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

to satisfy desires

to make difficult choices

to get the most from what one has got

to make the best use of scarce resources

an expansion of production possibilities

unemployment rates

available resources to

allocate scarce

resources economic

growth trade deficit

inflation

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 choices.» 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.»

XI. Ask questions as in the model:

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 firm had expanded its production possibilities.

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

1. Це підприємство вдало розмістило свої ресурси до того, як розпочало виробництво цього товару. 2. Наша фірма відмовилася від випуску цього товару, щоб розпо­чати випуск іншого. 3. Коли ціни на цей товар зросли, підприємство збільшило його випуск. 4. Вони підрахували свої майбутні прибутки до того, як розпочали випуск своєї продукції. 5. Він сказав, що їхнє підприємство вдало про­вело рекламну кампанію і тому обсяги продажу цього то­вару зросли. 6. Президент компанії повідомив, що брак ресурсів змусив їх зробити вибір.

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?

Lesson 15

AGGREGATE SPENDING

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

aggregate demand — загальний попит

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

aggregate supply — загальна пропозиція

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 — збалансування

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

aggregate spending — загальні витрати

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

derived demand — похідний попит

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 — споживання

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

disposable income (Dl) — чистий прибуток

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

saving — накопичення

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

investment — інвестиція

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