COMMENTS
2. in return — в обмін
4. self-employed — який обслуговує власне підприємство; який не є найманим робітником
5. an employer — наймач; роботодавець
6. an employee — службовець; працiвник;
Text C
The theory that uses the tools of supply and demand to explain differences in wage rates is called the traditional theory of wage determination. For example, many people can dig ditches or work as baby sitters. However, fewer have the skills to become professional managers. In other words, professional managers generally are scarcer than ditch diggers or baby sitters.
This can be expressed in terms of supply and demand. When the level of supply is large in relation to demand, wages generally are low. When the level of supply is low in relation to demand as with managers — wages generally are high. In most cases, the higher the level of skills, or grade of labour, the higher the average yearly wage rate. For example, semiskilled workers will receive more, on the whole, than unskilled workers. Skilled workers will receive more than semiskilled or unskilled workers. Professional workers will receive more than any of the others.
There are, however, some cases in which the traditional theory does not explain the variations in wage rates. Some unproductive workers, for example, may receive high wages because of family ties or political influence. Some highly skilled or productive workers may receive low wages because of race, sex, or where they live.
At times, wages are determined not by supply and demand but by the influence of organized labour and the collective bargaining process.
In these cases, unions do not try to get higher wages for their members on the grounds that labour is in short supply relative to demand. Nor does management push for lower wages when there is a very large supply of labour. This makes the price of labour-wages hard to define.
When negotiating for wages, unions want to know the wage rates in other plants for the same kind of work and what changes have taken place or will take place in the future in the cost of living.
COMMENTS
4. ... on the grounds —... на підставі
5. when negotiating for wages — коли домовляються про зарплату
U N I T 14
Text A
Just as economists study the amount of goods and services brought to market by a single producer, they also study the total amount of goods and services produced by the economy as a whole. Thus, they examine aggregate supply — the total amount of goods and services produced by the economy in a given period, usually one year.
A number of factors affect an economy’s aggregate supply. Two of these are the quantity of resources used in production and the quality of those resources. For example, an economy must have an adequate supply of natural resources and capital goods to be productive.
It also needs a skilled and highly motivated labour force. A third factor affecting aggregate supply is the efficiency with which the resources are combined. If they are combined in a productive way, aggregate supply will increase.
In order to measure aggregate supply, statistics must be kept. To keep with this task economists use national income accounting — a system of statistics, that keeps track of production, consumption, saving and investment in the economy. National income accounting also makes it possible to trace long-run trends in the economy and to form new public policies to improve the economy.
The most important economic statistics kept in the national income accounts is Gross National Product (GNP). This is the dollar measure of the total amount of final goods and services produced in a year. It is one of the most important and comprehensive statistics kept on the economy’s performance.
COMMENTS
1. aggregate supply — сукупна пропозиція
2. to be productive — щоб бути продуктивною
3. national income accounting — розрахунок національного прибутку
4. ... keeps track of production — слідкує за виробництвом
5. ... kept on the economy’s performance — яка продовжує характеристику економіки
Text B
An advanced country like the United States is very complex. It involves millions of individual decision-making units — individuals, business and governments make billions of decisions daily.
Microeconomics is the branch of economics that deals with decision-making and other behaviour by these individual units. Another branch of economics, known as macroeconomics, deals with large groups or aggregates. Because GNP deals with the output of the country as a whole, it is macroeconomic concept.
As a first step in understanding the macroeconomy we think of the economy as being made up of several different parts called sectors. These sectors represent individuals, business, government and foreign markets. The sum of expenditures of these sectors is known as aggregate demand. When aggregate demand or spending falls over a period of one to two years, the economy tends to go into recession, while a rise in aggregate demand tends to lead to booms in the economy.
One sector of the macroeconomy is the consumer sector. The basic unit in this sector is the household, which is made up of all persons who occupy a house, apartment, or room.
A second sector is the business, or investment sector. It is made up of proprietorships, partnerships, and corporations. It is the productive sector responsible for bringing the factors of production together to produce output.
