Economic problems, policies, and decisions

 

Economics promotes a better understanding of the nature and organization of different societies, the ar­guments underlying many of the great public issues of the day, and the operation and behaviour of business firms and other decision-making units. Economics re­lates to many problems in the real world. Every hu­man society — whether it is an advanced industrial nation, a centrally planned economy, or an isolated trib­al society — must confront and resolvethree funda­mental and interdependent economic problems.

They are:

1. What commodities are to be produced and in what quantities?

2. How will goods be produced? By whom and with what resources and in what technological manner are they to be produced?

3. For whom will goods be produced?

These three basic problems are common to all econ­omies. But different societies take different approach­es in solving them. The three economic tasks of every society are really about choices among economy's re­sources.

A resource is a material or service that is used to make goods or services. Not all resources are scarce. Free resources, such as air, are so abundant that they can be obtained without charge. Scarce resources are called economic resources.

 

CONTROL WORK 4

Variant 5

Прочитайте и переведите текст на русский язык.

THE ECONOMIC ENVIRONMENT

The economy comprises millions of people and thou­sands of firms as well as the government and local au­thorities, all taking decisions about prices and wages, what to buy, sell, produce, export, import and many other matters. All these organizations and the decisions they take play a prominent part in shaping the busi­ness environment in which firms exist and operate.

The economy is complicated and difficult to con­trol and predict, but it is certainly important to all busi­nesses. You should be aware that there are times when businesses and individuals have plenty of funds to spend and there are times when they have to cut back on their spending. This can have enormous implica­tions for business as a whole.

When the economy is enjoying a boom, firms experi­ence high sales and general prosperity. At such times, unemployment is low and many firms will be investing funds to enable them to produce more. They do this be­cause consumers have plenty of money to spend and firms expect high sales. It naturally follows that the state of the economy is a major factor in the success of firms.

However, during periods when people have less to spend many firms face hard times as their sales fall. Thus, the economic environment alters as the econo­my moves into a recession. At that time, total spending declines as income falls and unemployment rises. Con­sumers will purchase cheaper items and cut expendi­ture on luxury items such as televisions and cars.

Changes in the state of the economy affect all types of business, though the extent to which they are ef­fected varies. In the recession of the early 1990s the high street banks suffered badly. Profits declined and, in some cases, losses were incurred. This was because fewer people borrowed money from banks, thus de­nying them the opportunity to earn interest on loans, and a rising propotion of those who did borrow default­ed on repayment. These so called "bad debts" cut profit margins substantially. Various forecasters reckoned that the National Westminster Bank's losses in the case of Robert Maxwell's collapsing business empire amo­unted to over $100 million.

No individual firm has the ability to control this as­pect of its environment. Rather, it is the outcome of the actions of all the groups which make up society as well as being infuenced by the actions of foreigners with whom the nation has dealings.

 

 

UNIT 3

CHECK-UP TESTS

КОНТРОЛЬНЫЕ ТЕСТЫ

PART 1

Выберите правильный вариант ответа.

Variant 1

1. Geffrey saw you yesterday. You (drink) beer at a cafe.

a) had been drinking b)have drunk c) were drinking d) will be drinking

2. Grover (go) to Portugal five years ago.

a) went b) will go c) have gone d) had gone

3. When Sylvia met Stephen yesterday he (smoke) a pipe.

a) will smoke b) was smoking c) had been smoking d) smoked

4. I believe Edmund (return) by Tuesday.

a) returns b) will have returned c) returned d) is returning

5. Stephen (go) to the theatre tomorrow.

a) went b) will have gone c) will go d) has gone

6. When Eugene came to see them last night, they (play cards).

a) had been playing b) were playing c) will have played d) have played

7. Richard just (go) to the market.

a) has gone b) had gone c) will have gone d) had been going

8. Enough. We (talk) about it for two hours.

a) are talking b) will he talking c) have been talking d) were talking

9. Hugo (go) to the Valley of Rocks last Sunday.

a) goes b) has gone c) went d) will go

10. Jack (go) away every weekend.

a) would go b) had gone c) goes d) will have gone

 

