. This basic utility-maximization analysis has been modified
and expanded in many different ways.
6. , : , , .
The optimizing behavior of individual units such as households and firms
provides the foundation for microeconomics.
For example, it is used in industrial organization, labor economics,
international trade, cost-benefit analysis, and many other economic subfields.
The methodological distinction became somewhat blurred during the 1970s
as more and more macroeconomic analyses were built upon microeconomic
foundations.
In order to maximize utility the consumer purchases goods so that the
subjective rate of substitution for each pair of goods as indicated by the
consumer's utility function equals the objective rate of substitution given by
the ratio of their market prices.
Under pure competition, the producer is a price taker who may sell at the
going market price whatever has been produced.
7. :
1. What is, according to the text, microeconomics?
2. What is meant by economics in the small?
3. What economic phenomena are of microeconomists attention?
4. Where is microeconomic theory used?
5. What is optimization?
6. What is the concept of the theory of consumer?
7. What is the major difference between the theory of consumer and the theory of producer?
8. Where is microeconomic theory used?
9. What is the microeconomist interested in
10. What plays a key role in microeconomics?
(2-3 ).
(10-15 ).
.
18.
1. :
Text. Growth and Development of a Capitalism
The similarities in the patterns of growth and development of the different economies, are of interest. In every developed capitalist economy, as levels of per capita incomes rose, there was an absolute (and relative) decline in employment in agriculture and an absolute (and relative) increase in employment in the service or tertiary sector. Employment patterns in industry followed a different path.
From relatively low per capita incomes (for developed capitalist countries), relative and absolute employment in industry rose. After higher levels of per capita incomes were realized (those attained in most economies by the mid-1960s), employment in industry as a share of total employment began to drop off. In contrast, in absolute terms employment in industry rose continuously in the majority of the developed capitalist economies until the early 1970s, when stagnation set in.
A simple way of characterizing this process of growth and development in the postwar period is to envisage a situation of high rates of growth of productivity and low rates of growth of demand in agriculture interacting to release labor for industry and the service sector. The high rates of business investment mentioned earlier enabled the expanded labor force in the nonagricultural sectors to be equipped with the most productive capital plant and equi pment available. This was especially so for those economies starting from relatively low levels of per capita incomes, since these economies were in a position to borrow the most advanced technology from the high-income economies. Thus, an outstanding characteristic of the Japanese postwar modernization process was the widespread purchases of licenses from the United States of process technologies. These required modifications and adaptation to suit the Japanese needs, to be sure, but Japanese industrialists (and others) clearly were able to skip some of the research and development stages involved in implementing a technology and thereby reduce costs of production. These industrialists were also in a better position to borrow and install only the best technologies available. As a result of these and other factors, the period from the early 1950s to the early 1970s saw a strong tendency for countries with relatively low levels of per capita income at the beginning of the period to grow relatively rapidly. For all the developed capitalist economies, the same period marked (in terms of its duration and pervasiveness) capitalism's greatest boom in history.
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The period since the early 1970s has been termed a period of stagflation for capitalism, characterized by stagnation (slow growth, low investment, and high unemployment] together with inflation. Growth rates [and inflation rates] have continued to diverge from one country to the next during the current period, but there has been a general scaling-down of the pace of growth and development in all the developed capitalist economies. The primary factor involved in the collapse of the worldwide postwar boom has been a fear of inflation engendered by an acceleration in the rate of inflation beginning in the late 1960s and lasting into the mid-1970s. The response of governments to inflation in the majority of the capitalist economies has been to pursue anti-inflationary demand policies coupled at times with some form of incomes policy. This approach has led to higher rates of unemployment and lower rates of profits and utilization of capital by business. The latter has definitely depressed business investment and has contributed to the decline in growth rates. Whether such recession-induced anti-inflationary policies will work eventually is still a matter of heated discussions among economists. If the policies do not work and if efforts by governments to restore prosperity through stimulate aggregate demand policies accelerate inflation rates, one of two
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likely. Either new forms of increased intervention will occur or the authorities Will choose to restrict aggregate demand and maintain high rates of unemployment on a long-run basis in order to contain inflation. In either case, an entirely new concept defining the essential features of capitalism will become appropriate.
2. :
1. an absolute decline in employment;
2. tertiary sector;
3. a share of total employment;
4. to release labour for industry;
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5. to envisage a situation;
6. the high-income economies;
7. the widespread purchases of licenses;
8. to diverge from one country to the next;
9. recession-induced anti-inflationary policies;
10. to restore prosperity.
3. :
1. ;
2. ;
3. -;
4. ;
5. ;
6. ;
7. ;
8. ;
9. ;
10. .
4. , . , , :similar;
1.similar;
2. to grow;
3. employ;
4. continue;
5. develop;
6. agriculture;
7. relate;
8. capital;
9. accelerate
10. to discuss
5. : , , , , . These industrialists were also in a better position to borrow and install only the best technologies available.
6. , : , , .
1. In every developed capitalist economy, as levels of per capita incomes rose,
there was an absolute (and relative) decline in employment in agriculture
and an absolute (and relative) increase in employment in the service or
Tertiary sector.
2. In contrast, in absolute terms employment in industry rose continuously in
the majority of the developed capitalist economies until the early 1970s,
when stagnation set in.
3. These required modifications and adaptation to suit the Japanese needs, to be sure, but Japanese industrialists (and others) clearly were able to skip some of the research and development stages involved in implementing a technology and thereby reduce costs of production.
4. The latter has definitely depressed business investment and has contributed to the decline in growth rates.
5. This approach has led to higher rates of unemployment and lower rates of profits and utilization of capital by business.
7. :
1. What similarities could be observed in every developed capitalist economy?
2. What sector had a relative increase in employment?
3. What results had been achieved by the mid 60s?
4. When did, according to the text, stagnation set in?
5. What countries were successful in borrowing the advanced technologies and capital?
6. Why did Japanese industrialist skip some of the research and development stages?
7. What were the causes of stagnation in world developed economies?
8. What two responses can take place if the policies dont work?
9. Where was there an absolute increase in employment?
10. When did a share of total employment begin to drop off?
