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I. Give English equivalents to the following:
Распределять ресурсы, удовлетворять неограниченные потребности, владеть и управлять бизнесом, вмешиваться, частное предпринимательство, частная собственность на средства производства, частный капитал, распределение доходов, правительственные власти, основные экономические проблемы, состояние экономики, уровень занятости, распределять ресурсы, имеющиеся в распоряжении ресурсы, иметь высокий жизненный уровень, факторы производства, зависеть от, размещение и распределение ресурсов, быть конкурентоспособным, большой объем, центральное планирование и руководство, частный сектор, взаимодействовать в решении проблем.
II. Read the words and guess their meanings:
Factors of production, production and consumption, natural resources, capital and entrepreneurship, competitive, state ownership, public property/common ownership, large-scale intervention, state-controlled industry, considerable economic freedom of choice, the government controls a share of the output, labour-intensive production, to allocate the factors of production, the problem of allocating resources, the subject matter of economics, money paid as wages, rent and other forms of income, to specialize in particular tasks, the standard of living, in a decentralized way, in response to the demands of consumers, in solving economic problems.
III. Are the following statements true or false?
1. There are five main economic systems.
2. Economics is concerned with everyday issues, such as unemployment, prices, wages etc.
3. The allocation of scarce resources is the only subject matter of economics.
4. A cornerstone of the market system is that production alters swiftly to meet changing demands.
5. In a market economy the government takes all the decisions in the management of the economy.
6. If some economic decisions are taken by the government, we have a centralized economy.
7. Market economies are sometimes called “command economies”.
8. Command economies tend to be slow when responding to changes in people’s tastes and fashions.
9. There is no incentive for individuals to work hard in planned economies.
10. In a free market individual people are free to pursue their own interests.
11. In a market economy there is a maximal control on working conditions and safety standards concerning goods and services.
IV. Complete these sentences with the words in appropriate form and translate the sentences into Russian:
1. Economics is the study of how people choose _______ scarce resources to satisfy their _____.
2. It also deals with different _____ questions, especially ______ with labour, finance, taxation etc.
3. An economic system is the way in which a country uses its _____ to satisfy the demands of ___
for goods and services.
4. The more goods and services that can be produced, the higher the standard of living _____ by the country’s citizens.
5. Economists _________economic systems into ____ Western _________ are _____ mostly ________ economic systems in which economic events are the outcome of _________ decisions.
6. If government planners _______ some of the most important ________ decisions, the economy is __________.
7. Planned economies are economies with _____ of _____, when the government _____ all ___, decides ___ and ___.
8. There is no ___ for individuals to work hard in planned economies.
9. ___ contains elements of both market and planned economies.
10. In a mixed economy the government and the private sector ___ in ___.
V. Translate into English:
1. Решение вопроса о распределении ограниченных ресурсов в экономике (обществе) зависит от того, что именно, каким способом и для кого данное общество намерено производить.
2. Различают следующие виды экономических систем: рыночная, административно-командная и смешанного типа.
3. Рыночная экономика характеризуется частной собственностью на ресурсы и использованием системы рынков и цен для управления экономической деятельностью.
4. В рыночной экономике невелика или очень мала необходимость в планировании, контроле и широкомасштабном вмешательстве со стороны государства.
5. В плановой экономике все крупные решения, касающиеся производства, потребления и распределения продукции, принимаются центральным плановым органом.
6. В плановой экономике покупатели лишены возможности влиять на производство товаров.
7. Государство в условиях плановой экономики может гарантировать своим гражданам образование и медицинское обслуживание.
8. В реальной действительности экономические системы располагаются между чисто рыночной и плановой экономикой.
9. Смешанная экономика – это система, при которой частная собственность и рынок, а также правительство взаимодействуют в решении экономических проблем.
VI. Answer some questions:
1. What are the three main question of the economy?
2. What is an economic system?
3. What are the main economic systems today?
4. How can you characterize centrally planned economies? What are their specific features?
5. What is a market economy?
6. What’s the main difference between a market economy and a planned economy?
7. Are there really pure examples of planned and market economies in the world?
8. What’s a mixed economy? What’s its aim?
Литература
Основная: 2, 3, 4.
Дополнительная: 1, 2, 3.
TOPIC 3.
FACTORS OF PRODUCTION
In economic theory, factors of production (or productive inputs) are the resources employed to produce goods and services. The factors of production include natural resources, human resources, capital and entrepreneurship. Each factor of production has a place in economic system, and each has a particular function. People who own or use a factor of production are expecting a “return or reward”. This generates income which, as it is spent, becomes a kind of fuel that drives the economy.
Natural Resources or «Land»
Natural resources are the things provided by nature that go into the creation of goods and services. They include such things as minerals, wildlife and timber resources. Economists also use the term «land» when they speak of natural resources as a factor of production. The price paid for the use of land is called rent. Rent becomes income to the owner of the land.
Human Resources or «Labor»
Economists call the physical and mental effort that people put into the creation of goods and services labor. The price paid for the use of labor is called wages. Wages represent income to workers, who own their labor. Human labour produces both goods and services. The national labour force are those people who are available for work within the nation, i.e. the working population.
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| VI. Answer the questions | | | Study carefully the meaning of the following phrases and word combinations to avoid any difficulty in understanding the following text. |