j) try to avoid dealing with a problem
VI. Match the words in the left-hand column with their synonyms:
1. aggregate
2. particular
3. simultaneous
4. deliberate
5. retain
6. judicious
7. methodology
a) a. intended
b) b. add up
c) c. keep
d)d. concurrent
e) e. specific
f) f. system
g) g. reasoned
Match the words (1 – 5) with their antonyms (a – e):
1. urban
2. indirect
3. broad
4. emphasize
5. relative
a) a. straight
b) b. depreciate
c) c. unrelated
d) d. rural
e) e. narrow
VII. Fill in the gaps.
interaction; adjustments; market economy; government regulations; employment; cost conditions; considered; skills and training; tend; exceeds; available; result; insufficient; increase; to purchase; raw materials; decline; forced; frictional unemployment; dissatisfaction; labour force
Normal 1) ____ to changing demand and supply conditions for different products and services in а 2) _______ result in the loss of jobs for some people. Other workers quit their jobs because of 3) _____ or for other personal reasons. In а healthy есоnomy, these people should be able to find new jobs within a few weeks. While they are seeking 4) ____ they constitute a frictional unemployment bloc in the 5) ____ . Unemployment levels of 3-4% were in the past 6) ____ normal due to 7) _____ and those unemployable for one reason or another.
When a whole industry or region has less business because of changing consumer tastes or changing 8) ____ , some workers lose their jobs. There may not be enough jobs immediately 9) _______ in other industries to employ them, or they may not have the 10) _____ necessary to take jobs in other industries. This structural unemployment may 11) _____ in extended periods without work for some people.
The most serious and widespread unemployment, however, is cyclical unemployment, which occurs when there is inadequate aggregate (total) demand for goods and services. If there is 12) ____ spending in the economy 13) ____ all of the goods and services that could be produced, workers will not be able to find jobs. Those workers without jobs are 14) _____ to cut back their consumption, and this results in a further 15) _______ in output and in a further 16) _____ in unemployment.
Just as unemployment may be caused by insufficient demand, inflation may the result of too much demand. If demand 17) ____ the capacity of the economy to produce at full employment, prices will rise. Inflationary expectations and speculation 18) ____ to accelerate demand-pull inflation even more.
Another cause of inflation can be an increase in the costs of production. Shortages of 19) _____ , higher wages, or 20) _____ raise prices. The 21) ____ between demand-pull and cost-push inflation can result in an inflationary spiral.
VIII. Give the terms for the following explanations.
1. The branch of economics offering a detailed treatment of individual decisions about particular commodities.
2. Economic statements offering prescriptions or recommendations based on personal value judgements.
3. The value of all goods and services produced in the economy in a given period such as a year.
4. The percentage of labour force without a job.
5. A measure of the average level of prices of goods and services in the economy, relative to their prices at some fixed date in the past.
6. Economic statements dealing with objective or scientific explanations of the working of the economy.
7. The branch of economics emphasizing the interactions in the economy as a whole.
8. A curve which shows, for each level of the output of one good, the maximum amount of the other good that can be produced.
9. The situation in which, as more workers аге employed in an industry, each additional worker adds less to total output than the previous additional worker added.
10. А resource for which the demand at а zero рrice would exceed the available supply.
IX. Complete the article with prepositions where necessary:
Microeconomics and macroeconomics
Microeconomics looks __ (1) __ interactions through individual markets, given scarcity and government regulation. A given market might be for a product, say fresh corn, or the services of a factor __ (2) __ production, say bricklaying. The theory considers aggregates __ (3) __ quantity demanded by buyers and quantity supplied by sellers __ (4) __ each possible price per unit. It weaves these together to describe how the market may reach equilibrium as to price and quantity or respond __ (5) __ market changes over time.
This is broadly termed supply and demand analysis. Market structures, such as perfect competition and monopoly, are examined as to implications __ (6) __ behavior and economic efficiency. Analysis __ (7) __ change __ (8) __ a single market often proceeds from the simplifying assumption that behavioral relations in other markets remain unchanged, that is, partial-equilibrium analysis. General-equilibrium theory allows __ (9) __ changes __ (10) __ different markets and aggregates across all markets, including their movements and interactions toward equilibrium.
