Eng For Economics

N. A. Oliynyk, T. I.
Skrypnyk 1
Ministry of Education and Science of Ukraine

V. N. Karazin Kharkiv National University
N. A. Oliynyk, T. I. Skrypnyk
ENGLISH
for ECONOMICS
Manual
Kharkiv 2018
2 ENGLISH for ECONOMICS
UDC 811.111: 33 (075.8)

О 54
Reviewers:
O. V. Hlushchenko – PhD (Economics), Associate Professor, Department
of Credit and Finance, V.N. Karazin Kharkiv National University;
O. Yu. Kovalenko – PhD (Philology), Associate Professor, Department
of Education and Foreign Philology, Simon Kuznets Kharkiv National
University of Economics.
Approved for publication by the Academic Board

of V. N. Karazin Kharkiv National University
(Minutes No. 5 of 27.04.2018)
Oliynyk N. A.
О 54 ENGLISH for ECONOMICS: manual / N. A. Oliynyk, T. I. Skrypnyk. – Kharkiv :
V. N. Karazin Kharkiv National University, 2018. – 164 p.
ISBN № 978-966-285-517-3
The manual is an introduction to the English language course designed for the first-
year university students of economic specialties. The manual consists of 8 units, the
content of which corresponds to the theoretical material within the scope of majoring
subjects (economic theory, micro- and -macroeconomics, etc.). The system of exercises
provides the effective and successful assimilation of vocabulary, syntactic constructions
and the development of skills and abilities for working with written and spoken English
economic texts as well as professional communicating in English. The manual can be used
both for self-study and under teacher supervision in class. The manual includes a series
of educational materials from a variety of sources, the list of which is provided at the end
of the book.
УДК 811.111: 33 (075.8)

ISBN № 978-966-285-517-3
© V. N. Karazin Kharkiv National University, 2018

© Oliynyk N.A., Skrypnyk T.I., 2018
© Covеr designed by Prajkov M.V., 2018
N. A. Oliynyk, T. I. Skrypnyk 3
TABLE OF CONTENTS
Unit 1. SCIENCE OF ECONOMICS ............................................................... 6

Unit 2. TYPES OF ECONOMIC SYSTEMS ................................................... 18
Unit 3. MIXED ECONOMY ............................................................................. 28
Unit 4. UTILITY ................................................................................................ 41
Unit 5. ECONOMIC RESOURCES ................................................................. 55
Unit 6. SUPPLY AND DEMAND..................................................................... 66
Unit 7. MARKET STUDIES ............................................................................ 75
Unit 8. MARKET STRUCTURES .................................................................. 84
REVISION AND CONCLUSION ..................................................................... 97
SUPPLEMENT .................................................................................................. 102
TRANSLATION EXERCISES IN RUSSIAN .................................................. 135
VOCABULARY ................................................................................................ 144
LIST OF ABBREVIATIONS ............................................................................ 162
ПЕРЕДМОВА
Даний навчальний посібник розроблено для студентів І курсу

економічних спеціальностей відповідно до державного та галузевого
стандартів викладання іноземної мови професійного спрямування
з урахуванням «Загальноєвропейських Рекомендацій з мовної освіти,
вивчення, викладання, оцінювання» щодо мовної освіти. Тематика автен-
тичних текстових матеріалів співпадає з програмою фахових дисциплін,
а саме «Економічна теорія», «Мікроекономіка» та «Макроекономіка»
економічного факультету, відповідає програмі англійської мови для
студентів, які навчаються за напрямом «фінанси, банківська справа та
страхування», «економічна теорія», «міжнародна економіка» та ін.
Посібник пройшов апробацію з урахуванням побажань і зауважень
головних учасників навчального процесу: студентів, викладачів вищих
навчальних закладів. Експериментальна перевірка даного посібника, що
відбувалася у 2013–2017 роках на економічному факультеті та факультеті
МЕО і ТБ Харківського національного університету імені В. Н. Каразіна,
показала, що його матеріал дозволяє сформувати стійкі базові мовні знання
й вміння використання англійської мови в професійному середовищі
(читання, переклад, анотування, реферування автентичних текстів
академічного економічного дискурсу).
Посібник має 8 розділів (Units), кожен з яких складається з основ-
ного тексту, лексичних вправ, додаткового тексту для реферування
і закінчується поурочним словником. Навчальний посібник розраховано
на 120 годин аудиторної та 120 годин самостійної роботи студентів.
Структура посібника дає можливість викладачеві вибрати
оптимальні шляхи організації як аудиторної, так і самостійної роботи
студентів з урахуванням рівня їх знань та складається з двох
взаємопов’язаних частин. Перша частина містить основний лексико-
граматичний матеріал з тем «Science of Economics», «Types of Economic
Systems», «Mixed Economy», «Utility», «Economic Resources», «Supply and
Demand», «Market Studies», «Market Structures». Друга частина – додаток,
який містить матеріал для розвитку професійного спілкування
англійською мовою у вигляді текстів для додаткового читання, таблицю
назв країн світу англійською мовою, глосарій використаних абревіатур та
скорочень, поширених в економічному середовищі, а також додаткові
вправи для відпрацьовування лексико-граматичного матеріалу, наданого
в основній частині.
Автори посібника глибоко вдячні рецензентам – доцентові кафедри
педагогіки та іноземної філології Харківського національного економіч-
ного університету імені С. Кузнеця, кандидату філологічних наук

Коваленко О. Ю., доцентові кафедри фінансів та кредиту ХНУ імені
В. Н. Каразіна, кандидату економічних наук Глущенко О. В., а також
колегам кафедри ділової іноземної мови та перекладу ХНУ імені
В. Н. Каразіна, яку очолює доктор філологічних наук, професор Шевченко
І. С., за уважне ознайомлення з рукописом посібника та цінні критичні
зауваження. Ці зауваження й відгуки студентів значно сприяли
удосконаленню змісту та структури посібника.
Думки та зауваження щодо посібника можна надсилати авторам
на електронну адресу: [email protected].
– “Why should I major in economics?”

– People study economics for lots of different reasons.
Majoring in economics can open you up to a whole
world of opportunity. Perhaps without realising it, you
encounter economics everyday – deciding between a cup
of tea or a deluxe caramel infused creamy latte. All of
these can be explained using economics, of course, it
also embraces bigger issues such as the current financial crisis, poverty
reduction, the environment – the list is seemingly endless.
So economics is all around you, you can almost guarantee you will find an
area that interests you. Besides it will give you a stack of skills that are
applicable to many work places: quantitative skills, the ability to analyse, to
explain complex economic issues in simple, digestible forms and to understand
the implications of economics. All of these skills are transferable allowing you
to do all manner of things: development, teaching, finance, the government
economic service – the list can go on. Economics is a fantastically diverse and
interesting science that can open you up to many different opportunities,
I would say, definitely major in economics [http://whystudyeconomics.ac.uk].
Unit 1
SCIENCE OF ECONOMICS
PRE-READING
1. Working in pairs discuss the following

questions:
a) Why do people work? Provide as many
reasons as possible.
b) Which jobs are considered to be the most
popular/ unpopular nowadays? Make up a
list of possible reasons.
c) What was your choice based on when
deciding on your future profession?
READING
2. Read the following text:

Economics relates to every aspect of our lives, from the decisions we
make as individuals or families to the structures created by governments and
firms. But what is economics really like?
People have a wide range of wants and they are constantly growing.
Economics is the science that studies how to satisfy all human needs and
wants and advise people and societies what decisions to make in order to get
the most out of their limited resources.
People work to earn their living and take part in economic activities to
provide their families with everything they need: essential and non-
essential commodities. Essential commodities are such vitally important
goods as food, clothes and shelter while non-essentials are of secondary
importance (e.g. books, theater, travelling and other luxuries). The work
that people do is their economic activity which makes up the economic
system of a town, a city, a country or the entire world. Such an economic
system is the sum-total of what people do and what they want.
Economists study the general life of the community in order to understand
how it all works. Using objective and scientific methods they describe the
facts of the economy in which we live and try to solve the basic problem of
economics: how to convert limited resources into the goods and services
that best satisfy their needs. They also explain how to maximize
productivity, create wealth and maintain financial stability.
There are two main branches of economics: macroeconomics and
microeconomics. Microeconomics focuses on individual people and
individual businesses to explain how individuals make decisions about where
to spend their money or how to invest their savings.
Macroeconomics, on the other hand, takes a much broader view by
analyzing the economic activity of the country or the international market
and concentrating on economy-wide factors such as interest rates, inflation
and unemployment.
To sum up, economics is all about scarcity and choice. There is too little
time and resources to satisfy all our desires, so people have to make hard
choices about what to produce and consume. Economists analyse
the decisions that people make on maximising their happiness in a world of
scarcity [Tom McArthur. A Rapid Course in English for Students of
Economics / Tom McArthur. – Oxford University Press, USA, 1997. –
138 p.; Peter Antonioni. Economics For Dummies / Peter Antonioni, Sean
Masaki Flynn. ; [2nd Edition]. – Chichester : John Wiley & Sons,
2011. – 420 p.].
______________________________________________________________
Consider just how nasty, irrational and short life used to

be: standards of living were quite low, and people lived
poor, short and painful lives until just a few centuries ago:
• Life expectancy was about 25 years.
• More than 30 per cent of newborns never reached their fifth birthdays.
• Women had a 10 per cent chance of dying during childbirth.
• Most people had personal experience of horrible diseases and/or
starvation.
• The standard of living for one generation was no higher than that of
previous generations. Except for the nobility, everybody lived at or near
subsistence level, century after century.
Find some current data on the issues given above and report on how
life has changed.
PRACTICE
Ex. 1. Find the words or word combinations in the text to substitute

the following:
1. any particular branch 8. to keep in proper or good
of knowledge condition
2. to get money by working 9. turn into
3. continiously 10. absolutely necessary
4. a thing sold 11. in terms of the country
5. housing 12. shortage
6. use (v.) 13. society
7. variety 14. total of numbers added
together
Ex. 2. Using the information in the text say whether the following
statements are true or false:
1. __________ Most people work in order to get satisfaction and enjoy
themselves.
2. __________ People are more interested in non-essential commodities
because they provide them with particular personal satisfaction.
3. __________ Economists can use any methods to solve economic
problems.
4. __________ Economic science deals with people’s desires and needs to
make their lives better and more comfortable.
5. __________ Microeconomics studies the general issues of the economy
in terms of the country while macroeconomics analyses economic
activities of a particular individual or a company.
6. __________ Economics is all about scarcity and satisfying needs of the
society.
7. __________ The economists’ concerns range from people’s wages to the
company’s productivity and inflation in terms of the country.
8. __________ Standards of living have not changed a lot since the last
century and people can hardly provide themselves with essential
commodities.
Ex. 3. Look through the text again and give Ukrainian equivalents to
the following English words and word combinations:
1. economy 9. shelter
2. satisfy human wants and needs 10. on the other hand
3. to earn one’s living 11. luxuries
4. to convert smth into smth 12. economy-wide factors
5. non-essential commodities 13. to solve the problem
6. to maintain financial stability 14. to sum up
7. vitally important 15. to relate to
8. a wide range of wants 16. unemployment
Ex. 4. Look through the text again and give English equivalents to
the following words and word combinations:
1. наука економіка 9. економічна діяльність
2. продуктивність 10. відсоткова ставка
3. суспільство 11. наукові методи
4. створювати матеріальні цінності 12. нестача ч-н.
5. товари першої необхідності 13. приймати рішення
6. вкладати заощадження 14. споживати
7. повсякденне життя 15. рівень життя
8. конкурувати з к-н. 16. разом, у сукупності
Ex. 5. Complete the following sentences with the words/word

combinations from the text:
1. Schools, hospitals and banks provide people with important _________.
2. The money he earns is enough only for _________ _________.
3. Such goods like newspapers, toys for children are _________
_________.
4. Economic _________ is the work that people do.
5. Economists’ methods should be _________ and _________.
6. The science of _________ is concerned with _________ and choice.
7. Microeconomics studies _________ behaviour of a person or a company
in the markets.
8. Macroeconomics deals with the economic activity of an _________
country.
Ex. 6. Complete the following sentences with prepositions where

necessary:
1. People work in order to provide their families _________ everything
they need.
2. You should work hard to get the most _________ _________ your
studies then in the future.
3. We take part _________ everyday life of our community to satisfy
_________ our wants and needs.
4. The problem of the scarcity of natural resources is _________ the
greatest importance _________ economists.
5. First we will focus _________ the issues of microeconomics and then
you may concentrate ________ the studies _______ macroeconomics.
6. The professor made a pause to sum _________ the lecture and convert
the theory _________ practice.
7. _________ the one hand our desires are unlimited and we have to learn
how to satisfy them but _________ the other hand economic resources
are limited and we must consume them economically.
8. Companies compete ___ each other to get maximum profit in the market.
Ex. 7. Paraphrase the following sentences using the words from your
active vocabulary for the underlined words:
1. Bankers and lawyers give services. Farmers and coal-miners make
goods.
2. People work to earn money and buy those things that bring them some
special pleasure with the money they earn.
3. In the same garage you may not only buy a car but you can also buy
a service which helps to keep that car working.
4. You can’t live without food, clothes and shelter so economists consider
them to be vitally important goods.
5. This science explains how to use economic resources and where to keep
money you saved.
6. This science can give reasons for the unstable economic situation in the
country and the situation when there are not enough working places.
7. The work that people do makes up the economic system of a town,
a city or a country.
8. Scientists work out the answers to the problems that people face in their
everyday lives and make the structure of the economic life in the country
more efficient.
Ex. 8.a. Make up the words which relate to the word “economy” and put
them down into the last column:
Y economy
ICS
IST
ECONOM
UN IC AL LY
IZE ER
Ex. 8.b. Complete the following sentences with the words from the table:
1. Marx and Keynes are two famous _________ who lived in the 19th
century.
2. We must be very _________ with the money we earn.
3. Inflation may cause a country to be in a bad _________ state.
4. The students of the School of _________ are working at a new project
on _________ development of their region.
5. The _________ system of a country is usually called the national
_________.
6. It is possible to _________ if one compares the prices of items before
buying them.
7. It is usually more _________ to buy large amounts of a product than
small ones.
8. The people in this town live very _________ due to their low income.
9. The national _________ is the system of the management and use of
_________ resources of the country.
10. Politically and _________, the country is going through enormous
changes.
11. A person is _________ free, if he can do what he wishes with his own
money, time and property.
12. The principles of production and distribution of goods and services and
the development of wealth are called _________.
13. If you want to go to the seaside in summer you should start to ________
right now.
14. A new president is rebuilding a solid _________ base for the future of
the country.
Ex. 9. Match the beginning of the sentence in column A with its ending
in column B:
A B
1. Most people work in order to … a) to satisfy all human needs
and wants.
2. Economists try b) the work which people do.
3. Our range of wants c) essential and non-essential
4. Economics is the science d) with everything they need
that studies how to live happily.
5. The economic activity is … e) individual economic activities
of a person or a company.
6. The sum-total of all economic f) using scarce resources.
activities and people’s wants is …
7. The work which people do g) to solve the basic problem of
provides them … scarce resources.
8. People need both … h) the national and international
commodities. economic activity of the country.
9. Food, clothes and shelter are … i) is constantly growing.
10. Macroeconomics focuses on … j) an economic system.
11. Economic science is all about k) essential commodities.
12. Microeconomics studies ... l) earn their living.
Ex. 10. Give a small talk on the basic problem of economics using your
active vocabulary and the diagram below.
Ex. 11.Translate the following into English:

1. – Де ви навчаєтесь? – У Харківському національному університеті
імені В. Н. Каразіна на економічному факультеті. – А ви? –
Я першокурсник факультету МЕВ та ТБ/економічного факультету
(повністю). Я буду економістом, щоб вивчати повсякденне життя
людей і розуміти, як працює економічна система.
2. Ви знаєте, в чому загальна проблема науки економіки? –
Так. Економісти вивчають, як задовольнити необмежені потреби за
допомогою обмежених ресурсів. Потреби завжди зростають
швидше від виробничих можливостей. – А чому вони так швидко
зростають? – Річ у тому, що люди мають різноманітне коло бажань;
їх бажання постійно змінюються. Виробництво не може задоволь-
нити усі необмежені потреби населення.
3. Я багато працюю, щоб заробляти достатньо грошей і забезпечити
свою родину усім необхідним. З одного боку, вони мають усі
товари першої необхідності: іжу, житло та одяг, з другого ж боку,
вони постійно потребують предметів розкоші, таких як дорогі
електронні прилади, туристичні подорожі, розваги та інші.
4. Для того щоб купувати не тільки товари першої необхідності, а також
товари, які надають певне задоволення, треба бути дуже ощадливими.
5. Вчені застосовують об’єктивні та наукові методи, щоб вирішити
питання нестачі природних та економічних ресурсів та навчити
людей економно їх використовувати.
6. Робота, яку виконують люди, забезпечує їх грошима. Економісти
кажуть, що економічна діяльність, яку виконують люди, складає
економічну систему країни, тобто економічна система – це сукупність
економічної діяльності людей.
7. Людина або компанія може виробляти товари (сільсько-господар-
ські чи виробничі) та надавати послуги. Наприклад, компанія
«Самсунг» виробляє товари та надає послуги з їх обслуговування.
WRITING
Ex. 12. a. Write a magazine article under the headline: “Is any job better
than no job at all?”
Ex. 12. b. Write a letter to your pen-friend in England and give reasons
of your entering the School of Economics.
Ex. 13. Do the crossword:
Across: 1. 10
1. things which people 2.
wear (pl); 3.
2. to manage 4.
economically;
5.
3. based on facts;
4. pleasant; 6.
5. as much as necessary; 7.
6. society; 8.
7. a branch of 9.
knowledge or study
systematically arranged and showing the operation of general laws;
8. the scientist who studies our everyday lives.
9. important
Down:
10. The study of how society uses its scarce resources.
QUESTIONS FOR DISCUSSION
1. Work in pairs. Ask each other the question ‘Why do people study
economics?’ Give as many reasons as possible. Then compare your lists
with the rest of the group.
2. Choose the statement you agree with and state your choice:
a) ‘The purpose of studying economics is to acquire a set of answers to
economic questions.’
b) ‘The purpose of studying economics is to learn how not to be deceived
by economists.’
VOCABULARY
English Russian Ukrainian

be of secondary иметь второстепенное не мати важливого
importance значение значення
community общество суспільство
concentrate on концентрироваться концентруватися;
на ч-л. зосереджуватися
create wealth накапливать, создавать накопичувати,

материальные створювати
ценности/богатство матеріальні
цінності/багатство
earn а living зарабатывать на жизнь заробляти на життя
еconomic (adj.) экономический економічний

economic activities экономическая економічна діяльність
деятельность
economic system экономическая система економічна система
economical (adj.) экономный заощадливий,
економний
economics экономика (наука) економіка (навчальна
та наукова
дисципліна)
economist (n.) экономист економіст
economize (v.) экономить заощаджувати,
економити
economy (n.) экономика (страны), економіка (країни),
народное хозяйство; народне
экономия господарство;
економія
economy-wide в масштабах экономики у межах економіки
страны країни
essential commodity товар первой товар першої
необходимости необхідності
everyday life повседневная жизнь повсякденне життя
focus on sth. сосредоточиваться; зосереджуватися,
концентрироваться зосередитися на ч-н.
на ч-л.
generation поколение покоління, генерація

get the most out of получить максимум отримувати,
sth. от ч-л. одержувати максимум
humanity человечество людство
invest инвестировать, інвестувати гроші
вкладывать деньги
life expectancy средняя середня тривалість
продолжительность життя
жизни
limited resources ограниченные ресурсы обмежені ресурси
luxuries/luxurious предметы роскоши предмети розкоші
goods
macroeconomics макроэкономика макроекономіка
maintain поддерживать в підтримувати
рабочем состоянии у робочому стані
make up образовывать, створювати, складати
составлять
market рынок ринок
maximize увеличивать до збільшувати до межі;
предела; извлекать мати користь
максимальную пользу
microeconomics микроэкономика мікроекономіка
newborn новорожденный новонароджений
nobility дворянство дворянство
non-essential товары не первой товар не першої
commodities необходимости необхідності
produce производить, выпускать виробляти
productivity производительность, продуктивність
продуктивность
provide smb with sth обеспечивать к-л., ч-л. забезпечити к-н., ч-н.
range of wants круг желаний коло бажань
relate to иметь отношение к ч-л. мати відношення
до ч-н.
satisfy удовлетворить задовольнити
savings сбережения заощадження
scarcity недостаток, нехватка, недостача, нестача,
дефицит дефіцит
science наука наука
scientific научный науковий
shelter жилище, кров житло
society общество суспільство

solve the problem решать проблему вирішувати проблему
standard of living уровень жизни рівень життя
starvation голод; голодание голод; голодування
subsistence level прожиточный минимум прожитковий рівень
sum up суммировать; підсумовувати,
обобщать; подводить підбивати підсумки
итог
sum-total в совокупности, всего у сукупності, разом
take a broad view of широко смотреть на широко дивитися на
sth. вещи речі
take part in sth принимать участие брати участь в ч-н.
used to be иметь обыкновение; мати звичку; раніше
раньше
vitally important жизненно важный життєво важливий
Unit 2
TYPES OF ECONOMIC SYSTEMS
PRE-READING
1. Working in pairs discuss the following

questions:
a) What economic systems do you know?
b) What economic systems are prevailing in the
developed countries?
c) What do governments control in countries? Does it depend on the
economic system of a country?
d) What are the rights and duties of citizens? Do they vary from country
to country?
READING
2. Read the following text and check your answers:

All communities have to deal with the same basic economic problem –
how to satisfy people’s unlimited wants with limited economic resources
(land, labour, capital). Different countries use different methods to deal with
the problem. Depending on the approaches they use, economists distinguish
several types of economic systems: market, command, traditional and
mixed. In their purest forms, the three types of economy can be defined as
follows:
 A market economy is one in which almost all economic activity
happens in markets with little or no interference by the government.
Because of the lack of government control, this system is also often referred
to as laissez-faire, economy which is French for ‘let well alone’. It is based
on private enterprise with private ownership of the means of production
and private supplies of capital (a surplus income available for investment in
new business activities). In market economy countries individual citizens
can own private property and can exercise considerable freedom of choice,
they have right to dispose of property and other natural or manufactured
factors of production, set up new businesses, firms are free to decide what
to produce and consumers are free to spend their income as they wish.
 A command economy is one in which all economic activity is
directed by the government. Its main feature is central planning. The
central authority has complete power to organise the whole economic
effort of the nation. It decides what goods and services to produce, how to
distribute them and what prices to charge for these goods. The government
controls economic resources, and it is concerned with both quality and
quantity. Another feature of the command economy is public ownership of
the means of production. Private property is usually limited to private
things such as houses, cars, etc.
 A traditional economy is one in which production and distribution are
organised according to long-standing cultural traditions. They are based on
custom and tradition or command of community, family, or religion.
In the today’s real world the result is that most societies opt for a mixture
of two pure types: the command economy and the market economy, which is
called mixed economy [Tom McArthur. A Rapid Course in English for
Students of Economics / Tom McArthur. – Oxford University Press, USA,
1997. – 138 p.; Peter Antonioni. Economics For Dummies / Peter Antonioni,
Sean Masaki Flynn. ; [2nd Edition]. – Chichester : John Wiley & Sons,
2011. – 420 p.].
PRACTICE

the following:
1. stock 7. extra
2. earnings 8. set a price
3. use (v.) 9. intervention
4. method 10. deliver
5. personal 11. right to possess
6. choose 12. amount
1. _________ The economists define economic systems by the economic
resources used.
2. _________ There are limits on land, labour and capital in the world.
3. _________ Market economy is based on public ownership of the means
of production.
4. ________ Government controls an essential part of the command
economy.
5. _________ The central authority decides on the quantity, quality, price
and place of sale of a commodity.
6. _________ Individuals are free to use their property, income and time as
they wish in any economic system.
7. _________ Traditional economy is determined by historical background
of the community.
8. _________ Collective needs are more important in a state with command
economy than an individual’s wants.
Ex. 3. Answer the questions:

1. What types of economic systems do economists classify?
2. Why is market economy referred to as a laisser-fair?
3. What are the main features of market economy?
4. What are the citizens free to do in a market economy country?
5. What do the governments control in the command economy countries?
6. What distinctive feature helps economists to differ market system from
the command one?
1. as follows 9. long-standing
2. opt for 10. private ownership
3. be concerned with 11. central authority
4. feature 12. laissez-faire economy
5. means of production 13. lack of
6. exercise freedom 14. complete power
7. dispose of 15. manufactured
8. consumer 16. the purest form
the following Ukrainian words and word combinations:
1. праця 10. володіти
2. підприємство 11. підхід
3. мати справу з 12. посилатися
4. бути спрямованим 13. майно
5. призначати ціну 14. суспільна власність
6. розрізняти 15. командна економіка
7. управляти 16. промислові фактори
8. потрапляють в категорію виробництва
9. запас капіталу

1. In command economy states citizens can’t ______ private property.
All the property is ______ in these countries.
2. All ______ have to solve the same economic problems.
3. In market economy countries people are free to ______ their business.
4. Countries have limited amounts of land, ______ and ______ .
5. Private ______ of the means of production is the main feature of the
market economy.
6. Citizens have freedom to spend their ______ as they wish on goods and
services.
7. In the command economy the government decides how to______ the
whole economic effort of the state.
8. Traditional economy is based on ______ and ______.

necessary:
1. An important form ______ capital is surplus income available ______
investment ______ new business companies.
2. Public ownership ________ the means of production is concerned
______ command economic system.
3. They charge quite a lot of money ______ the commodity.
4. The government dispose ______ economic resources in the command
economy.
5. The economists referred _____ this method as uneconomic.
6. People usually spend money according _______ their income.
7. Management opted ______ setting ______ a new subsidiary.
8. Public property is limited ______ a minimum in the command economy
countries.
Ex. 8.a. Change the listed adjectives into adverbs (ly or -ally as necessary)
a) usual e) clear h) systematic
b) regular f) scientific i) careful
c) considerable g) complete j) rapid
d) probable
Ex. 8.b. Complete the following sentences with these adverbs:

1. The new government worked _________ to change the laws.
2. The central authority _________ controls the quality of goods.
3. The State _________ plans the economic effort of its citizens.
4. The economic system changed _________ over the thirty year period.
5. Work in economics always should be done _________ .
6. Their economic system is _________ capitalistic.
7. The employers will _________ discuss the use of new machines in the
factory.
8. The city has changed _________ in the last few years.
9. These men work _________ from nine o’clock till five every day.
Ex. 9. Certain nouns can be formed from certain adjectives. Make a list
of the nouns and put each word in its place. NOTE the loss of the letter e
in active, secure, mobile and productive.
EXAMPLE: active →activity
1. The system was complex. Its _________ surprised him.

2. The movement of the products in the factory was rapid. The _________
of the work contributed to their success.
3. People who have cars are very mobile. This _________ is a useful thing.
4. The National Bank has a solid reputation. Its _________ in money is
similar to the _________ of its buildings.
5. The national economy, like a man, should be active. Its _________
is a sign of its health.
6. Your money is secure in the National Bank. Its _________ is important
both to you and to the bankers.
7. The workers in those factories are very productive. Their_________ is
very useful to the national economy.
8. Those men arrive regularly at nine o’clock. Their _________ is well-
known.
9. The American and British economic systems are very similar. This
_________ is not surprising.
10. Those two men earn equal sums of money they have _________ in
wages because they produce the same quantity of the goods.
11. The exchange of money should be as liquid as possible. The _________
of money helps economy to grow.
Ex. 10. The table shows how words are formed around the verb produce.
List all the words you can make from the table and use them in the
suitable blanks in the sentences.
E R produce
PRODUC T IV(E) ITY
ION
1. The company _________ a new commodity every year.

