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2.Основы экономических знаний (английский язык)

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Федеральное агентство по образованию
Государственное образовательное учреждение
высшего профессионального образования
«Казанский государственный технологический университет»
Методические разработки
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Составители: канд. пед. наук, доц. Г.Г. Амирова
ассист. И.В. Воронова
Основы экономических знаний (английский язык): методические разработки.
Ч. 2 / Г.Г. Амирова, И.В. Воронова. – Казань: Изд-во Казан. гос. технол.
ун-та, 2008. –28 с..
Содержат экономические тексты общего характера на английском языке,
упражнения для закрепления изучаемого материала.
Цель данной разработки – способствовать освоению специальной
лексики, терминологии, развитию навыка перевода текстов по экономическим
Рекомендуются для аудиторной и самостоятельной работы студентов,
дополнительного материала могут быть использованы аспирантами и
Подготовлены на кафедре иностранных языков.
Печатаются по решению методической комиссии по циклу гуманитарных
и социально-экономических дисциплин.
Рецензенты: доц. М.А. Максимова
доц. Э.М. Муртазина
Корректор Ю.Е. Стрыхарь
Лицензия № 020404 от 6.03.97
Подписано в печать 19.11.08.
Бумага писчая.
Печать Riso.
1,75 уч.-изд.л.
Тираж 100 экз.
Формат 60х84 1/16.
1,63 усл.печ.л.
«С» 221
Издательство Казанского государственного технологического университета
Офсетная лаборатория Казанского государственного
технологического университета
420015, Казань, К.Маркса, 68
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Unit I
Theme: The Core of Economics
1. Reading Practice
Read and translate the following text.
You make decisions every day that capture the essence of economics. Suppose
you had some money and were deciding how to spend it. Would you buy a pair of
new jeans? Two or three compact discs? A ticket for a music concert?
Similarly, what would you do with your time between 3 and 6 o’clock on,
say, a Thursday afternoon? Would you work hours at your part-time job? Would
you do research on a term project? Would you prераre for an economics quiz?
Would you watch TV? Would you take a nap?
Money and time are both scarce, and making decisions in the context of
scarcity always means there are costs. If you choose the jeans, the cost is the
forgone CDs or concert. If you nap or watch TV, the cost might be a low score on
your quiz.
Scarcity, choices, and costs are the key elements with the help of which we
introduce and explore the fundamentals of economic science.
Two fundamental facts together constitute the economizing problem and provide a foundation for the field of economics:
1. Society's material wants, that is, the material wants of its citizens and
institutions, are virtually unlimited and insatiable.
2. Economic resources — the means of producing goods and services — are
limited or scarce.
You must fully understand these two facts because almost everything in economics depends directly on them.
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In stating the first fact, what do we mean by “material wants”? We mean,
first, the desires of consumers to obtain and use various goods and services that
provide utility, meaning pleasure or satisfaction. An amazingly wide range of
products accomplishes this, from houses and automobiles to toothpaste, pizzas,
sweaters, and hamburgers. Innumerable products sometimes classified as
necessities (food, shelter, and clothing) and luxuries (perfumes, yachts, race cars)
can satisfy human wants. Of course, what is a luxury to Smith may be a necessity
to Jones, and what is a necessity today may have been a luxury a few years ago.
Services satisfy our wants as much as products do. Repair work on a car, the
removal of an inflamed appendix, legal and accounting advice, and haircuts and hair
styling all satisfy human wants. Actually, we buy many goods, such as automobiles
and washing machines, for the services they render. Thus, the differences between
goods and services are often smaller than they would appear to be.
In stating the second fundamental fact — economic resources are limited or
scarce — what do we mean by economic resources? In general, we mean all natural,
human, and manufactured resources which go into the production of goods and
services. This covers a lot of ground: all the factory and farm buildings and all the
equipment, tools, and machinery used to produce manufactured goods and
agricultural products; all transportation and communication facilities; the innumerable types of labour; and land and mineral resources of all kinds. Economists
broadly classify these as either a) property resources — land, or raw materials, and
capital; or b) human resources — labour and entrepreneurial ability.
