Now read the text again and answer these questions in your own words in the space provided below.

1. What are the costs?

2. Why are costs important?

3. What are fixed costs?

4. What are variable costs?

5. Why is an economy of scale good?

6. Why is a dis-economy of scale bad?

 

Unit 5

Before you read

Discuss these questions with your partner

- In what situation(s) do you think a worker can ask for a lot of money?

- In what situation(s) can an employer pay less money to workers?

A Vocabulary

Match the words with the definitions.

 

1. take on A. employees

2. obey B. satisfaction or usefulness

3. utility C. be able to buy

4. output D. follow

5. compromise E. amount produced in a certain time

6. productivity F. employ more staff

7. afford G. both sides give up something in order to

agree

8. staff H. what a company produces

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 (the labour they provide), employers buy that service at a price they can afford (the wages they pay). As you can see, 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. Output 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 (but not the only way) is to take on more staff. Another is to ask staff they already have to work more hours. In both cases, the company is buying more labour.

Just like any other market, the labour market obeys the laws of supply and demand. The demand is the employers' 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 at 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 (the demand curve shifts to the right). However, if new technology can replace workers, then there will be an overall decrease in demand for labour (the demand curve shifts to the left).

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, imagine that 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. They are also less likely to employ new workers.

 

B Comprehension

Now read the text again and complete the sentences below in your own words in the space provided.

1. The labour market is similar to ….

2. Companies buy labour because they ….

3. Workers want higher ….

4. When the price of labour rises ….

5. Four things that cause a change in demand for labour are ….

 

ІІ. Самостійно підготуватися до монологічного висловлювання за наступними розмовними темами:

Images of Ukraine

Ancient – стародавній

Picturesque – мальовничий

Destination – місце призначення

Generous – щедрий

Easy-going – товариський

Hospitable – гостинний

Zest – зацікавленість, «родзинка»

To share - ділити

 

Ukraine is a beautiful country with a rich culture, ancient history and fascinating nature. Its ancient churches and cathedrals, picturesque nature, rich cultural history and nation’ folk make it a perfect holiday destination. What makes it really special, though is its people.

Ukrainian people are good-looking. Nowadays the appearance of Ukrainians is different. They can have dark or fair hair, black, green or blue eyes. They can be short, tall or of medium height. But real Ukrainians are black-haired and they have hazel eyes. Ukrainians in general are kind, open, generous, easy-going and hospitable. They love good food and drink and have a hearty zest for life.

Ukrainian people live both in cities and villages. A typical village consists of houses, a school, shops a church and sometimes a palace of culture. But cities have all establishments to live a full life. In the villages people mostly work in the fields or farms. People, living in the cities may have different jobs. They can work at the factories or plants, in hospitals or at schools, in the business firms or service offices.

Family life is important in Ukraine and families often spend free time, go on holidays, celebrate birthdays and eat together. Ukrainian family has two parents and one or two children. At the same time there is a growing number of one- parent families usually headed by a woman. Like in many other European countries there are a lot of young unmarried people living together and sharing a household.

Ukrainian people like to enjoy themselves. Popular free-time activities include watching TV, going to the cinema, enjoying football matches at the stadium. Ukrainians like holidays and merrymaking. They usually try to cook many tasty dishes and invite a lot of friends and relatives to their homes, or go to the country and have picnics in the woods or somewhere near the water when the weather is fine.

Ukraine is a wonderful country. Its beautiful sights, rich culture and history, warm-hearted people make it unique.

Ukraine

to extend - пролягати

temperate belt - помірний пояс

density - щільність

to rule - керувати

chamber — палата

to vest - надавати (напр., повноваження)

supreme executive authority - верховна виконавча влада

to abide - виконувати, дотримуватись

approval - схвалення, розгляд

coat of arms — герб

to confirm - підтверджувати

community — співтовариство

manganese - марганець

mercury — ртуть

barley - ячмінь

oat — овес

hemp - конопля

cast iron - чавун

fertilizer - добриво

compulsory – обов’язковий

outstanding - визначний

discovery - відкриття

 

A new state, Ukraine, appeared on the world political map in 1991.

Ukraine occupies an area of 603.700 square kilometres. The territory of Ukraine extends 900 kilometres from north to south and 1,316 kilometres from east to west.