Variant 2

1. When Susan came I (have a bath).

a) was having b) have been having c) am having d) will be having

2. Daniel hopes that he (know) everything tomorrow.

a) knew b) is knowing c) will know d) had known

3. By the end of this century people (destroy) the planet.

a) have destroyed b) destroy c) will be destroying d) will have destroyed

4. Richard (play) tennis for two hours before he went to work.

a) had been playing b) played c) has played d) will play

5. I (talk) over the phone when they brought me the letter.

a) talked b) had talked c) had been talking d) was talking

6. Alice closed the magazine and rose from the sofa on which she (lie) for more than two hours.

a) lay b) had lain c) had been lying d) was lying

7. A man (be) unconscious for a few minutes when an ambulance arrived.

a) was b) had been c) had being d) is

8. Don’t phone Jim from 5 to 6 – He (have) English.

a) will have b) will be having c) have d) has

9. I hardly (finish) speaking with a porter when the phone rang again.

a) finished b) had finished c) will finish d) finish

10. - Where is Jane? – She (go) the shops. She’ll be back soon.

a) went b) has gone to c) has d) has been to

Variant 3

1. My sister and her husband (be married) since last Christmas.

a) were married b) have married c) have been married d) had married

2. Helen just (write) a letter.

a) writes b) wrote c) has written d) have written

3. Lily (learn) high mathematics now.

a) is learning b) learn c) learned d) have learned

4. Walter said that he (buy) a new flat a year before.

a) will buy b) has bought c) was buying d) had bought

5. Don’t shout! Harry (sleep).

a) sleeps b) is sleeping c) slept d) has slept

6. I saw you yesterday. You (speak) to the dean.

a) was speaking b) spoke c) were speaking d) speaked

7. In a few minutes the clock will struck six. Irving (wait) for three hours here.

a) will be waiting b) will have been waiting c) has been waiting d) wait

8. When Susan came I (have) a bath.

a) had b) has c) is having d) was having

9. Henry (see) him last on Friday.

a) is seeing b) has seen c) saw d) had seen

10. I am afraid Terry (do) nothing for homework yet.

a) has done b) will do c) is doing d) will have done

Variant 4

1. Rodney (see) Julis in a “Fine Romance” a couple days ago.

a) had seen b) has seen c) would see d) saw

2.Claude just (come) up with a plan.

a) has come b) will be coming c) had been coming d) would have come

3. Otto last (see) him on Friday.

a) would see b) saw c) has seen d) had seen

4. I am afraid Karla (do) nothing for homework.

a) had done b) would do c) has done d) had been doing

5. Noel (write) two letters already.

a) has written b) would have written c) had written d) wrote

6. Margaret’s hair (change) colour at least three times since last winter.

a) has changed b) changes c) had changed d) changed

7. Herbert (rest) in the garden all day because he is ill.

a) rested b) has been resting c) had rested d) would rest

8. Gregg (not/eat) caviar since he was in Moscow.

a) had not eaten b) had not been eating c) is not eating d) has not eaten

9. Karel (discuss) the latest news when I came into the room.

a) has been discussing b) was discussing c) would discuss d) discussed

10. Bobby says it’s the coldest winter we (have) for years.

a) had b) have c) have had d) will have

Variant 5

1. Theodore (buy) one like it a month ago.

a) had bought b) had been buying c) bought d) will buy

2. We’re good friends. We (know) each other for a long time.

a) has known b) have knew c) have known d) knew

3. Sally (work) here for 3 years already.

a) work b) have been working c) has been working d) worked

4. I (not/to work) tomorrow, so we can go out somewhere.

a) am not working b) doesn’t work c) will not working d) was not working

5. The boy jumped off the bus while it (go).

a) gone b) was going c) went d) had gone

6. Mary’s mother often (sing) when she is cooking in the kitchen.

a) sang b) sing c) sings d) had sung

7. The new bus-driver had an accident when he (drive) a few yards.

a) had drove b) was driving c) had driven d) has driven

8. You (watch) television every evening?

a) was watching b) were watching c) were you watching d) was you watching

9. Sue (finish) her work by the end of next week.

a) has fin ished b) is finishing c) finishes d) will have finished

10. Daniel hopes that he (know) everything tomorrow.

a) knew b) is knowing c) will know d) had known

 

PART 2 CHECK-UP TESTS