Regardless of

To allot

Compared with

Prizefighter

To ration

To assume

Relative to

Demand

Bidding

In terms of

Relative value

Barter

Currency

заработная плата (работников физического труда)

труд; работа

невзирая на; не считаясь с

распределять; раздавать

по сравнению с

боксер-профессионал

нормировать

предполагать, допускать

по сравнению с

спрос

предложение цены

с точки зрения

относительная стоимость (цена)

бартер; бартерный (натуральный) обмен; меновая торговля

валюта; деньги

Dominant

To evolve

преобладающий; доминирующий

развивать(ся)

Assignment 2. Practice the pronunciation of the following words:

scarcity, resources, versus, through, efficient use, to manufacture, society, either, particular products, category, automobile, engine, gasoline, reserves, intercity, to subsidize, transit, allocative, technical, efficiency, exactly, geographically, to occur, industry, southern, nonunion, employee, confusion, utilization, to schedule, concern, labourer, hour, premium, recently, discussion, measure, leisure, percentage, other, rearing duties, professional, sophisticated, technologically, technology, process, quota, agricultural products, to govern, alcohol, brewery, multitude, issue, basis, equity, reward, variation, experience, to allot, profession, to ration, to assume, scarce, committee, currency, to address, socioeconomic.

Assignment 3. Read and translate the text using a dictionary.

TEXT

In attempting to resolve the problem of scarcity of resources versus unlimited wants through the efficient use of resources, all economies must answer the following questions: What is to be produced? How is it to be manufactured or produced? How much is to be produced? To whom should the output be distributed? How should the product be distributed to consumers?

What is to be produced? Society must, through either collective market action or the decisions of a powerful few, determine what the production mix of consumption goods and investment goods will be. After determining what proportion of total output will go to consumption goods and what proportion will go to investment goods, society must decide what particular products will be produced under each general category. Should we produce automobiles with large, powerful engines that use a lot of gasoline, or less powerful automobiles that are thrifty in their consumption of petroleum reserves? Should we invest in more intercity highways or upgrade our railway system? Should we widen streets and subsidize bus transportation or build rapid transit systems? These questions are representative of the first decision that all economies face: What is to be produced?

How is it to be produced? This question involves allocative rather than technical efficiency. This kind of question must be answered for an economy to produce the greatest possible output with the minimum input. Under an economic system driven by the marketplace, the results of these decisions can be painful. For example, decisions must be made regarding exactly where, geographically, production will occur. In the United States during the 1970s and early 1980s, many industries moved from northern states to southern states. One major reason for the move was the lower labour cost of nonunion workers in the South. These often-abrupt moves left employees stunned, without hope, and in a state of utter confusion. Many small towns in the central Atlantic and New England states have large numbers of unemployed individuals who are victims if the hard economic choices made by their previous employers.

How much is to be produced? This question is really a matter of resource utilization. For example, many manufacturing plants are scheduled for two eight-hour shifts per day. One begins at 8:00 a.m. and ends at 4:00 p.m. The second begins at 4:00 p.m. and ends at midnight. If conditions demand it, a third shift can be scheduled from midnight to 8:00 a.m., and many manufacturing concerns are open around the clock. Individual labourers normally work a standard 40-hour week. Some individuals seek to work overtime if they receive a premium for their labour above 40 hours per week. Not long ago, however, a 60-hour workweek was the standard. Then, the 48-hour workweek became the standard. Recently, there has been considerable discussion about having a 32-hour standard workweek. The question boils down to a measure of the trade-offs between work and leisure. A society and its individuals must decide what percentage of the 24-hour work day will be devoted to work and what percentage will be devoted to other activities, including child-rearing duties, educational and professional development, and leisure. Of course, the industry of leisure itself creates jobs for many people. In addition, as a society becomes more sophisticated technologically, it is likely to produce more products and services with fewer and fewer working hours. Increases in technology often make this question much easier to answer.

In addition, societal values may also influence production amounts. For example, the political process determines production quotas for various agricultural products. Laws governing the minimum age requirement for alcohol consumption influence the production of the brewery and distilled spirits industries.

To whom should the goods and services produced be distributed? Answering this question is far more difficult than it appears because of the multitude`s of issues at stake. For example, what part of total output will be held for government services and what part for private consumption? Will goods and services be distributed to individuals on the basis of ability to pay, on some sort of equity basis, or on a system of rewards (wages) for work done? How will people be paid for their labour? Will all people earn the same wage regardless of variations in experience, education, and the difficulty of their job? If income is to be allotted by profession, how much should a banker make compared with a rock star or a prizefighter?

How should output be rationed? This question assumes that the total quantity of goods and services produced by any given economy is scarce relative to the demand for it. In other words, all goods and services by definition have value (a price). How are the prices for goods and services set in the economy? Are the prices established by committee decision or through the bidding of consumers for the products available to them? Even more basic, are prices set in terms of the relative values of goods (barter) or in terms of some common unit of currency?

From the simplest to the most complex economy, the five questions facing all economies must be answered. Societies have developed several ways to answer these questions. To address these fundamental economic questions, two dominant socioeconomic and political systems have evolved – the market economy and the command economy.

