Price Elasticity of Demand and Supply
1. There is a relationship between demand and price. How much demand for a commodity is affected by a change in price is called elasticity of demand. If a small change of price results in a large change in demand, the demand is called elastic, if the demand changes only a little, it is called inelastic. The price elasticity of demand coefficient is negative as demand usually falls with a rise in price.
2. The price elasticity of supply shows the percentage change in the quantity supplied resulting from a one-percent change in price.
3. As an increase in the quantity supplied is normally a result of a rise in price, the coefficient is usually positive. We have a "0" (zero) elasticity when a price change results in no quantity supplied change. This is called a perfectly inelastic supply. Provided the elasticities vary between zero and one, the supply is called inelastic. With coefficients greater than one, the supply is called elastic. The percentage change in quantity is larger than the corresponding percentage change in price.
4. Agricultural supply is mostly inelastic because of the high proportion of such inputs as land, buildings, and machinery. The elasticities of agricultural commodities (potatoes, wheat, fruits, eggs, milk) vary greatly. Because of increasing specialization of production, of farm animal products, in particular, elasticities for such commodities as pigs or broilers have decreased in recent years.
Вправа VII. Прочитайте 4 абзац тексту і дайте письмову відповідь на запитання:
What is the tendency of agricultural supply development?
II ВАРІАНТ
Вправа І. Перепишіть наступні речення, підкресліть Participle I та Participlell, визначте їх функції. Перекладіть речення на . українську мову:
1. Examining the balance sheet, he found no mistakes.
2. Those articles were produced in China.
3. The adopted programme was the result of the economists' work.
4. Having introduced new technology, the enterprise increased its output.
Вправа II. Вставте в речення необхідне модальне дієслово, перекладіть на українську мову:
1. ... І take your English dictionary? - No, you ... , I need it myself.
2. You ... to help your sick and old parents.
3. Listen to my advice: you ... buy more computers for you company.
4. We ... to increase prices for oil according to the contract.
5. You ... go there, nobody will wait for you.
Вправа III. Перекладіть наступні речення, пам'ятаючи про різні значення дієслів to be, to have, to do, та визначте їх функції в реченнях:
1. The country had to decrease its imports.
2. Computers are of great value to any firm.
3. We don't change any prices this year.
4. The ideas of Adam Smith have been studied by economists for 200 years.
Вправа IV. Перепишіть речення з герундієм, визначте його функцію та перекладіть речення на українську мову:
1. The output can be increased by raising labour productivity.
2. Investors insisted on being informed about the financial position of the project.
3. The company must compensate stockholders for not paying dividends in time.
4. The chief accountant objected to preparing the balance sheet.
Вправа V. Прочитайте текст. Перепишіть і письмово перекладіть на українську мову 1, 2, З, 4 абзаци тексту.
Mixed Economy
1. There are three types of management in economies. An economy maybe almost totally planned, as it was in the Soviet Union. An economy may be almost totally unplanned, as it is in the USA. Or an economy may be a combination of planning and freedom of operation. Examples of the latter are Japan and South Korea.
2. In a planned economy the government decides what goods are to be produced and how they are to be marketed. Governments set all the priorities, and the producers are to follow the directions given to
them.
3. In a partially planned economy such as Japan's, the government often encourages industry and helps it with subsidies. Government also makes investments and regulates trade.
4. The United States is an example of an unplanned economy. But it has a lot of government intervention in economic activity. As the economy of the United States grew, and as government and its importance increased, the government policy at every level acquired greater importance for the economy.
5. But the economy of the United States may be called unplanned because the government does not regulate what will be produced and how it will be marketed. These decisions are left to the producers. Even the great amount of government regulation that has emerged since the Great Depression has not turned the economy of the United States into a planned economy.
6. The name of the American economic system is capitalism. Another name for it is the free market economy.
ВправаVII. Прочитайте 5 абзац тексту і дайте письмову відповідь на запитання:
Why is the American economy called unplanned?
ІІІ ВАРІАНТ
Вправа І. Перепишіть наступні речення, підкресліть Participle I та Participle II, визначте їх функції. Перекладіть речення на українську мову:
1. Exports are goods and services sold to other countries.
2. Imposing some restrictions on food prices, governments make it possible for all people to buy enough food.
3. Being packed in strong cases, the goods arrived in good condition.
4. They offered us a discount for the remaining goods.
Вправа II. Вставте в речення необхідне модальне дієслово, перекладіть на українську мову:
1. Our plan ... to be carried out by the end of the month.
2. ... I use your phone?
