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Before you read 183
BP D Vocabulary 183
Exchange rates 184
0 E Comprehension 186
Before you listen 186
F Listening H))) 187
G Speaking 188
Task 188
Before you read 189
A Vocabulary 189
Exchange rate mechanisms 189
й В Comprehension 190
Before you listen 190
0 С Listening 4))) 190
Before you read 191
9 D Vocabulary 191
International trade 191
Before you listen 192
В F Listening 4))) 192
G Speaking 193
Task 193
Unit 194
Before you read 194
В A Vocabulary 194
Less developed countries 195
в В Comprehension 196
Before you listen 196
0 С Listening *))) 196
Before you read 196
В D Vocabulary 196
The Russian economy in the 19th century 197
fij E Comprehension 198
Before you listen 198
F Listening 4))) 198
Task 200
H Writing 200
A Vocabulary 200
в? В Comprehension 202
Before you listen 202
0 С Listening 4))) 202
Before you read 202
ff D Vocabulary 202
Russia's foreign trade 203
9 E Comprehension 204
Before you listen 204
Revision Vocabulary Units 17 to 21 206
Now listen and tick the things which are mentioned.
а с iv ■ a - Cjd г г friifomtj;. 9 4 i
Before you read
Discuss the following with your partner.
Look at the workers in the picture:
What kind of work are those people doing?
How do you think they feel about it?
What advantages are there for the company m organising workers like this?
ff D Vocabulary
Complete each sentence with a word or phrase from the box.
automatically child rearing dye emotional fundamental means mindless sew sloppy specialisation take pride in
of transport are the methods we use
to get from one place to another.
work is work that is not very
good quality.
To make clothes you have to know how to the material together.
Having a means that you deal with
one particular area of any field.
> You may visit a doctor if you have problems with your health
Competition is to the idea of the
free market.
People who their work do it very
carefully and enjoy the results.
Mothers and fathers both have important roles to play m
Some people regard lactory work as a job but it isn't necessarily boring.
When you do something you do it
without tliinking.
When manufacturers clothes, they
add colour.
^ Reading 2
Division of labour
Without the factors of production, companies cannot get started. To lv successful, however, they need to make good use of those resources. To make best use of labour, you need to organise it. The division ofhtbuuris one way to achieve this.
I L-t's take making shirts as an example. What do you need to do to make a shirt'rYou need to design it. find the right material, cut the material sew the pieces together, dye the shirt and sew on the buttons < )nc person working on their own could probably do all thesi tasks. This is one way to organise labour. Another way is for a number of workers to share tile job. Kach worker is rcsjvuisible for one task in the process This is an example of the division of labour
The division of labour isn't a new idea К veil very earlysocieties had some form of labour specialisation. Tor example, in some societiesmen were hunters and gatherers of food, wliik women w ere responsible for child rearing. However, as societies became industrialised, the division of labour increased, factories became the main
42 M . m n Gi irti ip f ■■ i . I ■ 8
means of production, and each factory worker became responsible for smaller ami smaller stages in tile process.
As each worker getsmore and more experience at doing their particular task, they get better and better at it. I his should improve the quality of their work. With smaller tasksto do. workers can do things automatically, without thinking about them. This will speed up their productivity, ami speed up the whole production process Finally, small tasks are easier to learn. As the division of lalxmr increases, the amount of time needed to train each worker decreases All of this means a more efficient and productive workforce .. at least, in theory.
There is. however, a human factor to consider Workers are not machines. Their physical and emotional health has an impact on their productivity. Repeating the same simple task over and over again is very boring bored workers can't concentrate easily, and their mistakes will reduce the quality of their output. In addition, there is the problem of ownership. Many workers take pride in their work. They don't just work for wages, but also because they get satisfaction from doing a good job or from creating something useful or beautiful. If you only add buttons toa shirt. >011 don't feel that the shirt is your workVoncan't take pride in a job that does not need skill to do. In this situation, workers lveonu- careless and their work becomes sloppy. < >\t rail, this has a negative impact on productivity
Thankfully, robots and machines can now do many of the mindless tasks that factory workers Used to do. Nevertheless, the theory of the division of labour is siillfundamental to all modem economies.