A third sector in the macroeconomy is the government, or public sector. It includes the local, state and federal levels of government.
The foreign sector is the fourth sector of the macroeconomy. It includes all consumers and producers external in the United States.
The United States, for example, exports computers, airplanes, and farm products to foreign buyers. It also imports a large number of different items from foreign countries. It makes no difference whether foreign buyers are governments or private investors or if purchases are made from governments or private individuals. They are all part of the foreign sector.
COMMENTS
1. decision-making units — самостійна господарча одиниця, яка наділена правом приймати рішення
2. aggregate demand — сукупний попит
3. external in the United States — за межами Сполучених Штатів
U N I T 15
Text A
Basically, money is what money does. This means that money can be any substance that functions as a Medium of Exchange, a Measure of Value, and a Store of Value.
As a medium of exchange, money is something generally accepted as payment for goods and services
As a measure of value, money expresses worth in terms that most individuals understand.
Money also serves as a store of value. This means goods or services can be converted into money that is easily stored until some future time.
The different forms of money are in use in the United States today. The most familiar are coin and currency. The term coin refers to metallic forms of money. The term currency refers to paper money issued by government. While money has changed in shape, kind or size over the years, modern money still shares many of the same characteristics of primitive money. Modern money is very portable when people carry checkbooks. For example, they really are carrying very large sums of money since checks can be written in almost any amount.
Modern money is very durable. Metallic coins last a long time under normal use and generally do not go out of circulation unless they are lost. Paper currency also is reasonably durable. Modern money also rates high in divisibility. The penny which is the smallest denomination of coin, is more than small enough, for almost any purchase. In addition, checks almost always can be written for the exact amount. Modern money, however, is not as stable in value. The fact, that the money supply often grew at a rate 10 to 12 per cent a year was considered as major cause of inflation.
COMMENTS
1. to be any substance — бути будь-якою річчю
2. to be accepted as — бути прийнятим як
3. payment — плата, платіж
4. to be converted into — бути конвертованим у...
5. to be very portable — тут: легко переносити
6. to be very durable — тут: довго використовуватися
7. ... last a long time under normal use — за нормального використання довго перебувають в обігу
8. to go out of circulation — виходити з обігу
9. to rate high in divisibility — високо цінити за можливість поділятися
10. denomination of coin — вартість монети
11. money supply — грошова маса
Text B
Banks fulfil two distinct needs in a community. For one they provide a safe place for people to deposit their money. For another, they lend excess funds2 to individuals and business temporarily in need of cash. In effect, banks act as functional institutions that bring savers and borrowers together.
To gain a clear understanding of the way in which a bank operates, let us examine the bank’s liabilities and assets7.
Its liabilities are the debts and obligations to others. Its assets are the properties, possessions, and claims on others. These liabilities and assets generally are put together in the form of a balance sheet — condensed statement showing all assets and liabilities at a given point of time.
The balance sheet also reflects net worth — the excess of assets over liabilities, which is a measure of the value of a business.
Most bank deposits return to the community in the form of loans. The bank, however, might invest some of the cash in bonds. The bonds would be a good investment for two reasons. One is that they earn the interest and therefore are more attractive than cash. The other is that they have a high degree of liquidity, that is they can be converted into cash in a very short period of time. The liquidity adds to the bank’s ability to serve its customers. When the demand for loans increases, the bonds can be sold and the cash loaned to customers.
In time, the bank would grow and prosper diversifying its assets and liabilities in the process. It might use some of its excess funds to buy state or local bonds. It might loan some funds on a short-term basis to other banks. Then, too, a bank might use some of its assets to buy an interest in another business. The bank also might try to attract more depositors by introducing different kinds of accounts. Once the bank attracts more funds, it can make more loans and more profits.
