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X. Change from direct into indirect speech:

Model: He said: «We used buildings and machinery rather effectively to produce final goods and services.» He said that they had used buildings and machinery rather effectively to produce final goods and ser­vices. 1. Our manager said: «We produced everything in the quantities we desired.» 2. He said: «This fact forced us to make difficult chokes.» 3. The vice-president of marketing said: «We did much to advertise our product.» 4. The president of the company said: «We gave up the production of automobiles to produce agricultural machinery.» 5. The vice-president of production said: «We made the best use of our resources.»

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XI. Ask questions as in the model:

Lesson 15

Model: Ask your manager if the quantity of resources available for production had increased. Had the quantity of resources available for pro­duction increased? Ask your manager:

1) if quality of labor and capital resources had improved; 2) if total sales of that product had risen; 3) if the enterprise had increased the production of agricultural machinery; 4) if the firm had allocated scarce resources so as to get the highest income; 5) if the (irm had expanded its production possibilities.

XII. Translate into English using the Past Perfect Tense (the Active Voice):

1. Ue ninnpMEMCTBO enano po3MicTnno cbo'i' pecypcn ao TOro, jw po3nonano bmpo6hmu,tbo u,boro TOBapy. 2. Hauia 4)ipMa BiAMOBHJiaca Bin BMnycKy u,boro TOBapy, mo6 po3no-laTM BnnycK imijoro. 3. Konn u,ihm Ha ue* Toaap 3pocnn, niflnpiieMCTBo 36inbLunno Roro BnnycK. 4. Bonn niflpaxyBariM cboV Mafi6yTHi npn6yTKM a° roro, ak po3nonanH BnnycK CBoei npoA>"<u,fi". 5. BiH cKa3aB, uj,o Txhc ninnpMCMCTBO Bflano npo-Beno peKnaMHy KaMnaHiK> i TOMy o6cstrn nponawy u,boro to-aapy 3poc/w. 6. r)pe3MfleHT KOMnaHii' noBiflOMMB, mo 6pan pecypcis 3MycnB Vx 3po6nTn Bn6ip.

XIII. Communicative situations:

  1. What opportunity costs did you incur reading this chapter?

  2. If all consumers desire air, why doesn't a market mechanism produce it?

  3. What would happen to the production possibilities if addi­tional factors of production became available?

AGGREGATE SPENDING

I. Read and memorize the following words, word- combinations and word-groups:

aggregate demand — 3aranbHMM nonm

e.g. Aggregate demand is the total quantify of output demanded at alternative price levels in a given time period.

aggregate supply — 3aram>Ha npono3nu,ifl

e.g. Aggregate supply is the total quantity of output producers are willing and able to supply at alternative price levels in a given time period.

equilibrium — 36anaHcyBawna

e.g. Equilibrium is the combination of price level and real output that is compatible with both aggregate demand and aggregate supply.

aggregate spending — 3aranbHi BmpaTH

e.g. Aggregate spending is the rate of total expenditure desired at alternative levels of income.

derived demand — noxiAHMii nonm

e.g. Derived demand is the demand for labor and other factors of production. It results from the demand for final goods and services produced by these factors.

consumption — cnownBaHHfl

e.g. Consumption is expenditure by consumers on final goods and services.

disposable income (Dl) — hmcthm npn6yroK

e.g. Disposable income is aftertax income of consumers.

saving — HanonnMeHHa

e.g. Saving is that part of disposable income not spent on current consumption.

investment — iHBecTMujsr

e.g. Investment is expenditure on new plants and equipment in a given time period, plus changes in business inventories.

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