3. This information is highly confidential, so you ... not discuss it with anyone.
4. The bus ... to start off in ten minutes.
5. She secretary ... have warned them of the meeting yesterday.
Вправа III. Перекладіть наступні речення, пам'ятаючи про різні значення дієслів to be, to have, to do, та визначте їх функції в реченнях;
1. The volume of exports is not going tc rise this year.
2. No other person can do it as well as you can.
3. Before making any conclusions you should look through this balance sheet.
4. Her knowledge of English does her credit.
Вправа IV. Перепишіть речення з герундієм, визначте його функцію та перекладіть речення на українську мову:
1. І hate receiving anonymous calls.
2. Some members of the Parliament in Russia insist on imposing control over the Central Bank's monetary policy.
3. The stockholders suspect the company of having a lot of debts.
4. Our manager offered new economical methods of transporting fruit and vegetables.
Вправа V. Прочитайте текст. Перепишіть і письмово перекладіть
на українську мову 1, 2, 4 абзаци тексту.
Factors of Production: Capital and Labour
1. Factors of production are resources used by firms as inputs for a good or service to be produced. Factors of production are as follows: capital, labour, and natural resources.
2. In economic theory, the term "capital" refers to goods and money used to produce more goods and money. Classifications of capital vary with the purpose of the classification. The most general distinction is the one made between physical, financial, and human capital.
3. Physical capital is land, buildings, equipment, raw rfiaterials; bonds, stocks, available bank balances are included in the financial capital. They both make a great contribution to production.
4. To group capital into fixed capital and circulating capital is common practice. The former refers to means of production such as land, buildings, machinery and various equipment. They are durable, that is, they participate in the production process over several years. Circulating capital includes both non-renewable goods, such as raw materials and fuel, and the funds required to pay wages and other claims against the enterprise. Non-renewable goods are used up in one production cycle and their value is fully transferred to the final product.
5. Human capital is knowledge that contributes "know-how" to production. It is increased by research and disseminated through education. Investment in human capital results in new, technically improved, products and production processes which improve economic efficiency. Like physical capital, human capital is important enough to be an indicator of economic development of a nation.
Вправа VII. Прочитайте 5 абзац тексту і дайте письмову відповідь на запитання:
Can you characterize the human capital?
IV ВАРІАНТ
Вправа І. Перепишіть наступні речення, підкресліть Participle I та Participle II, визначте їх функції. Перекладіть речення на українську мову:
1. Having been made 20 years ago, the machine is out of date.
2. I wrote them a friendly letter, thanking for delivery of goods.
3. The inspector examining the articles is a competent specialist.
4. Unless tested the equipment must not be put into operation.
Вправа II. Вставте в речення необхідне модальне дієслово, перекладіть на українську мову:
1. You ... have the goal of becoming an accountant some day.
2. ... I borrow your calculator?
3. Hurry up, we ... not be late.
4. You ... order goods by computer.
5. Everybody ... obey the law.
Вправа Ш. Перекладіть наступні речення, пам'ятаючи про різні значення дієслів to be, to have, to do, та визначте їх функції в реченнях:
1. His report was long and had no new ideas.
2. The research method has been universally applied for 20 years.
3. She does well in most subjects.
4. This report doesn't include information on potential customers.
Вправа IV. Перепишіть речення з герундієм, визначте його функцію та перекладіть речення на українську мову:
1. These goods are worth buying.
2. The main problem was getting products from a producer to a customer.
3. Mary was called down by her boss for coming late to work.
4. Did you find any difficulty in solving this problem?
Вправа V. Прочитайте текст Перепишіть і письмово перекладіть на українську мову 1, 3, 4, 5 абзаци тексту.
Fiscal Policy
1. Fiscal policy is an instrument of demand management which is used to influence the level of economic activity in an economy through the control of taxation and government expenditure.
2. The government can use a number of taxation measures to control aggregate demand or spending: direct taxes on individuals (income tax) and companies (corporation tax) can be increased if spending has to be reduced, for example, to control inflation. Spending can also be reduced by increasing indirect taxes: an increase in the VAT on all products or excise duties on particular products such as petrol and cigarettes will result in lower purchasing power.