COMMENTS
1. to deposit their money — для збереження вкладів
2. to lend excess funds — надавати кредит
3. ... in need of cash — коли потрібні гроші
4. ... that bring savers and borrowers together — що з’єднує кредиторів і дебіторів
5. to gain a clear understanding — щоб мати чітке уявлення
6. liabilities — пасив
7. assets — актив
8. the excess of assets over liabilities — перевищення активів над пасивами
9. ... they earn the interest — на них нараховується відсоток
10. liquidity — ліквідність
U N I T 16
Text A
There are three types of taxes in the United States: proportional, progressive and regressive.
A proportional tax is one that imposes the same percentage rate of taxation on everyone, no matter what their income. Even when income goes up, the per cent of total income paid in taxes does not change.
A progressive tax is one that imposes a higher percentage rate of taxation of people with high incomes than on those with low incomes.
A regressive tax is one that imposes a higher percentage rate of taxation on low incomes than on high incomes. For example, a person with a yearly income of $10,000 may spend $3,000 on food, clothing and medicine, while a person with a yearly income of $100,000 may spend $20,000 on the same essentials. If the state sales tax, which is a regressive tax, were 4 per cent, the person with the lower income would pay a lesser amount in dollars but a higher percentage of total income.*
Sales Taxes
A sales tax is a general tax levied on consumer purchases of nearly all products. It is added to the final price paid by the consumer.
For the most part, sales taxes are collected by individual merchants at the time of the sale and are turned over weekly or monthly to the proper government agency. Most states allow merchants to keep a small portion of what they collect to compensate for their time and book-keeping costs.
The sales tax generally is a very effective means of getting revenue for states and cities.
Property Taxes
A major source of revenue is the property tax — a tax on real property and tangible or intangible personal property. Real property includes land, buildings and anything else permanently attached to them. Tangible property is all tangible items of wealth not permanently attached to land or buildings, such as furniture, automobiles, the stock of goods in retail stores and clothing. Intangible personal property includes stocks, bonds, mortgages, and bank accounts.
The main problem with personal property as a source of revenue is that many items are not always brought to the attention of the tax assessor — the person who places value on property for tax purposes. Because of this, many things that should be taxed never are. Another problem is that some property is very hard to evaluate fairly.
COMMENTS
1. percentage rate of taxation — процентна ставка оподаткування
2. no matter what their income — незалежно від прибутку
3. sales taxes — податок з продажу
4. property taxes — податок на власність
5. tangible property — матеріальні активи
6. intangible property — нематеріальні активи
Text B
In order to have an effective tax system, government must have criteria or standards. One such criterion is that a tax yields enough revenue.
A second criterion is clarity. Tax laws should be written so that both the taxpayer and tax-collector can understand them. This is not an easy task but people seem to be more willing to pay taxes, when they understand them. A third criterion is ease of administration. A tax should be easy to collect. It should not require a large enforcement staff, and it should be designed so that citizens find it hard to avoid. This criterion also includes convenience and efficiency. That is the tax should be administered at the lowest possible cost. A final criterion is fairness. Taxes should be imposed justly. However, this is hard to do because people do not always agree about what is or is not fair when it comes to taxes.
In general taxes are based chiefly on two principles: the Benefit Principle and the Ability-to-Pay Principle.
The Benefit Principle of taxation is based on two ideas. First, those who benefit from government services should be the ones to pay for them. Second, people should pay taxes in proportion to the amount of services or benefits they receive.
The Ability-to-Pay Principle of taxation says that people should be taxed according to their ability to pay, no matter what benefits or services they receive. This principle is based on three things. First it is not possible to measure benefits, derived from government spending. Second, people with higher incomes suffer less discomfort than people with lower incomes even if they pay higher taxes. Finally, the only means most people have of paying taxes is the income they earn. Since the benefits of government services to individuals are hard to measure, the other basis for distributing taxes is income.
COMMENTS
1. ... people seem to be more willing to pay taxes —... здається, що люди з більшою охотою платитимуть податки
2. ... when it comes to taxes —... коли йдеться про податки
3. Benefit Principle — пільговий принцип
4. Ability-to-Pay Principle — принцип платоспроможності
Unit 1. KNEU
Unit 2. Economy of Ukraine