Now read the text again and match each paragraph with the correct heading.
PARAGRAPH .
PARAGRAPH 2
PARAGRAPH
PARAGRAPH 5
PARAGRAPH -j
PARAGRAPH 6
The advantages of the division of labour Technology has replaced a lot of human labour Two ways to organise labour The disadvantages of the division of labour Division of labour in history Making best use of what's available
Before you listen
Discuss the following with your partner.
Read through the questions and tell each other what you think the correct answer mighi be.
When did Ford invent the Model T car?
A 1908 В 1918 С 1928
What was special about Ford's cars?
AThey were the first quick car. В They were affordable. С Most Americans had one.
How did Ford keep costs low?
ABy using cheap materials. В By organising his labour force. С By timing workers.
What did Tord have in 1930?
AThe largest labour force in the world. В Tho fastest production line in the world. С The largest factory in the world.
In his film Modern TimesCharlie Chaplin ...
T
F Listening H)))
Now listen and check your answers.
.»
u» .- » 43
Discuss these questions with your partner.
Do you think some division ol labour is natural?
Art; some; people better suited to some jobs than others?
Do economies really need entrepreneurs?
Work in groups of three.Talk about each of the items listed below. Use the space below to make notes.
What factors of production are necessary?
What would be the best way to organise labour to produce the following items?
a car
a pencil
a portrait painted in oil paints a newspaper a high quality violin
Notes:
К H Writing
You are the production manager for a new manufacturing company. (You decide what the company manufactures).The managing director has asked you to produce a report on the following.
-> the land, capital and labour resources which are required
the best way to organise production
Business report
Use these notes to help you.
PARAGRAPH 1 Introduction.
What this report is about and who it is for.
PARAGRAPH 2
Raw materials required. Equipment required. Buildings and transport required.
PARAGRAPH 3
Labour force required (numbers).
Human capital issues (qualifications and skills
expected / training required).
PARAGRAPH 4
Division of labour • how should labour be organised for production.
CONCLUSION
Say you hope to be successful if your suggestions (sum up your points in a sentence) are followed.
Write 200-250 words
С\
Pronunciation guide
Maintenance 'теннлплгь
Apparatus ;rp.->ri>it,->s
Quantity 'kv.nnt.Mi/
Entrepreneurshipnn(r,">pnn-5;(r)J ip
Automatically>:t.->ma:iikli
Rear i toi t)
Sew Ч,»/
Efficient itifnt-
Gatherer /даеЛог.Мг).
Ownership лт.мпрр
Quality /kwnl.Xi
V J
M 4 Г1- j (» . J 0 r M £ c Xt » О 'jn I с V U r ' t P
Revision Vocabulary Units 5 to 8
Complete the puzzle with words from units 5 to 8. Can you find the highlighted phrase?
Combination of goods that a consumer spends money on - like chocolate and a bottle of water. The money that companies spend. Work or effort.
Constant to scale.
When a company buys another company to control it. Difficult to solve.
The economist's word for the satisfaction you cjot from something.
A market structure where one company has the largest market share.
This can happen to the demand curve - right or left.
Pure monopoly and perfect competition are
examples of market
Land, labour and capital are three of
production.
Something that stops a company entering the market.
Henry Ford invented the production
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|
|
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Tlus person is the fourth factoi of production.
PIB1Find eight pairs of words that make expressions we use in economics.
I budget ■ choice ■ constraint I consumer ■ cost ■ diminishing I increased ■ intensive ■ labour I marginal ■ opportunity ■ output I price ■ returns ■ taker ■ utility
В
B2Now write five example sentences using as many of the pairs of words as you can.
M
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to f fftftC!*1(i * * » S OnVetiil'. J
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у•. n . • to 6
45
С The words in blue in the letter opposite are in the wrong places. Correct the letter by putting the words in the correct places.
Before you read
Discuss this question with your partner.
-* When you are shopping, how do you know if something is at a good price, or if something is too expensive?
^ A Vocabulary
Choose the correct answer A, B, or С from the list below.
moan compromise С bargain
' moan compromise jargon
. whole 1 aggregate С complete 10 shortage surplus С quantity
Children often complain and when
they don't get what they want.