3. The government can change its own expenditure to affect spending levels as well: a cut in purchases of products or capital investment by the government can reduce total spending in the economy.
4. If the government is to increase spending, it creates a budget deficit, reducing taxation and increasing its expenditure.
5. A decrease in government spending and an increase in taxes (a withdrawal from the circular flow of national income) reduces aggregate demand to avoid inflation. By contrast, an increase in government spending and / or decrease in taxes - an injection into the circular flow of national income stimulates aggregate demand and creates additional jobs to avoid unemployment.
6. In practice, however, the effectiveness of fiscal policy can be reduced by a number of problems. Taxation rate changes, particularly changes in income tax, take time to make; considerable proportion of government expenditure on, for example, schools, roads, hospitals and defence cannot easily be changed without lengthy political lobbying.
Вправа УД. Прочитайте б абзац тексту і дайте письмову відповідь на запитання:
What can decrease the effectiveness of fiscal policy?
V ВАРІАНТ
Вправа І. Перепишіть наступні речення, підкресліть Participle I та Participle II, визначте їх функції. Перекладіть речення на українську мову:
1. Selling and buying things, all people use money.
2. The Bank of Canada is a magnificent building occupying more than 3 acres of ground.
3. The answer received from our distributors greatly surprised me.
4. I have been working on my income tax all day long.
Вправа II. Вставте в речення необхідне модальне дієслово, перекладіть на українську мову:
1. The director is alone, you ... see him for a moment.
2. ... I speak to you now?
3. My grandson ... read, though he is only five.
4. If you want to be a good manager you ... work hard.
5. The Petrovs ... have moved to Kyiv, I am not sure.
Вправа IIІ. Перекладіть наступні речення, пам'ятаючи про різні значення дієслів to be, to have, to do, та визначте їх функції в реченнях:
1. She is good at cooking.
2. Business interests have a great influence on government in many countries.
3. They didn't send us their new price-list.
4. The goods were in the store.
Вправа IV. Перепишіть речення з герундієм, визначте його функцію та перекладіть речення на українську мову:
1. It was a very long inventory lasting for 2 months.
2. Management is the process used to accomplish goals through controlling people.
3. Packaging has always been an important aspect of goods' supply.
4. They don't mind signing the contract.
Вправа V. Прочитайте текст. Перепишіть і письмово перекладіть на українську мову 1, 2 абзаци тексту.
Corporations in the USA
1. The majority of corporations in the USA are small and they make up approximately 25 percent of all business companies, however, this figure understates the real economic significance of the corporate business organization. Modern technological developments largely account for the appearance of corporate giants in such sectors of the economy as manufacturing, transportation and utilities, mining, banking and insurance, and retail trade:
2. In view of the growing importance of corporations, society is faced with three major problems. First, the growth in corporate size has brought about an increasing separation of control from ownership. In large companies a stockholder no longer performs effective control; actual control belongs to management, which tends to be self-selecting and responsible only to itself. Second, the size of many corporations gives them economic power that permits to ignore the discipline of the competitive market, because it is large corporations that have real control over the prices charged for the goods they produce. Finally, society cannot be sure that the corporate performance serves the public interest.
3. Public interest requires organization and operation of business to be subject to governmental regulation, and many laws have been enacted for the purpose of ensuring a competitive pluralism in production and trade. Government regulation, particularly in the USA, attempts to prevent the formation of monopolies that totally control a particular branch of industry such as steel, petroleum, or automobile production. Governments also regulate public utilities and transportation, guarantee loans to homeowners, subsidize shipping, build highways and airports, administer price-support programmes for farmers.
Вправа VII. Прочитайте З абзац тексту і дайте письмову відповідь на запитання:
Why is governmental regulation necessary? How can it be affected?
КОНТРОЛЬНЕ ЗАВДАННЯ З
Для правильного виконання контрольної роботи №3 необхідно засвоїти наступні розділи курсу:
1. Незалежний і залежний дієприкметниковий звороти. Повторити — дієприкметники (Participle /, Participle II).
2. Інфінітив (Infinitive), його прості і складні форми та функції в реченні. Об'єктний та суб'єктний інфінітивні звороти.
3. Умовні речення.