2. The company’s newest _________ is special blue soap powder.
3. The _________ of soap powders met last year to discuss prices.
4. That factory is not as _________ now as it was five years ago.
5. The _________ of that factory goes down.
6. The manager of the factory decided that they must increase their
_________ of packets of soap powder.
7. The cars made in Germany roll down a _________ line.
8. They sell most of their farm _________ to the larger supermarket chains.
Ex. 11. In geography and economics we often refer to the parts of the
world rather than list countries by name, e.g. The Middle East. Below
there are 24 countries. List them under these five headings:
Latin-American
North African
South-East
Asian
Balkan
North-East
Asian
Libya Venezuela Brazil Albania
Japan Argentina Serbia Morocco
Thailand Philippines Macedonia Bosnia
Bulgaria Mexico Algeria Egypt
China Korea Indonesia Croatia
Romania Ecuador Vietnam Colombia
Ex. 12. Work in pairs. Ask and answer the questions to find out the
information on the following countries and complete the table:
Country Capital Language Nationality Currency
Austria
Belgium
Canada
China
Denmark
Finland
France
Germany
Greece
Hungary
the Netherlands
Italy
Japan
Norway
Poland
Spain
Sweden
Switzerland
Turkey
Ukraine
Ex. 13. Translate the following into English:

1. В економічній науці існують різні підходи щодо класифікації
економічних систем. Найбільш поширена класифікація базується на
двох ознаках: за формою власності на засоби виробництва та за
способом управління господарською діяльністю. Відповідно до цих
класифікаційних ознак науковці виокремлюють традиційну,
адміністративно- командну, ринкову та змішану економічні системи.
2. В країнах з командною економічною системою держава повинна
володіти засобами виробництва та всією власністю, а також
планувати народне господарство. Державне планування допомагає
організувати зусилля заводів, визначати ціну за товар, його якість
та кількість.
4. Командна економіка є системою з суспільною (державною) влас-

ністю на засоби виробництва та державним плануванням. Централь-
ний уряд з необмеженою владою надає громадянам всі послуги, які
вони потребують.
5. Ринкова система базується на приватній власності на засоби
виробництва та на приватному підприємництві. Приватне під-
приємство належить громадянину і дозволяє йому обирати товар,
методи його виробництва та його кількість.
6. В традиційній економіці методи та засоби виробництва, розподіл
доходів базуються на звичаях і традиціях, які віками визначали
виробничу та інші види діяльності людей. Наслідком такого стану
основних складових традиційної економічної системи є соціально-
економічний застій, бідність і низький рівень життя основної
частини населення. Стійке зростання його чисельності порівняно
з низькими темпами економічного розвитку супроводжується
високим рівнем безробіття та низькою продуктивністю праці.
Ex. 14. Using the diagram given below explain the differences between
these two economic systems. Provide examples where possible:
1. Which countries mentioned in the unit have the highest standard of

living?
2. What countries provide the most favourable conditions to private
enterpreneurs?
3. What country would you prefer to do business in? Explain why.
VOCABULARY

approach подход, метод підхід
as follows следующее; как наступне
указано
далее; указанный ниже
be based on основываться базуватися
be concerned with связаны с мати справу з
define определяться давати точне
визначення
be directed by быть руководимым бути спрямованим
refer to ссылаться на посилатися
central planning централизованное центральне
планирование планування
charge price for назначать цену за призначати ціну для
command economy командная экономика командна економіка
complete power полная власть повна влада
consumer потребитель споживач
deal with иметь дело мати справу з
dispose of распоряжаться розпоряджатися
имуществом майном
distinguish различать, выделять розрізняти
distribute распределять розподіляти
economic resources экономические економічні ресурси
ресурсы
effort усилия зусилля
exercise freedom пользоваться свободой використання
свободи
factors of production факторы производства фактори
виробництва
fall into the category попадать в категорию потрапляти в
категорію
feature качество, черта особливість
individual citizens отдельные граждане окремі громадяни
interference вмешательство втручання
lack of недостаток відсутність
laissez-faire политика політика
невмешательства невтручання
long-standing длительный довготривалий

manufactured промышленный промисловий
market economy рыночная экономика ринкова економіка
means of production средства производства засоби виробництва
opt for сделать выбор в вибрати
пользу
own (v) владеть (имуществом) володіти
ownership право собственности право власності
possessions имущество майно
private enterprise частное предприятие приватне
підприємство
private ownership право частной право приватної
собственности власності
private property частная собственность, приватна власність
имущество
public ownership коллективная суспільна власність
собственность
the purest form идеальная модель у чистій формі
refer to ссылаться; относиться; посилатися на; мати
иметь отношение відношення до ч-н.
к ч-л.
restrictions on ограничения на обмеження на
set up учреждать, создавать засновувати
supplies of capital наличие капитала, накопичення
накопление капитала капіталу
surplus income прибавочный доход надлишковий
прибуток
traditional economy традиционной традиційна
экономики економіка
venture предприятие підприємство
Unit 3
MIXED ECONOMY
PRE-READING
1. Match these definitions with the words

they refer to:
1. mixed economy а) economic system in which anyone can
attempt to raise capital, form business,
and offer goods or services
2. free enterprise b) economy with both private and public
sectors
3. long-term planning c) industry owned by the government, for
economic, social or strategic reasons
4. nationalized industry d) planning which extends beyond five years
READING
A mixed economy is an economy with both private and government
control and reflects characteristics of both capitalism and socialism. No state
today is completely socialist, and relies on command economy, or
completely capitalist, and adopts market economy. Various national
economic systems tend generally towards one type or the other. It is rather
difficult to classify many of them exactly.
The government regulation is concerned with the fact that the private
sector cannot be well equipped to address such issues as environmental
protection, maintenance of employment standards and maintenance of
competition. In some mixed economies, it even includes various degrees of
centralized economic planning, i.e., state ownership of some of the means of
production for national or social objectives.
The precise nature of the mixture depends on the country, with the United
Kingdom and the United States featuring more emphasis on markets,
whereas France and Germany, for example, feature more emphasis on
government intervention. On the other hand, a few totalitarian states, like
North Korea, still continue running pure command economies as part of their
authoritarian regimes.
Under-developed countries of the globe are usually interested in control

and long-term planning, e.g. in Cuba a command economy exists alongside
a small business economy, and other states such as China or Vietnam tend to
free the business sector of their economies. India also makes a clear
distinction between the public sector of its economy on the one hand and
the private sector on the other hand.
In a typical mixed economy, the government may run such things as the
postal service, rail lines, libraries, and in some cases, the health care service.
Even in industries which are not owned or run by the government, its influence
is very noticeable in the form of taxes and regulations like wage controls.
Britain, for example, has a mixed economy. There are the nationalized
industries like coal and steel, Directly Operated Railways and Eurostar
International Limited, Lloyds Banking Group in the public sector of British
economic life. The majority of large and small nation’s industries are in the
private sector. The private sector includes giant companies like Serco Group
plc* and BP plc* as well as a great number of small family businesses.
Although the government plans national production and sets up
production targets it is, however, a very difficult matter to plan ahead with
any certainty not only in a mixed economy but even in a rigidly controlled
economy, because natural disasters, political changes and other factors can
affect the general plan in unexpected ways[Tom McArthur. A Rapid Course
in English for Students of Economics / Tom McArthur. – Oxford University
Press, USA, 1997. – 138 p.; Peter Antonioni. Economics For Dummies /
Peter Antonioni, Sean Masaki Flynn. ; [2nd Edition]. – Chichester : John
Wiley & Sons, 2011. – 420 p.].
______________________________________________________________
* Serco Group plc – Serco Group plc is a British

government services company based in Hook, North
Hampshire in the United Kingdom. It is listed on the London Stock Exchange
and is a constituent of the FTSE 250 Index. Serco operates in six sectors of
public service provision: Health, Transport, Justice, Immigration, Defence,
and Citizens Services. Among them are public and private transport and
traffic control, aviation, military and nuclear weapons contracts, detention
centres and prisons and schools.
*BP plc, sometimes referred to by its former name British Petroleum, is
a British multinational oil and gas company headquartered in London,
England, United Kingdom. It is the sixth-largest energy company by market
capitalization, twelfth-largest company in the world measured by
2012 revenues, and the sixth largest oil and gas company measured by
2012 production. As of 31 December 2016, BP had operations in
72 countries worldwide. It is one of the six oil and gas “supermajors”.
PRACTICE

the following:
1. armed 8.
income
2. not frequently occuring 9.
depend on
3. important 10.
third world countries
4. be likely to do 11.
weekly payment
5. stress (v.) 12.
set up
6. duty, charge 13.
aim (n)
7. accurate 14.
relating to a dictorial one-party
state
1. _________ Some countries are completely capitalist and some countries
are completely socialist.
2. _________ Economic systems can be easily classified.
3. _________ The UK finds it necessary to control national economic
conditions to a certain extent.
4. _________ The interest of the under-developed countries in long-term
planning is inevitable.
5. _________ Under-developed countries make a clear distinction between
the two sectors of their economy.
6. _________ The nationalized industries are in the private sector of
the economy.
7. _________ Giants like Serco plc and BP plc are not publicly owned.
8. _________ Planning ahead in any type of economy is not particularly
difficult.
Ex. 3. Look through the text again and give Ukrainian equivalents to the
following English words and word combinations:
1. under-developed countries 9. public sector
2. run a country 10. reflect
3. feature emphasis on 11. long-term planning
4. tend towards 12. healthcare
5. globe 13. economic planning

6. set up a target 14. address (v)
7. exist alongside sth 15. tax
8. plan ahead 16. plc
1. авторитарний режим 8. привести у відповідність
2. обладнаний 9. ставити цілі
3. впливати 10. стихійне лихо
4. підтримання 11. повністю
5. охорона навколишнього 12. довгострокове планування
середовища 13. вірогідність
6. відрізняти 14. виробничі цілі
7. конкуренція 15. жорстко контрольований

1. It is difficult to _________ most economic systems.
2. The under-developed countries are interested in _________ and
_________ _________.
3. The government _________ may take different forms like nationalizing
strategically important industries.
4. The majority of British industries is in the ________ sector.
5. The British government ________ an official body to control allocation
of resources.
6. In socialist countries private _______ and private _______ are reduced
to a minimum.
7. Economic systems with public and private sectors are neither ________
nor _________.
8. Goods like coal and iron are among the most important _________
industries in any economy.
Ex. 6. Match an adjective from column A with a noun from column B:

A B
1. private a) economy
2. under-developed b) targets
3. mixed c) sector
4. nationalized d) countries
5. giant e) disaster
6. official f) industries
7. natural g) company
8. production h) body
Ex. 7. Work in pairs. Spot mistakes in the following sentences and

correct them:
1. The nationalized industries are in the private sector of the British
economic life.
2. Essential services like transport, education and medicine are in the
private sector of many socialist economies.
3. The coal and steel industries are among the activities controlled by small
family businesses.
4. The under-developed countries of the world are not interested in long-
term planning and government control.
5. Britain today is an entirely capitalist country with public sector of the
economy.
6. The government can plan ahead and set up production targets in
a mixed economy.
7. Government regulation is justified by the fact that public sector can not
deal with such economic issues as maintenance of employment
standards.
8. All countries feature more emphasis on markets and authoritarian
regimes.
Ex. 8. Supply the missing articles where necessary:

1. _________ food production and ______distribution are perhaps
_________ most basic activities in any economy.
2. Some countries make _________ distinction between _________ public
sector and _________ private sector of _________ economy.
3. _________ central authority with _________ complete power decides
what goods and services to produce.
4. If _________ person can do what he wishes with his property on
_________ one hand, and he obeys _________ law on _________ other
hand, then _________ economists say he is economically free.
5. _________ nationalized industries include _________ various types of
transport, steel-production and coal-mining.
6. My friend is _______ leading economist. He works for ______ BP plc.

______ President of ______ company is ______ Mr Peterson.
7. ______ Natural disasters and ______ political changes can affect ______
the general plan in ______ unexpected way.
8. ______ Under-develped countries like ______ India tend to make ______
clear distinction between ______ public sector of their economies on
______ one hand and ______ private sector on ______ other hand.

necessary:
1. The Chinese government set _________ an official body to control the
distribution of goods all over the country.
2. The majority of national economic systems tends_________ either
socialism or capitalism.
3. Both employers and employees of our company are interested
_________ AGM.
4. Heavy industries are usually among the activities guided _________
the government.
5. The message includes _________ much important information.
6. Transport and education employ a large part _________ the national
work force.
7. We can make _________ the general plan together with the leading
economists of the company.
8. This company is based _________ Hook, North Hampshire _________
the United Kingdom and listed _________ the London Stock Exchange
as the fifth-largest energy company _________ market capitalization
and the fifth-largest company _________ the world measured
_________ 2012 revenues.
Ex. 10. Change these sentences by modifying certain adjectives

into verbs.
EXAMPLE: They made the economy regular. →They regulated the economy.
a) complicate b) liquidate c) nationalize d) activate

e) consolidate f) simplify g) internationalize h) re-activate
1. They made the subject complex.

2. They made the subject simple.
3. They made the businesses “solid” (by bringing them together).
4. They made the economy active.

5. They made the business “liquid” (by breaking it up or “dissolving” it)
6. They made the economy active again (or for a second time).
7. They made the industry national (or public).
8. They made the business international.
Ex. 11. Combine these pairs of sentences in the two ways shown in
the example.
EXAMPLE: The government has set up an official committee. This
committee must decide national economic policy.
1. The government has set up an official committee, which must decide
national economic policy.
2. The government has set up an official committee to decide national
economic policy.
1. The economists have organized a commission. This commission must
study the economic problems of Latin America.
2. The workers have demanded an investigation. This investigation must
find out what happened in the factory.
3. The trade unions have asked for a new plan. This plan must regulate the
flow of work.
4. The government has proposed a new scheme. This scheme must come
into operation next year.
5. The employers have prepared a special scheme. This scheme must be
approved by the government.
Ex. 12. It shows how words can be formed by adding first the suffix –
ify (verbs), and then the suffix -cation (nouns) (with suitable changes in
spelling). Use the table to complete the following sentences.
1. This plan is not simple enough. We must therefore _________ it.
The _________ of the plan is essential.
2. The economy of that country belongs to the Marxist group or class.
We must therefore _________ it as socialist. The _________ of the
economy of that country is not difficult.
3. That water is not pure enough. It is necessary to _________ it.
The _________ of the water is a matter of public health.
4. Please send a note to the members of the Council. You should
_________ them of the date of the next meeting. The _________ should
reach them this week.
5. The economics teacher tried to make the situation clear. He tried to

_________ his description by making it simpler. When he had made this
_________, his students understood the whole matter much better.
Ex. 13. Complete the following sentences with suitable words: national
(adj.), nation (n.), nationalize (v.), nationalism (n.), nationalist (n.)
1. The USA is the homeland of the American _________ .
2. Most countries have _________ banks, such as the Bank of England.
3. The Socialist Party has plans to _______ various privately owned
industries.
4. In the last twenty years _________ has been a strong political force
leading to the formation of many new nations.
5. A person who is interested in the progress and history of his own country
may be called a _________.
Ex. 14. Work in groups. Discuss the following questions:

1. What is an abbreviation?
2. Why do many professionals use abbreviations?
3. What abbreviations do you use?
4. What do the following abbreviations stand for: the USA, st., the former
USSR?
Some most common abbreviations are:
CE – Council of Europe
DC – developed country
EC – European Community
EEC – European Economic Community
EUROSTAT – Statistical Office of the European Communities
ICC – International Chamber of Commerce
OSCE – The Organization for Security and Co-operation in Europe
SIM – subscriber identification module (card for mobile phone)
WTO – The World Trade Organization
NB: Abbreviations are a shorter form of a word or phrase and they are an
important part of the English language. They shorten words, which makes
writing more precise, concise and simplified. You may abbreviate titles
before and after names. You may also abbreviate familiar institutions,
countries, corporations, days, months, states and more. Learning how to
abbreviate words allows us to simplify our speaking and writing. For more
information go to Supplement section (Unit 3).
Ex. 15. Distribute the following abbreviations under the appropriate

headings and think of three more examples to add to each category:
1. Ms. 12. CA 24. a.m.
2. P.S. 13. AD 25. mph
3. p.m. 14. SIM 26. VIP
4. VAT 15. EUROSTAT 27. NB
5. etc. 16. ttyl8r (talk to you later) 28. GNP
6. B4N (bye for now) 17. Dr. 29. NY
7. CE 18. i.e. 30. EU
8. KISS (keep it 19. OSCE 31. lol (laugh out loud)
simple, stupid) 20. GDP 32. CD
9. Ave. 21. BC
10. MBA 22. SFO
11. e.g. 23. IT
1. People/titles
2. Places
3. Time
4. Names of companies
and organisations
5. Professional terms
6. Common objects and
phrases
7. Latin-based
8. Text
Ex. 16. Work with a partner. Match the following abbreviations with
their Ukrainian equivalents and abbreviate them in Ukrainian:
1. the UK a. товариство з обмеженою відповідальністю
2. GDP b. Сполучене Королівство
3. OECD c. Світова організація торгівлі
4. WTO d. Рада Європи
5. CE e. Організація з безпеки та співпраці в Європі
6. EU f. валовий внутрішній продукт
7. UNO g. Європейський Союз
8. OSCE h. Організація Об’єднаних Націй
9. GNP i. акціонерне товариство з обмеженою
відповідальністю
10. EBRD j. Організа́ція Північноатланти́чного договору

(також Північноатланти́чний альянс)
11. PLC k. валовий національний продукт
12. Ltd l. Європейський банк реконструкції та розвитку
13. NATO m. Генеральний директор
14. CEO n. Магі́стр ділово́го адмініструва́ння
15. MBA o. Організація економічного співробітництва та
розвитку
Ex. 17. Look up in a dictionary what these abbreviations stand for and
complete the sentences:
1. Just as Rd is short for Road, St and Sq are short for _________ and
_________ .
2. #24 in the USA and №24 in Britain both mean _________ 24.
3. In a report or textbook e.g. means ___________, i.e. stands for
_________, etc. means _________ .
4. A British company’s name may be followed by the abbreviation plc. or
PLC (short for _________ ), Ltd (_________ ) or & Co. (_________ ).
5. An American firm’s name may be followed by Corp. (_________) or
Inc. (_________).
6. A leap year starting on Fri. (_________) is any year with 366 days
(i.e. (_________) it includes 29 Feb (_________)) that begins on Friday,
1 Jan (_________), and ends on Sat. (_________), 31 Dec (_________ ).
7. With 57 States from Europe, Central Asia and North America, the OSCE
(_________ _________ _________ _________ _________ _________
_________ _________) is the world’s largest regional security
organization, bringing comprehensive and co-operative security from
Vancouver to Vladivostok.

1. У світі існує багато розвинутих та слаборозвинутих капіталістичних
і соціалістичних держав. Вони різні за ідеологією, але більшість
з них мають змішану економіку. Змішана економіка заснована на
різних формах власності: приватна власність взаємодіє з державною
власністю, а держава, виробники і споживачі відіграють досить
важливу роль у вирішенні головних питаннь економіки – «що»,
«як», «в якій кількості» і «для кого» виробляти.
2. В змішаній економіці державне управління економікою поши-

рюється як на приватний, так і на державний сектори: підтримку
системи охорони здоров’я, стандартів працевлаштування, охорону
навколишнього середовища, а також підтримання конкуренції.
3. Співвідношення різних форм власності залежить від конкретних
умов кожної країни на різних етапах її розвитку. Так, розвинуті
країни світу, такі як США та Велика Британія, скоротили
втручання держави в господарське життя країни, відводячи
важливу роль ринковим методам регулювання економіки.
4. У Швеції підвищена увага приділяється профілактичним заходам,
орієнтованим на підтримку регіональної економічної рівноваги,
досягнення сприйнятливої стабільності цін, охорону навколишнього
середовища, забезпечення роботою, співучасть у виробництві
і зростання допомоги країнам, що розвиваються. Складовими
елементами економічної політики є податкова, грошова політика на
ринку праці та регіональна політика.
5. В економіці змішаного типу дуже важко планувати виробництво
наперед. Голова нашого підприємства мав співпрацювати
з чеськими виробниками, але політичні зміни вплинули на цей
план несподіваним чином.
6. Південнокорейська модель державного регулювання є прикладом
унікального поєднання жорсткого державного планування та
ринкового механізму: держава планує макроекономічні показники,
кредитні і податкові заходи стимулювання експорту і обмеження
імпорту.
Ex. 19. Using the diagram below give a talk on different types of
economic systems (provide examples where possible):
VOCABULARY

address (v) привести в соответствие; привести у
обратиться відповідність;
звернутися;
спрямувати
affect sth влиять, воздействовать впливати на
allocative efficiency эффективность, связанная ефективність
с распределением розподілу ресурсів
ресурсов
authoritarian regime авторитарный режим авторитарний режим
be listed on быть в списке бути занесеним до
списку
equipped with оснащённый обладнаний
certainty уверенность впевненість
classify классифицировать класифікувати
completely полностью повністю
competition конкуренция конкуренція
constituent входящий в состав складова
detention center центр для содержания под центр для утримання
стражей під вартою
правонарушителей правопорушників
economic planning экономическое економічне
environmental защита окружающей охорона
protection среды навколишнього
середовища
exist alongside sth существовать вместе с існувати разом з
feature emphases on отводить важнейшее відводити важливу
место роль
government вмешательство державне втручання
intervention государства/правительства
government services компания производитель компанія, що надає
company государственных услуг державні послуги
health care service система здравоохранения система охорони
здоров’я
London Stock Лондонская фондовая Лондонська фондова
Exchange биржа біржа
long-term planning долгосрочное довгострокове

maintenance поддержание в підтримання
надлежащем состоянии в належному стані
make a distinction делать различие, відрізняти
различать
make a step делать шаг робити крок
natural disaster стихийное бедствие стихійне лихо
noticeable заметный помітний
objective (n) цель ціль
plan ahead планировать заранее планувати наперед
plc (public limited публичная компания с публічна компанія з
company) ограниченной обмеженою
ответственностью відповідальністю
precise точный точний
production targets производственные цели виробничі цілі
public sector государственный сектор державний сектор
экономики, бюджетная економіки, бюджетна
сфера сфера
rare редкий рідкісний
reflect учитывать, отражать брати до уваги
revenue годовой доход річний дохід
rigidly controlled строго, жёстко жорстко
контролируемый контролюється
run a company управлять компанией управляти компанією
set up a target ставить цели ставити цілі
tax налог податок
tend towards быть склонным к ч-л. прагнути до ч-н.
under-developed слаборазвитая страна слаборозвинута
country країна
wage зарплата заробітна плата
Unit 4
UTILITY
Nothing can have value

without being an object of utility.
Karl Marx
PRE-READING
1. Work with a partner. Answer the questions:

а) What is your choice usually based on when you make a decision about
a purchase? State your idea.
b) Which of the following features of a product do you consider to be the
most valuable: its price, quality or satisfaction?
READING
2. Read the text below:

Our basic needs are simple, but our additional individual wants are often
very complex. When purchasing some goods the consumer follows
his willingness to satisfy a want. Commodities of different kinds satisfy
people’s wants in relation to time, people and nations.
This characteristic of satisfying a want is known in economics as its
‘utility’. Economists say that utility determines ‘the relationship between
a consumer and a commodity’. Utility varies between different people and
between different nations. A vegetarian does not want meat, but may rate the
utility of bananas very highly, while a meat-eater may prefer steak.
A mountain-republic like Switzerland has little interest in submarines,
while maritime nations rate them highly.
Utility, however, should not be confused with usefulness, e.g. a submarine
may or may not be useful in time of peace, but it satisfies a want.
In wartime, the utility of bombs is high, and the utility of pianos is low.
Utility is therefore related to our decisions about priorities in production,
e.g. the production of pianos falls sharply in wartime.
The utility of a commodity is also related to the quantity which is available
to the consumer. If paper is freely available, people will not be so interested
in buying too much of it. If there is an excess of paper, the relative demand
for paper will go down. We can say that the utility of a commodity
therefore decreases as the consumer’s stock of that commodity increases.
Microeconomic models of consumer behaviour study how people choose
to spend their money. It is commonly assumed that consumers act in ways
that maximize their happiness but our actions are constrained, especially by
limited budgets, so we have to make choices. We do so according
to our scale of preferences by ranking all relevant alternatives in order of
preference. There is a relationship between a consumer and a commodity
that tells us for any set of alternatives how much pleasure the
consumer derives from buying an additional unit of a commodity or service.
The concept implies that the utility or benefit to a consumer of an additional
unit of a product is inversely related to the number of units of that product he
already owns. Usually, the more the person consumes, the larger his or
her total utility* will be. Marginal utility is the additional satisfaction, or
amount of utility, gained from each extra unit of consumption.
. Take, for example, a chocolate bar. Let’s say that after eating one chocolate
bar your sweet tooth has been satisfied. Both marginal utility and total utility
after eating one chocolate bar will be quite high. But if you eat more chocolate
bars, the pleasure of each additional chocolate bar will be less than the pleasure
you received from eating the one before – probably because you are starting to
feel full or you have had too many sweets for one day or a point in time comes
when the financial sacrifice is greater than the satisfaction of eating chocolate.
Economists refer to this phenomenon as the Law of Diminishing Marginal
Utility which states that the utility of a commodity decreases as the
consumer’s stock of that commodity increases
It is clear that the nature of a commodity remains the same, but its utility
changes. This change indicates that a special relationship exists between
goods and services on the one hand, and a consumer and his money on the
other hand: the consumer will stop buying chocolate at the current price.
The higher the price is the fewer he buys. The lower the price is the more he
buys. Thus this tendency and the concept of utility itself underlie the laws
of demand and supply and explain how individuals and economies aim to
gain optimal satisfaction in dealing with scarcity.
It should be noted, however, that this law doesn’t work in case of money,
knowledge, hobbies, fashion, health issues, etc. For example, if an item of
clothes you bought is in fashion its utility for you is high and will remain so
until it goes out of fashion [Tom McArthur. A Rapid Course in English for
Students of Economics / Tom McArthur. – Oxford University Press, USA,
1997. – 138 p.; Peter Antonioni. Economics For Dummies / Peter Antonioni,
Sean Masaki Flynn. ; [2nd Edition]. – Chichester : John Wiley & Sons,
2011. – 420 p.].
* total utility – the sum of satisfaction or benefit we get from consuming
a given amount of goods or services.
______________________________________________________________
Economists imagine that if they were able to get inside

your brain and measure utility, they’d do so using a unit that
they call a util.
Some people very naturally object to assigning specific numbers of utils to
different things – e.g., 25 utils to the pleasure associated with eating
a brownie, or 75 utils to the pleasure associated with watching a sunset.
(Such method of measuring pleasure is called cardinal utility (like cardinal
numbers: 1, 2 ...). There are doubts about whether people even make such
assessments – after all, how many utils do you think you receive from a
sunny day or a baby’s smile? [Peter Antonioni. Economics For Dummies /
Wiley & Sons, 2011. – 420 p.].
PRACTICE

the following:
1. to arrange objects as a sequence 7. the way in which two things
2. mean (v.) are connected
3. a strong liking for sweet foods 8. loss
4. likes (noun, pl.) 9. basic quality or character
5. additional units added 10. use (n.)
to a consumer’s stock of a 11. pleasure
commodity give progressively 12. suppose
less satisfaction 13. go down
6. limited 14. get
1. _________ There is a principle assumption in the consumer behaviour
theory that consumers attempt to allocate their budget according to their
preferences.
2. _________ People tend to buy anything they can afford.
3. _________ Utility is a characteristic of a commodity which shows how

it satisfies a want.
4. _________ The consumer will probably buy more with each successive
purchase.
5. _________ With each successive purchase the satisfaction gained from
a commodity decreases.
6. _________ If the price remains the same, the consumer will reach a
point when his financial sacrifice is greater than his satisfaction.
7. _________ ‘The Law of Diminishing Marginal Utility’ is a tendency for
a consumer’s desire to diminish as he buys more units of the commodity.
8. Utility of money changes according to the currency exchange rate.
Ex. 3. Answer the following questions:

1. What is the theory of consumer behaviour about?
2. What is the difference between total and marginal utility?
3. Under what conditions will a consumer go on buying a commodity?
Provide your own example.
4. What happens with each successive purchase?
5. What goods or services can be used as an example of inefficiency of the
Law of Diminishing Marginal Utility?
1. indicate 9. inversely
2. It is commonly assumed 10. to increase
3. consumer behaviour 11. the nature of a commodity
4. to imply 12. financial sacrifice
5. to be constrained 13. to remain the same
6. phenomenon 14. rank
7. scale of preferences 15. according to
8. consumer’s stock 16. to underlie
Ex. 5. Give English equivalents to the following words and word

1. посилатися (на щось) 9. споживання
2. зв’язок, взаємовідносини 10. попит
3. таким чином 11. слід зазначити
4. шкала переваг 12. пропозиція
5. бути доступним 13. одержувати
6. Закон спадної граничної 14. користь

корисності 15. задоволення
7. знижатися 16. приписувати, вважати
8. сукупна корисність
Ex. 6. Complete the following sentences with words or word

1. The theory of consumer _________ explains how people _________
their choices.
2. It is not possible to be completely free as our actions are always
_________ by laws, budget and other people’s freedom.
3. Our _________ of preferences indicates our priorities and helps us to
_________ decisions.
4. The Law of Diminishing _________ utility says that the consumer’s
_________ diminishes with each successive purchase.
5. A consumer will stop buying a commodity or service when his financial
_________ is more than the _________ he gains.
6. It should be _________ that the concept of utility _________ two other
economic phenomena: supply and demand.
7. In economic theory the term _________ refers to a number of goods
offered for sale.

necessary:
1. When making a decision about a purchase we rank all possible options
_________ order of preference.
2. _________ _________ our scale of preferences essential commodities
always go first.
3. _________ the one hand our benefit gained _________ each additional
commodity tends to diminish but _________ the other hand if it’s
fashion or a matter _________ essential necessity we will go _________
buying such goods and services.
4. The Law of Diminishing Marginal Utility doesn’t work _________ case
of money or fashion: _________ soon _________ your bag goes
_________ of fashion its utility is negative _________ you and you will
want another bag.
5. People buy goods and services _________ current prices _________
they cannot change them. But they do affect _________ the consumer’s
choice: the higher the price is the fewer the consumer will buy.
6. The consumer’s desire _________ a commodity depends very much

_________ its stock, i.e. the more goods he has the less he wants.
7. In order to explain the consumer’s behaviour economists refer
_________ the term “utility” which implies the existence _________
a special relationship _________ a commodity and a consumer.
Ex. 8. Match a word from column A with an appropriate word/words

from column B.
A B
1. sweet a) utility
2. financial b) assumed
3. consumer c) tooth
4. It should be d) alternatives
5. to increase e) behaviour
6. scale f) the consumer’s stock
7. It is commonly g) sacrifice
8. microeconomic h) noted
9. relevant i) of preference
10. marginal j) models
SHOWING RELATIONSHIPS WITHIN