«Wants» also include the desires of businesses and units of government to satisfy material goals. Businesses want factory buildings, machinery, trucks, warehouses,
communication systems, and other things that help them achieve their production
goals. Government, reflecting the collective wants of its citizenry or goals of its own,
seeks highways, mass transit systems, schools, and military equipment.
We say that, as a group, these wants are insatiable, or unlimited, meaning
that our desires for goods and services cannot be completely satisfied. Our desires
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for a particular good or service can be satisfied; over a short period of time we
can surely get enough toothpaste or pasta. And one appendicitis operation is
plenty. But goods in general are another story. We do not, and presumably cannot,
get enough. A simple mental experiment can help verify this. Suppose all members
of society were asked to list the goods and services they would buy if they had
unlimited income. Do you imagine that their list would ever end?
Furthermore, overtime, wants multiply. As we fill some of the wants on the
list, new ones pop up. Material wants have a high reproduction rate. The rapid
introduction of new products whets our appetites, and extensive advertising persuades
us that we need items we might not otherwise have desired. Not long ago, we did not
want personal computers, Internet service, video recorders, fax machines, and
compact discs because they did not exist. Also, we often cannot stop with simple
satisfaction: the acquisition of a Ford Escort or Geo has been known to whet the
appetite for a Porsche or Mercedes.
At any specific time the individuals and institutions constituting society have
innumerable unfulfilled material wants. Some wants — food, clothing, shelter have
biological roots. But some are also influenced by the conventions and customs of
society. The specific kinds of food, clothing, and shelter we seek are frequently
determined by the general social and cultural environment in which we live. Over
time, wants change and multiply, fueled by the development of new products and
extensive promotion.
The overall objective of all economic activity is to satisfy these diverse
material wants.
CD – a compact disk
unit of government – зд. министерство
Ford Escort, Geo, Porsche, Mercedes – the first two brands are smaller and much
cheaper than the second two ones
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the economizing problem – проблема минимизации издержек
material wants – материальные потребности
necessity – предмет первой необходимости
luxury – предмет роскоши
human wants – человеческие потребности
environment – окружение, окружающая среда
promotion – программа рекламно-пропагандистской деятельности
Unit II
Theme: Taxes and Production
1. Reading Practice
Read and translate the following text.
There are several kinds of taxes. The main ones are income taxes: the federal,
state (not in all states) and sometimes local. There are also the state and local taxes
added on to the price of the majority purchases, including food. Then there is the
social security tax and a tax on property and realty.
Besides all these, there are even other small local requisitions - yearly state,
and sometimes local taxes, licences for cars, licences for businesses, an inheritance
tax, a school tax, etc.
The income tax in America is progressive: the more you earn, the more you
pay. There are privileges lowering the amount of the tax: moving expenses, having a
big family, medical costs, the number of dependents, the expense of caring for small
children, other such expenditures.
All citizens have to fill out a tax form once a year showing the amount of their
income tax for that year and send it to the Internal Revenue Service Bureau. Every
employer is obliged to regularly take some money for taxes out of a worker's
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paycheck. If at the end of the year the sum taken out is more than that arrived at on
the tax form, the government returns the difference to the worker. But if the sum is
less than on the tax form, the worker must pay the difference.
The collection of income taxes is constantly adjusted in order to stimulate
investment in those areas of the economy where it is needed at the moment most of
all. So if things are going bad in the housing construction, certain deductions are
introduced for persons (establishments) building their own houses. If little money is
invested in producton capacities, some law is introduced stimulating it. And the
federal government has other ways as well of using the income tax laws as a means to
regulate the state of the economy.
The main success of the economy is due to its organization of production.
The average American, as a rule, is not an entrepreneur, but works for
somebody else and quite often changes jobs, even his profession sometimes. Except
for those who work for the government, almost all Americans work for private
companies: at factories, on farms and in offices. Usually it is a small company with
only 10-20 people or even less. Often it is a family. That size company is the
backbone of American companies. But even large enterprises having a thousand or
more employees are usually decentralized. They consist of separate, virtually
independently run units which may even compete with each other in some cases.
