1. Economists usually study markets. Now, two Americans have won the Nobel Prize in economics for not studying markets. They will share almost one and a half million dollars for their analysis of economic governance. This is the study of how economic activity is governed within companies, communities and other groups.
2. The winners are Elinor Ostrom of Indiana University in Bloomington and Oliver Williamson of the University of California, Berkeley. The prize in economic sciences has gone to sixty-three men since it was first awarded forty years ago. Elinor Ostrom is the first woman. And, like other winners over the years, her training is not limited to economics. She is a professor of political science and of public and environmental affairs.
3. Today, economic theory suggests that good resource management requires ownership, either private or public. If not, the thinking goes, then self-interest will lead to overuse and destruction of shared resources. Ecologist Garrett Hardin described this idea in nineteen sixty-eight as "the tragedy of the commons." Elinor Ostrom showed how local decision making can lessen the tragedy. Her research has deepened understanding of how people balance their needs with those of others who depend on the same resources. She studied communities like farmers in Southern California who depended on a common water supply. She documented how people who use resources often develop ways to share them. One example is forest management.
ELINOR OSTROM: "One of the absolutely key, most important variables as to whether or not a forest survives and continues is whether local people monitor each other and its use. Not officials, locals."
4. Oliver Williamson has studied big companies and found that they often are better than markets at doing complex jobs. Under his theory, businesses act as structures for conflict resolution. For example, companies that own their suppliers can avoid long-term contracts and disputes over prices. This can make production more efficient and make better use of limited resources. But businesses can also abuse their power. Professor Williamson says the best way to deal with this is not by limiting the size of companies, but through industry regulation.
(From the VOA Special English Economics Report, written by Mario Ritter, 2009, October)
VI. , (1, 2, 3)
) (true)
) (false)
) (no information)
1) Two Americans have won the Nobel Prize in economics for studying markets.
2) Nobel chairman Thorbjoern Jangland praised China for its economic success, but said civil rights must be put in place.
3) The prize in economic sciences was first awarded forty years ago.
VII. 2 :
What does the economic governance study?
3
I. (1-10).
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(a j), :
| 1) decade | a) the amount as of money or goods, asked for or given in exchange for something else |
| 2) export | b) business enterprise; a firm |
| 3) business | c) to send or transport abroad, especially for trade or sale |
| 4) company | d) the occupation, work, or trade in which a person is engaged |
| 5) wage | e) a period of ten years |
| 6) profit | f) articles produced to be sold |
| 7) goods | g) payment for labor or services to a worker, especially remuneration on an hourly, daily, or weekly basis |
| 8) consumer | h) the capacity of a physical system to do work |
| 9) price | i) the return received on an investment after all charges have been paid |
| 10) energy | j) a person who buys goods or uses services |
II. a) 3, 5.
) -, . .
1) Figures show that unemployment has been growing since 1990s.
2) Proposals have been put forward for increasing worker mobility.
3) Experts have been warning of the bankruptcy since the company was founded.
III. a) 1.
) . .
1) The two carmakers hope to achieve savings of 5% on common projects.
2) American corporations begin to offer entire packages of services.
3) After some hard talking officials decided to take part in a meeting in Geneva.
IV. . , .
1) Mobile operators appear to have realized that they need to open up their networks.
2) The Fed[] is reported to accept the document issued by government-sponsored enterprises.
3) They called for Americas illegal immigrants to be treated sensibly and humanely.
V. . 2, 3, 4.
Land of the Rising Price
1. Japan is the place that should greet the return of inflation with joy. The country has had deflation for over a decade. After an economic recovery which began in 2002 firms pay better wages.
2. Prices are on the rise. The Bank of Japan (BOJ) raised its forecast for core inflation in the fiscal year ending in March 2009 to 1.8% up from 1.1%. But even Japans core inflation rate is rising, as higher prices for wholesale goods pass on to consumers. Higher prices not only do harm to Japans external strength. They are hurting companies profit margins at home.
3. The prices of Japans exports relative to imports have deteriorated[] for at least four years. Japans recovery was supported by strong exports to China, Europe and oil-exporting countries. In value terms, exports to America are shrinking. Now, export growth to Europe looks as if it is shaking.
4. For as long as money remains cheap, corporate restructuring is unlikely to take hold. Some companies will continue to earn for a living on a drip of cheap credit, while plenty of unproductive sectors and smaller businesses will escape the kind of consolidation they need.
VI. , (1, 2, 3)
|
|
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) (true)
) (false)
) (no information)
1) Japan has been in the grip of deflationary forces for over a decade.
2) Higher prices dont do harm to Japans internal strength.
3) There is no unemployment in Japan.
VII. 1 :
What Japans recovery was supported by?
4
I. (1-10).
(a j), :
| 1) workforce | a) number of people living in a place, country, etc. |
| 2) service | b) making of goods and materials |
| 3) bank | c) the members of the population able to work |
| 4) job | d) money paid regularly for work done |
| 5) rise | e) business agreement |
| 6) industry | f) system or arrangement that supplies public needs |
| 7) deal | g) establishment for keeping money and valuables safely |
| 8) wage | h) employment, post |
| 9) manufacturing | i) upward progress |
| 10) population | j) branch of trade and manufacture |
II. a) 3, 5.
) -, . .