AND BETWEEN SENTENCES
Transitional words and phrases connect and relate ideas, sentences,

and paragraphs. They assist in the logical flow of ideas as they signal the
relationship between sentences and paragraphs. The material is supported
and conditioned not only by the ordering of the material (its position) but
by connectives which signal order, relationship and movement.
Repetition of key words and phrases and the use of synonyms which
echo important words both serve to establish connections with previous
sentences. Additionally, pronouns can act as connectives when they are
used to refer to a noun in the preceding sentences.
Ex. 9. Read the most commonly used connectives listed below and note
especially how these connections function to develop, relate, connect and
move ideas in the text.
To signal and, also, too, besides, as well as, nether … nor, either
addition of … or, both … and, further, furthermore, moreover, in
ideas addition, then, of equal importance, equally important,
another
to introduce the It is generally assumed that, actually, as a matter of
subject fact, to tell the truth, I think, I believe, I suppose,
regarding (this)
To signal time next, then, afterward, finally, later, last, lastly, at last,
subsequently, when, soon, thereafter, after a short
time, in the meantime, meanwhile, on the following
day, ultimately
To signal order first of all, firstly, secondly (etc.), finally, hence, next,
or sequence then, from here on, to begin with, last of all, after,
before, as soon as, in the end, gradually
To signal an for example, to illustrate, for instance, to be specific,
example such as, notably, just as important, in particular
To show results as a result, hence, so, due to, accordingly, that is why,
because of this, thus, as a consequence, consequently,
since, therefore, for this reason and more, for this
reason
To signal to this end, for this purpose, with this in mind, for this
purpose reason, for these reasons
To signal like, in the same manner or way, similarly, as
comparisons compared with/to, as against, in comparison with
To indicate but, in contrast, however, still, while, nevertheless,
contrast whereas, nonetheless, yet, on the other hand, on the
contrary, or, in spite of this, despite, for all that,
strangely enough, ironically
To dispute people are wrong who say/deny that, be that as it may,
no doubt, many people claim, many people suppose, in
any case
To intensify above all, first and foremost, indeed, in fact, as a
matter of fact, as I have said, as has been noted, it
should be noted
To summarize as was previously stated, to put it briefly, to sum up, to
repeat, briefly, in short, finally, on the whole,
therefore, in conclusion, as you can see
To define, consist of, is a term that, involves, is called, is

explain, clarify characterized by, that is, occurs when, exists when, are
those that, that is (to say), I mean, (to) put (it) another
way
To assert a truth surely, of course, without a doubt, naturally, in fact,
or acknowledge certainly, doubtless, no doubt
opposition
Ex. 10. Circle the letter of the word that correctly identifies the
appropriate transition word or phrase.
1. _________ the invention of television, people probably spent more of
their leisure time reading.
a. Nevertheless b. Because c. Before
2. If you’re planning a purchase, try to get the most out of it. _________,
compare the prices in different shops.
a. For instance b. In contrast c. Similarly
3. _________I’m temporarily unemployed, my boyfriend shares his profit

with me.
a. Until b. Because c. Even though
4. People usually want to get as much utility _________ possible.

a. after b. as c. as a result
5. Using utils to measure a level of satisfaction that people derive from a

commodity seems to be inefficient _________ there are countless examples
of things that are not possible to measure _________ happiness of having
good weather, etc.
a. moreover ... but b. just as ... as c. because ... such as
Ex. 11. Read the text and, for each blank, choose the correct alternative
given below:
When students construct the portfolio of courses to study they need to
strike a balance between their unique personal interests and subjects which
are most practical and useful for their future (1) ___________ at university
___________ beyond.
(2) ___________ each subject has its own merits, a strong foundation in
basic economic theory provides students with an invaluable basis for making
sound decisions in their everyday lives, for understanding the world around
them, and for further education in a variety of areas. (3) ___________ ,
economics deserves consideration when deciding on what courses students
should incorporate into their studies.
(4) ___________ that there is much confusion over what exactly
economics is. Many people (5) ___________ that economics is the study of
the stock market, or of money, or of commerce. While economics (6)
___________ offers insights into each of these fields, its true power lies only
(7) ___________ in analyzing particular aspects of the economy,
___________ rather in developing a general way of seeing the world. Some
people refer to economics as a “dismal science” (8) ___________ they
believe that its insights are dull realm of old, erudite men debating
governmental fiscal and monetary policy. (9) ___________ the truth is that
economics offers much broader and applicable insights not only into areas of
financial and academic inquiry, but also into social situations of our everyday
lives. (10) ___________ it is the study of scarcity and of how limited
resources are allocated in response to unlimited wants and desires. In our
own lives we all face scarcity in many forms, (11) ___________ in terms of
time and money. (12) ___________ studying economics allows students to
understand that nothing in life is free and that there are an infinite number of
options in life that we have to choose from. Economics provides powerful
tools for deciding how one should best respond to the challenges of scarcity.
(13) ___________ benefit of studying economics is that it can help
students develop intuition which will allow them to make sense of the
complex and interrelated world in which we live.
(14) ___________ studying economics provides a great foundation for
further studies in a number of academic disciplines such as history,
geography, sociology, law, political science, finance – and even – biology.
1. a) not only … but b) neither … nor c) both … and

2. a) due to b) while c) besides
3. a) For these reasons b) n fact c) On the one hand
and more
4. a) Certainly b) It should be noted c) Similarly
5. a) argue b) guess c) claim
6. a) certainly b) of course c) as a result
7. a) not only … but b) as well as c) either or
8. a) due to b) because c) but

9. a) however b) finally c) in particular
10. a) on the contrary b) hence c) in fact
11. a) in particular b) notably c) that is
12. a) first of all b) secondly c) above all
13. a) on the whole b) another c) last
14. a) It is generally b) As you can see c) Finally
assumed that
Ex. 12. Rearrange the information below and make logical paragraphs
using the linking words given above:
DESIRE OF MONEY: This law is not applicable in case of money with an
increase in wealth man wants to get more and more.
DESIRE OF KNOWLEDGE: Some experts say that man wants to get
more and more knowledge so the law can not be applied in this case.
USE OF LIQUOR: With the additional use of liquor like wine marginal
utility also goes on increasing.
PERSONAL HOBBY: In case of hobby also this law can not operate.
For example, as the collection of tickets increases, its utility also increases.
FASHION: Utility also depends upon fashion. If the fashion of any
commodity changes, its utility drops down to zero. On the other hand if
fashion exists then utility increases.
Ex. 13. Define the following economic terms and provide your own
examples to illustrate them using transitional words from the lesson:
Total utility Utility

Marginal utility Utility vs. usefulness
Cardinal utility Scale of preferences
Consumer behaviour Law of Diminishing Marginal Utility
Ex. 14. Using transition words write a summary of about 200 words on
the economic concept of utility.
Ex. 15. Translate into English paying attention to the linking words:
1. Згідно із загальною думкою, товари та послуги задовольняють наші
потреби. Слід зазначити, однак, що один і той самий товар чи
послуга по-різному задовольняє потреби різних людей, тобто
корисність одного й того ж товару змінюється відповідно до
людини, часу, чи міста. У кожного з нас є своя шкала пріоритетів,
згідно з якою ми й вимірюємо цінність речей.
2. Економісти вимірюють цінність речей, вживаючи терміни
«гранична корисність» та «сукупна корисність». Остання визначає
загальне задоволення від споживання певної кількості товарів чи
послуг. В той час як гранична корисність позначає задоволення від
кожної окремої одиниці товару. Чим більше задоволення приносить
товар споживачу, тим вище гранична корисність цього товару.
3. Кожен споживач прагне забезпечити максимальний рівень
корисності та одержати настільки багато, наскільки це можливо.
Таким чином, він змушений діяти в межах певних можливостей,
тобто його можливості обмежені бюджетом, асортиментом товарів
чи послуг та ін., споживач повинен розподіляти свої можливості
між кількома благами, щоб максимально задовольнятися.
4. Отже, корисність вказує на наявність взаємозв’язку між товаром чи
послугою з одного боку та споживачем з другого боку. Цей
економічний феномен вимірює цінність речей та є основою таких
понять, як попит та пропозиція, і дає можливість пояснювати
поведінку споживача в умовах дефіциту ресурсів.
5. Закон спадної граничної корисності стверджує, що з кожною
наступною покупкою зменшується гранична корисність товару чи
послуги та раніше чи пізніше прийде час, коли це задоволення буде
менше ніж бажання витратити гроші. Слід зазначити, що цей
економічний закон не діє, якщо ми маємо справу, наприклад, з
грошима. Чим більше грошей ми одержуємо, тим більше ми
бажаємо, тобто гранична корисність грошей постійно висока та не
залежить від їх кількості.
6. Функція корисності обернено пропорційно пов’язана з кількістю
товарів та таким чином впливає на формування споживчого вибору,
іншими словами, – на пропозицію та попит, які в свою чергу
формують пріоритети виробництва.
1. Knowing the Law of Diminishing Marginal Utility how can it affect

your choice when making purchases?
2. Is the characteristic of a commodity to satisfy a want enough for buying
it? Why? Why not?
VOCABULARY

according to согласно ч-л. відповідно до
assign приписывать, считать приписувати, вважати
assume допускать (в теории), вважати, припускати
предполагать
cardinal utility количественная кількісна корисність
полезность
be constrained быть вынужденным, бути змушеним;
принуждённым; обмеженим
ограниченным
consume потреблять споживати
consumer behaviour потребительское поведінка споживача
поведение (поведение (поведінка людини,
людей, связанное с що пов’язана з
принятием решений о рішеннями щодо
покупке товаров и услуг) покупки товарів та
послуг)
consumption потребление споживання
current exchange курс обмена валют курс обміну валют
rate
current price текущая цена поточна ціна
demand спрос попит
derive from (зд.) получать одержувати
determine определять, визначати,
устанавливать встановлювати
diminish (v.) уменьшаться спадати,
зменшуватися
gain (from) получать, добывать

одержувати,
домагатися;
здобувати
imply предполагать, мати на думці (на
подразумевать, заключать увазі); натякати;
в себе, значить містити в собі;
значити, мати
значення
indicate указывать, означать вказувати; означати,
бути ознакою
inversely обратно обернено
пропорционально пропорційно
It is commonly согласно общепринятому згідно з загальною
assumed мнению думкою
It should be noted следует отметить слід зазначити
Law of Diminishing закон убывающей закон спадної
Marginal Utility предельной полезности граничної корисності
make assessments оценивать оцінювати, оцінити
marginal utility предельная полезность гранична корисність
maritime морской морський
nature природа, характер, суть природа; характер
objections (to) возражения заперечення
phenomenon (pl.-a) феномен, явление феномен, явище
priority порядок срочности, першочерговість,
очерёдности пріоритет
purchase (v) покупать купувати
quality качество якість
rank (verb) располагать класифікувати,
в определенном порядке, розташувати в
устанавливать певному порядку
очередность
rate оценивать оцінювати
refer (to) ссылаться на к-л., на ч-л. посилатися на к-н.,
на що-н.
relationship взаимосвязь взаємозв’язок
relevant соответствующий; доречний; що
относящийся к ч-л. стосується справи
be related to быть связанным с к-н., ч-н. бути пов’язаним с ч-н.
remain оставаться залишатися
sacrifice жертва; убыток; потеря жертва

satisfaction удовольствие задоволення
scale of preferences шкала предпочтений шкала переваг
state утверждать стверджувати
supply предложение пропозиція
sweet tooth пристрастие к сладкому пристрасть, слабкість
до солодкого
thus таким образом, итак таким чином, отже
total utility полезность сукупна корисність
underlie лежать в основе лежати (бути)
в основі ч-н.
usefulness польза; пригодность користь; придатність
utility function функция полезности функція корисності
valuable ценный цінний
value ценность цінність
willingness желание бажання
Unit 5
ECONOMIC RESOURCES
“If God had meant there to be more than

2 factors of production, he would have
made it easier for us to draw three-
dimensional diagrams”
PRE-READING
1. Answer the following questions:

1. What kind of resources is of greatest importance nowadays? Give your
reasons.
2. What qualities are needed in an effective entrepreneur?
3. What resources must be combined in order to start a business? Provide
examples.
2. Match these definitions with the word combinations below:

1. profit a) the money invested in a business
2. self-employed b) the difference between the price received for
a product
and its cost (the price of the factors of production
used to make it)
3. capital c) the working population
4. labour force d) a person who works for himself, and is not paid
a salary by someone else

The production of goods and services requires resources. You can’t get
output without inputs of resources.Taking into account that economic
resources are scarce relative to the infinite needs and wants of people and
businesses operating in the economy, it is important to use these resources
efficiently in order to maximise the output produced from them.
Economists traditionally divide inputs, or factors of production, into three

classes: land, labour and capital.
To economists, land means a little more than just real estate or property.
Land refers to the natural resources available for production and is used to
produce things people want to consume. Land also includes the weather,
plant and animal life, energy, etc. Some nations rich in natural resources
exploit this by specialising in the extraction and production of these
resources, for example – the development of the North Sea Oil and Gas,
while others, resource-poor countries, have to constantly overcome the
problem of resource scarcities to develop economically. There is only one
major resource nowadays which is for the most part free – the air we breathe
since its consumption by one person does not reduce the air available for
others. The rest are scarce, because there are not enough natural resources in
the world to satisfy the
demands of consumers and
producers.
Labour is the human input

into the production process or
in other words it is the work
that people must do to produce
things. All people who supply
labour for the production of
goods and services during
a specified period including
both the employed and the
unemployed are called national labour force. In the UK, of about 59 million
inhabitants, only approximately 35 million are of working age (16–64
years for men and 16–59 for women), and of those about 28 million have
paid jobs. The employment level for people in the UK economy is shown in
the chart to the left.
As you can see there has been a steady increase in the employed labour
force over the recent years, providing more labour resources with which to
increase total output (GDP).
There are two important points to remember about labour as a resource:
• a housewife, a keen gardener and a DIY enthusiast do not get paid for
their work so they produce non-marketed output and the output of these
people is not included in Gross Domestic Product, and it is not therefore
labour in the strict economic sense;
• not all labour is of the same quality. Some workers are more productive
than others because of the education, training and experience they have
received.
An important consequence is that skilled workers (high human capital) get
paid more than unskilled workers (low human capital). Thus human capital
refers to the quality of labour resources, which can be improved through
investment in education, training and health.
Entrepreneurs are people who provide the initial ideas, organise other
productive resources to make goods and services. Some economists regard
entrepreneurs as a qualified labour input. Others believe that they deserve
recognition as a separate factor of production. The success and/or failure of
a business often depends critically on the quality of entrepreneurship.
They risk their own resources in business ventures. They also organise the
other 3 factors of production.
To an economist, capital has several meanings – including the finance raised
to operate a business. But normally the term “capital” means investment in
goods that can produce other goods in the future. Man-made machines, tools and
structures, that aren’t directly consumed but are used to produce other things that
people do, make up capital*. For example, a car that you drive for pleasure is a
consumption good, whereas an identical car that you use to deliver bricks for
your construction business is capital. Capital includes factories, roads,
machinery equipment, the Internet and so on. A modern industrialized economy
possesses a large amount of capital, and it is continually increasing. Increases
to the capital stock of a nation are called investment. Investment is important if
the economy has to achieve economic growth in the long run [Tom McArthur.
A Rapid Course in English for Students of Economics / Tom McArthur. –
Oxford University Press, USA, 1997. – 138 p.; Peter Antonioni. Economics For
Dummies / Peter Antonioni, Sean Masaki Flynn. ; [2nd Edition]. – Chichester :
John Wiley & Sons, 2011. – 420 p.].
______________________________________________________________
* Fixed capital includes machinery, plant and equipment,

new technology, factories and buildings – all man made
goods designed to increase the productive potential of the
economy in future years. We also include the social capital created from
Government investment spending, i.e. the building of new schools,
universities, hospitals and spending on expanding the national road network.
Working capital includes stocks of finished and semi-finished goods
(components, raw materials) that will be either consumed in the near or
will be made into finished consumer goods [https://www.investopedia.

com/terms/f/fixed-capital.asp].
Example: What resources go into making a car?
Focus on the main factor inputs:
Labour: Workers employed directly in the car industry; engineers,
designers, paint sprayers, testers, management staff, transport & distribution
workers, etc.
Land: Natural resources used in manufacturer, land for plant and
equipment.
Capital: fixed capital: machinery, technology, buildings + working capital:
i.e., stocks of raw materials and components.
Entrepreneurship (sometimes seen as a separate factor): management,
risk-taker.

the following:
1. about (not precise) 11. individual
2. make good use of 12. have plenty of sth
3. rely upon/on 13. direct or control projects,
4. utilization of economic goods businesses, etc.
5. make bigger or more 14. someone who organizes a
6. seemingly boundless business venture and assumes
7. prepared or made artificially the risk for it
8. the things produced 15. consider
9. to own 16. the action of taking out sth
10. acknowledgement
Ex. 2. Say whether these statements true (T) or false (F), and if they are
false say why.
1. ______ Capital refers to the machines, roads, factories, schools and
office blocks which human beings have produced in order to produce
other goods and services.
2. ______ Labour represents the human effort needed to transform physical
resources into consumer products.
3. ______ Capital represents only the monetary items used to produce
goods or services.
4. ______ The entrepreneur carries no risks associated with turning his idea
into a business.
5. ______ No nation is usually limited in the amount of physical resources
they can produce in their economy.
6. ______ Workers are usually compensated for their services when

companies pay wages.
7. ______ Natural resources include land, timber, fisheries, farms and other
similar items.
8. ______ Labour doesn’t differ in quality.
1. capital stock 9. fixed capital
2. factor inputs 10. achieve economic growth
3. employed labour force 11. productive resources
4. natural resources 12. employment level
5. in the strict economic sense 13. working capital
6. opportunity cost 14. in the long run
7. of about 5 inhabitants 15. paid job
8. semi-finished 16. consumption good
Ex. 4. Look through the text again and give English equivalents to the
following Ukrainian words and word combinations:
1. державні витрати на інвестиції 9. розробляти (родовища)
2. покращувати за допомогою 10. постійне збільшення
3. перетворити на 11. працездатний вік
4. валовий внутрішній продукт 12. безперестанку
5. працювати, керувати 13. видобуток
6. безкоштовні товари 14. підприємець
7. сировина 15. штучні
8. суб’єкт господарської 16. у найближчому
діяльності майбутньому

The factors of production are resources that are the building blocks of the
economy; they are what people use to produce (1)_________ and services.
Economists divide the factors of (2)_________ into four categories: land,
labour, capital, and entrepreneurship.
The first factor of production is (3)_________, but this includes any
natural resource used to produce goods and services. This includes not just
land, but anything that comes from the land. Some common land or natural
resources are water, oil, copper, natural gas, coal, and forests. These
resources can be renewable, such as forests, or non-renewable such as oil or

natural gas. The (4)_________ that resource owners earn in return for land
resources is called rent.
The second factor of production is labour. Labour is the (5)_________ that
people contribute to the production of goods and services. Labour resources
include the work done by the waiter who brings your food at a local
restaurant as well as the engineer who designed the bus that transports you to
some place. It includes an artist’s creation of a painting as well as the work
of the pilot flying the airplane overhead. If you have ever been paid for a job,
you have contributed labour resources to the (6)_________ of goods or
services. The income earned by labour resources is called wages and is the
largest source of income for most people.
The third factor of production is (7)_________. Think of capital as the
machinery, tools and buildings humans use to produce goods and services.
Some common examples of capital include hammers, conveyer belts,
computers, and delivery vans. Capital differs based on the worker and the
type of work being done. For example, a doctor may use a stethoscope and
an examination room to (8)_________ medical services. Your teacher may
use textbooks, desks, and a whiteboard to produce education services. The
income earned by owners of capital resources is interest.
The fourth factor of production is entrepreneurship. An entrepreneur is a
person who combines the other factors of production – land, labour, and
capital – to earn a profit. The most successful (9)_________ are innovators
who find new ways to produce goods and services or who (10)_________
new goods and services to bring to market. Without the entrepreneur
combining land, labour, and capital in new ways, many of the innovations we
see around us would not exist. Think of the entrepreneurship of Henry Ford
or Bill Gates. Entrepreneurs are a vital engine of economic growth helping to
build some of the largest firms in the world as well as some of the small
businesses in your neighbourhood. Entrepreneurs thrive in economies where
they have the freedom to start businesses and buy resources freely. The
payment to entrepreneurship is profit [https://www.stlouisfed.org/ education/
economic-lowdown-podcast-series/episode-2-factors-of-production].
Ex. 6. Make the words negative by using the prefix dis-:

EXAMPLE: satisfaction → dis + satisfaction = dissatisfaction
ability connect approve
engaged comfort obey
pleasure agree qualify
Ex. 7. Combine these sentences by using not only … but also. This
combination creates a contrast.
EXAMPLE: Money is a means of exchange. Money is a means of
measuring men’s labour. → Money is not only a means of exchange, but also
a means of measuring men’s labour.
1. The economic activity is the sum-total of our individual economic
activities. The economic system is the general situation that influences
our individual activities.
2. This scheme is acceptable to both the management and the trade unions.
This scheme has the government approval.
3. The factory is producing less every year.
The factory is losing valuable workers.
4. The government has set up a new economic commission.
The government has begun to consider a change in the law very
seriously.
5. The situation interests economists considerably.
The situation has certain features that make it highly unusual.
Ex. 8. Translate into English.

1. Фaктори виробництва – ресурси, необхідні для виробництва
товарів або послуг. Класичними факторами виробництва є робоча
сила (всі розумові та фізичні здібності людей), земля (природні
багатства), капітал (наявні, вироблені засоби виробництва, а також
фінансовий капітал). Четвертим фактором вважається підприєм-
ливість, яка об’єднує попередні три фактори.
2. Робоча сила як фактор виробництва є фізичною та інтелектуальною
діяльністю людини, спрямованою на виробництво економічних благ
і надання послуг. Цей фактор характеризується такими
показниками: загальною чисельністю працездатного населення,
чисельністю зайнятих у різних сферах економічної діяльності, рів-
нем освіти, кваліфікацією робочої сили, продуктивністю праці тощо.
3. Земля як фактор виробництва включає в себе саму землю, а також
лісові й водні ресурси та інші природні багатства, що
використовуються у виробничому процесі. Природні ресурси – це
все те, що людина бере з природи і за допомогою своєї праці
перетворює на продукт задоволення власних потреб.
4. Капітал – це всі засоби виробництва, створені людиною:
приміщення, обладнання, матеріали, а також кошти, тобто грошовий
капітал, призначений для організації виробництва. Капітал може

бути представлений машинами, станками, обладнанням, спорудами,
транспортними засобами, сировиною, матеріалами, які задіяні у
процесі виробництва. Крім того, капітал виступає у вигляді певної
суми грошей, необхідної підприємцю, який розпочинає свою
діяльність, для придбання засобів виробництва та наймання
робочої сили.
5. Підприємницькі здібності – особливий, специфічний фактор
виробництва, що відображає діяльність людини стосовно
поєднання та ефективного використання всіх інших факторів
виробництва з метою створення благ та послуг.
6. Всі економічні ресурси (фактори виробництва) мають одну
загальну властивість: вони або рідкісні, або наявні в обмеженій
кількості. Внаслідок цього обмежені і обсяги виробництва товарів
та послуг, тому суспільство в кожний даний момент не
в змозі виготовити і спожити весь обсяг споживчих благ, який
воно хотіло б отримати.
Ex. 9. Using the picture and the text below speak about the problem of
scarcity in economics. Provide examples where possible.
Goods and services are scarce because the factors of production used to
produce them are scarce. In case you have forgotten, scarcity is described as
limited quantities of resources to meet unlimited wants. Consider a pair of
denim blue jeans. The denim is made of cotton, grown on the land. The land
and water used to grow the cotton is limited and could have been used to
grow a variety of different crops. The workers who cut and sewed the denim
in the factory are limited labour resources who could have been producing
other goods or services in the economy. The machines and the factory used
to produce the jeans are limited capital resources that could have been used
to produce other goods. This scarcity of resources means that producing
some goods and services leaves other goods and services unproduced
[https:// www.stlouisfed.org/education/economic-lowdown-podcast-series/
episode-2-factors-of-production].
VOCABULARY

achieve economic достичь досягти економічного
growth экономического роста зростання
approximately примерно приблизно
business venture коммерческое венчурний бізнес
предприятие
capital stock основной капитал основний капітал
construction business строительная компания будівельна компанія
consumption good потребительский товар споживчий товар
consequence следствие наслідок
continually неоднократно; снова и безперестанку
снова; непрерывно
critically немаловажно, важливо, критично
критически
depend on зависеть от залежати від
deserve sth заслуживать заслуговувати
efficiently эффективно ефективно
employed labour force занятая рабочая сила зайнята робоча сила
employment level уровень занятости рівень зайнятості
entrepreneur субъект хозяйственной суб’єкт господарської
деятельности діяльності
entrepreneurship предприниматель підприємець
expand расширять розширювати
experience (n) опыт досвід
exploit (v) разрабатывать розробляти
extraction добыча родовище
factor inputs затраты витрати факторів

производственных виробництва
факторов
fixed capital основной капитал основний капітал
(здания, оборудование
и т. п.)
free good бесплатные блага, безкоштовні товари
природные блага
Government investment правительственные державні витрати на
spending капиталовложения інвестиції
Gross Domestic внутренний валовой валовий внутрішній
Product (GDP) продукт продукт
human capital человеческий капитал людський капітал
(способности и
трудовые навыки,
приложение которых
приносит доход)
improve through улучшать посредством покращувати за
допомогою
in the long run в конечном счёте, в в кінцевому рахунку
долгосрочной
перспективе
in the near в ближайшем будущем у найближчому
майбутньому
in the strict economic в строго в суворо
sense экономическом смысле економічному сенсі
increase (n) to умножение; збільшення до
прибавление; прирост
infinite бесконечный нескінченний,

незліченний,
неосягненний
initial idea первоначальный первісна ідея
замысел,
первоначальная идея
machinery производственные техніка, устаткування
механизмы;
оборудование
make into превращать в перетворити на

man made искусственный; штучні

сделанный человеком
national labour force национальная рабочая національна робоча
сила сила
natural resources природные ресурсы природні ресурси
non-marketed output нетоварная продукция неринкові товари
of about 5 inhabitants из примерно 5 жителей з приблизно5
мешканців
operate осуществлять свою працювати
operate a business управлять управляти бізнесом
предприятием
opportunity cost издержки витрати
неиспользованных невикористаних
возможностей можливостей
output продукция продукція
paid job оплачиваемый вид оплачувана робота
работы
possess иметь, владеть володіти
productive potential производственный виробничий потенціал
потенциал
productive resources производственные виробничі ресурси
ресурсы
raised capital привлечённый, залучений капітал
собранный капитал
raw material сырье сировина
real estate недвижимость нерухомість
recognition признание визнання
regard as рассматривать вважати
semi-finished деталь-полуфабрикат напівфабрикат
separate (adj) отдельный окремий
social capital общественный капитал соціальний капітал
success успех успіх
training тренинг; учёба навчання; підготовка
working age трудоспособный працездатний вік
возраст
working capital оборотный капитал оборотний капітал
Unit 6
SUPPLY
AND DEMAND
PRE-READING
1. Match these definitions with the

words they define:
1. glut a) the amount of something that can be produced
and made available for people to buy;
2. demand b) the situation in which there is too much of
something, especially goods or raw materials,
so that not all of it can be sold or used;
3. supply c) the quantity of a good that people will buy at
any time depending on its price.
READING

Almost every holiday season the most popular “must have” thing is in
short supply. And there is usually a strong secondary market for the
item – with people paying well over the retail price just to make their close
people happy. Then, in January, stores reduce the prices of their remaining
holiday items –cards, decorations, and so on.
Why do people and stores behave this way? The answer is in the laws of
supply and demand.
After all, we all have limited
resources, and we all have to decide
what we’re willing and able to purchase
and at what price. Demand is defined as
the quantity demanded at any given
price over some given period of time.
With very few exceptions, the quantity
of the demanded good increases as the
price decreases.
As an example, let’s look at a simple model of the demand for petrol. If the
price of petrol is £2.00 per litre, people may be willing and able to purchase
50 litres per week, on average. If the price drops to £1.75 per litre, they may
be able to buy 60 litres. At £1.50 per litre, they may be prepared to purchase
75 litres. Note that while some petrol usage is essential – driving to work,
for example – some is optional. Therefore, as petrol prices drop, people may
choose to make more optional trips during weekends, etc.
So there is an ʻinverseʼ relationship between price and quantity
demanded. When you draw the relationship, you get a downward-sloping
line, like the one above. The Law of Demand states, ’Other things being
equal, more will be demanded at lower prices than at higher prices.’
While demand explains the consumer side of purchasing decisions, supply
relates to the producer’s desire to make a profit and is defined as
the quantity of a commodity which is supplied at any given price over some
given period of time.
The matter is that suppliers tend to have different costs of production:
only the most efficient producers can make a profit at a low price. At a high
price, even high cost producers can make a profit, so high prices encourage
producers to make more while consumers will stop buying their goods sooner
or later. This can lead to over-production and a glut on the market which
may cause prices to fall sharply.
On the other hand, if prices fall
either locally or throughout the
world, producers will reduce their
production which will result in a
shortage of goods on the market.
This may mean serious difficulties
for manufacturers, and may cause
them to go out of business
completely.
Because suppliers want to provide
their products at high prices, and
consumers want to purchase the
products at low prices, there is a ʻdirectʼ relationship between the price and
supply of goods. The supply curve shown above has an upward slope and
demonstrates how the Law of Supply works: “More will be supplied at
higher prices than at lower prices.”
Let’s go back to our petrol example. If oil companies try to sell their petrol
at £2.15 per litre, do you think they’ll sell as much? Probably not. Yet, if oil
companies lower the price to £1.20 per litre, consumers will be very happy,
but will there be enough profit? And furthermore, will there be enough
supply to meet the higher demand by consumers?
To answer all these questions and determine the price and quantity of
goods in the market, we need to find the price point where consumer demand
equals the amount that suppliers are willing to supply. This is what
the economists call the market ʻequilibriumʼ [Tom McArthur. A Rapid
Course in English for Students of Economics / Tom McArthur. – Oxford
University Press, USA, 1997. – 138 p.; https://www.mindtools.com/pages/
article/newSTR_69.htm].
______________________________________________________________
Price elasticity also affects supply and demand. This term
is used to see how sensitive the supply/demand of a good is to
a price change. The higher the price elasticity, the more
sensitive producers and sellers are to price changes. A very high price
elasticity suggests that when the price of a good goes up, sellers will supply
a great deal less of the good and when the price of that good goes down,
sellers will supply a great deal more. A very low price elasticity implies just
the opposite, that changes in price have little influence on supply/demand.
PRACTICE

the following:
1. to buy 9. at the beginning
2. a gain, benefit 10. something pleasant and
3. make (smb) realize satisfying
the truth 11. functioning effectively
4. to the full or entire extent 12. extreme excess
5. deficit 13. a price for a commodity sold
6. in addition in small quantities
7. inspire with confidence 14. sensitivity of demand for goods
8. make sb do sth (cause) to changes in price

1. What does the word ‘Demand’ refer to?
2. What does a rise in prices encourage?
3. What does the Law of Demand state?
4. What is the definition of ‘Supply’?
5. How do market prices affect the amount of goods produced?
6. What does a fall in prices cause?
7. What does the Law of Supply state?
8. What examples can illustrate the laws of Supply and Demand?