Macroeconomics examines the economy as a whole to explain broad aggregates and their interactions "top down," that is, using a simplified form __ (11) __ general-equilibrium theory. Such aggregates include national income and output, the unemployment rate, and price inflation and subaggregates like total consumption and investment spending and their components. It also studies effects __ (12) __ monetary policy and fiscal policy.
__ (13) __ at least the 1960s, macroeconomics has been characterized __ (14) __ further integration as to micro-based modeling of sectors, including rationality __ (15) __ players, efficient use __ (16) __ market information, and imperfect competition. This has addressed a long-standing concern __ (17) __ inconsistent developments of the same subject.
Macroeconomic analysis also considers factors affecting __ (18) __ the long-term level and growth __ (19) __ national income. Such factors include capital accumulation, technological change and labor force __ (20) __ growth.
X. Read the text and choose the correct word or words from A, B, C or D to fill in each gap:
Macroeconomic analysis
Macroeconomic analysis broadly focuses on three things: national output, unemployment and inflation. Output, the most important concept of macroeconomics, refers to the total amount of goods and services a country produces, commonly known as the gross domestic product. The figure is like a snapshot of the economy at a certain point in time.
When referring to GDP, macroeconomists tend to use __ (1) __ GDP, which takes inflation into __ (2) __, as opposed to nominal GDP, which __ (3) __ only changes in prices. The nominal GDP figure will be higher if inflation goes up from year to year, so it is not necessarily indicative of higher output levels, only of higher prices.
The one __ (4) __ of the GDP is that because the information has to be collected after a specified time period has finished, a figure for the GDP today would have to be an estimate. GDP is nonetheless like a stepping stone into macroeconomic analysis. Once a __ (5) __ of figures is collected over a period of time, they can be compared, and economists and investors can begin to decipher the business __ (6) __, which are made up of the __ (7) __ periods between economic recessions (slumps) and expansions (booms) that have occurred over time.
From there we can begin to look at the reasons why the cycles took place, which could be government policy, consumer behavior or international phenomena, among other things. Of course, these figures can be __ (8) __ across economies as well. Hence, we can determine which foreign countries are economically strong or weak.
Based on what they learn from the past, analysts can then begin to __ (9) __ the future state of the economy. It is important to remember that what determines human behavior and __ (10) __ the economy can never be foreseen completely.
1. A. real B. retail C. nominal D. normal
2. A. attention B. account C. confidence D. possession
3. A. retains B. reflects C. receives D. rebuilds
4. A. advantage B. advance C. backside D. drawback
5. A. line B. graphic C. series D. numbers
6. A. cycles B. circles C. rounds D. pattern
7. A. alternating B. altering C. constant D. substantial
8. A. changed B. compared C. assumed D. predicted
9. A. forecast B. make up C. consist D. foremost
10. A. endlessly B. accidentally C. concluded D. ultimately
XI. Tasks for thought.
1. Which of the following statements аге the concern of microeconomics and which of macroeconomics?
a) Along with other Western economies, the UK faced а sharp rise in the unemployment rate in the early 1980s.
b) The imposition of higher taxes оп tobacco will discourage smoking.
c) с) Unemployment among building labourers rose sharply in the early 1980s.
d) An increase in а society's aggregate income is likely to bе reflected in higher consumer spending.
e) А worker who has а received а рау rise is likely to buy more luxury goods.
f) А firm will invest in а machine if the expected rate of return is sufficiently high.
g) High interest rates in an economy may bе expected to discourage aggregate investment.
h) The level of gross national product in the UK is higher this year than in 1981.
i) Our government is performing the price liberalization policy.
j) Minimum wages level in Russia is about 80 rubles.
k) A student's grant depends оп his family's income per head and his personal income.
l) Tax rate decrease leads to encouraging business activity in а country.
