Добавил:
ivanov666
Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз:
Предмет:
Файл:Экономика. Понятия, принципы, проблемы. Учебное пособие
.pdf
4. The table below shows basic characteristics of the four forms of
market structure. Write a brief comparison of the basic types of
Market structure.
Characteristic
Table 4.3. Market structure
Perfect
competition
Monopolistic
competition
Imperfect competition
Oligopoly Monopoly
Number of
Many Many Few One
firms
Ability to
affect price
None Limited Some Considera
ble
Entry barriers None None Some Complete
Example Fruit stalls Corner
grocer
Cars Post
Office
5. Table 4.4 gives information on world ice cream sales in 1992. It
is clearly seen from the table that Unilever, the Anglo-Duth firm, has
nearly half of the world market. In addition to established rivals such
as Nestle and Haagen Dazz, since 1980 it has faced inroads from Mars,
selling frozen versions of chocolate bars. Write a comparative
description of the world known producers of ice cream and their
volumes of sales.
Table 4.4. World ice cream sales, 1992 (£m)
Unilever Nestle
Europe
North
America
Rest of
world
1550
200
150
200
150
150
Haagen
Dazz
200
Scholler Breyer Mars
50
400
300
150
100
100
World 1900 500 350 400 300 250
101
6. Europe, the United States and Japan are known to be highly
advanced industrial countries. Industrialization has brought them a
high living standard. Using the data presented in the table write a short
report about the changing composition of what is produced in
industrial countries.
Make use of the following word combinations:
a small part of national output, industrial output, typical of other
industrial countries, on average, about two-thirds of national output, the
most important services, the fastest growing component of total exports.
Table 4.5. The composition of national product.
Source: World Bank, World Development Report
% of national
output
USA Japan
West
Germany
UK Denmark
Hong
Kong
1965
Agriculture 3 10 4 3 9 2
Industry 38 44 53 46 36 40
Services 59 46 43 51 55 58
1990
Agriculture 3 3 2 2 5 0
Industry 25 41 39 31 28 26
Services 72 56 59 67 67 74
DISCUSSION
Very often, pieces of academic writing relate to a theory or question
that you need to prove, for example by setting out the evidence and
arguments in support of or against the theory or question. In developing an
argument or discussion we need to express our opinion or views, and then
we need to conclude.
When we discuss or argue in academic writing, we normally need to
present a balanced view. We must also ensure that facts and opinions are
clearly separated.
6. Look at the following notes on advertising. Can you think of
any other arguments to add to these lists?
102
Advertising
For Against
1. Advertisements give up-to-date
information about products.
1. Advertisements do not give
information, they try to persuade us
to buy.
2. If there were no advertising
consumers would only know about
2. They create a demand for goods
that are not really needed.
goods in their local shops.
3. Advertising helps to sell to a
bigger market. Therefore, as more
3. Advertising adds to a the cost of
the goods.
goods are sold they are cheaper.
4. Advertisements provide revenue
for newspapers etc.
4. Advertisements are generally ugly
to look at and spoil the environment.
Sometimes we may read an article in a journal or a passage in a book
which may stimulate us to think and then compare our opinions with the
writer’s views. If we examine the areas where we agree and disagree this
can lead to an interesting discussion in writing.
Making stages in a discussion
First, Firstly, First of all, In the first place, The most important …
Second, Secondly, In the second place, The next most important …
Next, Then, After this/that, Following this/that …
Finally, Lastly, In conclusion …
Introducing your own point of view
The first thing We have
First of all, I should like
to consider
One of the main arguments
in favor of
against
X is that …
The first thing to be considered is ….
It is a fact
There is no doubt
that ….
I believe
103
Agreement
I agree with X when he writes
says
that …
Partial disagreement
… but …
… however, …
… on the other hand, …
Emphatic agreement
X is certainly correct
I completely agree with
when he
says
writes
that …
X
Cautious agreement
X may be correct when he says that…
in saying that …
Disagreement
I disagree with X when he says that …
7. Choose one of the following topics to write about. Before you
begin, make notes for and against aspects of the subject. Discuss both
sides of the argument, comparing ad contrasting. You may wish to
mention cause and effect. Try to give reasons for your view at the end.
− Advertising merely increases costs, eliminates competition and as a
result pushes up prices.
− Monopolies that make supernormal profits are always against the
public interests because they could charge a lower price than they do.
− What is the point of studying perfect competition if it does not
exist, or only very rarely exists, in the real world?
− Whether a firm is regarded as a monopoly or not depends on how
narrowly the industry is defined.
− In recent years it has become fashionable for governments around
the world to break up monopolies (sometimes nationalized and sometimes
private but protected by licenses). The idea has been that the introduction of
competition will stimulate firms to find ways of reducing costs and of
providing a better service or product. Discuss it.