9. What is important point for firms?
Ex. 3. Say whether these statements are true (T) or false (F), and if they
are false say why.
1. Supply does not refer to the amounts which traders are prepared to sell.
2. Prices for ʻmust haveʼ are constantly high.
3. Our decisions on how to use our money show what we need most and
what we are willing to do without.
4. The laws of Supply and Demand deal only with people’s needs and wants.
5. When people offer money for particular goods, they show that
demand exists.
6. Prices and quantity do not effect each other.
7. Changes in prices lead to a change in the quality of a commodity.
8. When there is a glut on the market, demand decreases and prices fall.
9. Over-production encourages producers to make more of the commodity.
10. According to the Law of Supply, a rise in prices tends to reduce people’s
needs and wants.
1. supply 8. furthermore
2. convince of 9. market equilibrium
3. ʻdirectʼ relationship 10. upward slope
4. a ʻmust haveʼ 11. scale of preferences
5. in response to 12. strong secondary market for
6. inelastic 13. glut
7. law of demand 14. other things being equal
1. виробничі витрати 8. користуватися правом
2. спадна лінія вибору
3. за даний час 9. бути дефіцитом
4. спочатку, перш за все 10. надвиробництво
5. закон пропозиції 11. зворотна залежність
6. задовільняти попит 12. купувати
7. загальний попит 13. заохочувати

1. ______ is elastic when a small price ______ has a relatively large effect
on the amount supplied.
2. Sometimes it takes long to _____ your production to market conditions.
3. ______ of any commodity can create difficulties.
4. ______ to your letter I inform you that your order has been received.
5. Supply is elastic when the amounts ______ for sale can be easily and
quickly ______ .
6. ______ they are good suppliers but on the other they are bad payers.
7. This commodity glut ______ many difficulties in the economy of the
country.
Ex. 7. Change these sentences using the auxiliary verbs do or did. These
verbs are used for emphases.
EXAMPLE:
1. These goods and services have a value.
These goods and services do have a value.
2. The people went to city to find work.
The people did go to the city to find work.
1. These factors have an effect upon the economic system.
2. The management tried to change the methods.
3. The representatives of the employers and employees met last week.
4. The decision made by the trade unions affects everyone in the industry.
5. Short-term economic anarchy has a bad effect on longterm stability
and investment.
6. The surplus money provided capital for a new building scheme.
7. Stable conditions led to an improvement in the general state of the
economy.
8. The government encourages new commercial enterprises.
9. A change in government usually means a change in policy.
10. The minister wanted to make a fundamental change in the national
policy.
Ex. 8. Below are pairs of the sentences. In the first sentence there is
a verb in italics. In the second sentence there is a blank.
Make the italicized verb into a noun in order to fill the blank.
EXAMPLE: manage → manage + ment → management
1. It is sometimes necessary to adjust the quantity of goods flowing on to

the market. This ______ is made according to market conditions.
2. He arranged the committee meeting. His ______ were very efficient.
3. The government encourages private enterprise. Their __________
sometimes takes the form of financial help.
4. Some economists are interested in measuring changes in the price of
essential commodities. This ______ extends over a period of years.
5. The management tried to assess the amount of money needed for the
plan. The ______ was to be made by a special committee.
6. He decided to invest his capital in the new enterprise. His ______ might
be very profitable.
Ex. 9. Many words are formed by adding -able. Do the exercise.

EXAMPLE : Fruit can perish. → Fruit is perishable.
NOTE that can is not always necessary in the first sentence.
1. The plan can work.

2. Market conditions can change.
3. Economic conditions can vary.
4. These policies suit (us).
5. Those products have a value.
6. Some investments make a profit.
Ex. 10. Supply the missing articles where necessary:

1. There is ______ shortage of bananas. ______ shortage of bananas will
continue for some weeks.
2. There has been ______ change of government. ______ change in
government will probably mean a change of policy. ______ change of
policy may lead to ______ short period of instability. ______ short
period of instability could create ______ feeling of insecurity.
3. The speaker suggested ______ special commission to study economic
conditions. He said that ______ special commission should examine all
aspects of national economic life. ______ commission should investigate
______ demands of ______ workers and ______ conditions under which
they work. It should also hear ______ views of ______ employers. Such
______ commission would render ______ very valuable service to
______ nation.
Ex. 11. Translate into English.

1. Досвід країн, у яких функціонує ринкова економіка, свідчить, що
вона являє собою механізм, який працює ефективно, і важливими
елементами цього механізму є попит і пропозиція. Взаємодія попиту
і пропозиції формує ціни на товари та послуги.
2. Кількість благ та послуг, які споживачі бажають та мають можливість
придбати на даний момент та в даному місці, зветься попитом. Попит
залежить не тільки від ціни, але й від кількості того товару на ринку.
Щоб на ринку не було затоварювання, виробники контролюють
кількість товару на ринку та пристосовують його до ринкових вимог.
З одного боку, перевиробництво призводить до падіння цін та
примушує виробників закривати свої підприємства, з іншого – це
більше влаштовує покупців.
3. Пропозиція – це кількість продукту, яку виробники бажають та мають
можливість поставити на ринок за певний період часу. Більш висока
ціна стимулює підвищення пропозиції. Економісти розрізняють
пропозицію окремих товарів, певної групи товарів і сукупну
пропозицію. Суть закону пропозиції полягає в тому, що зростання цін
зумовлює збільшення пропозиції товарів і, навпаки, зниження цін на
товари веде до зменшення їх пропозиції.
4. Ціна попиту – це максимальна ціна, яку споживачі готові
запропонувати за певний товар. Зниження ціни веде до відповідного
збільшення попиту (за інших незмінних умов). Між ціною товару та
обсягом його пропозиції існує пряма залежність. Чим вищою є ціна на
товар, тим більшу його кількість постачальники готові запропо-
нувати, оскільки від цього залежить їхній прибуток. Споживачі
ж купують речі згідно зі своєю шкалою переваг, де перше місце
займають товари першої необхідності, далі – предмети розкоші.
5. Ціни на нафту впали в цьому регіоні та по всьому світу, тому
виробники продають свою продукцію за низькими цінами, за
винятком тих видів палива, які не користуються попитом. Вони
змушені запропонувати до продажу увесь запас свого товару, навіть
якщо це не покриє їх витрати.
1. For each pair of commodities, state which you think is the more price
elastic and give your reasons: perfume and salt; penicillin and ice-cream;
cigarettes and books; ice-cream and chocolate ice-cream.
2. What will a rise in price do to total revenue when demand is elastic or

inelastic? What will higher quantity do in these cases?
Extend the idea.

1. Demand is very essential for a firm’s prosperity.
2. We exercise our choice according to our scale of preferences.
3. Even small changes in prices have effects on demand.
VOCABULARY

on average в среднем в середньому
be in short supply быть дефицитным бути дефіцитом
cause (v) быть причиной; викликати
вызывать
completely совершенно; повністю
полностью
convince убеждать запевнювати
costs of production издержки виробничі витрати,
производства, собівартість
себестоимость
ʻdirectʼ relationship прямая зависимость пряма залежність
downward-sloping line нисходящая линия спадна лінія
efficient рациональный, ефективний, дієвий,
продуктивный продуктивний,
кваліфікований,
elasticity эластичность еластичність
encourage поощрять, заохочувати
поддерживать
exercise one’s choice пользоваться правом користуватися правом
выбора вибору
fall (v) падать падати
furthermore кроме того; к тому же більш того, до того ж
at given period of time в данный период за даний час
glut излишек, перенасичення
затоваривание
in response to в ответ на у відповідь на
inelastic неэластичный нееластичний
initially первично, прежде спочатку, перш за все

всего
ʻinverseʼ relationship обратная зависимость зворотна залежність
law of demand закон спроса закон попиту
law of supply закон предложения закон пропозиції
luxuries предметы роскоши предмети розкоші
make a profit получать прибыль отримувати прибуток
market equilibrium рыночное равновесие ринкова рівновага
meet the demand удовлетворять спрос задовільняти попит
a ʻmust haveʼ то, что обязательно те, що треба

нужно иметь обов’язково мати
other things being equal при прочих равных за інших рівних умов
условиях
over-production перепроизводство надвиробництво
shortage нехватка; недостаток; дефіцит, нестача
дефицит
strong secondary market устойчивый сталий вторинний
for вторичный рынок, ринок
характеризуемый
стабильным уровнем
цен
total demand совокупный спрос загальний попит
upward slope восходящий уклон нахил вгору
Unit 7
MARKET STUDIES
The market controls everything,

but the market has no heart.
Anita Roddick
PRE-READING
1. Match the following dictionary definitions from column A with the

appropriate type of market from column B:
A B
1. small food shops a) covered
2. sheltered markets b) mini
3. market places in the open air c) flea
4. markets that sell cheap d) outdoor
second-hand goods
2. Working in pairs, discuss how markets have changed for the last
century. Give examples and spot as many differences as you can.
READING
Read the text and check your answer:

In the modern economy, most economic activity takes place in markets,
places where buyers and sellers come together
to trade money for a good or service, i.e.
make transactions. A market doesn’t have to
be a physical place; in fact, many markets
nowadays are fully computerised and exist
only in cyberspace (such as the world sugar
market or online music stores, etc.). Such a
market is simply a set of conditions,
permitting buyers and sellers to work together.
Each commodity market is subject to special
conditions and differ from one another in a number of participants, nature of
products and in ways of entering the market but they all tend to behave in the
same way, which means we can study markets in general instead of having to
study each one separately.
Figure 1 shows a demand curve and a supply curve on the same axes.
We label the market price and market quantity as P* and Q*,
respectively. What makes this price and this quantity special is that at price
P*, the quantity that buyers demand is equal to the quantity that producers
want to supply, i.e. the quantity demanded equals the quantity supplied.
Economists use the model of the equilibrium of supply and demand to show
how markets determine the market price and the market quantity (the prices
and amounts of goods and services sold respectively).
This inherent stability is great because it means that markets are self-
correcting, and when you know where the demand and supply curves are, you
know where prices and quantities are going to end up. The market
participants – buyers and sellers – move the market towards equilibrium
without the need for any outside intervention, such as government
regulations.
Remember though that governments often interfere in the market to
prevent the market equilibrium from being reached. Such interventions
happen because politically influential buyers think the market price is too
high, or because politically influential sellers think the market price is too
low. Sometimes the government intervenes in a market to ensure that the
price stays below the market equilibrium price. It should be noted that
prices below the market equilibrium normally rise, and therefore these
policies are called price ceilings, because they prevent the price from rising
too high. Prices hit the ceiling and then go no higher. The opposite sort of
market intervention happens when the prices seem to be too low and there
is excess supply on the market. To prevent the price from falling, the
government steps in and buys up the excess supply to keep the price above
its market equilibrium value. (Go to p. 128 to read more on this).
Classical economists developed the theory of perfect competition where
perfect competition is the market where there is a large number of buyers
and sellers, freedom to enter and leave markets, a complete flow of
information, etc. Perfect competition exists when many firms within a given
industry are all producing identical (or nearly identical) products using
identical production technology. Every firm is a price taker, i.e. has to
accept the market equilibrium price for what it produces – because its output
is a very small fraction of the industry’s total output.
Though there is no actual perfectly competitive market in the real world,
a number of approximations exist: e.g. a large range of identical goods with
all potential buyers and sellers present; a stock exchange resembles this by
design but no markets may satisfy all requirements of the model. Anyway it
is necessary to build such models up as they provide a gold standard
against which we judge about all other economic institutions [Peter
Antonioni. Economics for Dummies / Peter Antonioni, Sean Masaki Flynn. ;

[2nd Edition]. – Chichester : John Wiley & Sons, 2011. – 420 p.].
PRACTICE
the following:
1. share 9. under the influence of
2. define 10. to keep from happening
3. rivalry 11. existing as an inseparable part
4. to make up 12. capable of regulating itself without
5. movement external aid
6. allowing 13. a line representing statistical data,
7. to exchange on a graph
8. a state of balance 14. when operations within a system are
performed by means of a computer
1. ______ The ancient idea of a geographically fixed marketplace has been
extended to cover a set of conditions, which permits buyers and sellers to
work together.
2. ______ Markets vary in location, types, geographic range and size and
tend to behave in different ways too.
3. ______ The model of equilibrium of supply and demand is used by
economists to study real markets.
4. ______ Market transactions made by both buyers and sellers tend to
destroy the market equilibrium.
5. ______ Government may set up price ceilings to keep market prices low.
6. ______ Competition in a perfect market is conducted in a completely
free way and numerous buyers and sellers enjoy easy communications.
7. ______ There are no perfect markets in practice but economists need
them to keep balance between supply and demand curves in real
world markets.
8. ______ The lowest price which buyers will offer is the only price in
a perfect market.
1. What is the difference between the original and modern ideas of the
market?
2. What is necessary to create a market?

3. Why is each commodity market subject to special conditions?
4. How can you prove that any market is a self-correcting system?
5. What measures do governments take to regulate market prices?
6. What is a perfect market like? Provide your own examples.
7. What conclusions can economists make studying the model of perfect
competition?
1. to trade smth for 9. make transactions
2. respectively 10. stock exchange
3. total output 11. expedient
4. inherent 12. approximation
5. price ceilings 13. flow of information
6. requirement 14. judge
7. axis 15. to equal
8. production technology 16. market equilibrium

1. встановлювати ціни 10. такий що задовольняє
2. частка 11. державне регулювання
3. наближена версія 12. еталон
4. крива (лінія) 13. різко зростати (про ціни)
5. розрізняти 14. маркирувати; мітити
6. чиста конкуренція 15. економічний суб’єкт, який
7. набір умов не справляє впливу на ціну
8. кіберпростір (на ринку)
9. рівноважна ціна 16. надлишок пропозиції

1. When most people think of a _________, they think of a physical place,
like their neighborhood supermarket, complete with shoppers and
shelves stocked with a wide range of goods.
2. In economics, however, a market need not be a physical location. Where
you have _________ and _________ of a particular product or service,
you have a _________.
3. Producers have fixed too high prices, i.e. hit the _________ so the
government will _________ to set up the market _________.
4. Market conditions permitting market _________ to make _________
depend on its location and economic situation in the country.
5. Though prices are _________ to sudden increases the conditions of the
market are flexible so that the market can adjust to any changes and does
not require any government _________.
6. The equilibrium of price and quantity happen where the demand
_________ crosses the supply _________.

necessary:
1. Monopoly and perfect competition differ _________ one another
_________ many factors.
2. In a market economy a very strict competition takes place _________
buyers and sellers _________ the market.
3. Modern markets create such conditions that make hard for a new product
to enter _________ a market.
4. The market equilibrium price shows that everyone who wants to buy
_________ that price can do so, whereas everyone who wants to sell
_________ that price can also do so.
5. Unless we introduce any outside forces demand and supply curves
always move _________ the market equilibrium.
6. In case there is excess supply the government steps _________ and buys
it all _________.
7. Supply and Demand model serves _________ the gold standard
_________ which the market conditions are judged.
Ex. 8. Extend the idea:
1. On the one hand each commodity market is unique but on the other hand
there is a general tendency that can be studied…
2. The government interferes to control prices...
3. Perfect competition is an ideal market structure…
Ex. 9. Translate into English:

1. Ринок – це реальне (фізичне) місце, де споживач має змогу купити
або продати товари і послуги, тобто здійснити економічну діяльність,
що пов’язана з обміном товарів і послуг на гроші. В такому вигляді
ринок існує віртуально (у кіберпросторі), і всі операції комп’ютери-
зовані. Кожен ринок піддається особливим умовам і може

відрізнятися кількістю учасників ринку, типом товарів і послуг
і способами виходу на ринок.
2. Використовуючи модель рівноваги попиту і пропозиції, економісти
вивчають можливі відхилення в ту або іншу сторону. Крім того, це
дозволяє їм визначити ринкову ціну і кількість товарів на ринку
в певний період. Коли ці показники перетинаються на кривій попиту
і кривій пропозиції, можна говорити про рівновагу ринку.
3. Слід зазначити постійну тенденцію ринку до стабільності і само-
регулювання, а будь-яке втручання уряду вважається небажаним.
4. В роки Другої світової війни в Англії ціна на масло дорівнювала
1,2 дол. за фунт. З однієї сторони, швидкий ріст цін на масло сприяв
розвитку інфляції, з іншої – виключав із числа покупців масла сім’ї
з низьким доходом. Тому з метою запобігання інфляції і з метою
збереження масла на столах бідняків, уряд встановив потолок ціни на
рівні 0,90 дол. Слід зауважити, що потолок ціни має сенс тоді, коли
він є меншим рівноважної ціни, оскільки ціна в 1,50 дол. за фунт не
дала б позитивного результату.
5. Нижній рівень ціни – мінімальна ціна, що встановлюється урядом
і перевищує ціну рівноваги. Вона переважно застосовується в таких
випадках, коли суспільству здається, що вільне функціонування
ринкової системи не здатне забезпечити достатній рівень доходів
певним групам постачальників ресурсів чи виробникам. Законо-
давство про мінімальний рівень зарплати, а також підтримка цін на
сільськогосподарську продукцію – два найкращі приклади.
6. Хоча досконала конкуренція є швидше абстрактною моделлю,
її аналіз дозволяє не лише зрозуміти, як формується поведінка фірм
на ринку і як в цілому функціонує ринкова економіка, але й порівняти
«ідеальний» ринок з реальним.
7. Вільний вхід на ринок заважає фірмам отримувати економічні
прибутки в довгостроковому плані. Цей же процес діє й у зворотному
напрямі: коли попит на ринку знижується після досягнення рівноваги,
фірми залишають ринок, оскільки скорочення попиту робить не-
можливим покриття економічних витрат.
VOCABULARY

approximation приблизительное наближення
соответствие (наближена версія)
axis (n., pl.axes) ось вісь
be equal to smth равный, рівнятися;
соответствующий дорівнювати
be subject to special подвергаться особым підпадати під
conditions условиям особливі умови;
зазнавати особливих
умов
build smth up создавать, составлять створювати, складати
buy up скупать скуповувати
computerised компьютеризированный комп’ютеризований
corner the market монополизировать монополізувати ринок
рынок
curve кривая (линия); дуга крива (лінія)
cyberspace виртуальное кіберпростір
пространство,
созданное компью-
терной системой
differ from smth/smb отличаться от к-л., ч-л., відрізняти, відрізнити,
in smth в ч-л.; различаться ч-л. розпізнавати,
розпізнати
distinguish различать, выделять відрізняти
to ensure для обеспечения для забезпечення
equal smth равняться; уравнивать рівнятися;
дорівнювати
excess supply ситуация, при которой надлишкова
предложение пропозиція; надлишок
превысило спрос пропозиції
expedient целесообразный доцільний
fix prices устанавливать цены встановлювати ціни
flow of information поток (изобилие) потік інформації
информации
fraction доля, часть частка
gold standard золотой стандарт; золотий стандарт;
образец; эталон еталон
government regulation государственное державне

регулирование; (мн.ч.) регулювання;
правительственные державні постанови
постановления
gratifying приятный приємний, такий що
задовольняє
hit the ceiling резко возрасти різко зростати (про
(о ценах) ціни)
influential влиятельный, важный; впливовий
обладающий властью
inherent обязательно присущий, властивий,
неотъемлемый притаманний
interfere in вмешиваться втручатися
intervene in вмешиваться во ч-л. втручатися
judge судить, выносить судити; оцінювати;
приговор скласти собі думку
label маркировать; помечать; маркувати; мітити
размечать
make transactions осуществлять операции здійснювати операції
market conditions условия рынка ринкові умови
market equilibrium равновесие рынка ринкова рівновага
market equilibrium равновесная цена (цена, рівноважна ціна (ціна,
price обеспечивающая що забезпечує
равенство спроса и ринкову рівновагу)
предложения на рынке)
market intervention рыночная интервенция ринкова інтервенція
(осуществление сделок
на рынке с целью
повлиять на рыночную
цену или ожидания
участников рынка)
market participant участник рынка учасник ринку
market price рыночная цена ринкова ціна
output продукция; продукція;
производительность, виробництво; обсяг
мощность, объем виробництва
производства
perfect competition совершенная чиста конкуренція
конкуренция
permit разрешать дозволяти
price ceiling потолок цен максимальна ціна;

(установленный максимальний випуск
государством предел продукції тощо
цен на рынке
определенного товара),
максимальная цена
price taker соглашающийся економічний суб’єкт,
с ценой (продавец / який не справляє
покупатель, впливу на ціну (на
воспринимающий ринку)
рыночную цену как
заданную величину,
на которую он не может
повлиять)
requirement требование; вимога; необхідна
необходимое условие; умова; потреба
необходимость
respectively соответственно стосовно кожного

зокрема; відповідно,
у вказаному порядку
self-correcting саморегулирующийся самореґулювальний
set of conditions ряд условий ряд умов
step (v) (in) вмешиваться втручатися
stock exchange фондовая биржа фондова біржа
to prevent from мешать, заважати,
препятствовать, перешкоджати
не допускать (чомусь)
to trade smth for обменивать на обмінювати що-н. на
total output валовый выпуск, валова продукція
все производство,
вся продукция; общий
объем производства
Unit 8
MARKET STRUCTURES
“We don’t have a monopoly. We have

market share. There is a difference.”
Steve Ballmer, the CEO of Microsoft (2000–2014)
PRE-READING
1. Work as a group. Look at the company logos given below and answer
the following questions:
• What do you know about these companies?
(location, products, etc.)
• What do they all have in common?
READING
Read the text and identify the types of monopolistic arrangements that
those companies present:
In some markets there may be only one seller or a very limited number of
sellers working very closely together to control prices. Such a situation is
called a ‘monopoly’. The target of such monopolistic activity is to fix prices
at a level suitable to the seller, a level which may bring them artificially
high profits. Some monopolies are legal. In practice, it is possible to

distinguish, four kinds of monopoly.
State planning and central control of the economy often mean that a state
government has the monopoly of important goods and services. Some
countries have state monopolies in basic commodities like steel and
transport, while other countries have monopolies in such comparatively
unimportant commodities as matches.
A different kind of monopoly arises when a country, through geographical
and geological circumstances, has control over natural resources or
important services, such as water, gas, electricity and telephones where it
may not be economic to have a large number of competing companies which
lay cables or pipes to the same consumers. Such monopolies can be called
natural monopolies.
They are very different from legal monopolies, where the law of
the country permits certain producers, authors and inventors to have a full
monopoly over the production and sale of their own products.
But certain companies ‘corner the market’ in order to obtain complete
control over particular commodities. It is illegal in many countries so there
are special antitrust or competition laws which operate to restrict such
activities.
The European antitrust policy is based on two central rules stating
the following:
• to prohibit any agreements between two or more independent market
operators which restrict competition;
• to prevent the firms holding a dominant position on a determined
market from abusing that position (e.g. by charging unfair prices, by
limiting production, or by refusing to innovate to the prejudice of
consumers).
The Competition Commission examines all special arrangements and
mergers which may lead to undesirable monopolies and is empowered to
apply these prohibition rules and impose fines on undertakings which
violate the EU antitrust rules.
In some cases, however, the benefits of monopolies outweigh their costs
and public monopolies arise to do society a lot of good. They serve
the general public and their primary goal is not profit maximization,
e.g. public utility companies (water, electricity and gas) and Internet service
providers in remote areas.
This may also refer to natural monopolies or monopolies concerned with
intellectual property, such as copyright, trademarks, patents. Patents give
inventors the exclusive right to market their inventions for 20 years before
they become public property. Monopolies are also vitally important in the
context of innovation because without them inventors are unlikely to ever
see any financial reward for their hard work: copycats are likely to steal their
ideas and flood the market with rip-offs, thereby collapsing the price.
Consequently, in a world without patents, far fewer people would bother to
put in the time, effort and money required to come up with new inventions.
Apart from monopoly economists distinguish three more market structures,
including perfect competition, oligopoly and monopolistic competition.
Of the four market types, the one that has the most market power is
monopoly. Such markets are characterized by an absence of economic
competition, technological superiority, no substitute for goods sold and
a seller having full control of market power (the ability to lower and raise
the prices without losing customers).
A monopolistic competition is an industry infrastructure combining
features of both competition and monopoly. The industry comprises many
firms, which offer substitute products, and many buyers. Although the
products are substitutes, they are differentiated on the basis of physical
attributes, image, advertisements and accompanying services. For
example, Dominos and Pizza Hut offer pizza but it differs in ingredients,
recipes and taste. Companies within the industry can gain monopoly over
their competitors by offering superior products or service.
In many sectors of the economy there can be found oligopolies* where
a few producers dominate the majority of the market selling similar or
different products, e.g. tobacco companies or airlines. Sellers compete with
each other by aggressive advertising and improved service delivery.
An oligopoly sets barriers to make it difficult for new sellers to enter the
market. Barriers include patent rights, financial requirements and legal
barriers [Tom McArthur. A Rapid Course in English for Students of
Economics / Tom McArthur. – Oxford University Press, USA, 1997. –
138 p.; Peter Antonioni. Economics For Dummies / Peter Antonioni, Sean
2011. – 420 p.].
* It is a market in which only a few sellers operate, each

one produces enough of the total output to be able to affect
the market price. For example, there are two major
producers of cola-flavoured fizzy drinks: Coke and Pepsi.
These two corporations produce such large fractions of the total output that
if one were suddenly to increase supply, the market price of cola-flavoured
fizzy drinks would drop dramatically. An increase in output made by one

company causes the price to decrease for other companies in the market as
well [Peter Antonioni. Economics For Dummies / Peter Antonioni, Sean
2011. – 420 p.].
PRACTICE

the following:
1 the exclusive right to produce 7. the promotion of goods/services
copies and to control an original for sale
work, granted by law for a specified 8. the difference between the
number of years price received for a product and
2. the market condition that exists its cost
when there is only one sellеr 9. characteristic
3. to break the law 10. supply of services
4. located far away; distant 11. influence
5. person who buys and uses goods and 12. to bring into operation or use
services 13. joining of two companies
6. a public service 14. to be authorised
1. ______ Sellers undertake monopolistic activity in order to get high
profits.
2. ______ Monopolistic competition market creates highly competitive
conditions permitting consumers to enjoy a wide range of goods and
services at fair prices.
3. ______ In the monopolistic market companies attract new customers and
stay ahead of their competitors by offering accompanying services and
superior quality of goods.
4. ______ The term “monopoly” describes a market in which there is only
one seller or a very limited number of sellers, tough competition and
freedom to enter or leave market.
5. ______ Market operators undertake monopolistic activity in order to
serve the public and increase living standards of the society.
6. ______ States usually monopolize important public utilities to control
prices and get high profits.
7. ______ Legal monopolies encourage inventors to undertake their

scientific research by allowing them to control the production and sale of
those inventions.
8. ______ Cornering the market is a usual business practice supported by
the state and not prohibited by law.
9. ______ The Competition Commission considers undesirable
arrangements in order to restrict business mergers.
10. ______ In theory there are much more types of market structures than in
the economic reality.