1) Before John celebrated his 26th birthday, he had started his own company.
2) The worlds leading gas and oil exporter has become one of the most attractive markets in the world.
3) The company has been dealing in car sales for many years.
III. a) 1.
) . .
1) Banks are interested in keeping most of their money in circulation so that it should bring them profit.
2) In 1913 H. Ford began to use assembly-line techniques in his plant.
3) Many countries in Asia have an absolute advantage in manufacturing electronic goods.
IV. . , .
1) The RF government is expected to put considerable efforts and financial resources into transport infrastructure, development and modernization.
2) Most secretarial and clerical jobs require the applicant to take a written examination.
3) Some of the major investors wanted the bank to pay a higher interest rate.
V. . 2, 3.
Employment
1. By the year 2000 Britains working population the workforce was 27 million (nearly 50 per cent of the total population). Those in employment include full-time, part-time and self-employed people. People are employed in manufacturing and service.
2. Employment is also often divided into sections according to the types of work and social class. These categories include professional, manual and non-manual. A doctor, for example, is a professional in the service sector, while a steelworker would be a manual worker (skilled or unskilled) in the manufacturing sector. One trend is very clear in Britain: fewer people now make cars or work in coal mines; more work for banks and hotels.
3. In 1951 ninety-six per cent of the people in work in Britain had full-time jobs and the majority of these (seventy per cent) were held by men. By 2000 twenty-one per cent of jobs were part-time and forty-four per cent of workers were women. The basic employment trend of the 1980s continued, with a general rise in the number of part-time jobs for women, particularly in service industries. The number of people who were self-employed also rose due partly to new technologies and to changing work patterns.
4. There are big differences in pay between men and women. The average full-time wage for women is still only 80 per cent of the male average, even when the same job is involved. Certain highly-paid occupations such as surgery are still almost exclusively for men.
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VI. , (1, 2, 3)
) (true)
) (false)
) (no information)
1) Employment has risen among people over 55.
2) People are engaged in production and service.
3) The numbers of part-time jobs for women rose due partly to new technologies.
VII. 4 :
What are differences in pay between men and women?
5
I. (1-10).
(a j), :
| 1) cost | a) the state of possessing money (gained by trade or business) or resulting in advantage |
| 2) depreciation | b) an amount of money which must be paid to the government according to income, property, goods bought etc. |
| 3) salary | c) a stated sum of money paid regularly for the use of a room, building, land, etc. |
| 4) rent | d) an agreement by contract to pay money to someone if something, like death or an accident, happens to them |
| 5) profitability | e) money that one receives as payment from the company or organization one works for |
| 6) loan | f) the amount of money paid or needed for buying, doing, or producing something |
| 7) insurance | g) tiring physical work; workers, especially those who use their hands, considered as a group or class |
| 8) tax | h) the state of falling in value or representing little value |
| 9) output | i) money which is lent |
| 10) labour | j) production |
II. a) 3, 5.
) -, . .
1) The government has been playing no role in the management of the economy for many years.
2) The partners are receiving the purchase next week.
3) When the negotiation started the parties were discussing the delivery contract.
III. a) 1.
) . .
1) To persuade consumers to buy products is the main objective of advertising.
2) The Government passed a bill on reducing taxes.
3) To acquire wealth is not easy, yet to keep it is even more difficult.
IV. . , .
1) To remain competitive the company should maintain and increase efficiency.
2) They expect the cargo to be delivered immediately.
3) Advertisers are likely to use different emotional appeals as sales are low.
V. . 1, 2.
Classification of Costs
1. Costs are usually measured in money and include such things as wages, rent, rates, interest, and the amounts of money paid for raw materials, fuel power, transport, etc. In general, economists define the following types of costs. Fixed costs are costs which do not vary when output varies. They are associated with the fixed factors of production, and include such things as interest payment on loans and bonds, insurance premiums, local and state property taxes, rent payments, executive salaries and depreciation. Variable costs are costs which are related directly to output. The most obvious items of variable costs are the wages labor, the costs of raw materials, and fuel and power. Variable costs are often described as director primecosts.
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2. Total costs include fixed and variable costs. When output is zero, total costs will be equal to fixed costs since variable costs will be zero. When production commences, total costs will begin rise as production increases, because there must be some increase in variable costs as output expands.Average costs (or costs per unit) are equal to total costs. When output is small, average costs will be spread over a small number of units of output. As output increases, average cost will tend to fall as each unit has a smaller element of fixed costs.
3. Marginal costs are extra costs from producing one more unit of output. Marginal costs are an increase in variable costs because fixed costs do not change. Marginal costs allow the business to determine the profitability of increasing or decreasing production by a few units.
depreciation , ; , .
VI. , (1, 2, 3)
) (true)
) (false)
) (no information)
1) Average costs are not equal to total costs.
2) As fixed costs do not change marginal costs are an increase in variable costs.
3) Cars value usually depreciates by about $1000 in the first year.
VII. 3 :
Do marginal costs determine the profitability of increasing or decreasing production by a few units?