Those at the headquarters only coordinate the overall economic and technical
Such breaking up into smaller units works very well. At the head of a company
of several thousand employees are, say, thirty odd partners who gather not more than
once or twice a year. They sum up the successes and failures, come up with a general
plan of action and split the profits. The rest of the time the branches are on their own:
they themselves get their clients orders, finances, set their employment policy and
buy their own equipment None of the daily activity is regulated by anyone.
In the United States, the use of consulting firms is a common practice it is
customary to invite qualified specialists to solve complex problems. This is better
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than having such people in the company, for there is not enough work to keep them
busy 100 percent of the time. Many consulting companies are occupied with training
workers on the job, for instance, to use new equipment or computers. Some firms
give courses on how to earn money. The expenditures of the companies on these
consultants and instructors are made up for by the higher productivity of the workers
and lower labour fluidity. Moreover, it is profitable due to tax privileges: practically
all these expenditures are "written off" from the taxes, which is only natural, since the
government is interested in the enterprise to flourish.
requisitions – зд. налоги
the Internal Revenue Service Bureau – бюро по учету доходов в стране
2. Text Analyses
2.1. Answer the questions to the text.
1) What kinds of taxes do you know? What is the main one?
2) What does the term “progressive tax” mean?
3) Can the amount of tax be lowered?
4) Where must all citizens send a tax form once a year?
5) What is every employer obliged?
6) Who regulates the sum taken out? What is the mechanism of regulation?
7) In what way do taxes stimulate investments?
8) On what does the main success of the economy depend?
9) What kind of a company is the backbone of American private companies?
10) What is a structure of a large company in America?
11) What are consulting firms organized for?
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2.2. Find the English equivalents in the text.
Состояние экономики; расходы на переезд; уход за ребенком; заполнять
налоговую ведомость; обязан раз в году; возвращать разницу; из своей
зарплаты; постоянно регулировать сбор налогов; вводить некоторое снижение
налогов; средство регулирования налогов; успех объясняется хорошей
самостоятельно управляемые компании; соревноваться друг с другом;
подводить итоги; повседневная деятельность; сами находят себе заказы;
обычно приглашают специалистов; чтобы разрешить сложные вопросы;
занимаются подготовкой рабочих по специальности; за исключением тех; кто
довольно часто меняет место работы.
2.3. Ask questions of different types to these sentences.
1) All citizens have to fill out a tax form once a year showing the amount of
their income tax.
2) The average American works for the private company.
3) Every employer is obliged to regularly take some money for taxes out of a
worker’s paycheck.
2.4. Fill in the correct preposition.
1) Tax________ property
2) Licence _______ business
3) Number___________ dependents
4) Expense caring ___________ small children
5) To fill_______ a tax form
6) Amount_________ income tax
7) Due_________ organization________ production
8) To work__________ private company
9) To compete __________each other
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10) To come_______ ______ a general plan
11) To be regulated__________ anyone
12) To occupy ___________ training workers
13) To be interested ___________ the enterprise
2.5. Look through the text again and find the sentences which describe
− The distinctive feature of the average American
− The backbone of American private companies
− The structure of a large company
− The job of a consulting firm
− Several kinds of taxes
− The progressive income tax
− Taxes and investments
− Obligation of every employer
2.6. Learn the following expressions
Several kinds of taxes; the income tax; a tax on property and reality; the more
you earn the more you pay; the number of dependents; all citizens have to fill out a
tax form; the Internal Revenue Service Bureau; to stimulate investments in different
areas of the economy; to regulate the state of the economy; the main success of the
economy; organization of production.
2.7. Write out all existing taxes and give characteristic each of them.
2.8. What makes you think that the main success of the economy depends on
organization of production?
2.9. Retell text in short omitting unnecessary details.
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3. Supplementary reading
Variety of Taxes. Governments can raise tax revenue only if they can
identify the activities on which the tax rates apply. Before sophisticated records of
income or sales were ever kept, governments raised most of their revenue through
customs duties and road tolls.
Income tax in peacetime was not introduced in the UK until the 1840s. and
VAT - a general tax on goods and services (with a few specified exemptions such as
good and children's clothing) - was not introduced until the 1970s. We briefly outline
the main taxes grouped under three headings: taxes on income, or direct taxes, and
taxes on assets, or wealth taxes.
Direct Taxes. Individuals pay income tax on earnings from labour, rents,
dividends, and interest.
