Economics for a Beginning Student (110

21 обеспеченность рабочей силой, спрос на рабочую силу, график, пересекаться; 22. вызывать, использование, влияние профсоюзов, законодательство по минимальной зарплате; 23. усиливать, свыше равновесного размера зарплаты.

VI.Translate Text 2 into Russian (in writing)

VII. Translate the Russian version of Text 2 into English (orally)

VIII. Make up meaningful phrases with the following.

1. unemployment, to be classified as; 2. frictional unemployment, to be, irreducible minimum level; 3. it, to take place; 4. physical or mental handicaps, to make; 5. frictional unemployment, to include; 6. it, also, to include, spending short spells; 7. there + to be, a mismatch, skills, opportunities; 8. it, to be possible, when, the pattern, to change; 9. firms, to be reluctant, to take on, to train; 10. such workers, to become victims; 11. demand-deficient unemployment, to refer; 12. aggregate demand, to fall; 13. wages and prices, not to adjust, to restore; 14. aggregate demand, to be deficient; 15. it, to be lower than; 16. some workers, to want to work, wage rate; 17. they, to be unable, to find; 18. demand deficient unemployment, to be eliminated; 19. classical unemployment, to describe; 20. unemployment, to be created, when, the wage, to be maintained; 21. the labour supply and the labour demand schedules, to intersect; 22. it, to be caused, the exercise, power, legislation; 23. this, to enforce a wage, in excess of.

IX.Replace the Russian words and expressions with their English equivalents.

1. Unemployment can be (классифицировать) as frictional, structural, classical and demand-deficient. 2. Frictional unemployment is irreducible mini-

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mum (уровень безработицы). 3. It (иметь место) in a dynamic society.

4.Physical or mental (недостатки) make some people (почти) unemployable.

5.Firms may be reluctant to take on and (обучать) older workers. 6. Such workers become (жертва) of structural unemployment. 7. Demand-deficient unemployment refers to Keynesian (безработица). 8. Aggregate demand may (упасть). 9. Wages and prices have not yet (приспосабливаться) to restore full employment. 10. Some workers will want to work at the going real (уровень зарплаты). 11. But they will be unable to find (рабочие места). 12. Classical unemployment (описывать) the following models. 13. Unemployment (создавать) when the wage is deliberately (поддерживать) above a certain level.

14.At this level the labour supply and labour demand schedules (пересекаться).

X. Make the following sentences into questions.

1.Frictional unemployment is irreducible minimum level of unemployment. Irreducible level of what is ……………?

2.Physical and mental handicaps make some people almost unemployable. What make some people ……………?

3.Frictional unemployment includes such people.

Whom does frictional unemployment ……………?

4.There may be a mismatch of skills and job opportunities. A mismatch of what may ……………?

5.It is possible when the pattern of demand and production changes. When is it ……………?

6.Only in the longer run will demand-deficient unemployment be eliminated.

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When will demand-deficient unemployment ……………?

7.Classical unemployment describes the following models. What does classical unemployment ……………?

8.It can be caused by the exercise of trade union power or by minimum wage legislation.

How can it ……………?

9.This enforces a wage in excess of the equilibrium wage rate.

In excess of what does this ……………?

XI..Summarize in 10 sentences the contents of Text 2.

XII. Translate into Russian the third paragraph of Text 1.

XIII. Show why the following statements are incorrect.

1.The unemployment rates for old workers and especially for young workers are well below the national average.

2.Supply-side economics does not aim to increase equilibrium employment and potential output, and to reduce the natural rate of unemployment by operating on incentives at a microeconomic level.

3.Keynesian unemployment is involuntary and therefore an advantage to private individuals who would prefer to be employed.

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UNIT 8

Pre-reading task

I.Answer the questions.

1.Why does society receive no direct return from the payment of unemployment benefit when people are voluntarily unemployed?

2.Explain why involuntary unemployment is a disadvantage to private individuals.

II. Read Text 1.

The Social Cost of Unemployment (Text 1)

Again we distinguish between voluntary and involuntary unemployment. When unemployment is voluntary, individuals reveal that they prefer to be unemployed. Does this mean that unemployment is also good for society as a whole?

There is one very obvious discrepancy between individual benefit and social benefit. For an individual, unemployment and supplementary benefit are part of the benefits of being unemployed. But these transfer payments give no corresponding benefit to society as a whole. They may ease the collective conscience about poverty and income inequality, but they are not payments in exchange for the supply of any goods or services that other members of society may consume. To this extent, the value judgement that we ought to support the unemployed inevitably entails a cost in allocative inefficiency. It encourages too many people to be voluntarily unemployed.

However, this does not mean that society should go to the opposite extreme and try to eliminate voluntary unemployment completely. First, society is perfectly entitled to adopt the value judgement that it will maintain a reasonable living standard for the unemployed, whatever the cost in resource misallocation.

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Second, even in terms of allocative efficiency, the efficient level of voluntary unemployment is certainly about zero.

In a changing economy, it is important to match up the right people to the right jobs. Getting this match right allows society as a whole to produce more output. Freezing the existing pattern of employment in a changing economy will eventually lead to a mismatch of people and jobs. The flow through the pool of unemployment is one of the mechanisms through which society reallocates people to more suitable jobs and increases total output in the long run. If unemployment benefits make this transition smoother, society as a whole may gain.

Our earlier discussion of the duration of unemployment showed that, during the postwar years of low unemployment, a high percentage of the unemployed were quickly re-employed. In the 1980s many more of the unemployed were unemployed in the long term. It can no longer be maintained that most of our unemployment is the inevitable consequence of reallocation of the workforce to more appropriate jobs.