І ВАРІАНТ
Вправа І. Перепишіть та письмово перекладіть наступні речення. Пам'ятайте, що об'єктний та суб'єктний інфінітивні звороти відповідають підрядним реченням:
1. The chief accountant, wishes the balance sheet to be made at once.
2. I want to be offered this job,
3. He is said to have been appointed the manager of the big company.
4. He asked for a telegram to be sent to our subcontractors.
Вправа II. Перепишіть та письмово перекладіть наступні речення, звертаючи увагу на різницю в перекладі залежного та незалежного дієприкметникових зворотів:
1. It being late, we decided to stop exercising the inventory.
2. Signing the contract they discussed this point.
3. I was standing at their office reading the advertisement.
Вправа III. Перепишіть та письмово перекладіть наступні умовні речення:
1. What would you do if somebody gave you a lot of money?
2. We shall be grateful if you send us the contract's terms.
3. If your project fails, we shall have a lot of debts.
Вправа IV. Прочитайте текст. Перекладіть письмово на українську мову 1, 2 абзаци тексту:
Auditing
1. The profession of the auditor is considered to be one of the most prestigious and well-paid ones. Auditors are accountants who analyze financial statements of the company and their responsibility is to express an opinion as to whether the accuracy of the company's financial reporting meets the requirements imposed by the government. In general, auditors deal more with operating efficiency and managerial effectiveness than with the accuracy of the accounting data.
2. Internal auditors are known to be hired by the company in order to help to identify accounting weakness and correct them before significant errors occur. They are often analytically minded people who make flowcharts of accounting systems and evaluate these flowcharts to suggest improvements in division of labour, paper flow, cash control, or other accounting responsibilities.
3. Independent auditors are employed by a company's board of directors to supply the stockholders with the results of checking the financial statements, in order to prove that annual reports are fair representations of the financial position of the company. Performing his work the auditor should follow several principles and assumptions: the company's accounts must represent a true financial position; generally accepted accounting principles have been used at all accounting steps and accounts can be compared with those of similar companies; the proper amount of information is disclosed in the financial statements. As a result, the auditor's opinion should be based only on facts and it must be objective. Auditors are expected to maintain a relationship of strict independence and professionalism with the companies for whom they work, so they mustn't hold shares in these companies. On the one hand, the auditor should respect the client's confidence, so having the access to some private information, the auditor must not spread it outside. On the other hand, he should think of public interests, that is why he must publish his opinion in a standard form and the information is to be clear to the stockholders. But he must always carry out his duties under the law and inform authorities about fraud.
Вправа V. Прочитайте З абзац тексту і дайте письмову відповідь на запитання:
Why is it necessary to receive an independent auditor's opinion?
I ВАРІАНТ
Вправа І. Перепишіть та письмово перекладіть наступні речення. Пам'ятайте, що об'єктний та суб'єктний інфінітивні звороти відповідають підрядним реченням:
1. This factory is known to produce consumer goods.
2. She proved to be a good book-keeper.
3. The devaluation of the pound sterling is said to have led to prices' rise of all goods imported into Great Britain.
4. The balance sheet is likely to be ready at the end of the month.
Вправа II. Перепишіть та письмово перекладіть наступні речення, звертаючи увагу на різницю в перекладі залежного та незалежного дієприкметникових зворотів:
1. Having built a new automobile plant, we increased the output of cars and buses.
2. Travelling in America, they saw a lot of interesting things.
3. The lecturer made a report concerning the latest achievement in economics.
Вправа III. Перепишіть та письмово перекладіть наступні умовні речення:
1. It would be impossible to solve many problems without using computers.
2. If the plant had introduced the latest achievements in technology, it would have increased its labour productivity.
3. If the director were in, he would communicate with you.
Вправа IV. Прочитайте текст. Перекладіть письмово на українську мову 1, 2 абзаци тексту:
Production Costs
1. Production costs are the costs of making factor input into higher value outputs of goods and services. The costs of manufacturing products include costs of raw materials, labour costs, depreciation of plant and equipment, rent, lighting, and heating of factory buildings.
2. It is important to say that factor inputs can be combined in a variety of ways to produce the same amount of output. One method which is technically the most efficient is the one which uses only small amounts of labour, while another method may employ large quantities of labour and only a little capital. In physical terms, the method which is technically the most efficient is the one which uses the fewest inputs. Economists, however, are more interested in the cost aspect of the input-output relationship, specifically the least costly way of producing a given output.