1. What market structures are considered to be the most widely-spread?
2. What illegal actions do certain companies take to obtain complete
control over particular commodities?
3. What is the main target of the monopolistic activity?
4. What measures do governments take to control monopolies?
5. What type of monopoly does the law permit inventors to have?
6. Which body is empowered to restrict monopolistic activities in
EU countries?
1. rip-off 9. to corner the market
2. competition laws 10. substitute products
3. to market 11. to charge unfair prices
4. technological superiority 12. service delivery
5. to be empowered to 13. total output
6. to gain monopoly over 14. perfect competition
7. to the prejudice of 15. copycat
8. accompanying services 16. natural monopoly

1. державна монополія 9. ринкова влада
2. обмежувати діяльність 10. авторське право
3. монополістичний 11. встановлювати перешкоди
4. накладати штраф 12. конкурент
5. рекламування 13. злиття компаній
6. винахід 14. комунальне підприємство
7. мати домінантне положення 15. уповноважувати

8. вимога 16. наводнювати ринок

1. The situation in which a company has no competitors on the market is
called a _________.
2. There is a large number of _________ in the computer _________.
This doesn’t allow producers to _________ high prices.
3. Giant companies _________ _____ _________ in order to grow and
control as much of a market as possible.
4. Ukrposhta and British Petroleum are examples of _________
monopolies.
5. The _________ Commission has complete power to _________
monopolistic activities in the market.
6. Public monopolies are granted to public _________ companies
empowered to _________ essential public services like electricity, gas,
water and others especially in _________ areas.
7. In a perfectly competitive market multiple suppliers offer _________
products to gain monopolies over these goods.
8. _________ creates extremely favourable conditions for a single buyer
who can control and regulate market prices without any competitors.

necessary:
1. A competitive market consists _________ many buyers and sellers, so
that no single buyer or seller can affect _________the market price.
2. Anti-monopoly Committee of Ukraine carries out its activities
_________ the basis _________ the legislative acts concerning
economic competition protection.
3. Oligopoly market operators compete _________ each other _________
profit and try to make their products as distinctive ________ their
consumers as possible.
4. In case of any “dominant position abuse” there is a set _________
antitrust laws that impose fines _________ any illegal activities.
5. The inventors would stop to put _________ their time, effort and money
in their innovative activities if the government didn’t protect their rights
_________ copycats who are likely to rip _________ their inventions to
gain profit.
6. It was quite hard for a consumer to find a substitute _________ a good in

the command economy where the problem of scarcity was extremely
acute.
7. Economists are encouraged to come _________ _________ new ideas
_________ more efficient disposal of economic resources.
Ex. 8.a. Complete the table with the appropriate derivatives from the
words given where possible. In some cases there can be more than one
word:
Noun Verb Adjective

addition
compete
consume
different
economy
invent
innovate
market
manage
monopoly
profit
produce
satisfy
value
useful
utility
Ex. 8.b. Make up sentences using the words from the table. Mind the
usage of the parts of speech.
Ex. 9. Arrange these sentences in order to make a logical paragraph

about the market and translate them into English:
1. Зараз ринок – це просто ряд умов, що дозволяють продавцю
і покупцю працювати разом.
2. Економісти вважають, що в досконалому ринку має бути багато
продавців і покупців і конкуренція має бути необмеженою (повністю
вільною).
3. По-перше, сучасний ринок не має певного географічного положення.

4. Ми можемо виділити дві основні відмінності між сучасним ринком
і стародавнім ринком.
5. Зазвичай на ринку присутня обмежена кількість продавців.
6. Деякі об’єднані промислові підприємства «завойовують ринок» для
того, щоб контролювати якийсь один вид товару.
7. По-друге, їм не потрібно зустрічатися особисто, вони можуть
спілкуватися по телефону або через своїх агентів.
8. Вчені називають таку ситуацію монополією.
9. Тому уряд змушений приймати спеціальні закони, спрямовані на
обмеження таких дій.
10. Але це не завжди можливо у дійсності.
Ex. 10. Extend the idea:

1. In theory economists distinguish and study four kinds of market
structures
2. EU Competition Commission vs. undesirable monopolistic arrangements.
3. Types of monopoly practices in real world market.
Ex. 11. Translate into English:

1. На поведінку кожної фірми впливає характер, тип ринку, на якому
вона функціонує. Тип ринку залежить від типу продукції, кількості
фірм, наявності або відсутності обмежень на вхід в галузь і вихід з
неї, доступності інформації про ціни, нові технології та ін.
2. Абсолютна конкуренція та чиста монополія – два екстремальні
випадки ринкової структури. І перше, і останнє буває надзвичайно
рідко. Набагато реалістичнішою стадією є монополістична конку-
ренція. В цьому випадку фірми, хоча й мають справу з конкуренцією з
боку інших фірм, що тільки входять в галузь, або вже існуючих
продавців, але мають контроль над цінами на свої товари.
3. На ринку з монополістичною конкуренцією існує багата кількість
продавців, що пропонують подібні (однорідні) товари, які від-
різняються винятковою якістю, престижем або іміджем торгівельної
марки. Тому виробники змушені конкурувати, виробляючи якісні
товари, привертаючи увагу споживача сучасним дизайном та
яскравою упаковкою.
4. Успішна рекламна кампанія підвищує попит та спонукає споживача

віддати перевагу тій чи іншій продукції або знайти альтернативу
бажаного товару.
5. У країнах з розвиненою ринковою економікою переважно існують
ринки монополістичної конкуренції (виробництво одягу, взуття,
сфера послуг, торгівля і так далі), а також олігополії (автомобільна
промисловість, металургія).
6. Олігополія – тип ринкової структури, де зазвичай присутній ціновий
лідер або невелика кількість виробників, які встановлюють бар’єри,
що перешкоджають входу іншим компаніям. Олігопсонієй
називають ринок, де покупці, а не продавці контролюють ціни та
регулюють попит. У такому разі чисельні продавці конкурують один
з одним та змушені відповідати вимогам покупців.
7. Згідно зі статистикою багато компаній-гігантів порушують закон,
намагаючись «захопити ринок», здобути повний контроль над
виробництвом та продажем своїх товарів, але антимонопольні
закони обмежують таку діяльність.
8. АМКУ (Антимонопольний комітет України) зосереджує увагу на
проведенні досліджень і розслідувань на соціально важливих ринках
України, зокрема на ринках з підключення об’єктів житлового
будівництва до мереж електро-, газо-, тепло-, водопостачання та
водовідведення та надання комунальних послуг.
9. Уряд призначив комісію для перевірки запланованого злиття
компаній А та В. Економісти вважають, що ці компанії намагаються
монополізувати продаж побутових приладів на західному ринку.
10. Як повідомляє прес-служба відділення Антимонопольного комітету
України в Харківській області, ТОВ «Н Інкорпорейтед» вчинило
порушення конкуренційного законодавства, поширивши неправдиву
інформацію про споживчі властивості продукту на упаковці, та
сплатило штраф у розмірі 50 тис. грн за недобросовісну
конкуренцію.

Work as a group. An expert economist is giving a talk in your town
this evening. Write down five questions you will want to ask him: five
things you have never really understood about economics. Discuss
possible answers in pairs.
VOCABULARY
abuse (v.) злоупотребление зловживання
accompanying сопутствующие услуги супутні, супровідні
services товари
advertisement реклама, объявление реклама
advertising рекламирование рекламування
affect market prices оказывать воздействие на мати вплив на ринкові
рыночные цены ціни
agreement соглашение, договор угода
anti-trust laws антимонопольные (амер. антимонопольні (амер.
антитрастовые) законы антитрестовські)
закони
apply (to) применять, использовать використовувати
artificially искусственно штучно
attribute атрибут, свойство, атрибут, властивість
характерный признак
characterize характеризовать, отличать характеризувати
collapse (v) привести к падению привести до зниження
compete конкурировать конкурувати
competition laws законы конкуренции закони конкуренції
competitor конкурент конкурент
comprise содержать, включать, містити
заключать в себе
copycat (n) подражатель наслідувач
copyright (n., adj) авторское право; авторське право;
охраняемый авторским охороняється
правом авторським правом
corner the market ‘завоёвывать’ рынок ‘охоплювати’ ринок
differentiate различать(ся), розрізнятися;
отличать(ся); диференціюватися
дифференцировать(ся)
dominate доминировать, домінувати
преобладать
duopoly дуополия (вариант дуополія
олигополии, когда на
рынке – только два
продавца)
duopsony дуопсония (наличие на дуопсонія

рынке всего двух
покупателей)
empower уполномочивать, уповноважувати,
снабжать полномочиями; поручати
давать право/возможность
exclusive right эксклюзивное, ексклюзивне право
исключительное право
flood the market наводнять рынок наводняти,
(with) наводнювати ринок
free market свободный рынок вільний ринок
have control over контролировать ч-л. контролювати що-н.
smth
hold a dominant иметь господствующее мати домінуюче
position положение положення
impose fines налагать штраф накладати штраф
Inventor изобретатель винахідник
lower снижать(ся), знижатися,
понижать(ся), зменшуватися
уменьшать(ся)
market (v.) торговать, продавать на реалізувати, збувати;

рынке; продавать; знаходити ринок збуту,
сбывать; находить рынок торгувати на ринку
сбыта
market power рыночная власть ринкова влада
(возможность фирмы
влиять на рыночную цену)
merger слияние компаний злиття компаній
monopoly монополия монополія
monopsony монопсония, монополия монопсонія
покупателя (рынок, на
котором выступает лишь
один покупатель товара,
услуги или ресурса)
natural monopoly естественная монополия натуральна монополія
oligopoly олигополия (рыночная олігополія

структура с
незначительным числом
продавцов при наличии
большого числа
oligopsony олигопсония (рыночная олігопсонія
структура с огранич.
числом покупателей и
большим числом
продавцов, покупатели
влияют на цену)
on the contrary наоборот навпаки
patent патент; диплом; патент
привилегия; изобретение
patent rights патентные права патентні права
(вытекающие из владения
патентом)
perfect competition совершенная конкуренция чиста конкуренція
(pure competition)
profit maximization максимизация прибыли максимізація прибутку
prohibit запрещать забороняти
public monopoly государственная державна монополія
монополия
public utility коммунальное комунальне
company предприятие; предприятие підприємство
общественного
пользования
raise повышать, поднимать підвищувати
remote удаленный віддалений
restrict ограничивать, держать в обмежувати
определенных пределах
rip-off (n) воровство; злодійство; плагіат
мошенничество
плагиат
service delivery оказание услуг надання послуг
set barriers устанавливать барьеры, встановлювати
преграды перешкоди
substitute products товары-заменители, товари-замінники

взаимозаменяемые товары
(пары товаров, для
которых рост стоимости
одного товара приводит к
росту спроса на другой
товар)
superior product изделие высшего качества продукт кращої якості
superiority превосходство, перевага
преимущество
to the prejudice в ущерб на шкоду
trademarks торговая марка, товарный торгівельна марка
знак
undesirable нежелательный небажаний
violate нарушать, попирать, порушувати
преступать
Revision and Conclusion
One of the major tasks of economics is to

understand the principles of consumer behaviour.
Consumers depend on others to satisfy their most
basic needs. They must enter into transactions to
obtain food, energy for heat and light, clothing,
medical assistance, transportation, communication
services etc. Commodities of different kinds
satisfy people’s wants in different ways: in
relation to time, people and nations. Economists explain consumer demand by
the concept of utility and with the Law of Diminishing Marginal Utility. Utility
is a concept that represents the amount of usefulness or satisfaction that a
consumer obtains from a commodity. The Law of Diminishing Marginal Utility
states that as the amount of a commodity consumed increases, the marginal
utility of the last unit consumed tends to decrease.
Consumers spend their incomes to maximize their satisfaction. Their choices
are influenced by the prices of goods, income, and preferences. People tend to
buy more of a good when it is cheap than when it is expensive.
Price elasticity of demand tends to be low for necessities like food and
shelter and high for luxuries like snowmobiles and air travel. Other factors
affecting price elasticity are the extent to which a good has ready substitutes
and the length of time that consumers have to adjust to price changes.
The Law of Demand represents the relationship between the quantity of a
good that people want to buy and the price of that good. The Law of Supply
gives the relationship between the quantity that producers will be willing to
sell – other things equal – and that good’s price.
Money is the universally acceptable medium of exchange. People work
and get payment. Under these conditions their work is labour and therefore
people are called labour force. Some people invest capital, bear risk and
receive profit if their business is successful.
Market is an arrangement whereby buyers and sellers interact to determine
the prices and quantities of a commodity. Market structures range from
perfect competition, oligopoly, monopolistic competition and monopoly.
Economists consider perfect competition as an ideal market structure
where the number of perfectly competitive sellers and buyers is very large
and the products offered by sellers are homogeneous. They have no power to
affect the market price.
Monopoly is a market structure in which a commodity is supplied by

a single firm which causes economists’ concern: they provide regulation and
antitrust policy to control such activities [Tom McArthur. A Rapid Course in
English for Students of Economics / Tom McArthur. – Oxford University
Press, USA, 1997. – 138 p.; Peter Antonioni. Economics For Dummies /
Wiley & Sons, 2011. – 420 p.].
I. Choose the correct answer:

1. To satisfy basic needs consumers should
a) not buy non-essentials;
b) learn English;
c) enter into transactions with other people;
d) ask their employers to pay more.
2. ______ make our life more pleasant.

a) Games
b) Food, clothes and shelter
c) Limits
d) Non-essentials
3. To produce 100,000 grey XXL coats every year is typical for …

a) a mixed economy;
b) a command economy;
c) a market economy;
d) any economy.
4. Fluctuations of prices depend on

a) supply and demand;
b) quality and quantity of goods;
c) economic ideology of the country;
d) the exchange rate.
5. In the countries with mixed economic systems the authorities

a) decide what quantities of goods to produce;
b) have very few economic functions;
c) organize the whole economic effort of the nation;
d) control and regulate national economic conditions.
6. Mr Smith’s cattle farm belongs to the

a) public sector of British economy;
b) NEDC;
c) private sector of British economy;
d) oil industry.
7. It is impossible to plan ahead with any certainty in the mixed economy

due to:
a) a wide and very complex range of people’s wants;
b) natural and political changes;
c) limited natural resources;
d) instability and unemployment.
8. Capitalist economic systems are based upon

a) private ownership of the means of production;
b) surplus income;
c) public property;
d) considerable economic freedom of choice.
9. Capital is…
a) land, houses and shares;
b) land, houses and clothes;
c) land, entertainment and shares;
d) food, clothes and shelter.
10. A consumer buys more of a commodity at a …

a) higher price;
b) lower price;
c) current price;
d) price he charges.
11. Market in economics is a ______

a) place where people buy and sell food, clothes for everyday lives;
b) set of conditions permitting people meet each other;
c) set of conditions permitting people work together;
d) fixed place where businessmen come to buy sugar.
12. Economists consider ______ as a perfect market structure.

a) free market;
b) perfect competition;
c) monopoly;
d) ‘cornered’ market.
13. Surplus is the ______ of private enterprise.

a) profit;
b) loss;
c) income;
d) wages.
14. The rise in prices encourages producers to

a) buy more of a commodity;
b) produce more goods;
c) stop selling goods;
d) go out of the market completely.
15. Utility of a commodity tends to diminish as

a) the usefulness of the commodity falls;
b) the stock of the commodity decreases;
c) the stock of the commodity increases;
d) the consumer buys little of the commodity.
16. The Law of Demand says:

a) more will be demanded at higher prices than at lower prices;
b) more will be demanded at lower prices than at higher prices;
c) people will buy more if the prices are higher than usually;
d) the demand for a commodity rises as the price for that commodity
increases.
17. The prices of meat products in a competitive market are determined by:
a) Government.
b) Business monopolies.
c) Supply and demand.
d) The Consumer Price Index.
18. One of the important conditions for perfect competition is that:

a) products are heterogenous.
b) there are never any economic profits earned by the firms in the
industry.
c) there are no barriers to entry and exit.
d) managers in the same industry discuss strategies with each other to

perfect their pricing in the market.
e) the demand curve facing a firm is perfectly inelastic.
19. Economics can best be defined as the study of

a) allocating finite resources to satisfy limitless wants.
b) spending your money wisely.
c) producing more goods and services.
d) maximising happiness.
20. Market economy is very similar to

a) mixed economy
b) command economy
c) socialist economy
d) free enterprise economy
II. Read the following statements and say whether they are true or false:
1. If in the same garage you may buy a car or some service, which helps
you maintain the car, it means that people working in the garage provide
both goods and services.
2. Most people usually work to buy essential commodities.
3. The science of economics is concerned with all human material needs
and wants.
4. Both American and British economic systems are capitalist. So they are
based on the governmental control of land, labour and capital.
5. If individual citizens who live in the socialist country obey the law, they
can have private property.
6. The country whose economic system is based on private enterprise with
private ownership of the means of production is neither communist nor
capitalist.
7. All individual citizens are required to conform to the laws made by
their government.
8. Such developed countries as the USA and Great Britain have a mixed
economy nowadays.
9. Food production and distribution are in the public sector of the national
economy.
10. The members of the National Economic Development Council are
responsible for planning national policies.
SUPPLEMENT
SUPPLEMENT TO UNIT 1
Choose the correct answer:

1. Mad cow disease has had a serious _________ effect on beef producers.
a) economical c) uneconomic
b) economic d) economically
2. If we want a holiday we’ll have to _________, we are spending too
much.
a) economical c) economics
b) economy d) economize
3. The most _________ way of heating your house is by using solar
energy.
a) uneconomical c) economical
b) economist d) economize
4. _________ of the country has been improving steadily these past ten
years.
a) economics c) economical
b) economy d) economizing
5. Tourism contributes millions of euros to the country’s _________.
a) economical c) uneconomic
b) economic d) economy .
6. It is usually more _________ to shop in a supermarket than in a small
shop.
a) economically c) economical
b) uneconomically d) uneconomical
7. My daughter is in her third year of _________ at university.
a) economics c) economical
b) economy d) economist
8. The minister maintained that the coal mines were _________ and would
have to be closed.
a) economical c) economize
b) uneconomic d) economy
9. Naturally the big boss has many professional _________ to advise him.
a) economical c) economists
b) economies d) economics
10. An _________ is a mechanical device intended to reduce energy
consumption.
a) economical c) economically
b) economizer d) economy
Read the following and be ready to discuss the ideas given in the text in
class:
TEN ECONOMIC IDEAS TO HOLD DEAR
There are ten economic ideas that all informed people need to understand
and be ready to use to evaluate the policy proposals made by the government.
1. SOCIETY IS BETTER OFF WHEN PEOPLE PURSUE THEIR

OWN INTERESTS
This concept is basically Adam Smith’s famous invisible hand. If all
economic interactions in a society are voluntary on the parts of all parties
involved, the only transactions that are going to take place are those in which
all parties feel they are being made better off.
If you trade your gold for another person’s bread, you’re likely to do so
because you value his bread more than your gold. You trade because trading
makes you better off. Meanwhile, you can be sure that the other person
values your gold more than his bread. So trading makes him better off too.
You both pursue yourself interests, and you’re both made better off.
This concept of what motivates people doesn’t mean that charitable acts
are bad for society. Instead, it means that even philanthropy is generated by
self-interest. People give because they enjoy helping others. By doing so,
both they and the people they help are made better off.
2. FREE MARKETS REQUIRE REGULATION
Economists firmly believe that voluntary transactions in free markets tend
to work toward the common good. But they also believe that nearly every
participant in the marketplace would love to rig the system in his or her own
favour. Adam Smith, in particular, was quick to point this out and argue that
for markets to work and serve the common good, the government has to fight
monopolies, collusion and any other attempts to prevent a properly
functioning market in which firms vigorously compete against each other to
give consumers what they want at the lowest possible price.
3. ECONOMIC GROWTH DEPENDS ON INNOVATION
At any given moment, a fixed amount of wealth exists that can be divided
equally among all people, like slicing a pie into equal pieces and giving each
person one equal slice. But if living standards are to keep rising, you need a
bigger pie to split up. In the short run, you can get a bigger pie by working
harder or using up resources faster. But the only way to have sustained
growth is to invent more efficient technologies that allow people to produce
ever more from the limited supply of labour and physical resources.
4. FREEDOM AND DEMOCRACY MAKE US RICHER
Very good moral and ethical reasons exist for favouring freedom and
democracy. But a more bottom line reason is that, in general, because freedom
and democracy promote the free development and exchange of ideas, free
societies have more innovation and, consequently, faster economic growth.
5. EDUCATION RAISES LIVING STANDARDS
Educated people not only produce more as workers – and hence get paid
higher salaries – but also, more importantly, they produce innovative new
technologies. Sustained economic growth and higher living standards are
only possible if you educate your citizens well. Of course, other good reasons
exist for getting an education, including the ability to appreciate high art and
literature. But even if all you care about is living in a country that has rising
living standards, you should work hard to promote education in the sciences
and engineering, sectors where revolutionary technologies are created.
(Notice that we don’t say that lots of people should become economists.
All economists can do for growth is to urge others to become engineers!)
6. PROTECTING INTELLECTUAL PROPERTY RIGHTS PROMOTES
INNOVATION
People need incentives to encourage them to take risks. One of the biggest
risks you can take is to leave a secure job in order to start a new business or
work at developing a great new idea. Intellectual property rights, when
deployed effectively, give you a bargaining chip to help ensure that the rewards
are going to go to you and your associates rather than competitors. Without this
assurance, fewer people would be willing to take the personal risks necessary to
provide society with innovative new technologies and products.
7. WEAK PROPERTY RIGHTS CAUSE MANY ENVIRONMENTAL

PROBLEMS
People always have to do some polluting. After all, even if you don’t want
gas-guzzling SUVs (sports utility vehicle) running around causing lots of
pollution, you probably still want ambulances and fire engines to operate
despite the fact that they too pollute the environment. The difference is that
the overall benefit to society outweighs the cost of the pollution in the case of
the emergency vehicles but not in the case of the SUVs.
Seen in this light, society’s goal isn’t to ban pollution completely, but to
make sure that the benefit exceeds the cost for whatever pollution is generated.
Strong property rights are keys to ensuring that people weigh the complete
costs and benefits of pollution. Property rights force people to take into
account not only their personal costs of generating pollution, but also the
costs that their actions impose on others.
All environmental problems tend to stem from poorly defined or non-
existent property rights that allow polluters to ignore the costs that they
impose on others. Therefore, economists favour the creation and enforcement
of property rights systems that force people to take all costs into account.
8. INTERNATIONAL TRADE IS A GOOD THING
Opening your country to international trade means opening your country to
new ideas and new innovations. Competition from foreign competitors
causes local businesses to innovate to match the best offerings of companies
from around the world.
Quite simply, throughout history, the richest and most dynamic societies
have been the ones open to international trade. Countries that close
themselves off from international trade grow stagnant and are quickly left
behind. Of course, what economists have in mind when they think of the
benefits of international trade is free trade, where companies compete across
borders to provide people with the best goods and services at the lowest
prices. Economists strongly condemn the many government subsidies and
trade restrictions that impede free trade and that try to rig the game in one
country’s favour.
9. FREE ENTERPRISE HAS A HARD TIME PROVIDING PUBLIC
GOODS
Private firms can provide goods and services only if they can at least break
even doing so. To break even (or make a profit), whatever a firm is selling
has to be excludable, by which we mean that only those paying for the good
or service receive it.
Some goods and services are non-excludable. For example, a lighthouse

provides warning services to all ships in the vicinity regardless of whether they
pay the lighthouse keeper. Because every ship knows that it can get the service
without having to pay for it, the private lighthouse quickly goes bankrupt
because only a few ships are fair-minded enough to pay for the service.
Goods and services that are non-excludable are called public goods
because they’re essentially open to the public and can’t be kept private.
Because private firms can’t make a profit producing public goods, you
typically need governments to provide them. Unlike private firms,
governments can force people to pay for public goods. They do this by
levying taxes and using the tax revenues to pay for public goods, such as the
army, the police force, lighthouses, public fireworks displays, basic scientific
research and so on.
Economists view the existence of public goods as one of the most
important justifications for government intervention in the economy.
Although private philanthropy can also provide some public goods, many
public goods are so expensive that they can be provided only if the
government uses its power of taxation to fund them. Consequently, public
goods are typically publicly provided.
10. PREVENTING INFLATION IS EASY
Governments can cause high rates of inflation by increasing the money
supply too rapidly. A growing economy always has a growing demand for
money because with more stuff to buy, you need more money with which to
buy it. If you want to keep the overall level of prices constant, the correct
response is to increase the money supply at the same rate that demand is
increasing. If the supply of money increases faster than the demand for money,
the value of money falls, creating inflation. (In other words, it takes more
money to buy the same amount of stuff as before, meaning that prices go up.)
One recent development has been to make central banks like the Bank of
England independent. This move gets around the temptation to use monetary
policy as an instrument of growth by making it the central banker’s job to
ensure that prices stay stable no matter what governments decide [Tom
McArthur. A Rapid Course in English for Students of Economics / Tom
McArthur. – Oxford University Press, USA, 1997. – 138 p.; Peter Antonioni.
Economics For Dummies / Peter Antonioni, Sean Masaki Flynn. ;
[2nd Edition]. – Chichester : John Wiley & Sons, 2011. – 420 p.].
COUNTRIES AND NATIONALITY
The word ‘Nationality’ is not often used in spoken English. It is a formal

and official word and it appears more frequently in written English. You will
find the word ‘Nationality’ is used a lot in the travel industry and
for immigration.
We almost never say: What is your nationality?
We usually say: Where are you from? OR Where do you come from?
To tell someone your nationality you DON’T say: My nationality
is Chilean.
You say: I’m Chilean
Look at the following example sentences: She comes from France. She is
French. She is a Frenchwoman. Her nationality is French. She drives
a French car. She speaks French.
! Note – in English all countries and adjectives describing the

products, people or services from that country are proper nouns and as
such start with a CAPITAL LETTER.
For example: Ireland – Irish, Belgium – Belgian
Country Capital Adjective Person Language

Afghanistan Kabul Afghan an Afghan Persian -
/æfˌɡænɪˈstɑ:ni/ /ˈkɒ:bul/ Pashto
Albania Tirana Albanian an Albanian Albanian
/ælˈbeɪniə/ /tɪˈrɑːnə/
Algeria Algiers Algerian an Algerian Arabic
/ælˈdʒɪərɪə/ /ælˈdʒɪəz/
Andorra Andorra la Andorran an Andorran Catalan
/ænˈdɔːrə/ Vella
/ənˈdorə ɫə
ˈβeʎə/
Angola Luanda Angolan an Angolan Portuguese
/æŋˈɡəʊlə/ /lʊˈændə/
Argentina Buenos Aires Argentinian an Argentinian Spanish
/ˌɑːdʒənˈtiːnə/ /ˈbweɪnɒs
ˈaɪrɪz/
Armenia Yerevan Armenian an Armenian Armenian

/ɑːˈmiːnɪə/ /jɪrɪˈvan/
Australia Canberra Australian an Australian English
/ɒˈstreɪlɪə/ /ˈkænbərə; brə/
Austria Vienna Austrian an Austrian German
/ˈɒstrɪə/ /vɪˈɛnə/
Azerbaijan Baku Azerbaijani an Azerbaijani Azerbaijani
/ˌæzəbaɪˈdʒɑːn/ /baˈku/
Bahamas Nassau Bahamian a Bahamian English
/bəˈhɑːməz/ /ˈnæsɔː/
Bahrain Manama Bahraini a Bahraini Arabic
/bɑːˈreɪn/ /məˈnɑːmə/
Bangladesh Dhaka Bangladeshi a Bangladeshi English
/ˌbɑːŋɡləˈdɛʃ/ /ˈdækə/
Barbados Bridgetown Barbadian a Barbadian English
/bɑːˈbeɪdəʊs/ /ˈbrɪdʒˌtaʊn/
Bangladesh Dacca Bangladeshi a Bangladeshi English
/ˌbæŋɡləˈdeʃ/ /ˈdækə/
Barbados Bridgetown Barbadian a Barbadian English
/bɑːˈbeɪdəs/ /ˈbrɪdʒtaʊn/
Belarus Minsk Belarusian a Belarusian Belarusian
/belə’rus/ /mɪnsk/ / Belarusan or a Belarusan Russian
Belgium Brussels Belgian a Belgian French /
/ˈbeldʒəm/ /ˈbrʌsəlz/ Flemish
Belize Belmopan Belizean a Belizean English
/bɪˈliːz/ /ˌbɛlməʊˈpan/
Benin Porto Novo Beninese a Beninese French
/beˈniːn/ /'po:rtou
'nouvo/
Bhutan Thimphu Bhutanese a Bhutanese Dzongkha
/bu:'ta:n/ /θim'bu:/
Bolivia Sucre Bolivian a Bolivian Spanish
/bə'liviə/ /'su:kre/
Bosnia- Sarajevo Bosnian a Bosnian Bosnian,
Herzegovina /ˌsa:rəˈyevou/ Croatian,
/'bozniə ənd Serbian
,hertsəgou'vi:nə/
Botswana Gaborone Botswanan Serbian
/bot'swa:na:/ /ˌga:bə'rouni/
Brazil Brasilia Brazilian a Brazilian Portuguese