Assignment 4. Find in the text English equivalents for the following Russian phrases:

решить проблему дефицита ресурсов; неограниченные потребности; рациональное (эффективное) использование ресурсов; или … или (либо … либо); потребительские товары (товары широкого потребления); товары производственного назначения (инвестиционные товары); совокупный объем производства; запасы нефти; улучшить железнодорожную систему; субсидировать автобусный транспорт (автобусные перевозки); эффективность распределения (ресурсов) или аллокационная эффективность; в состоянии полного смятения; безработные люди; быть жертвой трудного экономического выбора; предыдущий работодатель; две рабочие смены в день; в полночь; круглые сутки (24 часа); работать сверхурочно; большая дискуссия; обязанности по воспитанию ребенка; личное (частное) потребление; на основе; справедливо; невзирая на разницу в жизненном опыте и образовании; распределять доход (прибыль) по профессии; по сравнению с; другими словами; устанавливать цены на товары и услуги; с точки зрения …; относительная стоимость (цена).

Assignment 5. Fill in the gaps with the words and expressions from the text:

1) __________ must, through either __________ __________ __________ or the decisions of a powerful few, determine what the __________ __________ of __________ __________ and __________ __________ will be.

2) These questions are __________ of the first decision that all economies __________.

3) This kind of question must be answered for an economy to __________ the greatest possible __________ with the minimum __________.

4) One __________ __________ for the move was the lower __________ __________ of __________ __________ in the South.

5) If __________ demand it, a third __________ can be __________ from midnight to 8:00 a.m., and many __________ __________ are open around the clock.

6) A __________ and its individuals must decide what __________ of the 24-hour work day __________ __________ __________ to work and what percentage will be devoted to other activities, __________ child-rearing duties, __________ and __________ __________, and leisure.

7) Laws __________ the minimum age __________ for alcohol __________ influence the __________ of the brewery and distilled spirits __________.

8) If __________ is to be __________ by profession, how much __________ a __________ make __________ __________ a rock star or a prizefighter?

9) Even more basic, are __________ set in terms of the __________ __________ of __________ or __________ __________ __________ some __________ __________ of __________?

Assignment 6. Complete the sentences in column A choosing the correct ending from column B:

A

1) In attempting to resolve the problem of scarcity of resources versus unlimited wants through the efficient use of resources, …

2) After determining what proportion of total output will go to consumption goods and what proportion will go to investment goods, …

3) Under an economic system driven by the marketplace, …

4) Many small towns in the central Atlantic and New England states have large numbers of unemployed individuals …

B

a) the results of these decisions can be painful.

b) who are victims of the hard economic choices made by their previous employers.

c) all economies must answer the following questions.

d) it is likely to produce more products and services with fewer working hours.

5) Some individuals seek to work

overtime …

6) As a society becomes more sophisticated technologically, …

7) This question assumes that the total quantity of goods and services …

8) To address these fundamental economic questions, …

e) produced by any given economy is scarce relative to the demand for it.

f) two dominant socioeconomic and political systems have evolved – the market economy and the command

economy.

g) if they receive a premium for their labour above 40 hours per week.

h) society must decide what particular products will be produced under each general category.

Assignment 7. Define the ideas highlighted in the text. Make up a plan of the text. Present it in written form.

Assignment 8. Say whether you agree or not with the following statements. In case you don`t agree say why. Use the following phrases and word-combinations:

- in my opinion; - I suppose;

- to my mind; - I believe;

- as far as I know; - just on the contrary.

- I don`t think so;

1) After determining what proportion of total output will go to consumption goods and what proportion will go to investment goods, society must decide what particular products will be produced under each general category.

2) Under an economic system driven by the marketplace, the results of these decisions can be successful.

3) Many small towns in the central Atlantic and New England states have small numbers of unemployed individuals who are not victims of the hard economic choices made by their previous employers.

4) A society and its individuals must decide what percentage of the 24-hour day will be devoted to work and what percentage will be devoted to other activities, including child-rearing duties, educational and professional development, and leisure.

5) As a society becomes more sophisticated technologically, it is likely to produce less products and services with fewer working hours.

6) To address these fundamental economic questions, two dominant socioeconomic and political systems have evolved – the market economy and the command economy.

Assignment 9. Ask your fellow-students if anything in the text surprises or interests them particularly. If their answer is positive, tell them to enlarge upon the chosen problem. Feel free to interrupt any of your classmates. To do it politely, use the following: “Excuse me for interrupting, but I don`t think you are right …”, “I`m afraid something is wrong here. If you could just clarify what you mean …”, “I`d like to comment on that because something seems to be incorrect (imprecise; improper; unacceptable; inexact) here …”.

Assignment 10. Look through the text and consider with your fellow-students if the aim of the text is:

a) to provide the students with some new information;

b) to make the students interested in the problems touched upon in the text;

c) to persuade the students to accept the author`a point of view. Give a well-reasoned answer.

DISCUSSION

1. Enumerate the questions that are raised in the text. Place them in order of importance. Explain your choice.

2. Each fundamental question is supported by examples in the text. Those examples are only typical of the United States. Think of such an illustration of the fundamental questions that would be typical of Russia. Give convincing reasons to support your responses.

UNIT 6. ADAM SMITH: A STUDENT AND A LECTURER

Assignment 1. Remember the meaning of the following words and word- combinations:

To baptize

Major

Nation

To follow

Medieval

To endow

Salary

Timetable

Main

Дата добавления: 2015-11-14