Companies pay corporation tax calculated on their taxable profits after allowance for interest payments and depreciation. They also make a national insurance
contribution on behalf of their employees.
Indirect Taxes. Indirect taxes are taxes levied on expenditure on goods and
services. The most important source of indirect tax revenue is value added tax (VAT),
which is effectively a retail sales tax. Whereas a sales tax is collected only at the
point of final sale to the consumer, VAT is collected at different stages of the
production process.
Wealth Taxes. In the UK there used to be two taxes that tax wealth per se
rather than the income that is derived from wealth. The first was the tax on prорerty
values, which formed the main source of revenue for local government. That is the
tax-that was replaced by the poll tax (a simple flat-rate tax per person) in the reform
of UK local government finance during 1988-90. The second, which still exists, is
capital transfer tax, which applies to transfers of wealth between individuals,
whether as gifts during life or as inheritances after death.
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tax revenue
налоговые поступления
customs duties
таможенные пошлины
плата, сбор
сделка, операция
tax on assets wealth tax
налог на имущество
обесценивание, амортизация
national insurance
государственное страхование
retail sales tax
налог с розничных продаж
capital transfer tax
налог на передачу капитала
Unit III
Theme: Unemployment and Job Hunting
1. Reading Practice
Read and translate the following text.
Curiously enough, wherever you go you see that most employees are young
folk. There are very few middle-aged and no elderly folk at all among them, even
though the retirement age is 65.
Without analysing this phenomenon in depth let me note that after a certain
age is reached people crave to start their own businesses. They either set up their own
firms, or join operating firms as partners.
Many future entrepreneurs deliberately start a career, working for somebody
else. By learning the ins and outs of another man's business and noting his pluses and
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minuses, they accumulate know-how, put aside enough money, and establish business
connections. After that they are ready to start their own enterprises.
Another motivation is the fear of becoming unemployed. Every employee is
always haunted by the likelyhood of losing his job, and girds himself
appropriately. Thus he pays dues to cover loss of work which are complimented
halfway by his employer. He also puts money aside for a "rainy day" as an investment
or a bank deposit. He tries to acquire some sideline, even should it not meet all his
needs, in short be prepared for any eventuality.
In the United States job placement is also an industry. Firstly, you have federal
and state employment agencies, who do not charge you for their services, but
whose results are minimal. Secondly, you have similar private agencies, for whose
services you must pay. During recession these agencies prosper. Some really get you
employment. Charges differ. Sometimes an advance payment is demanded. Others
may require a deposit with a remainder paid up over a certain period of time after one
gets a job. Sometimes the employer pays the fee, which, as a rule, is equivalent to
one's monthly pay. Finally, there may be a combination of the fees mentioned, or a
percentage deducted from the pay over the entire period which is usually, when the
job is temporary, of no more than six months or so. However, the most common
job-hunting approach is via newspaper advertisements, as even when recessions
are worst, and employees are laid off wholesale, newspapers feature a lot of want
ads, true, often not for the kind of job you are looking for. Most people secure jobs
with the help of family and friends.
ins and outs
все тонкости
to gird oneself
страховаться, готовиться к неожиданностям
зд. взносы
побочная работа
even should it
даже если она deposit – зд. залог
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2. Text Analyses
2.1. Answer the questions to the text.
1) Why are the most employees young folk?
2) What do people need to do before starting their own business?
3) At what age do people try to start their own business?
4) How do people get prepared to the loss of work?
5) Why is job placement an industry in most countries?
6) How do people hunt for a job?
7) What is the difference between state (federal) or private agencies?
8) What is the most common job-hunting approach?
9) Do people have to pay much for the services of employment agencies?
2.2. Find the English equivalents in the text.
Накапливать опыт; откладывать деньги; устанавливать деловые связи;
быть безработным; хозяин предприятия; наполовину компенсировать; плата за
услуги; за весь период; оплата вперед; не берут с вас деньги за услуги; месячная
массовые увольнения.
2.3. Ask questions of different types to these sentences.
1) Every employee pays dues to cover loss of work.
2) State employment agencies do not charge people for their services.
3) Most people secure jobs with the help of family and friends.