3. To achieve the highest efficiency, that is, the optimal relationship between factor inputs and outputs of goods and services, the economist analyzes the relationship between the cost of factor inputs and the cost of output in a firm. In order to determine the cost of producing a particular output it is necessary to know not only the required quantities of various inputs but also their prices. The factor prices a firm must pay in order to buy units of these factors will depend upon the interaction of the forces of demand and supply in factor markets.
Вправа V. Прочитайте З абзац тексту і дайте письмову відповідь на запитання:
What should be done to achieve the highest efficiency?
III ВАРІАНТ
Вправа І. Перепишіть та письмово перекладіть наступні речення. Пам'ятайте, що об'єктний та суб'єктний інфінітивні звороти відповідають підрядним реченням:
1. The commodity is too expensive to be in large demand
2. The employers' refusal to raise wages resulted in a strike.
3. This firm is said to receive high profits.
4. The newspapers report prices on the Stock Exchange to be fluctuating.
Вправа II. Перепишіть та письмово перекладіть наступні речення, звертаючи увагу на різницю в перекладі залежного та незалежного дієприкметникових зворотів:
1. The goods having been unloaded, the workers left the storeroom.
2. Inspecting the computer, the operator made some valuable remarks.
3. Not having had any previous experience, my sister has no chance of getting that job at the book-keeping department.
Вправа III. Перепишіть та письмово перекладіть наступні умовні речення:
1. She speaks English as if she had come from England.
2. If you had given me more time, I should have made a better report.
3. We shall come to the agreement, if you give us a good discount.
Вправа IV. Прочитайте текст. Перекладіть письмово на українську мову 1, 2, 4 абзаци тексту:
Inflation
1. Inflation is a steady rise in the average price and wage level. The rise in wages being high enough to raise costs of production, prices grow further resulting in a higher rate of inflation and, finally, in an inflationary spiral. Periods when inflation rates are very large are referred to as hyperinflation.
2. The causes of inflation are rather complicated, and there is a number of theories explaining them. Monetarists, such as Milton
Friedman, say that inflation is caused by too rapid increase in money supply and the corresponding excess demand for goods.
3. Therefore, monetarists consider due government control of money supply to be able to restrict inflation rates. They also believe the high rate of unemployment to be likely to restrain claims for higher wages. People having jobs accept the wages they are being paid, the inflationary spiral being kept under control. This situation also accounts for rather slow increase in aggregate demand.
4. On the other hand, Keynesians, that is, economists following the theory of John M. Keynes, suppose inflation to be due to processes occurring in money circulation. They say that low inflation and unemployment rates can be ensured by adopting a tight incomes policy.
5. Incomes policies, though, monetarists argue, may temporarily speed up the transition to a lower inflation rate but they are unlikely to succeed in the long run.
6. The costs of inflation depend on whether it was anticipated and on the extent to which the economy's institutions allow complete inflation adjustment.
Вправа V. Прочитайте б абзац тексту і дайте письмову відповідь на запитання:
What do the costs of inflation depend on?
IV ВАРІАНТ
Вправа І. Перепишіть та письмово перекладіть наступні речення. Пам'ятайте, що об'єктний та суб'єктний інфінітивні звороти відповідають підрядним реченням:
1. І asked them not to refer the matter to arbitration.
2. Our partners are reported to be conducting negotiations for the purchase of new equipment.
3. They want to sell their share of business and live off the interest rates.
4. He is expected to turn over his business to his son.
Вправа II. Перепишіть та письмово перекладіть наступні речення, звертаючи увагу на різницю в перекладі залежного та незалежного дієприкметникових зворотів:
1. Reconstruction of those plants was supposed to take 5 years.
2. The report being in French, we couldn't understand a word.
3. The delay in goods delivery exceeding a month, the order was cancelled.
Вправа III. Перепишіть та письмово перекладіть наступні умовні речення:
1. The accountant will prepare the balance sheet, provided the depreciation of the assets is calculated.
2. The currency exchange rate may have fallen by that time.
3. Much information can be obtained from bookkeeping records provided they are kept well.
Вправа IV. Прочитайте текст: Перекладіть письмово на українську мову 2 абзац тексту:
Foreign Trade
1. What is now called international trade has existed for thousands of years long before there were nations with specific boundaries. Foreign trade means the exchange of goods and services between nations, but speaking in strictly economic terms, international trade today is not between nations. It is between producers and consumers or between producers in different parts of the globe.