104
CHECKLIST TO UNIT 4
1. What is market power?
2. What does market power depend on?
3. What makes a monopolist engage in extensive advertising?
4. What is a monopoly?
5. How are monopolies regulated by the state?
6. When can monopolies be prohibited?
7. When does the state take over a monopoly?
8. Why are most public utilities governmentally owned?
9. What are antitrust laws aimed at?
10. What is the purpose of patent granting?
11. What is meant by perfect competition?
12. What forms of imperfect competition are known?
13. What differs a perfect oligopoly from an imperfect one?
14. What kind of competition can petrol stations, restaurant fast-food
chains, supermarkets can be referred to?
15. Which form of competition has minimal entry barriers?
16. What forms may barriers to entry have?
17. What is a merger?
18. How can mergers be classified?
19. What type of merger allows exploitation of economy of scale?
20. What are potential benefits of vertical mergers?
GLOSSARY
abuse (of power) n.
amalgamate v.
antitrust adj.
appear v.
approximation n.
assembly line n.
buggy n.
barrier to entry n.
cater to v.
circumstances v.
claim v.
confer v.
cutthroat adj.
decline n.
designed for adj.
злоупотребление (властью)
сливаться, объединяться
антитрестовский
оказываться
приближение, некоторое соответствие
конвейер
тележка; двухместный экипаж
входные барьеры, барьеры для новых
компаний
стараться угодить, приспосабливаться
условия
утверждать, заявлять, требовать,
предъявлять претензии
давать, даровать, жаловать
беспощадный, ожесточенный
упадок, спад
предназначенный
105
detrimental adj.
destroy v.
dilute v.
economy of scale n.
eliminate v.
enact v.
exert v.
exclusive v.
extraction n.
extreme n.
fierce adj.
foster v.
franchise n.
grant v.
impact n.
issue (a patent) v.
legislation n.
merger n.
noteworthy adj.
obstacle n.
outlaw v.
outsell v.
perceive v.
prohibit v.
protect v.
pros and cons
public n.
quencher n.
renewal n.
resort n.
restrictive adj.
rigid adj.
strict adj.
take over v.
therefore conj.
thirst n.
twofold adj.
unfair adj.
utilities n.
voluntary adj.
106
вредный, приносящий убытки
разрушать
ослаблять, сокращать
эффект (от повышения) масштаба
отменять, устранять
предписывать, вводить (закон)
оказывать давление, влиять
исключительный
добыча, извлечение
крайний, чрезвычайный
неистовый
содействовать, поощрять
лицензия
предоставлять, выдавать
влияние, воздействие
выдавать патент
законопроект, закон
слияние, объединение
заслуживающий внимания
помеха, преграда, препятствие
объявлять вне закона
продаваться лучше, чем другой товар;
продавать большее количество, чем
конкуренты
понимать, осознавать, постигать
запрещать
защищать
за и против
общественность
утолитель (жажды)
возобновление
средство спасения; прибежище
ограничительный
строгий
жесткий
брать под свой контроль
поэтому
жажда
двойной, удвоенный
несправедливый; нечестный
коммунальные услуги, коммунальные
предприятия
добровольный
Unit 5
THE ECONOMIC FUNCTIONS OF GOVERNMENT
STARTING POINT
1. All modern economies are mixed. Recall the main
characteristic features of a mixed economy. How are the USA and
Britain characterized in terms of the economy?
2. Describe the type of the economy your country has. Mention
some specific features.
3. Adam Smith, the father of economics, argued in his 1776
classic, The Wealth of Nations, that people pursuing their own interests
are led as if by “an invisible hand” to promote the interests of society.
What do you think justifies government intervention in a market
economy?
4. Think of two major indications of stable economy.
READING
1. Skim the text about government intervention in market
economy. Find an appropriate heading for each paragraph:
a) economic stabilization
b) redistributive role of government
c) legal and social framework
d) reallocation of economic resources
e) maintaining and strengthening competition
f) fivefold breakdown of government’s functions
1. All real-life economies are “mixed”, government and the market
system share the function of answering the three fundamental questions.
The economic functions of government – federal, state, and local – are of
very considerable significance. A variety of regulatory programs designed
to protect the environment, improve worker health and safety, protect
consumers from unsafe products, provide equal access to employment
opportunities, and control the pricing behavior of certain industries impose
government into every aspect of economic activity. The economic functions
of government are many, and they are varied. In fact, the economic role of
government is so broad that it is virtually impossible to establish an allinclusive list of its economic functions. Some of the economic functions of
107
government are designed to strengthen and facilitate the operation of the
market system. Through the other functions, government modifies the
operation of the market system. So, the five major functions of government
include:
I group
• providing the legal foundation and a social environment conductive
to the effective operation of the market system;
• maintaining competition.
II group
• redistributing income and wealth;
• adjusting the allocation of resources so as to alter the composition
of the national output;
• stabilizing the economy.
2. Providing the legal foundation and a social environment
conductive to the effective operation of the market system. The
necessary legal framework involves such things as providing for the legal
status of business enterprises, defining the rights of private ownership.
