Fundamental questions of economics
In a modern economic system, people take thousands or even millions of distinct and complementary roles in the production of many thousands of distinct goods and services. But they cannot carry out their distinct tasks without resources. How much resources and what kind of resources, should each person have in order to do his or her distinct task? And how much does each of them get in fact? Many textbooks put the point this way: any modern economic system must somehow decide the answers to four fundamental questions:
· What will be produced?
· By what methods?
· Using what resources?
· For whom?
We should recall two points to avoid confusion.
First, decisions on the allocation of resources need not be made by government or any other authority. Markets, negotiation, or tradition may determine what resources are available for which task, and markets are known to have some advantages in doing this job. In general, markets tend to rationalize the allocation of resources in society; that is, to make the allocation of resources more rational than it would otherwise be.
Second, we should not interpret “resources” too narrowly. Natural resources (i.e., water, wild living things and minerals), important as they are, are not the most important resources. Goods and services produced by past labour, including machinery, buildings, and the like, - that is, - are also very important resources. In economics, “allocation of resources” includes the allocation of all these things.
Discussion
1. Say if your timetable and curriculum differ from those at the time of Adam Smith?
2. Compare your education at the University with that at Oxford at the time of A. Smith. Would you like to have the same teaching at your University now?
3. Say a few words about other famous foreign and Russian economists, their life and activity. Use different sources of information.
UNIT 7. MANAGEMENT. MAIN RESOURCES
Assignment 1. Remember the meaning of the following words and word-combinations:
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definition management be based on depending (on) employ a number of responsible (for) particular area owner sole proprietorship
the only level achieve primary goal be concerned (with) human resources assembly line house employee assets variety (of) incentive etc. = et cetera fund meet obligations obtain wholesaler borrow lend income endowment
grant insurance premium transaction involve consumer market |
определение управление, руководство, менеджмент основываться (на) в зависимости (от) нанимать ряд, множество ответственный (за) конкретная область (сфера) владелец единоличное владение (при котором все активы принадлежат одному владельцу) единственный уровень достигать конечная цель заниматься (иметь дело с чем-либо) кадры конвейер размещать, вмещать служащий, работник активы ряд, множество поощрение, стимул и так далее фонд, денежные средства выполнять обязательства получать оптовик занимать ссужать, давать взаймы доход пожертвование, благотворительный взнос субсидия, безвозвратная ссуда страховая премия (финансовая) операция (зд.) быть связанным (с ч-л) потребительский рынок |
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survive competitor accomplish goals goods services
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выживать конкурент достичь цели товары услуги
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Assignment 2. Practice the pronunciation of the following phrases:
employ managers; management area; equipment; firm; the owner of a sole proprietorship; specialized; levels and areas of management; to achieve the organization's goals; human resources; tangible (material) resources; financial resources; primary goals; employee; assets; recreational facilities; lengthy paid vacation; meet obligations; external environment; obtain money; income; insurance premium; salary; consumer market; survive; competitor; finally; accomplish goals; produce goods and services; grant; wholesaler; endowment; utility bills; borrow and lend money; salary; practical results
Assignment 3. Read and translate the text using a dictionary.
Management is based on scientific theories and today we can say that it is a developing science.
Depending on its size, an organization may employ a number of specialized managers who are responsible for particular areas of management. A very large organization may employ many managers, each responsible for activities of one management area. In contrast, the owner of a sole proprietorship may be the only manager in the organization. He or she is responsible for all levels and areas of management.
What is important to an organization is not the number of managers it employs but the ability of these managers to achieve the organization's goals, and this ability requires a great skill.
In other words, management is the process of coordinating the resources of an organization to achieve the primary organizational goals.
Managers are concerned with the following main resources:
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Material resources |
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Human resources |
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Financial resources |
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Informational resources |
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Organizational goals |