2. Which of the following statements and why do not belong to the economics studying.
а) maximum demand satisfaction.
b) unlimited desires.
с) unlimited resources.
d) efficient usage of resources.
3. Which of the following statements would not be true for a “pure” command economy?
а) Firms choose how much labour to employ.
b) The distribution of income is government-controlled.
c) The government decides what should be produced.
d) Production techniques are not determined by firms.
e) A government planning office decides what will be produced, how it will be produced, and for whom it will be produced.
XII. Translate into English.
1. На протяжении многих десятилетий экономисты наблюдают взаимосвязь между уровнем инфляции и уровнем безработицы: чем выше уровень безработицы, тем ниже уровень инфляции. Однако в 1970е годы в экономике наблюдались и высокий уровень безработицы и высокий уровень инфляции. Подобное явление в экономике называют стагнацией.
2. Из сумятицы, вызванной распадом Советского Союза, Прибалтийские страны вышли как страны с рыночной экономикой. В этих странах сложилась наиболее благоприятная экономическая ситуация по сравнению с другими республиками бывшего Советского Союза: валовой национальный продукт неуклонно растет, а уровень инфляции снижается.
3. Будучи последовательными приверженцами экономических реформ, каждая из
стран Балтии сталкивается со своими coбственными проблемами, решение которых может гарантировать стабильное экономическое развитие.
4. Правительство заявляет, что его целью является дальнейшее укрепление демократии, обеспечение безопасности государства и граждан, экономическое процветание страны и рост национального благосостояния.
5. Аналитики утверждают, что планы правительства начать экономический рост в стране путем урезания роста заработной платы в государственном секторе могут привести к массовым забастовкам. Однако Центральный банк приветствует эти шаги правительства и заявляет, что экономика страны не справится с проблемами инфляции, если рост заработной платы не будет ограничен.
6. Почти все африканские страны имеют импортозамещающие отрасли промышленности по производству товаров широкого потребления.
7. Средний годовой доход на душу населения в беднейших странах составляет 1/12 годового дохода в развитых странах.
8. Проблемы, с которыми сталкивается станкостроительная промышленность в Японии, являются типичными для всех производящих отраслей в стране: избыточные производственные мощности (capacity) и снижающийся спрос.
XIII. Translate the text from Russian into English:
В реальности все рынки взаимосвязаны, цены одних экономических благ оказывают влияние на цены других. А значит, общее равновесие - это равновесие, возникающее в результате взаимодействия всех рынков, когда изменение спроса или предложения на одном рынке влияет на равновесные цены и объемы продаж на всех рынках.
В подобном взаимодействии критичными становятся взаимодополняемость или взаимозаменяемость благ. Экономика, так же как и физический мир, пронизана множеством разных невидимых нитей, связывающих разные переменные и ставящих в зависимость на первый взгляд вроде бы независимые вещи.
Например, резкое повышение стоимости магнитной пленки, используемой при производстве аудиокассет, приведет к подорожанию этих кассет и уменьшению объема спроса на них. Поскольку потребители частично переключатся на другие носители звука, то увеличится спрос на рынке компакт-дисков, которые являются заменителями аудиокассет. Одновременно уменьшится спрос на магнитофоны и увеличится спрос на проигрыватели компакт-дисков. Уменьшение спроса на аудиокассеты приведет к уменьшению спроса на труд рабочих, производящих эти кассеты. С другой стороны, увеличение прибыльности производства компакт-дисков повлечет за собой изменение спроса на труд рабочих и увеличение их заработной платы.
Увеличение заработной платы вызовет приток рабочих из других отраслей, где соответственно уменьшится предложение труда и увеличится заработная плата. И так далее. Таким образом, взаимодействие затронет, так или иначе, все рынки. В хозяйстве все оказывается взаимосвязанным, и чтобы определить последствия изменения отдельной цены, необходимо учесть массу всякого рода взаимодействий. Изучая формирование общего равновесия, мы должны проанализировать все основные моменты его образования.