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IX. Make up your own dialogue using the following expressions:

measures of economic activity price index

to consume relative prices

market prices to export

to be measured expenditures

opportunity costs to normalize

unit of account to exceed

useful prices

to import current

X. Complete the following sentences as in the model using the Past Perfect Continuous Tense:

Model: He had been studying microeconomics for 2 years ... . He had been studying microeconomics for 2 years before he passed the exam (by that time, etc.). 1. They had been quoting prices on these goods for an

hour ... . 2. This company had been lowering stocks in value

for 2 hours ... . 3. They had been discussing current prices for 20 minutes ... . 4. We had been talking about the aggregate output for half on hour ... . 5. They had been establishing price index for an hour ....

XI. Ask questions to which the following statements are answers:

Model: They had been discussing market prices for half an

hour before he came.

How long had they been discussing market prices? 1. He had been calculating expenditures for 20 minutes before the manager came. 2. We had been discussing current prices on this equipment for an hour by that time. 3. They had been talking about the contract on different commodities for 15 minutes before the chief came. 4. I had been making purchases for half an hour before he came. 5. They had been talking about different measures of economic activity for 15 minutes before I came back.

XII. Translate into English:

1. Bohm o6roBopK>Bann 3aranbHHM pJBeHb uJh ynpOflOB>K 20 xbmiimh nepeA tmm, ak nosepnyBCH wetf). 2. Bohm 3HM>KyBanM u,iHM Ha TOBapn Bwe BnpoAOBJK Micsmn ao Toro nacy. 3. Bih niApaxoByeaB BMTpaTM KOMnaHfi* BnpoflOBJtt abox toamh nepeA tmm, hk noBepHyBCn 3aBiAyBan BiAAiny- 4. Mh o6roBOpK>Bann icHytoni ujhm Ha TOBapn npornroM niBroAMHM ao TOro *»acy. 5. Bih perenbHo BMBMaB pMHKOBi uJhm Ha o6naAH3HHfi npoTJt-tom roAMHM nepeA tmm, jik noBepHyBCn Moro weep.

XIII. Communicative situation:

If the price index increases from $50 to 180 in a single year, are the individuals living within the economy worse off or better olf?

124

125

e.g. We shall take advantage oi the situation. comparative advantage — BiflHocMa nepeBara e.g. An individual will be relatively better or have a comparative advantage. share — nacrKa, nafi

e.g. We shall all have a share in the profits. benefit — npnnocnTn/oTpHMyBaTn Kopwcib e.g. The new railway will benefit the district. to imply — 03HaHaiM, MaTH Ha yBa3i; nepeflSanaTH e.g. Silence sometimes implies consent.

II. Give English equivalents of the following:

sacTKa npn6yTKiB

III. Fill in the blanks with appropriate words:

Lesson 2U

EXCHANGE AMD SPECIALIZATION

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

gain — npn6yroK, BMrpaw, 3wck

e.g. An economy exists because there are gains from exchange and specialization.

exchange — o6mjh

e.g. We would like to continue this trend of an educational exchange among teachers of our 2 countries.

specialization — cneu,iani3au,in

e.g. Generally specialization leads to an increase in the production of goods and services.

to value — ouJHtoBaTH

e.g. He valued the house for me at 20,000 pounds.

well-being — no6po6yT

e.g. Exchange and specialization between individuals increase the well-being of individuals within an economy.

to interact — B3aeMOfliflTw

e.g. Individuals sometimes interact in cooperative ways with other individuals.

explicit — 4ITKHlt, T04HMH

e.g. He was quite explicit about the matter.

to facilitate — noneriuyBaTii, flonoMara™, cnpujrrM

e.g. Modern inventions have facilitated housework.

measurable — bmmjphhm

e.g. We came within measurable distance of success.

subjective — cy6'€KTMBHMM

e.g. Gains from exchange are not merely subjective,

to provide an incentive — 3a6e3neHyBarn cthmv/i, 3aoxo-

HyBSTM

e.g. It provides an incentive for individuals to facilitate the

exchanges among other individuals. preference — ynoAo6aHHn; nepeBara e.g. I should choose this in preference to any other. to enhance — 36inbiuyBaTn, nocnniOBaTM, niABMnyBaTM e.g. That someone's well-being is enhanced by exchange

does not imply that another person's well-being is undermined. to induce — cnoHyKain, cTHMynroBa™ e.g. What induced you to do such a thing. to take advantage of smth. — cKopHcraTMcn 3 norocb

npnHocnTM KopMCTb napTwepaM no

yroAi 3HCK bia o6MiHy Ta cneniani3au.f1' o6MJHH>BaTMCsi pecypcaMM Ta

TOBapaMM B3aeMOAiaTK wnaxoM cniBnpauj Bnpa3He 6a>KaHHH cniBnpau,toBaTM cnpMHTu o6MiHy Ta cneu,iani3au,Li

, Exchanges or trades of this sort increase ...

. If individuals can freely .... they can specialize in particular pro­duction activities.

.Individuals sometimes ... with other individuals even though there is no explicit intention to cooperate.

. If provides an incentive for indi­viduals ... among other indivi­duals.

. It is impossible ... from speciali­zation without being witling to exchange.

. Trade between nations will also ... and will depend upon com­parative advantage.

. Specialization ... on others for the goods that one might have produced but for which one trades.

niflBHLnyBaTM flo6po6yr 3a6e3neMyBaTM cinMyn CKOpucTaTMCn 3 npM-

6yTKia nepeflSaiaTM 3ane>KHicrb

36inbLUyB3TKCfl saBflflKM

o6MiHy

interact in apparently, coo­perative ways to facilitate the exchanges individual well-being implies dependence exchange resources and

goods to take a dvantage of the

gains benefit all trading partners

126

127

EV. Read and translate the text:

An economy exists because there are gains from exchange and from specialization that link individuals together in extraordinarily important ways. There are two kinds of gains.

First, if individuals are free to exchange goods and resources, they can give up those things they value relatively less in exchange for those things that they value relatively more. Exchanges or trades of this sort increase individual well-being.

Second, if individuals can freely exchange resources and goods, they can specialize in particular production activities. Generally, specialization leads to an increase in trie production of goods and services even if the resources that an economy has do not change. As a consequence, specialization will also increase individual well-being.

These two ideas, exchange and specialization, are the topics of this chapter. If is simply not possible to understand how possibly a market economy works without a clear understanding of why it is that individuals sometimes interact in apparently cooperative ways with other individuals even though there is no explicit intention to cooperate. But simply, exchange and specialization are the bases of economic activity for any society, although there may be a number of different ways that societies can choose to organize so as to facilitate exchange and specialization.

Individuals are better-off when they have opportunities to trade. While well-being is not always measurable, some of the gains from exchange can be measured; they are not merely subjective. This is important because it provides an incentive for individuals to facilitate the exchanges among other indi­viduals. The more different individual tastes and preferences are, the greater will be the potential gains from exchange between the individuals.

Just because someone's well-being is enhanced by exchange does not imply that another person's well-being is undermined.

Exchange induces individuals to specialize so as to minimize the costs of producing goods.

So long as individuals are different from one another, each will have a comparative advantage relative to some other person in at least one activity.

The gains from exchange and specializaton need not be equally divided among those who trade and specialize. Indeed, as relative prices change, the division of the gains will also change. Higher relative prices for the goods you are specialized in producing will increase your share of the gains, while lower relative prices for the same goods will decrease your share.

128

Specialization implies dependence on others for the goods that one might have produced but for which one trades. In this important sense, specialization and exchange link individuals together creating an economy (pp. 2A—37).

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