6.Ответьте на вопросы.

1. What is a budget?

2. What should the budget contain?

3. Who compiles the budget?

4. What two basic approaches are used in budgeting?

5. How often is budget compiled?

7. Choose the correct word:

1) I am a student of (economy, economics) now. 2) At school I didn't study the (economy, economics) of Great Britain. 3) I hope he'll make a good (economist, economy). 4) There are many (economic, economical) problems in the world. This car is very (economic, economical). 5) I try to spend money and time (economical, economically). 6) This car (economize, economizes) fuel.

8.Translate the definition of the term the economy given at the end of the text.

Economic man

There is an assumption in economic theory that individuals act rationally in specifying their objectives and then take decisions which are consistent with those objectives. Thus, the businessman will set a goal of profit maximization and will adjust his output and price to achieve his goal. The consumer will try to maximize his utility or satisfaction and will determine his purchases in the light of his tastes for products and the relative prices of those products. Here is an il­lustration of rational consumer choice:

good Y

О good X

The graph demonstrates why a consumer's indifference curves cannot cross. Indifference curves II and 1₁1₁ show a consumer’s preference between two products, X and Y.

Point A on indifference curve II represents a higher level оf satis­faction to the consumer than point В on indifference curve 1₁1₁, be­cause point A represents more of both products than point B.

Yet point С lies on both curves. This suggests that the consumer will prefer the combination of goods indicated by point A to the combination represented by point В and will regard them as equal at point С.

If the consumer is rational, such an inconsistent set of preferences would not arise; thus indifference curves do not intersect.

The business cycle shows fluctuations in the level of economic activity alternating between period of depression and boom conditions. The business cycle is characterised by four phases:

1. depression, a period of rapidly falling aggregate demand ac­companied by very low levels of output and heavy unemploy­ment;

2. recovery, an upturn in aggregate demand accompanied by ris­ing output and a reduction in unemployment;

3. boom, aggregate demand reaches and then exceeds substantial output levels, as the peak of the cycle and full employment are reached;

4. recession, the boom comes to an end, and is followed by re­cession. Aggregate demand falls, bringing with it falls in out­put and employment.

TEST

Rewrite these sentences in reported speech:

1. “You’ve never looked so beautiful as you looked tonight,” he said to his wife.

1. He told to his wife she had never looked so beautiful as she looked that night.

2. He said his wife she had never looked so beautiful as she looked tonight.

3. He said his wife she had never looked so beautiful as she had looked tonight.

4. He told his wife she had never looked so beautiful as she had looked that night.

2. “Don’t tell me any more if it upsets you,” Colin said to his brother.

1. Colin said to his brother not told him any more if it upset him.

2. Colin said to his brother didn’t tell him any more if it upset him.

3. Colin told his brother not to tell him any more if it upset him.

4. Colin told his brother not to tell him any more if it upseted him.

3. “Do you take sugar?” Lady Kitty asked Arnold.

1. Lady Kitty asked Arnold if he took sugar.

2. Lady Kitty asked Arnold did he take sugar.

3. Lady Kitty told Arnold he took sugar.

4. Lady Kitty told Arnold if he took sugar.

4. “I spoke to him on the telephone two months ago,” she said.

1. She told she had spoken to him on the telephone two months later.

2. She said she had spoken to him on the telephone two months before.

3. She told she spoke to him on the telephone two months ago.

4. She said she spoke to him on the telephone two months later.

5. “I’ll have another talk with Dick tomorrow myself,” said the doctor

1. The doctor said he would have another talk with Dick the next day.

2. The doctor said he will have another talk with Dick the previous day.

3. The doctor told he had another talk with Dick the day after tomorrow.

4. The doctor said he would have another talk with Dick the day after tomorrow.

Complete the sentences using can/be able to:

6.The girl fell into the river but fortunately we…rescue her.