Government also establishes legal “rules of the game” to govern the
relationships of businesses, resource suppliers, and consumers with one
another. The basic services provided by government include the use of
police powers to maintain order, provision of a system of standards for
measuring the weight and quality of products, and establishing of a
monetary system to facilitate the exchange of goods and services.
3. Maintaining competition. Competition is the basic regulatory
mechanism. With competition, it is the supply and demand decisions of
many sellers and buyers which determine market prices. With competition,
buyers are the boss, the market is their agent, and the businesses are their
servant. The growth of monopoly drastically alters this situation. Through
their ability to determine total supply, monopolists can influence the market
in terms of their own self-interests. They charge above-competitive prices
which are in direct conflict with the interests of consumers.
In the USA the government controls monopoly primarily in two ways.
First, in the case of natural monopolies the government has created public
commissions to regulate prices and service standards. At local level of
government, public ownership of electric and water utilities is quite
common. Second, the Federal government has enacted a series of
antimonopoly laws, beginning with the Sherman Act of 1890, for the
purpose of maintaining and strengthening competition as an effective
regulator of business behavior.
4. Redistribution of income and wealth. The market system is an
impersonal mechanism, and the distribution of income to which it gives rise
may cause more inequality than society desires. Those who possess
valuable capital and land receive large property incomes. But others in our
society have no property resources and their incomes are very low. Many of
108
the aged, the physically and mentally handicapped, and husbandless women
with dependent children earn only very small incomes or like the
unemployed no incomes at all through the market system.
Government is involved in a variety of social insurance and welfare
programs designed to ameliorate income inequality in the society. The
government carries out redistribution by deliberate policy measures:
• by direct market intervention (by modifying the prices established
by market forces, e.g. minimum-wage legislation and price supports for
farmers);
• through the transfer payments such as social security and
unemployment benefits to individuals (transfer payments are payments for
which no current direct economic service is provided in return);
• by imposing taxes (the personal income tax has been used
historically to take a larger proportion of the incomes of the rich than of the
poor).
5. Adjusting the allocation of resources so as to alter the
composition of the national output. Government purposely reallocates
resources to bring about significant changes in the composition of the
economy’s total output. When government taxes a good, such as cigarettes,
it generally reduces the quantity of that good produced; when it subsidizes a
good, such as milk, it generally increases the quantity of the good produced.
By taxing cigarettes, the government can reduce the amount of cigarettes
smoked and thereby improve health. The power to tax is thus the power to
affect the allocation of the economies resources.
Sometimes markets do not allocate resources efficiently, and
government intervention may improve economic performance. Economic
theory identifies several types of market failure. One of them involves
public goods. Most goods are private goods. A private good, if consumed
by one person, cannot be consumed by another. Ice cream is a private good.
But there are goods we can all consume simultaneously. These are called
public goods. A public good is a good that, even it is consumed by one
person, is still available for consumption by others. Clean air is a public
good. So is national defense, or public safety. The government does not
have to produce public goods; it only has to specify how much of each
should be produced. It may rely on private contractors to do the actual
production. On the other hand, there is no general economic reason why
government should not produce private goods. There are governmentowned firms or nationalized industries in most countries. Some government
enterprises appear successful and efficient.
6. Stabilizing the economy means controlling unemployment and
inflation and promoting economic growth. Every market economy suffers
from business cycles. The business cycle consists of fluctuations of total
production, or GDP, accompanied by fluctuations in the level of
unemployment and the rate of inflation. The government may reduce taxes in
109
a recession in the hope that people will increase spending and thus raise the
GDP. The central bank, which controls the quantity of money, may increase
the quantity of money more rapidly in a recession to help bring the economy
out of the recession. When inflation is high, the central bank may reduce the
rate of money growth with the aim of reducing inflation. These are
macroeconomic policies through which the government attempts to stabilize
the economy, keeping it close to full employment but with low inflation.
2. Scan the text and write the number of the paragraph where
you find the following information. Do it as quickly as possible:
___ two subdivisions of government functions
___ public goods
___ the business cycle
___ private goods
___ legal “rules of the game”
___ full unemployment and low inflation
___ market failure
___ basic services provided by government
___ social insurance and welfare programs
___ GDP fluctuations
___ limitation of market power
___ the imposition of government regulatory programs
___ income inequality in the society
___ the variety of government intervention in the mixed economy
___ ways of controlling monopolies
___ subsidizing producers
COMPREHENSION CHECK
1. Scan the text to find information to answer the questions.
1. What is the government intervention in economy aimed at?
2. What are criteria for dividing government’s functions into two
groups?
3. What does legal framework established by the government
involve?
4. What basic services does the government provide?
5. Why is it so important to maintain competition?
6. What are the ways of controlling monopolies in the USA?
7. Is there an economic justification for government intervention in
income redistribution?
8. How does the government perform its redistributive function?
9. What is the effect of taxing and subsidizing goods?
110
Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]