3 Choose the correct word in the sentences:

1. Many African countries were nations/colonies of European countries until the 20^th century.

2. A privileged/reluctant person is able to have things that others cannot have.

3. Political stability/instability happens when a country’s political system does not work properly.

4. A grant/ loan is money given to someone (or a country) without them having to pay it back.

5. If you are reluctant/rich to do something, you don’t really want to do it.

6. Another word for help is aid/AIDS.

7. Capital/primary goods are goods which are used in order to produce other goods, or things which can be consumed without being processed.

8. Mature/reluctant means fully developed.

9. Capital/primary goods are the factories and machinery that an economy needs in order to produce other goods.

10. Human aid/capital is the educational level and the health of the working population.

4. Translate the following sentences:

1. Income is the amount of money that a person (family or company) receives over a period of time.

2. Wealth means all the collected store of valuable things that belong to a person (family, company, country).

3. Sources of income are salary, government benefits, such as unemployment benefit and family support, and also rent from property and interest from savings.

4. Huge inequalities exist in wealth owned by individuals as well as in the distribution of income.

5. Political instability happens when a country’s political system does not work properly.

6. There are several ways to measure how developed a country is. They are, first of all, life expectancy, education level and real income of the population.

7. In the less developed countries of the world many people die of hunger or poverty and millions of people cannot read or write.

8. The populations of the poorest countries suffer from natural disasters and serious diseases like AIDS and cholera.

9. Natural disasters and diseases have a serious impact on the economy of less developed countries.

10. In a monopoly the market share of one of the companies is so great that the rest are not able to compete.

11. As a rule, monopolies are not good for consumers as they are price-makers.

12. Besides natural monopolies, some monopolies can be created in more aggressive ways by takeovers of other companies.

9. The Labour Market

In many ways the relationship between employers and workers is similar to the relationship between consumers and producers: workers offer a service (labour), employers buy that service at a price they can afford (wages). So, it’s a kind of market. In economics, it’s called the labour market.

In any market for products and services, consumers try to get the maximum utility, or satisfaction, from their purchase. This is the same in the labour market. What do companies want from their purchase of labour? What utility do they get? The answer is increased output. Out put is how much of the product or service the company produces. If there is an increase in demand for their product, they will need to increase output. One way to do this is to employ more staff. Another is to ask staff they already have to work more hours. In both cases, the company will buy more labour.

Just like any other market, the labour market obeys the laws of supply and demand. The demand is the employer’s need for labour. Supply is the labour workers provide. Just like any other commodity, there is a relationship between price and demand. As the price of labour increases, the demand decreases.

The suppliers in the labour market are workers. Just like suppliers in other markets, they want a higher price for greater supply. In other words, as supply of labour increases, they want higher wages. The wage that workers get for their labour is a compromise between what they want and what companies will pay.

However there can be shifts in demand. These shifts can cause the overall demand for labour to increase or decrease in any wage rate. For example, if there is an increase in the demand for the end product or service, there will be an overall increase in demand for labour. However, if new technology can replace workers, then there will be an overall decrease in demand for labour.

One more thing which affects demand for labour is workers’ productivity. The productivity of a worker is how much they produce in a certain time. For example, a worker makes ten pencils an hour one day, and only eight pencils an hour the next day. This is a fall in productivity. When worker productivity falls, companies will pay less for labour. (1853)

1. Find in the text the English equivalents to the following words and word combinations: работодатели и рабочие, потребители и производители, рынок труда, максимальная полезность, объем выпуска продукции, нанять больше сотрудников, подчиняться законам, поставщики, изменение в спросе, общий спрос на труд, ставка зарплаты, заменить рабочих, производительность, увеличение, уменьшение.

2. Make up pairs of synonyms and antonyms from these words: an employer, a consumer, labour, to purchase, to increase, staff, a fall, a worker, workers, work, a producer, to decrease, to buy, a decrease.