/brə'zil/ /brə'zi:lyə/
Britain London British a Briton English
/ˈbrɪt(ə)n/ /ˈlʌndən/
Brunei Bandar Seri Bruneian a Bruneian Malay,
/bru:'nei/ Begawan (Recognised
/'ba:ndər 'seri English)
bə'ga:wən/
Bulgaria Sofia Bulgarian a Bulgarian Bulgarian
/bʌl'geəriə/ /'soufiə /
Burkina Ouagadougou Burkinese a Burkinese French
/bɜːˌkiː.nə/ /ˌwɑːɡəˈduːɡuː
/
Burma (official Naypyidaw Burmese a Burmese Burmese
name Myanmar) /nèpjìdɔ̀/
/ ˈbɜːmə/
/mjəmà/
Burundi Bujumbura Burundian a Burundian Kirundi,
/ bʊˈrʊndi / /buːdʒəmˈbʊrə/ French
Cambodia Pnompenh Cambodian a Cambodian Cambodian
/ kæmˈbəʊdɪə / / 'nɒm 'pen /
Cameroon Yaounde Camero- a Cameroonian French
/ ˌkæməˈruːn / / ͵jɑ:u:nʹdeı / onian English
Canada Ottawa Canadian a Canadian English
/ˈkænədə / / ˈɒtəwə / French
Cape Verde Praia Cape a Cape Portuguese
Islands /ˈprʌɪə/ Verdean Verdean
/keɪp ˈvɜːd
ˈaɪlənd/
Chad N’Djamena Chadian a Chadian French,
/tʃæd/ /ənja:'meina:/ Arabic
Chile Santiago Chilean a Chilean Spanish
/ˈtʃɪli / /ˌsæntɪˈɑːɡəʊ /
China Beijing Chinese a Chinese Chinese
/ ˈtʃaɪnə / / ˌbeiˈdʒɪŋ/
Colombia Bogota Colombian a Colombian Spanish
/kəˈlɒmbɪə / / ˌbɒɡəˈtɑː /
Congo Brazzaville Congolese a Congolese French
/ ˈkɒŋɡəʊ / / ˈbræzəˌvɪl /
Costa Rica San José Costa a Costa Rican Spanish

/ˌkɒstə ˈriːkə/ /saŋ hoˈse/ Rican
Croatia Zagreb Croat or a Croat or Croatian
/kroʊˈeɪʃə/ /zǎːɡreb/ Croatian a Croatian
Cuba Havana Cuban a Cuban Spanish
/ˈkuβa/ /həˈvænə/
Cyprus Nicosia Cypriot a Cypriot Greek
/ˈsaɪprəs/ /ˌnɪkəˈsiːə/ Turkish
Czech Republic Prague Czech a Czech Czech
/ˈtʃɛk rɪˈpʌblɪk/ /ˈprɑːɡ/
Denmark Copenhagen Danish a Dane Danish
/ˈdɛnmɑːrk/ /ˈkoʊpənheɪɡən/
Djibouti Djibouti Djiboutian a Djiboutian French,
/dʒɪˈbuːti/ /dʒɪˈbuːti/ Arabic
Dominican Santo Dominican a Dominican Spanish
Republic Domingo
/dəˈmɪnɪkən-/ /ˌsæntəʊ
dəˈmɪŋɡəʊ/
Ecuador Quito Ecuadorean an Ecuadorean Spanish
/ˈɛkwədɔːr/ [ˈkiːtəu]
Egypt Cairo Egyptian an Egyptian Arabic
/ˈiːdʒɪpt/ /ˈkaɪroʊ/
El Salvador San Salvador Salvadorean a Salvadorean Spanish
/ɛl ˈsælvədɔːr/ /ˌsæn
ˈsælvəˌdɔː/
England London English an Englishman/ English
/ˈɪŋglənd/ /ˈlʌndən/ Englishwoman
Eritrea Asmara Eritrean an Eritrean Tigrinya
/ˌɛrɪˈtreɪə/ /æsˈmɑːrə/ Arabic
English
Estonia Tallinn Estonian an Estonian Estonian
/ɛˈstoʊniə/ /ˈtɑːlɪn/
Ethiopia Addis Ababa Ethiopian an Ethiopian Amharic
/ˌiːθiˈoʊpiə/ /adˈdis ˈabəba/
Fiji Suva Fijian a Fijian English
/ˈfiːdʒiː/ /ˈsu:və / Fijian
FijiHindi
Finland Helsinki Finnish a Finn Finnish
/ˈfɪnlənd / /ˈhelsɪŋkɪ/
France Paris French a Frenchman/ French

/ frɑːns / /ˈpærɪs/ Frenchwoman
Gabon Liberville Gabonese a Gabonese French
/ ɡæbˈɒn / /ˈli:brevi:l/
Gambia Banjul Gambian a Gambian English
/ˈɡæmbi.ə/ / ba:nˈdзu:l/
Georgia Tbilisi Georgian a Georgian Georgian
/ˈdʒɔːdʒə/ /təbiˈli:si/
Germany Berlin German a German German
/ˈdʒɜːməni/ /bɜːˈlɪn/
Ghana Accra Ghanaian a Ghanaian English
/ˈɡɑːnə/ /əˈkra:/
Greece Athens Greek a Greek Greek
/ɡriːs/ /ˈæθənz/
Grenada St George Grenadian a Grenadian English
/ɡrəˈneɪdə/ /seint ˈdзc:rdз/
Guatemala Guatemala Guatemalan a Guatemalan Spanish
/ˌɡwɑːtəˈmɑːlə/ /ˌɡwɑːtəˈmɑːlə/
Guinea Conakry Guinean a Guinean French
/ˈɡɪni/ /ˈkɒnəkri/
Guyana Georgetown Guyanese a Guyanese Guyanese
/ɡaɪˈæn.ə/ /ˈdзc:dзtaun/ Creole
Haiti Port-au-prince Haitian a Haitian French
/ˈheɪti/ /ˌpc:təuˈprins/ Creole
Holland Amsterdam Dutch a Dutchman/ Dutch
(also Netherlands) /ˌæmstəˈdæm/ Dutchwoman
/ˈhɒlənd/
Honduras Tegucigalpa Honduran a Honduran Spanish
/hɒnˈdʒʊərəs/ /teuhgooh'si
galˈpeuh/
Hungary Budapest Hungarian a Hungarian Hungarian
/ˈhʌŋɡəri/ bjuːd ə ˈpest
Iceland Reykjavik Icelandic an Icelander Icelandic
/ˈaɪslənd/ /ˈreɪkjəvɪk/
India New Delhi Indian an Indian Hindi,
/ˈɪndɪə/ /njuː ˈdeli/ English
Indonesia Jakarta Indonesian an Indonesian Indonesian
/ˌɪndəˈniːzɪə/ /dʒəˈkɑːtə/
Iran Tehran Iranian an Iranian Persian

/ɪˈrɑːn /, /aɪˈræn/ /ˌteˈrɑːn/
Iraq Baghdad Iraqi an Iraqi Arabic
/ɪˈrɑːk/, /ɪˈræk / /bæɡˈdæd/ Kurdish
/aɪˈræk/
Ireland, Republic Dublin Irish an Irishman Irish
of /ˈaɪələnd/ /ˈdʌblɪn/ an Irishwoman English
Italy Rome Italian anItalian Italian
/ˈɪtəli/ /rəʊm/
Israel Jerusalem Israeli an Israeli Hebrew
/ˈɪzreɪl/ /dʒəˈruːsələm/
Jamaica Kingston Jamaican a Jamaican English
/dʒəˈmeɪkə/ /ˈkɪŋstən/ (Jamaican
English)
Japan Tokyo Japanese a Japanese Japanese
/dʒəˈpæn/ /ˈtəʊkjəʊ/
Jordan Amman Jordanian a Jordanian Arabic
/'jo:rdən/ /a:m'ma:n/
Kazakhstanˌ Astana Kazakh a Kazakh Kazakh
/kɑːzakˈstɑːn/ /æstæ'nɑː/ Russian
Kenya Nairobi Kenyan a Kenyan Swahili
/ˈkenjə/ /naɪˈrəʊbi/
Korea Seoul Korean a Korean Korean
/kəˈrɪə/ /səʊl/
Kuwait Kuwait City Kuwaiti a Kuwaiti Arabic
/kʊˈweɪt/ /kʊˈweɪt ˈsɪti/
Laos Vientiane Laotian a Laotian Laotian
/ˈlɑːɒs/, /laʊs/ /ˌvjɛnˈtjɑːn/
Latvia Riga Latvian a Latvian Latvian
/ˈlatvɪə/ /ˈriːɡə/
Lebanon Beirut Lebanese a Lebanese Arabic
/ˈlɛbənən/ /beɪˈruːt/
Liberia Monrovia Liberian a Liberian English
/lʌɪˈbɪərɪə/ /mɒnˈrəʊvɪə/
Libya Tripoli Libyan a Libyan Arabic
/ˈlɪbɪə/ /ˈtrɪpəli/
Liechtenstein Vaduz a Liechtensteiner German
/ˈlɪçtnˌʃtaɪn/ /vaˈdʊts/ –
/ˈlɪktənˌstʌɪn/
Lithuania Vilnius Lithuanian a Lithuanian Lithuanian

/ˌlɪθ(j)uːˈeɪnɪə/ /ˈvɪlnɪəs/
Luxembourg Luxembourg a Luxembourger French,
/ˈlʌksəmbəːɡ/ /ˈlʌksəmbəːɡ/ German,
–
Luxem
bourgish
Macedonia Skopje Macedonian a Macedonian Macedonian
/ˌmasɪˈdəʊnɪə/ /ˈskɒpjeɪ/
Madagascar Antananarivo Malagasy or a Malagasy or Malagasy
/ˌmadəˈɡaskə/ /ˌantəˌ a Madagascan French
nanəˈriːvəʊ/ Madagascan
Malawi Lilongwe Malawian a Malawian Chichewa
/məˈlɑːwi/ /lɪˈlɒŋweɪ/ English
Malaysia Kuala Lumpur Malaysian a Malaysian Malay
/məˈleɪʒə/ /ˌkwɑːlə Malaysian
/məˈleɪzɪə/ ˈlʊmpʊə/
Mali Bamako Malian a Malian French
/ˈmɑːli/ /ˈbaməkəʊ/
Malta Valletta Maltese a Maltese Maltese
/ˈmɔːltə/ /vəˈlɛtə/ English
Mauritania Nouakchott Mauritanian a Mauritanian Arabic
/ˌmɒrɪˈteɪnɪə/ /nwakˈʃɒt/
Mauritius Port Louis Mauritian a Mauritian Mauritian
/məˈrɪʃəs/ /ˈluːi/, /ˈluːɪs/ Creole
French
English
Mexico Mexico City Mexican a Mexican Spanish
/ˈmɛksɪkəʊ/ /ˈmɛksɪˌkoʊ
'sɪti/
Moldova Chişinău Moldovan a Moldovan Moldovan
/ˈmɒldəvə/ /ˌkɪʃɪˈnaʊ/ (Romanian)
Monaco Monaco Monégasque a Monégasque French
/ˈmɒnəkəʊ/ /ˈmɒnəkəʊ/ /Monacan or a Monacan
Mongolia Ulaanbaatar Mongolian a Mongolian Mongolian
/mɒŋˈɡəʊlɪə/ /ˌuːlɑːn ˈbɑːtə/
Montenegro Podgorica Montenegrin a Montenegrin Montenegrin
/ˌmɒntɪˈniːɡrəʊ/ /pɒdˈɡɔːrɪtsə/
Morocco Rabat Moroccan a Moroccan Arabic
/məˈrɒkəʊ/ /rəˈbat/ French
Mozambique Maputo Mozambican a Mozambican Portuguese

/ˌməʊzamˈbiːk/ /məˈpuːtəʊ/
Namibia Windhoek Namibian a Namibian English
/nəˈmɪbɪə/ /ˈvɪnthʊk/
Nepal Kathmandu Nepalese a Nepalese Nepali
/nɪˈpɔːl/ /ˌkatmanˈduː/
the Netherlands Amsterdam Dutch a Dutchman, a Dutch
(see Holland) /ˌamstəˈdam/ Dutchwoman,
/ˈnɛðələndz/ /ˈamstədam/ or a Netherlander
NewZealand Wellington New a New English
/ˌnjuː’ziːlənd / /ˈwelɪŋtən / Zealand Zealander Maori
New Zealand (used
butter but attribut-ly)
not He is New
Zealand
Nicaragua Managua Nicaraguan a Nicaraguan Spanish
/ˌnɪkəˈræɡjʊə/ /məˈnɑːɡwə/
Niger Niamey Nigerien a Nigerien French
/naɪˈdʒɪər/ /naɪˈmeɪ/
Nigeria Lagos Nigerian a Nigerian English
/naɪˈdʒɪərɪə/ /leɪɡɒs/
NorthKorea Pyongyang North a NorthKorean Korean
/nɔːθ kəˈrɪə/ /pjɒŋˈjæŋ/ Korean
Norway Oslo Norwegian a Norwegian Norwegian
/ˈnɔːweɪ/ /ˈɒzləʊ/
Oman Muscat Omani an Omani Arabic
/əʊˈmɑːn/ /ˈmʌskæt/
Pakistan Islamabad Pakistani a Pakistani English
/ˌpɑːkɪˈstɑːn /ɪsˈlæməbæd/ Urdu
Panama PanamaCity Panamanian a Panamanian Spanish
/ˈpænəmɑː/ /ˈpænəmɑːˈsɪti/
Papua New Port Moresby Papua New a Papua New Hiri Motu
Guinea /ˈpæpjʊə /ˌpɔːtˈmɔːzbi / Guinean or Guinean or Tok Pisin
njuː ˈɡɪni/ Guinean a Guinean English
Paraguay Asuncion Paraguayan a Paraguayan Spanish
/ˈpærəɡwaɪ/ /əˈsənʃən/
Peru Lima Peruvian a Peruvian Spanish
/pəˈruː/ /ˈliːmə/
The Philippines Manila Philippine a Filipino Tagalog

/ˈfɪləˌpinz/ /məˈnilə/ Filipino
/məˈnɪlə/
Poland Warsaw Polish a Pole Polish
/ˈpəʊlənd/ /ˈwɔːsɔː/
Portugal Lisbon Portuguese a Portuguese Portuguese
/ˈpɔːtʃʊɡ(ə)l/ /ˈlɪzbən/
Puerto Rico San Juan Puerto Puerto Rican Spanish
/ˌpwɜː.tə ˈriː.kəʊ/ /sæn ˈhwɑːn/ Rican
Qatar Doha Qatari a Qatari Arabic
/ˈkʌtə/, /kaˈtɑː/ /ˈdəʊhɑː/
Romania Bucharest Romanian a Romanian Romanian
/ruːˈmeɪnɪə/ /ˌbuːkəˈrɛst/
Russia Moscow Russian a Russian Russian
/ˈrʌʃə/ /ˈmɒskəʊ/
Rwanda Kigali Rwandan a Rwandan Kinyarwan
/ruːˈandə/ /kɪˈɡɑːli/ da, French,
English
Saudi Arabia Riyadh Saudi a Saudi Arabic
/ˌsaʊdi əˈreɪbɪə/ /riːˈjɑːd/ Arabian or Arabian or
/ˈriːad/ Saudi a Saudi
Scotland Edinburg Scottish a Scot English
/ˈskɒtlənd/ /ˈednˌbərɡ/ Scottish
Gaelic
Senegal Dakar Senegalese a Senegalese French
/ˈsɛnəˌɡɔl/ /dɑˈkɑr/
Serbia Belgrade Serb or a Serb or Serbian
/ˈsərbiə/ /ˈbɛlɡreɪd/ Serbian a Serbian
Seychelles, the Victoria Seychellois a Seychellois French

/seɪˈʃɛl(z)/ /vɪkˈtɔriə/ English
Seychellois
Creole
Sierra Leone Freetown Sierra a Sierra English
/siˌɛrə liˈoʊn/ /ˈfritaʊn/ Leonian Leonian
/sēˌerə lēˈōn/ /ˈfrētoun/
Singapore Singapore Singaporean a Singaporean English

/ˈsɪŋəˌpɔr/ /ˈsɪŋəˌpɔr/ Malay
Mandarin
Tamil
Slovakia Bratislava Slovak a Slovak Slovakian
/sloʊˈvɑkiə/ /ˌbrɑtiˈslɑ:və/
Slovenia Ljubljana Slovene or a Slovene or Slovene
/sloʊˈviniə/ /ˌljʊbliˈɑnə/ Slovenian a Slovenian
Solomon Islands Honiara a Solomon English
/ˈsɒləmən /ˌhəʊnɪˈɑ:rə/ – Islander
ˌʌɪləndz/
Somalia Mogadishu Somali a Somali Somali
/səˈmɑ:lɪə/ /ˌmɒɡəˈdɪʃu:/ Arabic
South Africa Pretoria South a South 11
/saʊθˈafrɪkə/ /prɪˈtɔ:rɪə/ African African languages
South Korea Seoul South a South Korean
/saʊθkəˈrɪə/ /səʊl/ Korean Korean
Spain Madrid Spanish a Spaniard Spanish
/speɪn/ /məˈdrɪd/
Sri Lanka Colombo Sri a Sri Lankan Sinhala,
/srɪ ˈlaŋkə/ /kəˈlʌmbəʊ/ Lankan Tamil
Sudan Khartoum Sudanese a Sudanese Arabic,
/su: ˈdɑ:n/ /kɑ: ˈtu:m/ English
Suriname Paramaribo Surinamese a Surinamer or Dutch
/ˌsʊərɪˈnam/ /ˌparəˈmarɪbəʊ/ a Surinamese
Swaziland Mbabane Swazi a Swazi Swazi
/ˈswɑ:zɪland/ /ˌ(ə)mbɑ: ˈbɑ:ni/ English
Sweden Stockholm Swedish a Swede Swedish
/ˈswi:d(ə)n/ /ˈstɒkhəʊm/
Switzerland Berne Swiss a Swiss Swiss
/ˈswɪtsələnd/ /bə:n/
Syria Damascus Syrian a Syrian Arabic

/ˈsɪrɪə/ /dəˈmaskəs/
Taiwan Taipei Taiwanese a Taiwanese Chinese
/tʌɪˈwɑ:n/ /tʌɪˈpeɪ/
Tajikistan Dushanbe Tajik or a Tajik or Tajik
/təˌdʒi:kɪˈstɑ:n/ /du: ˈʃanbeɪ/ Tadjik a Tadjik Persian
Tanzania Dodoma Tanzanian a Tanzanian Kiswahili,

/tænˌzəˈni:ə/ /dodo: ˈma/ English
Thailand Bangkok Thai a Thai Thai
/ˈtaɪlænd/ /ˌbæŋˈkɒk/
Togo Lomé Togolese a Togolese French
/ˈtəʊɡəʊ/ /ˈləumeɪ/
Trinidad and Port of Spain Trinidadian a Trinidadian English
Tobago Tobagan/ a Tobagan/
/ˌtinidæd ənd Tobagonian Tobagonian
təˈbeigəʊ/
Tunisia Tunis Tunisian a Tunisian Arabic
/ tjuː'nɪzɪə/ /ˈtjuːnɪs/ Spoken:
Tunisian
Arabic
French
Berber
Turkey Ankara Turkish a Turk Turkish
/ˈtɜːki/ /ˈæŋkərə/
Turkmenistan Ashgabat Turkmen or a Turkmen or Turkmen
/ˌtərkˈmenə,sta:n/ /ˌɑːʃgɑːˈbɑːt/ Turkoman a Turkoman
Tuvalu Funafuti Tuvaluan a Tuvaluan Tuvaluan,
/tu:'va,:lu:/ /funaˈfuti/ English
Uganda Kampala Ugandan a Ugandan Swahili,
/ uː'ɡændə/ /kəm'pɑːlə/ English
Ukraine Kyiv Ukrainian a Ukrainian Ukrainian
/ ju:'kreɪn/ /ˈkɪjɪf/
United Arab Abu Dhabi UAE or an Emirati Arabic
Emirates (UAE) /æbuː ˈdɑːbi/ Emirates
/juːˌnʌɪtɪd arəb (used
ˈɛmɪrəts/ attribut-ly)
United Kingdom London UK (used a Briton English
(UK) /ˈlʌndən/ attributive
NB: UK time ly only)
but not He is UK
United States of Washington US (used a US citizen English
America (USA) /ˈwɒʃɪŋtən/ attribut-ly
NB: US cities only)
Uruguay Montevideo Uruguayan a Uruguayan Spanish
/ˈ(j)ʊrəˌɡwaɪ/ /ˌmɑn(t)əvəˈ
deɪoʊ/
Uzbekistan Tashkent Uzbek an Uzbek Uzbek
/ʊzˌbekɪˈstɑːn/ /ˌtæʃˈkɛnt/
Vanuatu Port Vila Vanuatuan a Vanuatuan Bislama
/vænuˈɑːtuː/ /pɔːrtˈvēlə/ French
English
Vatican City Vatican City Italian
– –
/ˌvætɪkən ˈsɪti/ /ˌvætɪkən ˈsɪti/
Venezuela Caracas Venezuelan a Venezuelan Spanish
/ˌvɛnəzˈweɪlə/ /kəˈrækəs/
Vietnam Hanoi Vietnamese a Vietnamese Vietnamese
/ˌvjetˈnæm/ /hɑˈnɔɪ/
Wales Cardiff Welsh a Welshman, Welsh /
/weɪlz/ /ˈkɑrdəf/ a Welshwoman English
Western Samoa Apia Western a Western Samoan,
/ˈwɛstərn /æˈpɪə/ Samoan Samoan English
səˈmoʊə/
Yemen Sana’a Yemeni a Yemeni Arabic
/ˈjɛmən/ /sɑˈnɑ/
Zaire Kinshasa Zaïrean a Zaïrean French
/zɑˈɪr/ /kənˈʃɑsə/ Lingala
Kongo
Swahili
Tshiluba
Zambia Lusaka Zambian a Zambian English
/ˈzæmbiə/ /lʊˈsɑkə/
Zimbabwe Harare Zimbabwean a Zimbabwean 16
/zɪmˈbɑːbweɪ/ /həˈrɑri/ languages
I. Read the following to know more about abbreviated word in the
English language:
Types of English abbreviations
There are four different types of abbreviations in English:
1. Initialism 3. Shortening
2. Acronym 4. Contraction
Initialism
An initialism is formed from the first letters of a group of words.
We pronounce each letter individually, e.g. CEO – Chief Executive Officer
FAQ – frequently asked questions
Rules for capital letters

If the first letters of the full form are capital letters, then we always write the
abbreviation with capital letters, e.g., in the full form, we always write
“Federal Bureau of Investigation” with capital letters for the first letter of
each word because it is the name of an official organisation. Therefore we
write the abbreviated form in capitals: FBI
For the others (the full form is not in capital letters), both forms are
acceptable. It is a style choice, e.g. “frequently asked questions” – the full
form is not in capital letters, therefore we can choose: FAQ or faq
Rules for full stops (periods)

In BE, we do not usually use full stops between each letter for initialisms
(FBI) though in AE, it is a question of style and using full stops is more
common in AE (F.B.I.).
Acronyms
An acronym is formed from the first letters of a group of words and we
pronounce the acronym as a word.
NATO – North American Treaty Organisation
SIM – subscriber identification module (card for mobile phone)
*VAT (value added tax) is a special case. It can be 2 types of abbreviation:
It can be an acronym and we pronounce it as one word /væt/
It can also be treated as an initialism and we pronounce each letter
separately.

This is the same rules as for the initialisms. If the first letters of the full form
are capital letters, then we always write the acronym with capital letters, e.g.,
we always write “North American Treaty Organisation” with capital first
letters because it is the name of an official organization, therefore we also
write the acronym in all capitals (NATO).
For the others (the full form is not in capital letters), both forms are
acceptable. It is a style choice, e.g., “personal identification number” –
the full form is not in capital letters, therefore we can choose: PIN or pin.
Rules for full stops (periods)
We do NOT use full stops after each letter of an acronym because we treat
acronyms as words and pronounce them as words so we never write full
stops in the middle of words, e.g., “personal identification number” – PIN.
Shortenings
A shortening is an abbreviation in which the beginning or end of the word
has been omitted. There are 2 types:
Type 1 shortenings Type 2 shortenings
(treated as real words, (not treated as real words, only
writen and said as one word) used in writing but when we say
app – application (software) or read them, we say the full
blog – weblog (a type of website) version of the word)
Rules for capital letters Feb. – February
The first letter is a capital letter only Sat. – Saturday
if the full word starts with a capital etc. – et cetera (Latin for “and the
letter: rest”)
Example: full form is “Briton” Writing: “Please send me the Feb
(with a capital first letter) therefore accounts.”
the shortening also must start with Speaking: “Please send me the
a capital letter: “Brit” February accounts.”
There are lots of Brits living in Spain.
Rules for full stops (periods) Rules for full stops (periods)
We do NOT use a full stop after We have the choice to use full
type 1 shortenings stops (periods) at the end of the
abbreviation, e.g., Feb. or Feb for
February.
The first letter of a type 2 shortening
is a capital letter only if the full
word starts with a capital letter.
Contractions
Contractions are abbreviations in which we omit letters from the middle of
a word. We do NOT write a full stop at the end of a contraction. The first
letter is a capital letter only if the full word starts with a capital letter.
Type 1 contractions Type 2 contractions
(missing letters from 1 word) (missing letters from more
than 1 word)
Dr – Doctor We use an apostrophe to represent
govt – government the missing letters:
St – Saint he‘s – he is
Mr – Mister they‘d – they would
I‘ve – I have
[https://www.crownacademyenglish.com/types-english-abbreviations]
II. Here are the most common abbreviations used in texting, e-mailing
and chatting:
Abbreviation Meaning Abbreviation Meaning
1dRfl wonderful L8 late
2 to/too/two L8r later
2da today LMK let me know
2moro tomorrow M8 mate
2nite tonight MOF matter of fact
3dom freedom MT empty
4 for NAGI not a good idea
4get forget Ne any
4N foreign Ne1 anyone
ADN any day now No1 no one
ASAP as soon as possible nrg energy
ATM at the moment OIC oh i see
B be OK okay
B4 before ONNA oh no! not again
B4N bye for now OTT over the top
BB bye bye PAL parents are listening

Bf boyfriend PCM please call me
BION believe it or not Pls please
BK big kiss Ppl people
BTDT been there, done that R are
BTW by the way Re regarding
By busy RUOK are you okay?
CB call back Spk speak
CID consider it done Sry sorry
CUL8R see you later SWAK sealed with a kiss
CWUL chat with you later THX thanks
DUZ does TTYL talk to you later
DUZNT doesn’t TXT text
G2G got to go U you
Gf girlfriend U@ you at?
(where are you?)
Gr8 great UOK you okay?
Grr angry UR your/you’re
H2 how to Usu usually
HUH have you heard? W8 wait
IC i see W84M wait for me
ICCL i couldn’t care less W/ with
IK i know Wan2 want to
ILU (or ILY) i love you XLNT excellent
in4ml informal Y why
KISS keep it short and YR yeah, right!
simple (or keep it
simple, stupid)
II. Using the list given above work out the meaning of the following:
Words in full Abbreviations Words in full Abbreviations or
or SMS SMS language
language
AFAIR PAW or PW
LUV RAK
THNX or THX SEC
2day ASAP
B4 OMG
HAND HAK or XOXO
CU LOL
SWYP CSB
@ LTWT or LWT
or LW
TIME ATM
SWAK SAL
CHX KISS
GR8 XLNT
I. Read the text and be ready to discuss it in class:
COMPLEMENTARY GOODS AND SUBSTITUTE GOODS
Some things just go together: fish and chips; sausages and ketchup; shoes
and shoelaces. In each of these pairs, the goods in question are more useful
or more pleasing when consumed along with the other member of the pair.
Because such goods complement each other, economists refer to them as
complementary goods. An interesting thing about complementary goods is
that changes in the price of one complement affect the other complement. For
example, the price of the petrol you put in your car affects the demand for
cars; if the price of petrol goes up, fewer cars are sold.
In contrast, consider substitute goods, which are goods that serve similar
functions so that if the price of one goes up, people switch to the other one.
For example, if the price of train travel goes up, more people drive cars. And
if the cost of regular mail goes up, more people use email.
Both complementary goods and substitute goods are the result of cross-
price effects. An increase in the price of a complement causes the quantity
demanded of its pair to fall, whereas an increase in the price of a substitute
causes the quantity demanded of its pair to rise.
As you look around the economy, make sure that you think of it as one great
big organic whole, where things don’t happen in isolation. When the price of
one good changes, it doesn’t affect just that good, but also many other goods
that are substitutes or complements. And if the prices of the substitutes or
complements change too, as a result of the initial price change, all their
substitutes and complements are also affected, like a gigantic ripple effect
[Peter Antonioni. Economics For Dummies / Peter Antonioni, Sean Masaki
Flynn. ; [2nd Edition]. – Chichester : John Wiley & Sons, 2011. – 420 p.].
TRANSITION WORDS
II. Write two sentences using the words given for each type of transition.
Addition – another, moreover
1_____________________________________________________________
2_____________________________________________________________
Time– following, then

1_____________________________________________________________
2_____________________________________________________________
Contrast- on the other hand, unlike

1_____________________________________________________________
2_____________________________________________________________
Comparison – equally, similar

1_____________________________________________________________
2_____________________________________________________________
Example – for instance, to illustrate

1_____________________________________________________________
2_____________________________________________________________
Cause- Effect – because, reason

1_____________________________________________________________
2_____________________________________________________________
Classification – type, group

1_____________________________________________________________
2_____________________________________________________________
Generalization and Example – for example, such as

1_____________________________________________________________
2_____________________________________________________________
III. Complete the text with the correct transition word or phrase
given below:
“WHO LEARNS FASTER – CHILDREN OR ADULTS?”
Small children seem to learn very quickly, _______ (1) adults sometimes
appear to lose the ability to pick up new subjects such as languages, music,
games, or computer programs. In this essay, I will discuss _______ (2)
children or adults make the best learners.
It is _______ (3) that children seem to learn very quickly. In just a few years,
they can learn how to play a musical instrument, speak one or even two new
languages, and deal with many subjects at school. They________ (4) have time
for sports and hobbies, and become experts in their favorite
pastimes._______ (5), how much of this is social pressure and how much is
genetic? I am convinced that while children’s brains have a natural ability to
absorb new information as part of their developmental growth, much of their
achievement is because of social pressure. Schools force them to take many
subjects. Parents force them to practice new sports or to learn music. Even their
playmates force them to become better at computer games or to read Harry
Potter novels faster. _______ (6), children may enjoy learning, but their
environment also is a big motivating factor.
Adults _______ (7) are supposed to be poor learners. _______ (8),
I disagree with people who say that adults cannot learn quickly. Adults have
many skills that compensate for the decline in the ability of the brain to grasp
and remember new material. They can organize their learning by setting
times for reading or practice. They can build on skills and experiences they
know already. Adults usually cannot learn to do ballet or to play the violin,
but _______ (9) these physical challenges, their motivation can often be
higher than a child’s. _______ (10), society does not encourage many adults
to learn. People are busy with families and work, and some adults may feel
that further learning is pointless, _______ (11) they have already achieved
many goals at work or in their personal life.
_______ (12), I feel that we cannot generalize about children or adults
being better learners. It depends on the situation and the motivation of the
person, and the level of enthusiasm he or she has for learning
[http://www.eoioviedo.org/anacarmen/ opinion/opinion.pdf].
1 while whereas since
2 if whereas whether
3 obvious undoubtedly true completely truth
4 even even though also
5 despite nevertheless however
6 as regards in summary to sum up
7 on the contrary opposite on the other hand
8 however although nevertheless
9 even in spite of even though even despite
10 unfortunately unluckily unlikely
11 furthermore since due to the fact that
12 in summary to cut a long story short in conclusion
IV. Fill in each blank with a transition from the box. Use each
transition only once. Then tell what pattern of organization is used.
after finally third first second
Steps to Stop Sexual Harassment
Sexual harassment is defined as any form of unwanted sexual attention.