2.4. Make a plan of the text using key sentence(s) of each abstract.
2.5. Agree or disagree with the statements using the expressions:
I can’t agree with you
I am afraid you are mistaken
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Sorry, but you are wrong
If I am not mistaken, you are quite right.
Yes, you are quite right.
1) Most future entrepreneurs start a career with their own business.
2) In many countries job placement is also an industry.
3) Every employee pays dues to cover loss of work.
4) The most common job-hunting approach is via federal employment
5) Charges depend on services and types of recruitment agencies.
2.6. Skim the text and find the sentences which describe.
- The services of state and private agencies
- Accumulation of knowledge before starting one’s business
- The fear of becoming unemployed
- Advantages and disadvantages of newspaper advertisements
2.7. What makes you think that: 1) the best way to find a job is to appeal to
your friends and acquaintances. 2) it is necessary to put money aside for a “ rainy
2.8. Look through the text again and with your partner consider if the aim of
the text is:
1) To provide the students with some new information.
2) To make the students interested in the problems touched upon in the text.
3) To persuade the students to accept the author’s point of view.
Give a well- reasoned answer. Refer to the parts of the text to prove your
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3. Supplementary Reading
When you are looking for a job, it is advisable not to put all your eggs in one
basket: the more applications you make, the better your chances of finding the right
Contact as many prospective employers as possible, either by writing, telephoning, or calling them in person, depending on the type of vacancy. Whatever job
you are looking for, it is important to market yourself correctly and appropriately,
which depends on the type of job you are after.
When you are writing for a job, address your letter to the personnel director or
manager and include your curriculum vitae (CV), and copies of all references and
So, your method of job hunting will depend on your particular circumstances,
qualifications, and experience and the sort of job you are looking for.
We advise you to do the following:
− Visit a local job centre. This is mainly for non-professional skilled and unskilled jobs, particularly in industry, retailing, and catering.
− Check the Internet job service and other bulletin boards. The Internet has
hundreds of sites for job seekers.
− Obtain copies of daily newspapers, most of which have «Positions Vacant»
− sections.
− Put an advertisement in the «Situations Wanted» section of a newspaper.
− Network, which means to get together with like-minded people to discuss
business, and it is a popular way of making business and professional contacts. It can
be particularly successful for executives, managers, and professionals when job
− Ask relatives, friends, or acquaintances if they know of an employer looking
for someone with your experience and qualifications.
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− Apply in person to different companies.
Unit IV
Theme: Entrepreneurship
1. Reading Practice
Read and translate the following text.
By entrepreneurship and entrepreneur we mean not the organization of a show,
but the entrepreneurship and entrepreneur in general. A man who is ready to risk his
material well-being for the sake of some promising business. Such a person doesn't
wait until he is fired, but begins his own business as soon as he feels he is ready. It
goes without saying that the earlier a person gets into business, the more time he has
to correct the inevitable mistakes.
Not all entrepreneurs want to set up big companies. Most dream of their own
small, but solid business. Therefore besides the large and small companies in
America there are also mini-firms - a one-person firm. It is not difficult to set up such
a firm and it's not hard to survive for a while (in America there were 9 million minibusinesses in 1991). Some of them will remain that way. Some of them will quickly
fail. But many , having made it through the first crucial two or three years will begin
to flourish and some even to grow.
Entrepreneurship is a motto in America, the spirit of entrepreneurship is the
morality of American society, and entrepreneurs are the main moving force of the
American economy.
A competent engineer set up a small factory producing electricity measuring
devices some 40-45 years ago. There were times when he could have expanded
production (and correspondingly increased profits), but he never wanted to. He
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earned enough as it was. He is proud of the fact that aircraft plants buy his devices
and NASA uses them on its shuttle spaceships and satellites. He began his business by
himself in his garage. Now 49 people work at his factory. The atmosphere is almost
like one big family. He is already 75, but he actively runs the business nonetheless,
always introducing new technology and computers. He regularly gives to charity
organizations. He is a typical American businessman and entrepreneur.
Another man, a car mechanic, while working for his boss, began to earn
additionally in his free time in the evenings. Eventually he had his own clientele. He
saved up some money, borrowed the rest and built a small three-car repair shop. Now
he works for himself and has turned into an entrepreneur.