In the north Ukraine borders on Belarus; in the east and north-east, on Russia; in the south-west, on Hungary, Romania and Moldova; in the west, on Poland and Slovakia. In the south Ukraine is washed by the Black Sea and the Sea of Azov. The total length of the frontiers is 6,500 km including 1,050 km of the sea frontiers. The main territory of Ukraine is flat, but 5% of it make up mountains. In the north of Ukraine there are the Carpathian mountains. They are divided into the West Carpathians, East and South ones. The Crimean mountains stretch for about 150 km along the coast of the Black Sea.

The climate of Ukraine is determined by its geographical location. Ukraine's territory lies in the temperate belt. In general the country's climate is temperately continental, being subtropical only on the southern coast of the Crimea.

The population of Ukraine is about 48 million people; density - 87 persons per 1 sq. km. Ukraine is inhabited by representatives of 128 nations, nationalities and ethnic groups.

Nowadays Ukraine is a democratic state, ruled by the law and created as an implementation of the people's sovereign right to self-determination.

Ukraine has its own national emblems - the coat of arms, the flag, the seal and the national anthem.

The Ukrainian political system has a popularly elected President, a 450 - person single chamber national Parliament - the Verkhovna Rada.

The President is the highest official of the Ukrainian state, vested with supreme executive authority. He exercises it through the Government, the Cabinet of Ministers which is accountable to him, and through a system of central and local organs of state executive authority; judicial power in Ukraine is vested in the courts of law. The courts are independent and all their activities abide only by the rules of law.

A Prime Minister is nominated by the President and is a subject to approval by the Verkhovna Rada.

Ukraine is divided into 24 regions and the Autonomous Republic Crimea, each of which has the elected council, whose Chairman, elected at large, also serves as head of the executive branch. The cities of Kyiv and Sevastopol are subordinated directly to the central government.

So we can say that the state power in Ukraine is based on the division of authority into legislative, executive and judicial and Ukraine could be referred to now as a country with a parliamentary-presidential form of government. Having become an independent state and being now firmly resolved to put an end to the totalitarian dictatorship, Ukrainian people have an idea of building a state which confirms its peace-loving policy. Ukraine is already a member of numerous international political and economic associations and a founding member of the United Nations. So the Ukrainian state entered the international community as an equal partner.

Present-day independent Ukraine has a considerable potential to develop its economy quickly- and this is explained not only by the convenient geographical position, but also by favourable natural conditions.

Ukraine is rich in iron and manganese ore, coal, titanium, nickel, chrome, mercury and other rare materials. In Ukraine sugar beet, wheat, rye, barley, oats, corn, sun-flower, hemp, a large variety of grain cultures, fruit and vegetables is grown. Ukraine is the first in Europe in iron and ore extraction, production of steel, cast iron, tractors, mineral fertilizers, sugar and grain; the second in coal mining, and the third in producing concrete, electric energy and various equipment. Ukraine's population stands for 0.9 % of that of the planet but it is responsible for 5% of the world's industrial output.

Ukraine is one of the biggest scientific centres of the world. A programme of educational reforms is aimed at integrating the system of general and post general education in the country into the world's educational medium. General secondary education in Ukraine is used to be free but compulsory. Post-general education is provided by 754 institutions, technical schools and colleges, institutes, universities, academies. The Academy of Sciences of Ukraine includes many outstanding scientists and research workers famous for their discoveries. Despite of today's hardships, the international scientific exchanges remain on an upward curve.

Ukraine has an ancient history. It has its own original culture and art. Over the last years the people of Ukraine display a keen interest in the Ukrainian history, cultural and artistic heritage.

In Ukraine there is a wide network of institutions of culture and arts. Professional arts are represented by some 100 operas and drama companies, 25 philharmonic societies and 4 conservatories. Eight theatres are meant specially for children, plus 27 puppet shows and 65 children movie theatres.

However, the national cultural treasure is replenished not only by professionals but also by more than 300,000 amateur choirs, music and drama companies uniting some 5 million residents of Ukraine. Ukraine ensures national and cultural revival of the Ukrainian people, their historical awareness and traditions, national and ethnographic characteristics.

The biggest cities of Ukraine are Lviv, Kharkiv, Odessa, Donetsk, Dnipropetrovs’k and others. Kyiv is the capital of Ukraine.

Mass Media

To entertain – розважати

moulding – тут формування

To resist – протистояти

To interfere – втручатися

To adore – обожнювати

Viewer – глядач