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: