity supplied (barring government subsidies or interventi