Even people with intellectual professions aren't afraid to try other things and
get into business. A professional doing some business is a normal phenomenon in
America. It is respected and encouraged by society. And for anyone who has some
trade - house painter, electrician, a joiner - it is even easier to start his own business.
Of course, to work for someone else is less trouble: someone creates a job for
you, gets orders, collects money from the clients and takes on the responsibility for
making both ends meet. At night he figures if he has enough money to write out your
paycheck, pay the rent for the building, buy equipment and supplies and on and on.
And you calmly put in your hours from 9 to 5, and rest on weekends and holidays
(something the owner can't always permit himself). On the other hand,
entrepreneurship gives an incomparable sense of personal freedom. Anyone who has
experienced it would not be likely to turn down an opportunity to become an
It goes without saying
само собой разумеется
for a while
какое-то время
he earned enough as it was
он и так хорошо зарабатывал
to make both ends meet
сводить концы с концами
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2. Text Analyses
2.1. Answer the questions to the text.
What do we mean by the word entrepreneur?
When do people begin their own business?
Why is it wisely to start business the sooner the better?
What kind of a firm do Americans usually start with?
Is it difficult or simple to set up a mini-firm in America?
What is a normal phenomena in America?
Whom is it easier to start his own business?
What are the responsibilities of the firm’s owner?
2.2. Find the English equivalents in the text.
Ради перспективного дела; быть уволенным; заняться бизнесом; создать
компанию; внедрять новые технологии; скопить деньги; превратиться в
предпринимателя; создавать новые рабочие места; получать заказы; брать на
себя ответственность за; сводить концы с концами; менее хлопотно; работать
самому (самостоятельно); работать на себя или на кого-то; позволять себе;
отказаться от возможности; гордиться тем, что.
2.3. Make up a plan of the text in the form of questions to each paragraph.
2.4. Write out all irregular verbs and give their infinitives.
2.5. Deduce which of the ideas are not expressed in the text.
1) The earlier a person starts business, the sooner he gets experience.
2) The activity of big companies is economically better for business when
profit reaches a great sum of money.
3) Selfish motives are very important in desire to open one’s own business.
4) A professional doing some business is respected and encouraged by society.
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5) It is easier to start his own business a person with intellectual profession.
6) A strong motivation to begin his own career is the fear of becoming
7) The spirit of entrepreneurship is the morality of American society and
entrepreneurs are the main moving force of the American economy.
8) Not all entrepreneurs want to set up big companies, because it is rather
difficult to organise such a firm and takes great spendings to survive.
2.6. What makes you think that in spite of the fact that entrepreurship gives an
incomparable sense of personal freedom not all people want to get into own business.
Think off advantages and disadvantages of being an owner of one’s business.
Unit V
Theme: Stock and Commodity Exchange
Reading Practice
Read and translate the following text.
At first glance, an exchange is simply a very noisy place where brokers sell
stock and commodities. Why is the whole world watching the goings-on in that place,
and why does the economy of the US and the world depend on it? Let us consider
two examples. Supposing a man bought a seat at an exchange. (A broker's seat is
$350,000 and you also have to take an examination.) His business is trade in
Eurodollars - dollars in circulation in Europe. He buys money when the rate is down
and sells it when the rate is up, watching rate fluctuations on an electronic display.
The difference makes the broker's profit. That's all. In America this business is a
respected, very profitable business which is very much needed by society.
Another man buys and sells future prices for pork. Like the Eurodollar broker,
he gets information about price fluctuations from an electronic display.
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It must be noted that pork is not yet produced (the same applies to the trade in
prices on future grain crops, etc.). Naturally, he sells high prices and buys low prices,
pocketing the difference. How does it benefit society? How does this trade influence
the economy? Let us see how the system works.
Raising funds for its needs, an enterprise (factory or firm) issues shares. Shares
give shareholders the right to a portion of the firm's property and dividends. The total
value of the stock equals the total value of the corporate property. If business goes
well, the firm's wealth grows and so does the portion of that wealth due for one share.
This means that the firm's stock is on the rise, but it can also fall if things go wrong.