Nations do not trade, only economic units such as agricultural, industrial and service enterprises can participate in trade.
2. Trade based on comparative advantage still exists: France and Italy are known for their wines, and Switzerland maintains a reputation for fine watches. Alongside this kind of trade, an exchange based on a competitive advantage began late in the 19th century. Several countries in Europe and North America having reached a fairly advanced stage of industrialization, competitive advantage began to play a more important role in trade. With relatively similar economies countries could start competing for customers in each other's home markets. Whereas comparative advantage is based on location, competitive advantage must be earned by product quality and customer acceptance. For example, German manufacturers sell cars in the United States, and American automakers sell cars in Germany, both countries as well as Japanese automakers competing for customers throughout Europe and in Latin America.
3. Thus, international trade leads to more efficient and increased world production, allows countries to consume a larger and more diverse amount of goods, expands the number of potential markets in which a country can sell its goods. The increased international demand for goods results in greater production and more extensive use of raw materials and labour, which means the growth of domestic employment. Competition from international trade can also force domestic firms to become more efficient through modernization and innovation.
Вправа V. Прочитайте З абзац тексту і дайте письмову відповідь на запитання:
What are the advantages of international trade?
V ВАРІАНТ
Вправа І. Перепишіть та письмово перекладіть наступні речення. Пам'ятайте, що об'єктний та суб'єктний інфінітивні звороти відповідають підрядним реченням:
1. The manager expected raw materials to be delivered in time.
2. The currency exchange rate is reported to have reduced.
3. This new business was believed to improve the situation in the market.
4. This company is said to receive high profits.
Вправа II. Перепишіть та письмово перекладіть наступні речення, звертаючи увагу на різницю в перекладі залежного та незалежного дієприкметникових зворотів:
1. Money plays an essential role in macroeconomy affecting prices, interest rates and all economic activity.
2. Only being provided with the required resources, an enterprise can work efficiently and increase its output.
3. With a financial panic everyone wanting his money at the same time, the bank is unable to pay.
Вправа III. Перепишіть та письмово перекладіть наступні умовні речення:
1. If this system of accounting proved to be effective, they would adopt it.
2. If he has much money, he will produce this commodity within a domestic economy.
3. If the value of imports exceeds the value of exports, then the trade balance will be deficit.
Вправа IV. Прочитайте текст. Перекладіть письмово на українську мову 1, 4, 5 абзаци тексту:
Digital Computers
1. There are two fundamentally different types of computers: analog and digital. The former type solves problems by using continuously changing data such as voltage. In current usage, the term "computer" usually refers to high-speed digital computers. These
computers are playing an increasing role in all branches of the economy.
2. A digital computer is a complex system of four functionally different elements: 1) the central processing unit (CPU), 2) input devices, 3) memory-storage devices called disk drives, 4) output devices. These physical parts and all their physical components are called hardware.
3. The central processing unit is the heart of a computer. In addition to performing arithmetic and logic operations on data, it controls the rest of the system. Sometimes the CPU consists of several linked microchips, each performing a separate task, but most computers require only a single microchip as the CPU.
4. The power of computers greatly depends on the characteristics of memory-storage devices. Most digital computers store data both internally, in what is called main memory, and externally, on auxiliary storage units. As a computer processes data and instructions, it temporarily stores information internally on special memory microchips. Auxiliary storage units supplement the main memory when programmes are too large and they also offer a more reliable method for storing data. There exist different kinds of auxiliary storage devices, removable magnetic disks being the most widely used. They can store up to 100 megabytes of data on one disk, a byte being known as the basic unit of data storage.
5. Output devices let the user see the results of the computer's data processing. Being the most commonly used output device, the monitor accepts video signals from a computer and shows different kinds of information such as texts, formulas and graphics on its screen. With the help of various printers information stored in one of the computer's memory systems can be easily printed on paper in a desired number of copies.
Вправа V. Прочитайте 2 абзац тексту і дайте письмову відповідь на запитання:
What functional elements does a digital computer consist of?