I A cheerful person is
Parents are responsible for their children's until they become adults.
If you get a bargain, you get something
The police are offering a for any
information about the robbery.
If you work faster you more money
or more free tune.
You can't always get everything you want Sometimes you have to
Every profession has its own
special words and phrases that are only used in that profession
- The total spending by a government is sometimes called spending.
If you have a of something, you have
more than you need.
bargain compromise moan
A happy В sad С strange
rewards welfare jargon
for nothing .it a high price at a good price
reward salary С compromise
46
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'
•to Eiinoai... U "
< I *
fiJ Reading 1
Surplus
111 :t free market, price is decided by the laws .>f supply and demand. Tile market price is the price that sellers are happy to take and consumers ;tre happy to p;ts. It's :t eoinproniisi. but in the end everyone is happy, right - Well, not quite everyone Some sillers will think the market price is n<'t a ii<«>d enough reward lor their efforts Theywill continue to sell at a higher price, even ii almost no one walks through their shop door Similarly, sonic people will w;ilk away from tin market. moaning about the price and refusing to pa> You can't please everyone!
However, there will he some people who are more than h:ipp\ with the market price. What makes them so cheerful" These are the people who had expected to pay a higher price, but found that the market price was actually lower. These people feel that, by paying the market price, tlu v have got a bargain In the jargon of economics. the> have got consumer surplus.(lonsumer surplus is the difference between the price consumers an prepared to pa> and the price they realK do pay
The idea ol consumer surplus is shown in figure]) I on page 17. M is the market price. You ean see thai the demand line carries on above the market price. This means that there are consumers who are prepared to pay above the market price.
iaeh ot these consumers will gain a different amount of consumer surplus by paying the market price Together, all the surplus they gain is called the <iii^rcii<itcconsumer surplusThis is the grey area shown in figure 1.
Consumers aren't the only ones who enjoy surplus. There is producer surplus,too. Remember that ihe law ol supply says supply rises as price rises. This is because smaller amounts cost less to produce than larger amounts. For this reason, producers would have been happy t<> sellsome of their output below market price. However, once the market price is set. they can sell all their pnnluoe at that price.
Piice
Figure
1: Consumer and Producer Surplus
A
Consumer
\ Surplus \
,
Supply
Vм
Prod
tx #f / Surplus /'
\
Dt»man
Quantity bought and told
Surplus is an important concept In one way it is a measure of the utility that consumers gain from their purchase. It is also a measure of the profit that producers make. Moreover, consumer and producer surplus together are a measure of the benefit everyone gains from the economic transaction. In economist jargon, surplus is a measure of economic welfare.
В Comprehension
Now read the text again and decide whether these statements are true or false.
Market price should please the seller and the buyer.
Some consumers will get more surplus than others.
Aggregate consumer surplus is all the money that buyers spend
Producer surplus is the goods that producers can't sell.
Producer surplus exists because production costs vary.
Surplus is a measure of how happy and well off people are.
Before you listen
Discuss the following with your partner.
Is there anything strange about this price list?
Shampoo €3.00
-> Olrve oil €10.00
Bottle of cola €1.50
MA* *
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di
to Economic» Unit f 47
ф С Listening Ц)))
Before you read 13
What does economics study? 17
What are 18
microeconomics and macroeconomics ? 18
Before you listen 20
Before you read 22
History of economic thought 23
Before you listen 26
Before you read 27
Econometrics 28
Before you listen 29
Before you read 33
The law of demand 34
Before you listen 35
Unit 40
Before you read 40
The traditional economy 40
Before you listen 41
Before you read 43
The market economy 43
Before you listen 44
The planned economy 46
Before you listen 51
Before you read 56
Before you listen 59
Revision Vocabulary Units 1 to 4 61
Before you read 63
Consumer choices 65
Before you listen 75
Before you read 77
Costs and supply 77
Before you listen 78
Unit 80
Before you read 80
Market structure and competition 80
Before you listen 81
Before you read 82
Monopolies 82
Unit 87
Before you read 87
The labour market 87
Before you listen 88
Before you read 89
Supply of labour 89
Before you listen 91
44Unit 93
45Before you read 93
70Factors of production 93