Most companies now have sexually harassment policies in place. If you feel
you are being sexually harassed, there are several steps you can take.
(1)_____________, ask the harasser to stop. Be clear and direct. This may be
the first time the person has ever been told such behavior is wrong.
(2)_____________, record the event. Having a record of exactly what
occurred (and when and where) will be helpful in making your case.
(3)______________, complain to a higher authority. Talk to your manager
about what happened. (4)____________, remember that you have not done
anything wrong. You will likely feel awful (5) _________________ being
harassed. However, you should feel proud that you are not keeping silent.
What pattern of organization is used in this paragraph? ___________
difference despite however in contrast
Reading a book is always much better than watching a movie based on

a book. (6)______________ the saying “A picture is worth a thousand
words,” a book is able to give much more information than a movie can give.
The author can give the thoughts of characters; (7)______________, a movie
usually conveys only the actions and words of the characters. A book can
follow several characters and plot lines, but a movie usually has less than two
hours to tell the story and must follow just a few characters or one plot line.
The final (8)_______________ is one of imagination. Each reader of a book
can create a different mental picture of the characters and scenes. A movie,
(9) ________________, can offer only the vision of the director and actors.
What pattern of organization is used in this paragraph? __________
These kinds kinds one type two kinds another type
Laws That Protect Children

Unwanted infants are protected by (10) ________________ of laws.
Both (11)____________deal with parents who are unable to cope with the
pressures of parenthood. (12)_________________of law punishes neglect.
Several states, such as Georgia and Massachusetts, will put parents in jail for
several years if they leave or abandon a child. (13)________________of law
rewards parents for handing their unwanted children over to authorities.
A number of states, such as South Carolina and California, have “safe haven”
laws. (14)_______________of laws allow parents to leave the unwanted
child at a church or hospital without being charged with a crime. These laws
are supposed to lead to better treatment for the unwanted children.
What pattern of organization is used in this paragraph? ____________

[http://www.mld.metu.edu.tr/sites/default/files/Transitions-Patterns-of-
Organization-Pt1.pdf]
I. Read the text about possible consequences of the government

intervention in regulating the market price and be ready to discuss it in
class. Provide your own examples.
FIRST WORLD SUPPORTS, THIRD WORLD SUFFERS
Undesirable result of agricultural price supports in rich countries like the
United States and the nations of the European Union is the great damage those
supports cause to developing nations. For example, the US price of sugar is
three times the world price because the United States restricts imports of
cheaper foreign sugar in order to help US food production giants. The result is
that thousands of poor Third World farmers are left without a livelihood,
instead of making a living selling sugar to Americans and Europeans.
Even worse is what the United States and Europe do with some of the
many tons of excess agricultural products that pile up due to the agricultural
price supports. Not wanting to sell the excess in the US or EU, and thereby
depress US or EU prices, our governments often send the stuff free to
developing countries as food aid. That sounds nice and friendly, but when all
that free wheat hits Nigeria, Nigerian farmers are put out of business.
You can see what the consequences may be for the local economy.
Interfering with markets can therefore be a very bad thing: unexpected side
effects usually end up hurting people that the policy isn’t expected to harm.
Furthermore, such policies are also typically inefficient, costing the losers
more than they benefit the winners. When you see a policy like this, it’s
worth thinking through very carefully where the hidden costs are falling.
Although we like to apply out of sight, out of mind to them, the hidden
costs can be very real and add up significantly.
II. Study the following examples of the most approximate to perfect

competition model structures and be ready to discuss them in class:
By design a stock exchange resembles this. The flaw in considering the
stock exchange as an example of Perfect Competition is the fact that large
institutional investors (e.g. investment banks) may solely influence the
market price. This, of course, violates the condition that “no one seller can
influence market price”.
Horse betting is also quite a close approximation. When placing bets,

consumers can just look down the line to see who is offering the best odds, and
so no one bookie can offer worse odds than those being offered by the market
as a whole, since consumers will just go to another bookie. This makes the
bookies price-takers. Furthermore, the product on offer is very homogeneous,
with the only differences between individual bets being the pay-off and the
horse. Of course, there are not an infinite amount of bookies, and some barriers
to entry exist, such as a license and the capital required to set up.
Free software works along lines that approximate perfect competition as
well. Anyone is free to enter and leave the market at no cost. All code is
freely accessible and modifiable, and individuals are free to behave
independently. Free software may be bought or sold at whatever price that
the market may allow.
Some believe that one of the prime examples of a perfectly competitive
market anywhere in the world is street food in developing countries. This is so
since relatively few barriers to entry/exit exist for street vendors. Furthermore,
there are often numerous buyers and sellers of a given street food, in addition to
consumers/sellers possessing perfect information of the product in question.
It is often the case that street vendors may serve a homogenous product, in
which little to no variations in the product’s nature exist.
Another very near example of perfect competition would be the fish
market and the vegetable or fruit vendors who sell at the same place, the bars
in “Le Carre” (Liege, Belgium) or the “kebab street” near the Grand Place in
Brussels.
III. Read the following text on the approach to market studies used in
marketing. Note the differences and be ready to discuss them in class:
THE MARKET, ITS DEFINITION AND STRUCTURE

IN TERMS OF MARKETING RESEARCH
A market consists of all the consumers who purchase a particular type of
good or service. The market may be sub-divided into separate segments each
of which can be considered to be a separate market in its own right. It is very
important for a business to be able to define its market:
• So that it can estimate the size of the market.
• So that it can forecast the growth of the market.
• To identify the competitors in the market.
• To break the market down into relevant segments.
• To create an appropriate marketing mix to appeal to customers in

the market.
There are different types of markets, for example: Business-to-Business

(B2B) markets in which businesses are customers for other businesses.
Business to Consumer (B2C) markets in which businesses sell to other
customers. Some markets take place in a physical location e.g. a street
market, whereas others may be virtual markets e.g. when people buy and sell
through the medium of the Internet.
The size of the market can be calculated in terms of the number of
customers that make up the market, or the value of sales in the market. A
business can then calculate its market share in terms of the number of
customers its sells to, or the total value of its sales.
Markets are typically structured into segments. Primary segmentation is
between customers buying entirely different products. For example, an oil
company manufactures a wide range of fuels and lubricants for road, rail,
water and air transport and for industry, all of them for different groups of
customers. Further segmentation can be based on demographic and
psychographic factors. Demographics segments people by clearly
ascertainable facts: their sex, their age, size of their family, etc.
Psychographics segments people by something less clearly ascertainable
and often disputable: their ‘life-style’. A person’s lifestyle is built up from
his or her attitudes, beliefs, interests and habits.
I. Study the following types of monopolies and think of similar

monopolistic arrangements operating in your country:
TYPES OF MONOPOLY PRACTICES
• Private Monopoly. When production is owned, controlled and managed
by the individual, or private body or private organization, it is called
private monopoly. Such type of monopoly is profit oriented. e.g. Tata,
Reliance, Bajaj groups in India.
• Public monopoly.
It is also known as social monopoly. The entire operation is controlled
either by central or state government. Their main motive is to provide
welfare to the public.
• Government monopoly (or Public monopoly) is a monopoly firm owned

and operated by public or state government and it is the sole provider of
a particular good or service and competition is prohibited by law. It is
a monopoly created by the government. Their main motive is to provide
welfare to the public, e.g. the German Public Train System is entirely
government run, there are no private competitors.
• Perfect monopoly.
It is also known as pure or absolute monopoly. Such monopoly is
practically very rare. There is absolutely zero level of competition. In this
case, there is only a single seller of product having no close substitute; not
even remote one. It is also called as absolute monopoly. Bill Gates played
Perfect Monopoly in US for MS Word.
• Imperfect monopoly.
It means in this market, a product may have a remote substitute. So, there is
fear of competition to some extent. It refers to a single seller market having
no close substitute. It is also called as relative monopoly. e.g. Vodafone is
having competition from fixed landline phone service industry BSNL.
• Simple or single monopoly.
It is also called Single-Price Monopoly. It is a type of monopoly in which
a single seller controls the entire market, by selling the commodity at
a single price for all the consumer. There is no price discrimination in
the market.
• Discriminative Monopoly. Such a monopoly firm charges different price
to different customers for the same product. It prevails in more than one
market. An example is an airline monopoly. Airlines frequently sell
various seats at various prices based on demand.
• Legal monopoly.
When a firms enjoys then it is known as legal monopoly. Such monopoly
rights are approved by the government.
• Legal Monopoly. It is a monopoly that is protected by law from
competition. A government-regulated firm that is legally entitled to be the
only company offering a particular service in a particular area.
For example, AT&T operated as a legal monopoly until 1982 because it
was supposed to have cheap and reliable service for everyone. Having
exclusive rights like trade mark, copy right, patent right, etc. can be
another example of a legal monopoly.
• Natural Monopoly. A type of monopoly that exists as a result of the high
fixed or start-up costs of operating a business in a particular industry.
Government often regulate certain natural monopolies to ensure that
consumers get a fair deal. The utilities industry is a good example of

a natural monopoly – gas, water, power.
• Technological Monopoly. When a firm enjoys monopoly power due to
technical superiority over other products in the market, then it is called
as technological monopoly. It emerges as a result of economies of large
scale production, use of capital goods, new production methods,
etc. E.g. engineering goods industry, automobile industry, software
industry, etc. Internet Explorer was the only browser available to browse
the web between 1995-2000.
• Joint Monopoly. If two or more business firms acquire a monopoly position
through mergers, cartels, syndicates, etc. then it becomes a joint monopoly,
e.g., pizza making firm and burger making firm are competitors of each other
in fast food industry. But when they combine their business that leads to
reduction in competition so they can enjoy monopoly power in the market.
II. Read the text and be ready to discuss it in class:

ANTITRUST GOVERNMENT POLICY
FOR DEALING WITH MONOPOLIES
Antitrust laws aim to stop abuses of market power by big companies and,
sometimes, to prevent corporate mergers and acquisitions that would create
or strengthen a monopolist. There have been big differences in antitrust
policies both among countries and within the same country over time.
This has reflected different ideas about what constitutes a monopoly and,
where there is one, what sorts of behaviour are abusive.
In the United States, monopoly policy has been built on the Sherman
Antitrust Act of 1890. This prohibited contracts or conspiracies to restrain
trade or, in the words of a later act, to monopolise commerce. In the early
20th century this law was used to reduce the economic power wielded by so-
called “robber barons”, such as JP Morgan and John D. Rockefeller, who
dominated much of American industry through huge trusts that controlled
companies’ voting shares. Du Pont chemicals, the railroad companies and
Rockefeller’s Standard Oil, among others, were broken up. In the 1970s the
Sherman Act was turned (ultimately without success) against IBM, and in
1982 it secured the break-up of AT&T’s nationwide telecoms monopoly.
In the 1980s a more laissez-faire approach was adopted, underpinned by
economic theories from the Chicago school. These theories said that the only
justification for antitrust intervention should be that a lack of competition
harmed consumers, and not that a firm had become, in some ill-defined
sense, too big. Some monopolistic activities previously targeted by antitrust
authorities, such as predatory pricing and exclusive marketing agreements,

were much less harmful to consumers than had been thought in the past.
They also criticised the traditional method of identifying a monopoly, which
was based on looking at what percentage of a market was served by the
biggest firm or firms, using a measure known as the Herfindahl-Hirschman
index*. Instead, they argued that even a market dominated by one firm need
not be a matter of antitrust concern, provided it was a contestable market.
In the 1990s American antitrust policy became somewhat more
interventionist. A high-profile lawsuit was launched against Microsoft in 1998.
The giant software company was found guilty of anti-competitive behaviour,
which was said to slow the pace of innovation. However, fears that the firm
would be broken up, signaling a far more interventionist American antitrust
policy, proved misplaced. The firm was not severely punished.
In the UK, antitrust policy was long judged according to what policymakers
decided was in the public interest. At times this approach was comparatively
permissive of mergers and acquisitions; at others it was less so. However, in the
mid-1980s the UK followed the American lead in basing antitrust policy on
whether changes in competition harmed consumers. Within the rest of the
European union several big countries pursued policies of building up national
champions, allowing chosen firms to enjoy some monopoly power at home
which could be used to make them more effective competitors abroad.
However, during the 1990s the European Commission became increasingly
active in antitrust policy, mostly seeking to promote competition within the EU.
In 2000, the EU controversially blocked a merger between two American
firms, GE and Honeywell; the deal had already been approved by America’s
antitrust regulators. The controversy highlighted an important issue.
As globalization increases, the relevant market for judging whether market
power exists or is being abused will increasingly cover far more territory
than any one single economy. Indeed, there may be a need to establish
a global antitrust watchdog, perhaps under the auspices of the World Trade
Organisation.
*The Herfindahl index (also known as Herfindahl–Hirschman Index, or
HHI) is a measure of the size of firms in relation to the industry and an
indicator of the amount of competition among them. Named after economists
Orris C. Herfindahl and Albert O. Hirschman, it is an economic concept widely
applied in competition law, antitrust and also technology management.
III. Read the following article and explain in terms of economics which
laws were broken by Apple Inc. and what could be the possible best-
case/worst-case scenario for the company.
APPLE IPHONE ‘MONOPOLY’ CHALLENGED
AGENCIES Oct 10, 2007
SAN FRANCISCO: A civil lawsuit filed in California accuses Apple of
creating an unlawful iPhone monopoly and vindictively releasing a software
update that turns hacked devices into “iBricks.”
The lawsuit, filed by attorney Damian Fernandez on behalf of a California
man, accuses Apple of creating a monopoly by barring US customers from
choosing a cellphone service provider other than US telecom giant AT&T.
The lawsuit also says Apple released last month a software update that
disables iPhones that customers managed to unlock to choose another carrier.
Fernandez, who filed the lawsuit on October 5, is seeking “class action”
status to expand the litigation to cover all US iPhone buyers. In court
documents, Fernandez estimates that Apple has sold 1.28 million iPhones
since they went on sale in the United States on June 29. Several hundred
thousand of those phones were hacked to enable them to connect to service
providers other than AT&T, which has a five-year deal to be the exclusive
US telephone service for the devices.
The lawsuit says Apple has created a monopoly by forcing iPhone buyers to
use AT&T and not “unlocking” the devices to allow service by rival carriers.
An update released September 27 for iPhone software disables hacked
devices, turning the phones into “iBricks,” the suit alleged.
“Apple punished consumers for exercising their rights to unlock their
iPhones,” Fernandez says in court documents. “Apple issued a software
update that ‘bricked’ or otherwise caused iPhone malfunctions for consumers
who unlocked their phones and installed the update.”
The suit demands a jury trial and asks the court to order Apple to unlock
iPhones and provide warranty service to hacked devices. It also demands
Apple be forced to pay unspecified cash damages. “Apple’s unlawful trust
with AT&T substantially lessens competition and tends to create a monopoly
in trade and commerce throughout the entire United States,” Fernandez
claims in the suit. Apple declined to comment.
TRANSLATION EXERCISES IN RUSSIAN
UNIT 1
1. – Где вы учитесь? – В Харьковском национальном университете
имени В.Н. Каразина, на экономическом факультете. – А вы? –
Первокурсник экономического факультета. Я хочу стать эко-
номистом, для того чтобы изучать повседневную жизнь людей
и понимать, как работает экономическая система.
2. Вы знаете, в чем основная проблема науки экономики? – Да.
Экономисты изучают, как удовлетворить неограниченные потреб-
ности с помощью ограниченных ресурсов. Потребности всегда растут
быстрее, чем производственные возможности. – А почему они так
быстро растут? – Дело в том, что у людей разнообразный круг
желаний – их желания постоянно меняются. Производство не может
удовлетворить все неограниченные потребности населения.
3. Я много работаю, чтобы зарабатывать достаточно денег и обеспе-
чивать семью всем необходимым. С одной стороны, они имеют все
товары первой необходимости: еду, жилье и одежду, с другой
стороны, им постоянно необходимы предметы роскоши, такие как
дорогие электронные устройства, туристические поездки, раз-
влечения и т.п.
4. Для того чтобы покупать не только товары первой необходимости,
но и товары, которые приносят удовлетворение, надо быть
бережливыми (экономными).
5. Главная проблема экономики – удовлетворить неограниченные по-
требности населения ограниченными ресурсами. Ученые используют
объективные и научные методы, чтобы решить вопрос недостатка
природных и экономических ресурсов и научить людей экономно
ими распоряжаться.
6. Работа, которую выполняют люди, обеспечивает их деньгами.
Экономисты говорят, что экономическая деятельность, которую
выполняют люди, составляет экономическую систему страны, то есть
экономическая система – это совокупность деятельности людей.
7. Человек или компания могут производить товары (сельско-
хозяйственные или промышленные) и оказывать услуги. Например,
компания Самсунг производит товары и предоставляет услуги по
их эксплуатации.
UNIT 2
1. В экономической науке существуют различные подходы к клас-
сификации экономических систем. Наиболее распространенная
классификация базируется на двух признаках: по форме
собственности на средства производства и по способу управления
хозяйственной деятельностью. Согласно этим классификационным
признакам ученые выделяют традиционную, административно--
командную, рыночную и смешанную экономические системы.
2. В странах с командной экономической системой государство
должно владеть средствами производства и всей собственностью,
а также планировать народное хозяйство. Государственное
планирование помогает организовать усилия заводов, определять
цену за товар, его качество и количество.
3. Командная экономика является системой с общественной (государ-
ственной) собственностью на средства производства и государ-
ственным планированием. Центральное правительство с неограни-
ченной властью предоставляет гражданам все услуги, в которых они
нуждаются.
4. Рыночная система базируется на частной собственности на средства
производства и на частном предпринимательстве. Частное пред-
приятие принадлежит гражданину, что позволяет ему выбирать
товар, методы производства и его количество.
5. В традиционной экономике методы и средства производства,
распределение доходов базируются на обычаях и традициях,
которые веками определяли производственную и другие виды
деятельности людей. Результатом такого положения основных
составляющих традиционной экономической системы являются
социально-экономический застой, бедность и низкий уровень жизни
основной части населения. Устойчивый рост его численности по
сравнению с низкими темпами экономического развития сопро-
вождается высоким уровнем безработицы и низкой производитель-
ностью труда.
UNIT 3
1. В мире существует много развитых и слаборазвитых капиталисти-
ческих и социалистических государств. Они разные по идеологии,
но большинство из них имеют смешанную экономику. Смешанная
экономика основана на различных формах собственности: частная

собственность взаимодействует с государственной собственностью,
а государство, производители и потребители играют важную роль в
решении главных вопросов экономики – «что», «как», «в каком
количестве» и «для кого» производить.
2. В смешанной экономике государственное управление экономикой
распространяется как на частный сектор, так и на государственный:
поддержание системы здравоохранения, стандартов трудоустройства,
охрану окружающей среды, а также поддержание конкуренции.
3. Соотношение различных форм собственности зависит от конкретных
условий каждой страны на различных этапах ее развития. Так,
развитые страны мира, такие как США и Великобритания, сократили
вмешательство государства в хозяйственную жизнь страны, отводя
важную роль рыночным методам регулирования экономики.
4. В Швеции повышенное внимание уделяется профилактическим
мерам, ориентированным на поддержку регионального экономи-
ческого равновесия, достижения благоприятной стабильности цен,
охрану окружающей среды, обеспечение работой, соучастие в
производстве и увеличение помощи развивающимся странам.
Составными элементами экономической политики является нало-
говая, денежная политика на рынке труда и региональная политика.
5. В экономике смешанного типа очень трудно заранее планировать про-
изводство. Председатель нашего предприятия должен был сотрудни-
чать с чешскими производителями, но политические изменения
неожиданно повлияли на этот план.
6. Южнокорейская модель государственного регулирования является
примером уникального сочетания жесткого государственного плани-
рования и рыночного механизма: государство планирует макроэконо-
мические показатели, кредитные и налоговые меры стимулирования
экспорта и ограничения импорта.
UNIT 4
1. Согласно общепринятому мнению, товары и услуги удовлетворяют
наши потребности. Следует отметить, однако, что один и тот же
товар или услуга по разному удовлетворяет потребности различных
людей, т.е. полезность одного и того же товара изменяется в зави-
симости от человека, времени или места. У каждого из нас есть
своя шкала предпочтений, в соответствии с которой мы и измеряем
ценность вещей.
2. Экономисты измеряют ценность вещей, употребляя термины

«предельная полезность» и «общая полезность». Последний опре-
деляет общее удовлетворение от потребления определенного
количества товаров или услуг. В то время как предельная полезность
обозначает удовлетворение от каждой отдельной единицы товара.
Чем больше удовольствия приносит товар потребителю, тем выше
предельная полезность товара.
3. Каждый потребитель стремится обеспечить себя максимальным
уровнем полезности и получить ее настолько много, насколько это
возможно. Таким образом, он вынужден действовать в пределах
определенных возможностей, т.е. его возможности ограничены
бюджетом, ассортиментом товаров или услуг и т.д., потребитель
должен распределять свои возможности между несколькими
благами, чтобы получить максимальное удовлетворение.
4. Итак, полезность указывает на наличие взаимосвязи между товаром
и услугой, с одной стороны, и потребителем, с другой стороны.
Этот экономический феномен измеряет ценность вещей и является
основой таких понятий, как спрос и предложение и дает возможность
объяснить поведение потребителя в условиях дефицита ресурсов.
5. Закон уменьшения предельной полезности гласит, что с каждой
последующей покупкой предельная полезность товара или услуги
уменьшается, но рано или поздно придет время, когда удовлетво-
рение будет меньше, чем желание потратить деньги. Следует
отметить, что этот экономический закон не действует, если мы
имеем дело, например, с деньгами. Чем больше денег мы получаем,
тем больше денег мы желаем, т.е. предельная полезность денег
постоянно высокая и не зависит от их количества.
6. Функция полезности находится в обратно пропорциональной
зависимостис количеством товара и, следовательно, влияет на фор-
мирование выбора потребителей, другими словами, – на предло-
жение и спрос, которые, в свою очередь, формируют приоритеты
производства.
UNIT 5
1. Факторы производства – это ресурсы, необходимые для производ-
ства товаров или услуг. Классическими факторами производства
являются: рабочая сила (все умственные и физические способности
людей), земля (природные богатства), капитал (наличные, произве-
денные средства производства, а также финансовый капитал).

Четвертым фактором считается предпринимательство, которое
объединяет предыдущие три фактора.
2. Рабочая сила как фактор производства является физической и ин-
теллектуальной деятельностью человека, направленной на произ-
водство экономических благ и оказания услуг. Этот фактор
характеризуется следующими показателями: общей численностью
трудоспособного населения, численностью людей, занятых в раз-
личных сферах экономической деятельности, уровнем образования,
квалификацией рабочей силы, производительностью труда и т.п.
3. Земля как фактор производства включает в себя собственно землю,
а также лесные и водные ресурсы и другие природные богатства,
используемые в производственном процессе. Природные ресурсы –
это все то, что человек берет у природы и с помощью своего труда
превращает в продукт удовлетворения собственных потребностей.
4. Капитал – это все средства производства, созданные человеком:
помещения, оборудование, материалы, а также средства, то есть де-
нежный капитал, предназначенный для организации производства.
Капитал может быть представлен машинами, станками, оборудо-
ванием, сооружениями, транспортными средствами, сырьем, мате-
риалами, которые задействованы в процессе производства. Кроме
того, капитал выступает в виде определенной суммы денег, необхо-
димой предпринимателю, который начинает свою деятельность,
для приобретения средств производства и найма рабочей силы.
5. Предпринимательские способности – это особый, специфический
фактор производства, который отражает деятельность человека
относительно объединения и эффективного использования всех
других факторов производства с целью создания благ и услуг.
6. Все экономические ресурсы (факторы производства) имеют одно
общее свойство: они или редкие, или имеются в ограниченном
количестве. Вследствие этого ограничены и объемы производства
товаров и услуг, поэтому общество в каждый данный момент не
в состоянии изготовить и употребить весь объем потребительских
благ, который оно хотело бы получить.
UNIT 6
Ex.10. Translate the following into English:
1. Опыт стран, в которых функционирует рыночная экономика,
свидетельствует о том, что она представляет собой механизм,
который работает эффективно, и важными элементами этого

механизма являются спрос и предложение. Взаимодействие спроса
и предложения формирует цены на товары и услуги.
2. Количество товаров и услуг, которые потребители хотят и могут
приобрести на данный момент и в данном месте, называется
спросом. Спрос зависит не только от цены, но и от количества
этого товара на рынке. Чтобы на рынке не было затоваривания,
производители контролируют количество товара на рынке
и приспосабливают его к требованиям рынка. С одной стороны,
перепроизводство приводит к падению цен и заставляет
производителей закрывать свои предприятия, с другой – это
благоприятная ситуация для потребителей.
3. Предложение это количество продукта, которое производители
желают и имеют возможность поставить на рынок в определенный
период времени. Более высокая цена вызывает повышение
предложения. Экономисты различают предложение отдельных
товаров, определенной группы товаров и совокупное предложение.
Суть закона предложения заключается в том, что рост цен приводит
к увеличению предложения товаров и, наоборот, снижение цен на
товары ведет к уменьшению их предложения.
4. Цена спроса – это максимальная цена, которую потребители готовы
предложить за определенный товар. Снижение цены ведет к
соответствующему увеличению спроса (при прочих равных
условиях). Между ценой товара и объемом его предложения
существует прямая зависимость. Чем выше цена на товар, тем
большее его количество поставщики готовы предложить, потому
что от этого зависит их прибыль. Потребители же покупают товары
согласно своей шкалы предпочтений, где первое место занимают
товары первой необходимости, далее идут предметы роскоши.
5. Цены на нефть упали в этом регионе и по всему миру, поэтому
производители продают свою продукцию по низким ценам,
за исключением тех видов топлива, которые не пользуются
спросом. Они вынуждены предложить к продаже весь запас своего
товара, даже если это не покроет их расходы.
UNIT 7
Ex.10. Translate the following into English:
1. Рынок – это либо реальное (физическое) место покупки-продажи
товаров и услуг, заключения торговых соглашений, либо это вид
экономических отношений, связанных с обменом товаров и услуг

на деньги, в результате которых формируются спрос, предложение
и цена. В таком виде рынок существует виртуально (в кибер-
пространстве) и все операции компьютеризированы. Каждый рынок
подвергается особым условиям и может отличаться количеством
участников рынка, типом товаров и услуг и способами выхода
на рынок.
2. Используя модель равновесия спроса и предложения, экономисты
изучают возможные отклонения в ту или иную сторону. Кроме
того, это позволяет им определить рыночную цену и количество
товаров на рынке в определенный период. Когда эти показатели
пересекаются на кривой спроса и кривой предложения, можно
говорить о равновесии рынка.
3. Следует отметить неотъемлемую тенденцию рынка к стабиль-
ности и саморегулированию, а любое вмешательство правитель-
ства считается нежелательным.
4. В годы Второй мировой войны в Англии цена на масло равнялась
1,2 дол. за фунт. С одной стороны, быстрый рост цен на масло
способствовал развитию инфляции, с другой – исключал из числа
покупателей масла те семьи, чьи денежные доходы не успевали за
быстрым ростом стоимости жизни. Поэтому, с целью предотвра-
щения инфляции, и с целью сохранения масла на столах бедняков,
правительство установило потолок цены на уровне 0,90 дол.
Следует заметить, что потолок цены имеет смысл тогда, когда он
является меньшим равновесной цены, так как цена в 1,50 дол. за
фунт не дала бы позитивный результат.
5. Нижний уровень цены – минимальная цена, устанавливаемая пра-
вительством и превышающая цену равновесия, – преимущес-
твенно применяется в таких случаях, когда обществу кажется, что
свободное функционирование рыночной системы не способно
обеспечить достаточный уровень доходов определенным группам
поставщиков ресурсов или производителей. Законодательство
о минимальном уровне зарплаты, а также поддержка цен на
сельскохозяйственную продукцию – два лучших примера.
6. Хотя совершенная конкуренция является скорее абстрактной
моделью, ее анализ позволяет не только понять, как формируются
поведения фирм на рынке и как в целом функционирует рыночная
экономика, но и сравнить «идеальный» рынок с реальным.
7. Свободный выход на рынок мешает фирмам извлекать экономи-

