V. Прочитайте та усно перекладіть з 1-го по 5-й абзаци тексту українською або російською мовою.

Пояснення до тексту

1. credit - приписувати

2. speculator - біржовик

3. amassed a fortune – назбирав достатки

4. comparative advantage – порівняльна перевага

5. mutual benefit – взаємна користь

6. counterpart – подоба, двійник

7. tax revenue – податкові надходження

8. issue debt – випускати боргові зобов’язання

David Ricardo

(1772- 1823)

1. David Ricardo was a political economist, often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Mafthus and Adam Smith. He was also a member of Parliament, businessman, financier and speculator, who amassed a considerable personal fortune.

2. Ricardo became interested in economics after reading Adam Smith's The Wealth of Nations in 1799. This was Ricardo's first contact with economics. He wrote his first economics article at age 37 and within another ten years he reached the height of his fame.

3. The most important of his contributions was the theory of comparative advantage, an fundamental argument in favor of free trade among countries and of specialization among individuals. Ricardo argued that there is mutual benefit from trade even if one party is more productive in every possible area than its trading counterpart as long as each concentrates on the activities where it has relative productivity advantage.

4. Another idea associated with Ricardo is Ricardian equivalence, an argument suggesting that in some circumstances a government's choice of how to pay for its spending (i.e., whether to use tax revenue or issue debt and run a deficit) might have no effect on the economy. Ironically, while the proposition bears his name, he does not seem to have believed it.

5. Ricardo is responsible for developing theories of rent, wages, and profits. He defined rent as "the difference between the produce obtained by the employment of two equal quantities of capital and labor." The model for this theory said that while only one grade of land is used for cultivation, rent will not exist, but when multiple grades of land are utilized, rent will be charged on the higher grades and will increase with the ascension of the grade.

Vі. А). Прочитайте питання до 1-го абзацу тексту. Із поданих варіантів відповіді вкажіть номер речення, яке містить правильну відповідь на поставлене запитання:

What was David Ricardo credited with?

1. … classifying economics

2. … systematizing economics

3. … political economics

b). Прочитайте питання до 2-го абзацу тексту. Із поданих варіантів відповіді вкажіть номер речення, яке містить правильну відповідь на поставлене запитання:

When was Ricardo’s first contact with economics?

1. … after reading Adam Smith's The Wealth of Nations

2. … after reading Keynes’ General Theory of Employment, Interest, and Money

3. … after reading Thomas Mafthus’ Essay of population

c). Прочитайте питання до 3-го абзацу тексту. Із поданих варіантів відповіді вкажіть номер речення, яке містить правильну відповідь на поставлене запитання:

What was the most important of Ricardo’s contributions?

1. … the theory of comparative disadvantage

2. … Ricardian equivalence

3. … the theory of comparative advantage