Столь резкий обвал мировых цен побудил ОПЕК провести серьезную реорганизацию и отказаться от прежней схемы, когда ее члены продавали столько нефти, сколько могли производить, а балансировкой спроса и предложения на рынке занималась практически одна Саудовская Аравия. С сентября 1986 г. ОПЕК вернулась к практике ограничения собственной нефтедобычи путем жесткого установления квот для каждого ее члена.

Кризисные ситуации на мировом рынке имели место и в 90-е годы. Можно привести в качестве примера войну в Заливе в 1991 г., когда кратковременно североморский Брент «зашкаливал» за 35 долл. за баррель, или экономический кризис 1998 г., в результате которого к началу 1999 г. цена на баррель одного из самых дорогих сортов — американского WTI, напротив, резко упала до 10 долларов.

Объемы международной торговли нефтью за последние 30 лет также неуклонно росли, причем вследствие уменьшения собственной добычи и увеличивающейся потребности импорт нефти в США только за последние 10 лет увеличился более чем на 65%. Крупнейшими мировыми странами-экспортерами являются Саудовская Аравия, Россия, Норвегия, Иран, суммарная доля которых в поставках нефти на мировой рынок составляет чуть менее 40% и в последние годы оставалась практически неизменной.

XIII. Answer the following questions.

1. What are the current trends in oil price levels?

2. To what extent is Russia’s economy dependent on oil prices?

3. What was the highest price of oil over the last decade?

4. How significant is the role of the government in the economy of Russia?

5. Can we call Russia a small-government country?

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

THE PRODUCTION POSSIBILITY FRONTIER

I. Find the following word-combinations in the texts and translate them into Russian.

to consider a hypothetical economy; the more workers there are, the greater is the total output; the production satisfies the law of diminishing returns; implicitly; fixed amount; exhibit; at one extreme; spare resources; yielding 7 extra units; no loss of food output; limits society to a choice; the competing uses

II. Find in the texts English equivalents for the following:

либо в пищевой промышленности, либо в киноиндустрии; допускать, предполагать; приводит к тому, что...; что подразумевает закон убывающей производительности (убывающей отдачи); иметь в распоряжении; аппаратура, оборудование; занятость; рабочая сила; граница производственных возможностей; не жертвуя выпуском другого продукта; все имеющиеся ресурсы; неэффективный; недостижимый; в зависимости от предпочтения общества; выбирая конкретную точку; желаемое сочетание конечного продукта

III. Say what is meant by:

a hypothetical economy; the law of diminishing returns; the effect on output per worker; there is a trade-off between two industries; production possibility frontier; spare resources; feasible combination of goods; inefficient performance of the economy; unattainable points; scarcity of resources limits society to a choice of points that lie inside or on the production possibility frontier

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

VI. Match the words in the left-hand column with their synonyms.

1 feasible a decrease

2 restriction b acquire

3 obtain c additional

4 diminish d constraint

5 extra e possible

VII. Fill in the gaps with the suitable words.

efficiency; insufficient; alternative; curve; sacrifice; limited resources; trade-offs; scarce resources; benefits; outputs; production possibility frontier; economic tools; issues; to utilize; determine; available; efficient; scarcity; allocates; resolve

Because resources are 1)______ to produce all the things we want, we have to choose how best to use those resources. In deciding how to use our 2)______ certain 3)______ are necessary.

The value of what we 4)______ when resources are used to produce one thing rather than another is the opportunity cost of what is produced. In order to get the greatest 5)______ from our 6)______, we should use them for the 7)______ that best serve our needs. If we don’t, then the opportunity costs of what we produce will be too high.

A 8)______ shows a trade-off between two alternative uses of a resource. The PPF shows the opportunity cost of producing more of one good by showing the amount of the 9)______ good that is sacrificed. Production possibility frontiers generally 10)______ outward because of increasing opportunity costs incurred as more of one good is produced. Production possibility frontiers are 11)______ helpful in analyzing the opportunity costs of trade-offs.

All economic systems must 12)______ three basic economic 13)______: what to produce, how to produce; for whom to produce. 14)______ cannot be efficiently dealt with unless the economy 15)______ its resources to producing the goods and services most needed and desired. An economic system needs also 16)______ the most 17)______ production methods with the resources 18)______. Finally, an economic system must 19)______ who gets how much of what is produced.