ческие прибыли в долгосрочном плане. Этот же процесс работает
и в обратном направлении: когда спрос на рынке снижается после
достижения равновесия, фирмы покидают рынок, поскольку
сокращение спроса делает невозможным покрытие экономи-
ческих расходов.
UNIT 8

1. На поведение каждой фирмы влияет характер, тип рынка, на
котором она функционирует. Тип рынка зависит от типа про-
дукции, количества фирм, наличия или отсутствия ограничений на
вход в отрасль и выход из нее, доступности информации о ценах,
новых технологиях и др.
2. Абсолютная конкуренция и чистая монополия – два экстремальных
примера рыночной структуры. И первое, и последнее бывает
чрезвычайно редко. Гораздо более реалистичной формой является
монополистическая конкуренция. В этом случае фирмы хотя
и сталкиваются с конкуренцией со стороны других фирм, входящих
в отрасль или уже существующих продавцов, но имеют контроль
над ценами на свои товары.
3. На рынке с монополистической конкуренцией существует большое
количество продавцов, предлагающих подобные (однородные)
товары, которые отличаются исключительным качеством,
престижем или имиджем торговой марки. Поэтому производители
вынуждены конкурировать путем производства качественных
товаров, привлекая внимание потребителя современным дизайном
и яркой упаковкой.
4. Успешная рекламная кампания повышает спрос и побуждает
потребителя отдать предпочтение той или иной продукции или
найти заменитель желаемого товара.
5. В странах с развитой рыночной экономикой существуют преиму-
щественно рынки монополистической конкуренции (производство
одежды, обуви, сфера услуг, торговля и т.д.), а также олигополии
(автомобильная промышленность, металлургия).
6. Олигополия – тип рыночной структуры, где обычно присутствует
ценовой лидер или небольшое количество производителей, которые
устанавливают барьеры, препятствующие входу других компаний.
Олигопсонией называют рынок, где покупатели, а не продавцы

контролируют цены и регулируют спрос. В таком случае
многочисленные продавцы конкурируют друг с другом и вынуждены
отвечать требованиям покупателей.
7. В соответствии со статистикой много компаний-гигантов нарушают
закон, пытаясь «захватить рынок», получить полный контроль над
производством и продажей своих товаров, но антимонопольные
законы ограничивают такую деятельность.
8. АМКУ (Антимонопольный комитет Украины) концентрирует
внимание на проведении исследований и расследований на
социально важных рынках Украины, в частности на рынках по
подключению объектов жилищного строительства к сетям электро-,
газо-, тепло-, водоснабжения и водоотведения и предоставления
коммунальных услуг.
9. Правительство назначило комиссию для проверки запланиро-
ванного слияния компаний А и В. Экономисты считают, что эти
ком-пании пытаются монополизировать продажу бытовых при-
боров на западном рынке.
10. Как сообщает пресс-служба отделения Антимонопольного комитета
Украины в Харьковской области, ОАО «Инкорпорейтед» нарушило
конкурентное законодательство, распространив ложную информа-
цию о потребительских свойствах продукта на упаковке, и
заплатило штраф в размере 50 тыс. грн за нечестную конкуренцию.
VOCABULARY
abuse (v.) злоупотребление зловживання
accompanying сопутствующие услуги супутні, супровідні
services товари
according to согласно чему-л. відповідно до
achieve economic достичь экономического досягти
growth роста економічного
зростання
address (v) привести в соответствие; привести
обратиться у відповідність;
звернутися;
спрямувати
advertisement реклама, объявление реклама
advertising рекламирование рекламування
affect market prices оказывать воздействие на мати вплив на
рыночные цены ринкові ціни
affect sth влиять, воздействовать впливати на
agreement соглашение, договор угода
allocative эффективность, связанная ефективність
efficiency с распределением розподілу ресурсів
ресурсов
anti-trust laws антимонопольные (амер. антимонопольні
антитрастовые) законы (амер.
антитрестовські)
закони
apply (to) применять, использовать використовувати
approach подход, метод підхід
approximately примерно приблизно
approximation приблизительное наближення
соответствие (наближена версія)
artificially искусственно штучно
as follows следующее; как указано наступне
далее; указанный ниже
assign приписывать, считать приписувати,
вважати
assume допускать (в теории), вважати, припускати
предполагать
at given period of в данный период за даний час

time
attribute атрибут, свойство, атрибут, властивість
характерный признак
authoritarian авторитарный режим авторитарний режим
regime
axis (n., pl.axes) ось вісь
be based on основываться базуватися
be concerned with связаны с мати справу з
be constrained быть вынужденным, бути змушеним;
принуждённым; обмеженим
ограниченным
be directed by быть руководимым бути спрямованим
be equal to smth равный, соответствующий рівнятися;
be in short supply быть дефицитным бути дефіцитом
be listed on быть в списке бути занесеним
до списку
be of secondary иметь второстепенное не мати важливого
importance значение значення
be related to быть связанным с кем-н., бути пов’язаним
чем-н. з чимось
be subject to подвергаться особым підпадати під
special conditions условиям особливі умови;
зазнавати особливих
умов
build smth up создавать, составлять створювати,
складати
business venture коммерческое венчурний бізнес
предприятие
buy up скупать скуповувати
capital stock основной капитал основний капітал
cardinal utility количественная кількісна корисність
полезность
cause (v) быть причиной; вызывать викликати
central planning централизованное центральне
certainty уверенность впевненість
characterize характеризовать, отличать характеризувати
charge price for назначать цену за призначати ціну для

classify классифицировать класифікувати
collapse (v) привести к падению привести до
зниження
command economy командная экономика командна економіка
community общество суспільство
compete конкурировать конкурувати
competition laws законы конкуренции закони конкуренції
competitor конкурент конкурент
complete power полная власть повна влада
completely совершенно; полностью повністю
comprise содержать, включать, містити
заключать в себе
computerised компьютеризированный комп’ютеризований
concentrate on концентрироваться концентруватися;
на ч-л. зосереджуватися
consequence следствие наслідок
constituent входящий в состав складова
construction строительная компания будівельна компанія
business
consume потреблять споживати
consumer потребительское поведінка споживача

behaviour поведение (поведение (поведінка людини,
людей, связанное що пов’язана з
с принятием решений рішеннями щодо
о покупке товаров и услуг) покупки товарів
та послуг)
consumption good потребительский товар споживчий товар
continually неоднократно; снова безперестанку
и снова; непрерывно
convince убеждать запевнювати
copycat (n) подражатель наслідувач
copyright (n., adj) авторское право; авторське право
охраняемый авторским
правом
corner the market ‘завоёвывать’ рынок ‘охоплювати’ ринок
costs of production издержки производства, виробничі витрати,

себестоимость собівартість
create wealth накапливать, создавать накопичувати,
материальные створювати
ценности/богатство матеріальні
цінності/багатство
critically немаловажно, критически важливо, критично
current exchange курс обмена валют курс обміну валют
rate
current price текущая цена поточна ціна
curve кривая (линия); дуга крива (лінія)
cyberspace виртуальное кіберпростір
пространство, созданное
компьютерной системой
deal with иметь дело мати справу з
define определяться давати точне
визначення
demand спрос попит
depend on зависеть от залежати від
derive from (зд.) получать одержувати
deserve sth заслуживать заслуговувати
detention center центр для содержания под центр для утримання
стражей під вартою
правонарушителей правопорушників
determine определять, устанавливать визначати,
встановлювати
differ from отличаться от кого-л., відрізняти,
smth/smb in smth чего-л.; в чём-л.; відрізнити,
различаться чем-л. розпізнавати
differentiate различать(ся), розпізнати;

отличать(ся); розрізнятися;
дифференцировать(ся) диференціюватися
diminish (v.) уменьшаться спадати,
зменшуватися
direct relationship прямая зависимость пряма залежність
dispose of распоряжаться розпоряджатися
имуществом майном
distinguish различать, выделять відрізняти

distribute распределять розподіляти
dominate доминировать, домінувати
преобладать
downward-sloping нисходящая линия спадна лінія
line
duopoly дуополия (вариант дуополія
олигополии, когда на
рынке – только два
продавца)
duopsony дуопсония (наличие на дуопсонія
рынке всего двух
earn а living зарабатывать на жизнь заробляти на життя
economic (adj.) экономический економічний

economic activities экономическая економічна
деятельность діяльність
economic planning экономическое економічне
economic resources экономические ресурсы економічні ресурси
economic system экономическая система економічна система
economical (adj.) экономный заощадливий,
економний
economics экономика (наука) економіка (навчальна
та наукова
дисципліна)
economist (n.) экономист економіст
economize (v.) экономить заощаджувати,
економити
economy (n.) экономика (страны), економіка (країни),
народное хозяйство; народне
экономия господарство;
економія
economy-wide в масштабах экономики у межах економіки
страны країни
efficient рациональный, ефективний, дієвий,
продуктивный продуктивний,
кваліфікований
efficiently эффективно ефективно
effort усилия зусилля

elasticity эластичность еластичність
employed labour занятая рабочая сила зайнята робоча сила
force
employment level уровень занятости рівень зайнятості
empower уполномочивать, уповноважувати,
снабжать полномочиями; поручати
давать право/возможность
encourage поощрять, поддерживать заохочувати
entrepreneur субъект хозяйственной суб’єкт
деятельности господарської
діяльності
entrepreneurship предприниматель підприємець
environmental защита окружающей охорона
protection среды навколишнього
середовища
equal smth равняться; уравнивать рівнятися;
equipped with оснащённый обладнаний
essential товар первой товар першої
commodity необходимости необхідності
everyday life повседневная жизнь повсякденне життя
excess supply ситуация, при которой надлишкова
предложение превысило пропозиція;
спрос надлишок пропозиції
exclusive right эксклюзивное, ексклюзивне право
исключительное право
exercise freedom пользоваться свободой використання
свободи
exercise one’s пользоваться правом користуватися
choice выбора правом вибору
exist alongside sth существовать вместе с існувати разом з
expand расширять розширювати
expedient целесообразный доцільний
experience (n) опыт досвід
exploit (v) разрабатывать розробляти
extraction добыча родовище
factor inputs затраты производ- видобуток, фактори
ственных факторов виробництва
factors of факторы производства фактори виробництва

production
fall (v) падать падати
fall into the попадать в категорию потрапляти
category в категорію
feature качество, черта особливість
feature emphases отводить важнейшее відводити важливу
on место роль
fixed capital основной капитал (здания, основний капітал
оборудование и т. п.)
flood the market наводнять рынок наводняти,
(with) наводнювати
flow of information поток (изобилие) потік інформації
информации
focus on sth. сосредоточиваться; зосереджуватися,

концентрироваться зосередитися на ч-н.
на чем-л.
fraction доля, часть частка
free good бесплатные блага, безкоштовні товари
природные блага
free market свободный рынок вільний ринок
furthermore кроме того; к тому же більш того, до того ж
gain (from) получать, добывать одержувати,
домагатися;
здобувати
generation поколение покоління, генерація
get the most out of получить максимум отримувати,
sth. от ч-л. одержувати
максимум
glut излишек, затоваривание перенасичення
gold standard золотой стандарт; образец; золотий стандарт;
эталон еталон
government вмешательство державне втручання
intervention государства/правительства
Government правительственные державні витрати на
investment капиталовложения інвестиції
spending
government государственное державне
regulation регулирование; (мн.ч.) регулювання;

правительственные державні постанови
постановления
government компания производитель компанія, що надає
services company государственных услуг державні послуги
gratifying приятный приємний, такий що
задовольняє
Gross Domestic внутренний валовой валовий внутрішній
Product (GDP) продукт продукт
have control over контролировать что-л. контролювати щось
smth
health care service система здравоохранения система охорони
здоров’я
hit the ceiling резко возрасти (о ценах) різко зростати (про
ціни)
hold a dominant иметь господствующее мати домінуюче
position положение положення
human capital человеческий капитал людський капітал
(способности и трудовые
навыки, приложение
которых приносит доход)
humanity человечество людство
imply предполагать, мати на думці
подразумевать, заключать (на увазі); натякати;
в себе, значить містити в собі;
значити, мати
значення
impose fines налагать штраф накладати штраф
improve through улучшать посредством покращувати

за допомогою
in response to в ответ на у відповідь на
in the long run в конечном счёте, в кінцевому рахунку
впоследствии, в долго-
срочной перспективе
in the near в ближайшем будущем у найближчому
майбутньому
in the strict в строго экономическом в суворо
economic sense смысле економічному сенсі
increase (n) to умножение; прибавление; збільшення до

прирост
indicate указывать, означать вказувати; означати,
бути ознакою
individual citizens отдельные граждане окремі громадяни
inelastic неэластичный нееластичний
infinite бесконечный нескінченний,
незліченний,
неосягненний
influential влиятельный, важный; впливовий
обладающий властью
inherent обязательно присущий, властивий,
природный неотъемлемый притаманний
initial idea первоначальный замысел, первісна ідея
первоначальная идея
initially первично, прежде всего спочатку, перш за
все
interfere in вмешиваться втручатися
interference вмешательство втручання
intervene in вмешиваться во что-л. втручатися
inventor изобретатель винахідник
inverse relationship обратная зависимость зворотна залежність
inversely обратно пропорционально обернено
пропорційно
invest инвестировать, інвестувати гроші
вкладывать деньги
It is commonly согласно общепринятому згідно з загальною
assumed мнению думкою
It should be noted следует отметить слід зазначити
judge (v) судить, выносить судити; оцінювати;
приговор скласти собі думку
label маркировать; помечать; маркувати; мітити
размечать
lack of недостаток відсутність
laissez-faire политика політика
невмешательства невтручання
law of demand закон спроса закон попиту

Law of закон убывающей закон спадної
Diminishing предельной полезности граничної корисності
Marginal Utility
law of supply закон предложения закон пропозиції
life expectancy средняя середня тривалість
продолжительность жизни життя
limited resources ограниченные ресурсы обмежені ресурси
London Stock Лондонская фондовая Лондонська фондова
Exchange биржа біржа
long-standing длительный довготривалий
long-term planning долгосрочное довгострокове
lower снижать(ся), знижатися,
понижать(ся), зменшуватися
уменьшать(ся)
luxuries предметы роскоши предмети розкоші
luxuries/luxurious предметы роскоши предмети розкоші
goods
machinery производственные техніка,
механизмы; оборудование устаткування
macroeconomics макроэкономика макроекономіка
maintain поддерживать в рабочем підтримувати
состоянии у робочому стані
maintenance поддержание в підтримання в
надлежащем состоянии належному стані
make a distinction делать различие, відрізняти
различать
make a profit получать прибыль отримувати прибуток
make a step делать шаг робити крок
make assessments оценивать оцінювати, оцінити
make into превращать в перетворити на
make transactions осуществлять операции здійснювати операції
make up образовывать, составлять створювати, складати
man made искусственный; штучний
сделанный человеком
manufactured промышленный промисловий
marginal utility предельная полезность гранична корисність
maritime морской морський
market рынок ринок

market (v.) торговать, продавать реалізувати, збувати;
на рынке; продавать; знаходити ринок
сбывать; находить рынок збуту, торгувати на
сбыта ринку
market conditions условия рынка ринкові умови
market economy рыночная экономика ринкова економіка
market equilibrium рыночное равновесие ринкова рівновага
market equilibrium равновесная цена рівноважна ціна, ціна
price (цена, обеспечивающая що забезпечує
равенство спроса и ринкову рівновагу
предложения на рынке)
market intervention рыночная интервенция ринкова інтервенція
(осуществление сделок на
рынке с целью повлиять
на рыночную цену
или ожидания
участников рынка)
market participant участник рынка учасник ринку
market power рыночная власть ринкова влада
(возможность фирмы
влиять на рыночную цену)
market price рыночная цена ринкова ціна
maximize увеличивать до предела; збільшувати до межі;
извлекать максимальную мати користь
пользу
means of средства производства засоби виробництва
production
meet the demand удовлетворять спрос задовольняти попит
merger слияние компаний злиття компаній
microeconomics микроэкономика мікроекономіка
monopoly монополия монополія
monopsony монопсония, монополия монопсонія
покупателя
(рынок, на котором
выступает лишь один
покупатель товара, услуги
или ресурса)
must have то, что обязательно те, що треба
нужно иметь обов’язково мати
national labour национальная національна робоча

force рабочая сила сила
natural disaster стихийное бедствие стихійне лихо
natural monopoly естественная монополия натуральна
монополія
natural resources природные ресурсы природні ресурси
nature природа, характер, суть природа; характер
newborn новорожденный новонароджений
nobility дворянство дворянство
non-essential товары не первой товар не першої
commodities необходимости необхідності
non-marketed нетоварная продукция неринкові товари
output
noticeable заметный помітний
objections (to) возражения заперечення
objective (n) цель ціль
of about 5 из примерно 5 жителей з приблизно
inhabitants 5 мешканців
oligopoly олигополия олігополія
(рыночная структура
с незначительным числом
продавцов при наличии
большого числа
oligopsony олигопсония (рыночная олігопсонія
структура с огранич.
числом покупателей
и большим числом
продавцов, покупатели
влияют на цену)
on average в среднем в середньому
on the contrary наоборот навпаки
operate осуществлять свою працювати
operate a business управлять предприятием управляти бізнесом
opportunity cost издержки витрати
неиспользованных невикористаних
возможностей можливостей
opt for сделать выбор в пользу вибрати
other things being при прочих равных за інших рівних умов

equal условиях
output продукция; продукція;
производительность, виробництво; обсяг
мощность, объем виробництва
over-production перепроизводство надвиробництво
own (v) владеть (имуществом) володіти
ownership право собственности право власності
paid job оплачиваемый вид работы оплачувана робота
patent патент; диплом; патент
привилегия; изобретение
patent rights патентные права патентні права
(вытекающие из владения
патентом)
perfect competition совершенная конкуренция чиста конкуренція
(pure competition)
permit разрешать дозволяти
phenomenon (pl.-a) феномен, явление феномен, явище
plan ahead планировать заранее планувати наперед
plc (public limited публичная компания с публічна компанія
company) ограниченной з обмеженою
ответственностью відповідальністю
possess иметь, владеть володіти
possessions имущество майно
precise точный точний
price ceiling потолок цен максимальна ціна;
(установленный государ- максимальний
ством предел цен на рын- випуск продукції
ке определенного товара); тощо
максимальная цена
price taker соглашающийся с ценой економічний суб’єкт,
(продавец / покупатель, який не справляє
воспринимающий впливу на ціну (на
рыночную цену как ринку)
заданную величину, на
которую он не может
повлиять)
priority порядок срочности, першочерговість,
очерёдности пріоритет
private enterprise частное предприятие приватне

підприємство
private ownership право частной право приватної
собственности власності
private property частная собственность, приватна власність
имущество
produce производить, выпускать виробляти
production targets производственные цели виробничі цілі
productive производственный виробничий
potential потенциал потенціал
productive производственные виробничі ресурси
resources ресурсы
productivity производительность, продуктивність
продуктивность
profit maximization максимизация прибыли максимізація
прибутку
prohibit запрещать забороняти
provide smb with обеспечивать к-л., ч-л. забезпечити к-н., ч-н.
sth
public monopoly государственная державна монополія
монополия
public ownership коллективная суспільна власність
собственность
public sector государственный сектор державний сектор
экономики, бюджетная економіки, бюджетна
сфера сфера
public utility коммунальное пред- комунальне
company приятие; предприятие підприємство
общественного
пользования
quality качество якість
raise повышать, поднимать підвищувати
raised capital привлечённый, собранный залучений капітал
капитал
range of wants круг желаний коло бажань
rank (v) располагать класифікувати,
в определенном порядке, розташувати в
устанавливать певному порядку
очередность
rare редкий рідкісний
rate (v) оценивать оцінювати
raw material сырье сировина
real estate недвижимость нерухомість
recognition признание визнання
refer to ссылаться; относиться; посилатися на; мати

иметь отношение к ч-л. відношення до ч-н.
reflect учитывать, отражать, брати до уваги,
regard as рассматривать вважати
relate to иметь отношение к ч-л. мати відношення до
ч-н.
relationship взаимосвязь взаємозв’язок
relevant соответствующий; доречний; що
относящийся к ч-л. стосується справи
remain оставаться залишатися
remote удаленный віддалений
requirement требование; необходимое вимога; необхідна
условие; необходимость умова; потреба
respectively соответственно стосовно кожного
зокрема; відповідно,
у вказаному порядку
restrict ограничивать, держать в обмежувати
определенных пределах
restrictions on ограничения на обмеження на
revenue годовой доход річний дохід
rigidly controlled строго, жёстко жорстко
контролируемый контрольований
rip-off (n) воровство; злодійство; плагіат
мошенничество;
плагиат
run a company управлять компанией управляти компанією
sacrifice жертва; убыток; потеря жертва
satisfaction удовольствие задоволення
satisfy удовлетворить задовольнити
savings сбережения заощадження
scarcity недостаток, нехватка, недостача, нестача,
дефицит дефіцит
science наука наука

scientific научный науковий
self-correcting саморегулирующийся самореґулювальний
semi-finished деталь-полуфабрикат напівфабрикат
separate (adj) отдельный окремий
service delivery оказание услуг надання послуг
set barriers устанавливать барьеры, встановлювати

преграды перешкоди
set of conditions ряд условий ряд умов
set up учреждать, создавать засновувати
set up a target ставить цели ставити цілі
shelter жилище, кров житло
shortage нехватка; недостаток; дефіцит, нестача
дефицит
social capital общественный капитал соціальний капітал
society общество суспільство
solve the problem решать проблему вирішувати
проблему
standard of living уровень жизни рівень життя
starvation голод; голодание голод; голодування

state утверждать стверджувати
step (v) (in) вмешиваться втручатися
stock exchange фондовая биржа фондова біржа
strong secondary устойчивый вторичный сталий вторинний
market for рынок, характеризуемый ринок
стабильным уровнем цен
subsistence level прожиточный минимум прожитковий рівень
substitute products товары-заменители, товари-замінники
взаимозаменяемые товары
(пары товаров, для кото-
рых рост стоимости одного
товара приводит к росту
спроса на другой товар)
success успех успіх
sum up суммировать; обобщать; підсумовувати,

подводить итог підбивати підсумки
sum-total в совокупности, всего у сукупності, разом

superior product изделие высшего качества продукт кращої
якості
superiority превосходство, перевага
преимущество
supplies of capital наличие капитала, накопичення
накопление капитала капіталу
supply предложение пропозиція
surplus income прибавочный доход надлишковий
прибуток
sweet tooth пристрастие к сладкому пристрасть, слабкість
до солодкого
take a broad view широко смотреть на вещи широко дивитися
of sth. на речі
take part in sth принимать участие брати участь в ч-н.
tax налог податок
tend towards быть склонным к ч-л. прагнути до ч-н.
the purest form идеальная модель у чистій формі
thus таким образом, итак таким чином, отже
to ensure для обеспечения для забезпечення
to prevent from мешать, препятствовать, заважати,
не допускать перешкоджати
(чомусь)
to the prejudice в ущерб на шкоду
to trade smth for обменивать на обмінювати щось
total demand совокупный спрос загальний попит
total output валовый выпуск, все валова продукція
производство, вся
продукция; общий объем
total utility полезность сукупна корисність
trademarks торговая марка, товарный торгівельна марка
знак
traditional традиционная экономика традиційна
economy економіка
training тренинг; учёба навчання;
підготовка; освіта
under-developed слаборазвитая страна слаборозвинута
country країна
underlie лежать в основе лежати (бути)
в основі ч-н.
undesirable нежелательный небажаний
upward slope восходящий уклон нахил вгору
used to be иметь обыкновение; мати звичку; раніше
раньше
usefulness польза; пригодность користь; придатність
utility function функция полезности функція корисності
valuable ценный цінний
value ценность цінність
venture предприятие підприємство
violate нарушать, попирать, порушувати
преступать
vitally important жизненно важный життєво важливий
wage зарплата заробітна плата
willingness желание бажання
working age трудоспособный возраст працездатний вік
working capital оборотный капитал оборотний капітал
LIST OF ABBREVIATIONS
Abbreviation Meaning
AGM Annual General Meeting
BP British Petroleum
CE Council of Europe
CEO Chief Executive Officer
Co. company
Corp. corporation
DC developed country
e.g. (Lat.) exempli gratia (for example)
EBRD European Bank of Research and
Development
EC European Community
ECM European Common Market
EDP Electronic Data Processing
EEC European Economic Community
etc. (Lat.) et cetera and so on
EU European Union
EUROSTAT Statistical Office of the European
Communities
HQ Headquarters
i.e. (Lat.) id est that is, in other words
ICC International Chamber of Commerce
ILO International Labour Organisation
Inc. Incorporated
IT Information Technologies
Ltd limited liability
MBA Master of Business Administration
NATO North Atlantic Treaty Organisation
NB (Lat.) nota bene прими к сведению, обрати особое
внимание
OECD Organisation for Economic
Cooperation and Development
OSCE The Organization for Security and
Co-operation in Europe
plc Public Limited Company

Rd Road
SIM subscriber identification module
(card for mobile phone)
Sq Square
St Street
UNESCO United Nations Educational,
Scientific and Cultural Organisation
UNO United Nations Organisation
VIP Very Important Person
WHO World Health Organisation
WIPO World Intellectual Property
Organisation
WTO The World Trade Organization
REFERENCES
1. Peter Antonioni. Economics for Dummies / Peter Antonioni, Sean Masaki
Flynn. ; [2nd Edition]. – Chichester : John Wiley & Sons, 2011. – 420 p.
2. Tom McArthur. A Rapid Course in English for Students of Economics /
Tom McArthur. – Oxford University Press, USA, 1997. – 138 p.
INTERNET RESOURCES
http://studylib.net/doc/6855503/diy--using-transitional-words-and-phrases-name
http://whystudyeconomics.ac.uk
http://www.mld.metu.edu.tr/sites/default/files/Transitions-Patterns-of-
Organization-Pt1.pdf
http://www.smart-words.org/linking-words/transition-words.html
https://www.crownacademyenglish.com/types-english-abbreviations
https://www.khanacademy.org/economics-finance-domain/microeconomics/
supply-demand-equilibrium/market-equilibrium-tutorial/a/changes-in-
equilibrium-price-and-quantity-the-four-step-process-cnx
https://www.mindtools.com/pages/article/newSTR_69.htm
https://www.stlouisfed.org/education/economic-lowdown-podcast-series/
episode-2-factors-of-production

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N. A. Oliynyk, T. I.

Ministry of Education and Science of Ukraine

UDC 811.111: 33 (075.8)

Approved for publication by the Academic Board

УДК 811.111: 33 (075.8)

© V. N. Karazin Kharkiv National University, 2018

Unit 1. SCIENCE OF ECONOMICS ............................................................... 6

Даний навчальний посібник розроблено для студентів І курсу

ного університету імені С. Кузнеця, кандидату філологічних наук

– “Why should I major in economics?”

1. Working in pairs discuss the following

2. Read the following text:

Consider just how nasty, irrational and short life used to

Ex. 1. Find the words or word combinations in the text to substitute

Ex. 5. Complete the following sentences with the words/word

Ex. 6. Complete the following sentences with prepositions where

Ex. 11.Translate the following into English:

Ex. 13. Do the crossword:

QUESTIONS FOR DISCUSSION

English Russian Ukrainian

create wealth накапливать, создавать накопичувати,

еconomic (adj.) экономический економічний

generation поколение покоління, генерація

society общество суспільство

1. Working in pairs discuss the following

2. Read the following text and check your answers:

Ex. 1. Find the words or word combinations in the text to substitute

Ex. 3. Answer the questions:

Ex. 6. Complete the following sentences with the words/word

Ex. 7. Complete the following sentences with prepositions where

Ex. 8.b. Complete the following sentences with these adverbs:

1. The system was complex. Its _________ surprised him.

1. The company _________ a new commodity every year.

Ex. 13. Translate the following into English:

4. Командна економіка є системою з суспільною (державною) влас-

QUESTIONS FOR DISCUSSION

1. Which countries mentioned in the unit have the highest standard of

English Russian Ukrainian

long-standing длительный довготривалий

1. Match these definitions with the words

Under-developed countries of the globe are usually interested in control

* Serco Group plc – Serco Group plc is a British

Ex. 1. Find the words or word combinations in the text to substitute

5. globe 13. economic planning

Ex. 5. Complete the following sentences with the words/word

Ex. 6. Match an adjective from column A with a noun from column B:

Ex. 7. Work in pairs. Spot mistakes in the following sentences and

Ex. 8. Supply the missing articles where necessary:

6. My friend is _______ leading economist. He works for ______ BP plc.

Ex. 9. Complete the following sentences with prepositions where

Ex. 10. Change these sentences by modifying certain adjectives

a) complicate b) liquidate c) nationalize d) activate

1. They made the subject complex.

4. They made the economy active.

5. The economics teacher tried to make the situation clear. He tried to

Ex. 14. Work in groups. Discuss the following questions:

Ex. 15. Distribute the following abbreviations under the appropriate

10. EBRD j. Організа́ція Північноатланти́чного договору

Ex. 18. Translate the following into English:

6. My friend is _ leading economist. He works for BP plc.