Ex. 17. Translate the sentences into Russian. Mind the translation of the Subjective

Infinitive Construction “to be (un)likely to do”

1. A small firm is likely to be specializing in one product.

2. An increase in the output of capital goods is likely to mean that the current consumption of

goods and services is less than it might have been.

3. In fact demand is likely to be more highly elastic when the market is depressed.

4. Even if market demand is inelastic, the demand for the product of a firm which increases its

price is likely to be highly elastic.

5. The reason for this is that rival suppliers are likely to maintain their prices in the hope of

attracting customers from the higher-price firm.

6. Initially price is unlikely to fall in response to a fall in demand.

7. Price reductions are more likely to occur if they can be concealed from competitors.

8. Each of these different machines is likely to have a different capacity.

9. “Ownership” of labour is likely to be highly unpopular politically.

10. The larger firm is likely to have a diversified (многоотраслевую) market structure.

GRAMMAR FOCUS

Ex. 18. Put these sentences into reported speech.

1. The shop-assistant said to the customer: “The price does not include the cost of packing”.

2. She asked the manager: “How long have you doing business with this company?”

3. The secretary said to me: “I’m trying to contact this enterprise now”.

4. The tax inspector asked: “Do you always reduce the prices at the end of the year?”

5. The sales manager said: “We have already solved the problem”.

6. The secretary said: “We are discussing the prices at the moment”.

7. The reporter asked: “What is your company producing now?”

8. The banker said to the customer: “The recent devaluation of dollar has caused a setback in

business”.

9. The sellers asked the buyers: “When will you come here to discuss our new price-list?”

10. His friend asked me: “What do you know about this company?”

Ex. 19. Complete the following sentences with an appropriate modal verb.

1. Entrance is forbidden. You _____________not enter.

2. Success is possible. We _____________ be successful.

3. Participation is compulsory. We ____________ to take part.

4. Permission is given. You _____________ take the day off.

5. Success is probable. We ______________ success.

6. He has the ability. He ____________ win the competition.

7. Participation is voluntary. We __________ have to go to the reception.

8. Failure is impossible. We ____________ fail.

9. Permission is not given. You ____________ leave the building.

10. It is compulsory to obey the law. You ___________ obey the law.

11. It is a moral obligation to report fraud. You _____________ report fraud.

12. Auditors are not allowed to be employed by a client. You ______________ be employed

by a client.

UNIT 8 ECONOMIC STABILITY AND

BUSINESS CYCLES

Text 1

BUSINESS CYCLES

VOCABULARY

business cycles – экономические циклы; циклы деловой активности

underemployment – неполная занятость

factories are idle – заводы не работают

business failure – банкротство

permanently – надолго, навсегда

boom - бум, быстрый подъем (деловой активности)

contraction - падение/сокращение деловой активности

recession - спад

expansion - подъем экономической активности

to smooth out - устранять

economic fluctuations – экономические колебания

at capacity – в полном объеме; на полную мощность

consumer spending – потребительские расходы

spending levels – уровни расходов

lay off – временно увольнять

they have built up excess inventories – накопили излишние запасы

long-term decline –долгосрочное снижение

the bottom phase– низшая точка

severe– жестокий, глубокий

eventually – в конечном счете

to recover – восстанавливаться, выздоравливать

When people speak of business cycles, they think of things like “prosperity” and “depression”. “Prosperity” is ordinary used to describe an extended period of high employment, an improved standard of living and stable prices.

By contrast, “depression” refers to an extended period of general underemployment of economic resources. Factories are idle, millions of workers are unable to find jobs, and the rate of business failure is high. The worst depression in American history, now known as the Great Depression, lasted from 1930 to 1940. There were, for example, 13 million people, about one of every four workers, unemployed in 1933. That same year businesses failed at a record rate, and number of people lost their savings because more than 4,000 privately owned banks closed permanently.

More common, however, are much shorter and less dramatic changes in business activity. Theses changes can be described in a number of different ways, but for convenience they are called the periods of boom, contraction, recession and expansion. The way to smooth out economic fluctuations was not found yet.

Boom

At the peak of the business cycle of the economy is booming. Business is producing at or near capacity, and those looking for work can generally find jobs. During peak times, business investment and consumer spending are at very high levels. But because the economy is at or near full employment and the demand for goods and services is increasing, prices are also increasing. This sets the stage for the next phase of the business cycle.

Contraction

For any number of reasons, consumers and businesses begin to reduce their spending levels. Businesses may lay off workers, reduce their purchases of raw materials and reduce production because they have built up excess inventories. Some businesses may decide to continue to use old factories and equipment rather than investing in new machines and buildings. Some businesses and consumers will even reduce spending because economists predict that business will be slowing down in the next few months. Whatever the reason, reductions in business and consumer spending mark the beginning of a contraction in the business cycle.

Recession

With factories operating at less than capacity and unemployment at very high levels, total output of goods and services enters a long-term decline. This is the bottom phaseof the business cycle, or as economists describe it, the period of recession.

Times are hard during recession. Unemployment is very high, jobs are difficult to find and many businesses fail. A very severe and long-lasting recession is called a “depression”.

Expansion

After a period of recession the economy eventually begins to recover, entering the expansion phase of the business cycle. During a period of expansion the conditions are about to improve, business begins to expand its activities. Unemployment declines as additional workers are hired. This, in turn, leads to higher levels of consumer spending and still further expansion of employment, output and consumption.

WORD STUDY