Involuntary or Keynesian unemployment has an even higher social cost. Since the economy is producing below capacity, it is literally throwing away output that could have been made by putting these people to work. Moreover, since Keynesian unemployment is involuntary, there may be a presumption that it entails more human and psychological suffering than voluntary unemployment. Although this is hard to quantify, it should also be counted as part of the social cost of unemployment.

III. Answer the questions.

1.In what case do individuals choose being unemployed?

2.Unemployment in what country does the author dwell upon?

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IV. Check up the pronunciation of unfamiliar words in a dictionary and read Text 2 aloud.

The Social Cost of Unemployment (Text 2)

1. Again we distinguish between voluntary and involuntary unemployment. 2. There is one very obvious discrepancy between individual benefit and social benefit. 3. For an individual, unemployment and supplementary benefit are part of certain benefits. 4. They are the benefits of being unemployed. 5. But these transfer payments give no corresponding benefit to society as a whole.

6.They are not payments in exchange for the supply of any goods and services.

7.Other members of society might consume them. 8. This entails a cost in allocative inefficiency. 9. It encourages too many people to be voluntarily unemployed. 10. But society should not go to the opposite extreme. 11. It should not try to eliminate voluntary unemployment completely. 12. Society is entitled to adopt the value judgement. 13. It will maintain a reasonable living standard for the unemployed. 14. Second, the efficient level of voluntary unemployment is about zero. 15. It is important to match up the right people to the right jobs.

16.This allows society as a whole to produce more output. 17. Freezing employment will lead to a mismatch of people and jobs. 18. Thanks to unemployment society reallocates people to more suitable jobs. 19. It increases total output in the long run. 20. Unemployment benefits make this transition smoother.

V. Write out from Text 2 equivalents for the following words and expressions:

1. различать; 2. очевидное различие; 3. дополнительный, быть частью; 4. пособие по безработице; 5. выплата, соответствующая выгода; 6. обмен, предложение; 7. члены общества, потреблять; 8. вызывать, неэффективность, порождаемая распределением ресурсов; 9. содействовать, добровольно; 10. противоположная крайность; 11. устранять, полностью; 12. иметь право, принять, суждение; 13. поддерживать, разумный уровень жизни; 14. эффективный уровень, нуль; 15. сочетать; 16. позволять, произ-

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водить, продукция; 17. замораживать, занятость, несоответствие; 18. благодаря, перераспределять, подходящий; 19. увеличивать, валовой выпуск, в конечном итоге; 20. переход, более плавный.

VI. Translate Text 2 into English (in writing).

VII. Translate the Russian version of Text 2 into English (orally)

VIII. Make up meaningful phrases with the following:

1.we, to distinguish between; 2. there + to be, one discrepancy, between;

3.unemployment, supplementary benefit, to be part; 4. they, to be the benefits of; 5. these transfer payments, to give no corresponding benefit; 6. they, not to be payments, exchange, the supply; 7. other members of society, might consume; 8. this, to entail a cost; 9. it, to encourage too many people, to be; 10. but, society, should not go; 11. it, not to try, to eliminate; 12. society, to be entitled, to adopt; 13. it, to maintain, a reasonable living standard; 14. the efficient level, voluntary unemployment, to be; 15. it, to be important, to match up; 16. this, to allow, society, to produce; 17. freezing employment, to lead, a mismatch;

18.society, to reallocate people; 19. it, to increase, output; 20. unemployment benefits, to make.

IX. Replace the Russian words and expressions with their English equivalents.

1. There is one very (очевидный) discrepancy between individual benefit and social benefit. 2. (Для индивида), unemployment and supplementary benefit are part of certain benefits. 3. They are the benefits (быть безработным). 4. But these transfer payments give no corresponding benefit (общество в целом). 5. This entails a cost in allocative (неэффективность). 6. But society should not go to the opposite (крайность). 7. Society is entitled (принять) the value judgement. 8. It will (поддерживать) a reasonable living standard for the

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unemployed. 9. It is important to match up the right people to the right (рабочее место). 10.(Благодаря) unemployment society reallocates people to more suitable jobs.

X.Make the following sentences into questions.

1.Again we distinguish between voluntary and involuntary unemployment. What do we ………………..?

2.For an individual, unemployment and supplementary benefit are part of certain benefits.

What are part of certain …………………..…...?

3.But these transfer payments give no corresponding benefit to society as a whole.

What don’t these transfer payments ………………..?

4.They are not payments in exchange for the supply of any goods and services.

What aren’t payments ………………..?

5.Other members of society might consume them. Who might …………………..?

6.It should not try to eliminate voluntary unemployment completely. How shouldn’t it try to eliminate ……………..?

7.Thank to unemployment society reallocates people to more suitable jobs. Thanks to what does society ………………?

XI. Summarize in 10 sentences the contents of Text 2.

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XII. Translate into Russian the second paragraph of Text 1 (in writing).

XIII. In several sentences describe what has been happening to unemployment in Japan and Sweden. The following words and expressions will help you.

1. There + to be, different forces at work, different countries. 2. In Japan, workers, to be rarely fired and seldom quit. 3. There + to be, an implicit agreement, between firms and workers. 4. The workers, to have lifetime jobs, provided, they, to be male. 5. Women, may lose jobs. 6. They, to tend, not to become unemployed, but, rather, to move out of labour force. 7. in Sweden, it, to be, extremely expensive, to sack a worker. 8. Firms, to have to pay, large redundancy payments. 9. They, to go to some lengths, to avoid, to fire workers. 10. The government, deliberately, to create, public sector jobs, in order, to hold down unemployment.

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