When it sells shares, a company pledges to buy them back at any time the
shareholder wishes to sell. Naturally, if things don't go very well and on top of that
the company has to buy its shares back, it may easily go bankrupt. On the other hand,
if a company goes under, shareholders become holders of worthless sheets of paper.
The societal value of stock-exchange operations is self-evident. Stock price
fluctuations help businessmen and the public to understand how solid a company is,
which branches are more profitable and where investments should be made. Stock
exchange also serves as an incentive to effective investments in developing and
promising economic branches.
In the case with future prices (crops, meat, oil, steel, etc.), when prices are setin advance, the volume of production can easily be determined.
This is the way commodity and stock exchange markets influence the economy
performing the main function of an economic barometer. When stocks start falling,
business quarters become nervous, the number of deals decreases and investments are
curtailed. The decline of stocks slows down economic development, brings about
recession and greater unemployment.
This is all the process is about. – В этом заключается весь процесс.
to say nothing of
– не говоря уже о
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2. Text Analyses
2.1. Answer the questions to the text.
What is an exchange at first glance?
What does the work of a broker consist of and what makes his profit?
What business is respected and profitable in America?
From what does a broker get information about price fluctuations?
What is the reason for issuing shares?
When is it profitable to buy shares?
What may the company easily go bankrupt?
Is it profitable or not for the shareholders if the company goes under?
How do stock price fluctuations help businessmen to evaluate market
2.2. Find the English equivalents in the text.
предположим; давайте рассмотрим два примера; на первый взгляд; следить за
происходящим; то же самое относится и к; приходящийся на долю (одной
акции); курс акций растет; и кроме того (к тому же); с другой стороны;
насколько прочно положение компании; вот как рынок влияет на; деловые
круги; бизнес, который нужен обществу.
2.3. Ask necessary questions to the sentences.
1) A broker buys money when the rate is down and sells it when the rate is up.
2) A broker gets information about price fluctuations from an electronic
display. (general)
3) Shares give share holders the right to a portion of the firm´s property and
dividends (alternative).
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4) The total value of the stock equals the total value of the corporate property
5) The society value of stock – exchange operations is self-evident (tag)
2.4. Make a plan of the text using key sentence(s) of each abstract.
2.5. Combine key sentences in one composition adding necessary information
from the text.
2.6. Discuss the problem:
Why is the whole world watching the goings – on in an exchange?
2.7. Confirm the fact that broker´s business is respected and profitable in many
countries. Prove this statement by the information getting from the text.
2.8. Turn to the text again and point out the information that is new. Find more
information on the problem and discuss it with your classmates.
3. Supplementary Reading
Dialogue: A stockbroker
Once at an informal party two post-graduates (A and B) who had not met for
rather a long time, were speaking about their university mates and friends.
A: Fred is remarkable! There isn't much he doesn't know.
B: I think it's his natural curiosity. He wants to know everything. He
just scratch the surface, either. He really gets to the bottom of things.
A: Do you know what he explained to me today? The ins and outs of the stock
market. He knows all about Wall Street - all these stocks, shares, stock exchange
quotations and what not.
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B: Is he a stockbroker?
A: If I'm not mistaken, he is.
B: I have to confess something. I didn't think much of Fred at first.
A: I understand. He's very quiet. He doesn't make a good first impression. But
he grows on you after a while.
B: He's a far cry from his brother. Pete talks all the time and doesn't say
anything, either.
A: There are too many Petes in the world.
B: And not enough Freds.
Text: Market and rates
The foreign exchange market is the market in which the currencies of different
countries are exchanged for one another. The foreign exchange market is made up of
thousands of people all over the world — importers and exporters, banks and
specialists in the buying and selling of foreign exchange сalled foreign exchange
The foreign exchange market opens on Monday morning in Tokyo, when it is
still midnight on Sunday in London. As the day advances, the foreign exchange
market also opens in Zurich, Frankfurt, London, New York and finally in Vancouver
and Los Angeles.
Before these last two markets have closed, Tokyo is open again for the next
day of business.
The price at which one currency exchanges for another is called a foreign
exchange rate.
In the UK there are three possible foreign exchange rate regimes.