There are four principally economic goals by which the effectiveness of an economy can be judged: 20)______, price stability, full employment and growth.

VIII. Say whether the following statements are true or false.

1. An expansion of an economy’s capacity to produce would be reflected in an «outward» movement of the production possibility frontier.

2. An economy in which there’s unemployment is not producing on the production possibility frontier.

3. The assumption of diminishing returns states that, as more resources are devoted to the production of a commodity, their productivity declines.

4. When more output of one good can be achieved only by sacrificing output of the other good the economy works inefficiently.

5. For each level of output of one good the PPF shows the maximum amount of the other good that can be produced.

6. Scarcity of resources limits society to a choice of points that lie beyond the PPF.

7. The production possibility frontier shows feasible combinations that the economy can produce.

8. Feasible combination implies more of one commodity at the expense of the other.

9. People increase their work effort and accept less leisure only if they receive a sufficient addition to consumption.

10. A technological advance leads to an upward shift of the PPF.

IX. Complete the sentences using prepositions from the box.

to to (x2) on (x2) per of at (x2) in (x2)

1. He joined this company after working (1) ____ the retailing and banking industries.

2. The economy grew at an average rate of 6% (2) ____ annum.

3. We have a considerable amount of capital (3) ____ our disposal.

4. India will relax the tough restrictions (4) ____ import, which were imposed in March.

5. High production rates are often achieved (5) ____ the expense of quality of work.

6. The country depends heavily (6) ____ its tourist trade.

7. The increase (7) ____ the value (8) ____ the yen over the next year is forecast by many analysts.

8. The manager suggested a series of projects which would lead (9) ____ the improvement of productivity in the region.

9. Deutsche Bank limits any one shareholder (10) ____ 5% of the votes.

X. Read the text and choose the correct word or words from A, B, C or D to fill in each gap.

Because resources are insufficient to (1) ____ all the things we want, we have to choose how best to use those resources. In deciding how to use our limited resources, certain (2) ____ are necessary.

The value of what we give up when resources are used to produce one thing rather than another is the opportunity cost of what is produced. In order to get the greatest (3) ____ from our limited resources, we should use then for the (4) ____ that best serve our needs. If we don’t, then the opportunity costs of what we produce will be too high.

A production possibility frontier (PPF) shows the trade-off between two alternative uses of a resource.

The PPF shows the opportunity cost of producing more of one good by showing the amount

of the (5) ____ good that is (6) ____ . Production possibility frontiers generally curve outward because of increasing opportunity costs incurred as more of one good is produced. Production possibility frontiers are economic (7) ____ helpful in analyzing the opportunity costs of trade-offs.

All economic systems must resolve three basic economic questions: what to produce; how to produce; for whom to produce. (8) ____ cannot efficiently be dealt with unless the economy

(9) ____ its resources to producing the goods and services most needed and desired. An economic system needs also to (10) ____ the most efficient production methods with the resources available. Finally, an economic system must determine who gets how much of what is produced.

1. A do B construct C produce D build

2. A advantages B trade-offs C cuts D trades

3. A benefits B changes C income D allowances

4. A effects B outputs C results D inputs

5. A selective B conventional C competitive D alternative

6. A satisfied B given away C abandoned D sacrificed

7. A tools B weapons C equipment D gadgets

8. A rarity B diversity C scarcity D variability

9. A donates B presents C allocates D surrenders

10. A utilize B exercise C operate D handle

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

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

0 Computer goods

XII. Translate into English.

1. Кривая производственных возможностей не является прямой линией, т.к. не все ресурсы в равной степени эффективны при производстве двух товаров. Роль этого экономического инструмента довольно значительна, так как эта кривая помогает определить, работает ли общество эффективно или же не полностью расходует ресурсы.

2. Чем больше рабочих занято в производстве, тем больше конечный выпуск продукции; однако в соответствии с законом убывающих отдач ( убывающей производительности) каждый дополнительный рабочий дает меньше продукции, чем предыдущий, т.к. им приходится делить оборудование.

Учебно-методическое пособие к учебнику “ (стр. 2 из 13)

UNIT 2