1. to have been able to

2. been able to

3. could

4. were able to

7. Ben…smuggle the knife on board the plane without being detected by the security system.

1. could

2. was able to

3. have been able to

4. could to

8. Despite yesterday’s snowfalls, we…drive to work in less than an hour.

1. could able to

2. had been able to

3. could

4. were able to

9. This year our sales figure are…last year.

1. worse than

2. the worst

3. worst

4. the baddest

10. It’s impossible to choose between these two products. One is… the other.

1. the best

2. better than

3. as good as

4. the better

11. We’re only a small company. We’re not …the market leader in our sector.

1. as large as

2. larger than

3. larger as

4. the largest

12. The Titanic …to New York when it … an iceberg.

1. travelled…hit

2. was travelling…hit

3. was travelling…was hitting

4. travelled…was hitting

13. I have not seen Alan for ages. When I last …him, he…to find a job in London.

1. saw…was trying

2. saw…tried

3. saw..tryed

14. Alice felt very pleased with herself. She…what she…

1. had found…looked for

2. was finding…was looking for

3. found..looked for

4. had found…was looking for

15. She… into the station only to find that the train…

1. walked…had left

2. had walked…had left

3. walked…had been leaving

4. had walked…was leaving

UNIT VIII

TYPES OF RESOURCES

You know now that there are several causes of growing production among which modern economists attribute special importance to resources.

Resources are things that can be used to provide the means to satisfy wants — in other words, they are not resources until people are able to use them. Because human wants are very diverse and extend from basic physical requirements such as food and shelter, through to ill-defined aesthetic needs, resources encompass a vast range of items. It is the intellectual resources of a society — its ideas and technolo­gies — that determine which aspects of the environment meet that society’s needs, and therefore become resources. In the I9^th century, uranium was simply a curiosity used only in the manufacture of coloured glass. Today, with the advent of nu­clear technology, it is a vital energy resource. Though minerals such as coal and iron ores tend to dominate the perception of resources, the concept also embraces less tangible things such as beautiful landscapes and pleasant climates.

Resources are often categorized into human resources, such as labour supplies and skills, and natural resources, such as climate, fossil fuels, and water. Natural resources are divided into those which are non-renewable and others that can be replenished (renewable). Non-renewable resources are things like coal, copper ores, and diamonds, which exist in strictly limited quantities. Once consumed, they will not be replenished within the time-span of human history. In contrast, water supplies, timber, food crops, and solar power and similar resources can, if managed properly, provide a steady yield virtually forever. These are termed replenishable or renewable resources, which may, in turn, be continuous (where supply is largely independent of people’s actions) or flow (where supply is de­pendent on people’s actions). However, inappropriate use of renewable resources can lead to their destruction, as, for example, when a fishery or forest is over-utilized and totally consumed.

Demands for resources are made by present-day societies are causing concern among many people, who consider that the present and future demands of indus­trial societies cannot be sustained for more than a century or two, and that once a resource base fails to meet a society’s needs that society will collapse.

However this view is not universally held, and other authorities contend that such analyses misunderstand the nature of resources. Resources for future genera­tions will, they believe, be determined by the level of knowledge of future societies, and cannot be properly assessed by our current perceptions. As knowledge in­creases, new technologies will emerge, enabling materials that are currently of little importance to become valuable resources. The resource base can therefore expand as societies become better able to harness their environment to meet their needs.

Minerals are substances with a regular atomic structure and a composition that lies within defined limits. The term is also used to mean any material that is extracted from the earth.

Crops are plants grown for human use. Over 80 crops are grown worldwide, providing people with the majority of their food, and supplying fibres, rubber, pharmaceuticals, dyes, and other materials. Four main groups of crops are readily idenifmble: food crops, forage crops, fibre crops, and miscellaneous crops.

Commodities are essentially things produced for sale. They may be consumer goods like radios, or producer goods such as copper bars. Commodity markets deal in raw or semi-raw materials that can be stored for considerable periods without deterioration. They developed to their present form in the 19th century, when in­dustrial growth facilitated trading in large, standardized quantities of raw materi­als. Most markets encompass trading in «commodity futures», which is trading for delivery several months ahead. Major commodity markets exist in Chicago, To­kyo, London, and elsewhere. Most trade relates to cereals and metals. «Softs» is a term used for most materials other than metals.