They are:
• Fixed exchange rate
• Flexible (or floating) exchange rate
• Managed exchange rate
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Under a fixed exchange rate regime, the value of the pound would be pegged
by the Bank of England. Under a flexible exchange rate regime, the value of the
pound would be determined by market forces with no intervention by the Bank of
England. Under a managed exchange rate regime, the Bank of England would
intervene in the foreign exchange market to smooth out fluctuations in the value of
the pound but it would not seek to maintain the pound at an absolutely constant value
for a long period of time.
foreign exchange rates
обменный курс валюты
managed rate
управляемый курс
to peg
интервенция (купля-продажа центральным
банком валюты с целью воздействия на курс
национальной валюты)
to intervene
осуществлять интервенцию
to smooth out fluctuations
устранить колебания
2. Text Analyses
2.1. Answer the questions to the text.
1) What are the key elements of economic science?
2) What is the economizing problem? Give general explanation of this term.
3) What does economics directly depend on?
4) What do we mean by “material wants”?
5) What are innumerable products classified into?
6) Are necessities and luxuries the same for all groups of people?
7) Is there any great difference between services and goods in satisfaction of
our wants?
8) What does the term “economic resources” imply?
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9) What is the classification of the economic resources?
10) Can the desires for goods and services be completely satisfied? Why?
11) What is an easy test for confirming the fact that “wants” are unlimited?
2.2. Find the English equivalents in the text.
Обширная программа по рекламно-пропагандистской деятельности; суть
экономики; получать и использовать различные товары; дополнительные часы;
социальное (общественное) и культурное окружение; почасовая работа; обычаи
общества; все время; отказываться от чего-либо; проблема минимизации
издержек; неограниченный доход; желания покупателей; предметы первой
необходимости; простой умственный эксперимент; потребности растут;
широко классифицировать; не так давно; быстрый ввод; удовлетворять
потребности людей; предметы роскоши; отражать коллективные потребности;
фактически неограниченны; снабжать основой; продукты неподдающиеся
счету; материальные потребности; кроме того.
2.3. State the general idea of each paragraph. Make up a plan of the text.
2.4. Fill in the correct preposition and translate the word combination.
desire ______________ particular good
to do ___________ your time
________ the help of which
to work _________part-time work
to depend_______ two facts
to classify_________ necessities
to stop _________ simple satisfaction
the essence ________ economics
ticket _______ for a music concert
to prepare ________an economic quiz
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to mean_______ “material wants”
differences_______ goods and services
2.5. Fill in the correct word from the list below. Use the words only once.
entrepreneurial; factory; system.
1) Products classified as ________ and luxuries
2) Mass transit_______
3) To obtain and use _______ goods and services
4) Businesses want _________ building
5) To produce _________ goods
6) Economists________ classify
7) Fundamental facts _________ the economizing problem
8) Labour and __________ ability
9) To satisfy ________ wants
2.6. Skim the text again and show with the help of it that:
1) Wants of people cannot be completely satisfied
2) The differences between goods and services are small
3) Money and time are scarce resources
4) What is a necessity today may have been a luxury a few years ago
2.7. Ask five alternative questions to the text. Let your fellow-students answer
your questions.
2.8. Retell text in short omitting unnecessary details.
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3. Supplementary reading
Text: Economics and the Economy
Every group of people must solve three basic problems of daily living; what
goods and services to produce, how to produce these goods and services, and for
whom to produce these goods and services.
Economics is the study of how society decides what, how, and for whom to
By goods we mean physical commodities such as steel, cars, and strawberries.
By services we mean activities such as massages or live theatre performances which
can be consumed or enjoyed only at the instant they are produced. In exceptional
circumstances, society may find that some of the questions about what, how, and for
whom to produce have already been answered; until the arrival of Man Friday,
Robinson Crusoe need not worry about the for whom question. In general, however,
society must answer all three questions.
By emphasizing the role of society, our definition places economics within the
social sciences, the sciences that study and explain human behaviour. The subject
matter of economics is that part of human behaviour which relates to the production,
exchange, and use of goods and services. The central economic problem for society is
how to reconcile the conflict between people’s virtually limitless desires for goods
and services, and, the scarcity of resources (labour, machinery, and raw materials)
with which these goods and services can be produced. In answering the questions
what, how, and for whom to produce, economics explains how scarce resources are
allocated between competing claims on their use.
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