4. Production entails using technology to apply energy to materials in ways that make the materials more valuable, or that otherwise help satisfy human wants.

5. Labour resources are the physical and mental talents that people can make available for production.

6. Opportunitycost is the value of the best alternative surrendered when a choice is made.

7. Absolute prices are prices in terms of some monetary unit.

8. Relative prices are the prices of goods or resources in terms of each other, and are computed by dividing their absolute prices by one another.

9. Economic efficiency is achieved when we produce the combination of outputs with the highest attainable total value, given our limited resources.

10. Inputs are resources used in the production process, such as labour and raw or semifinished materials.

11. Outputs are transformed materials; the results of production.

12. Demand is the quantity of a specific good that people are willing and able to

buy during a specific period, given the choices available.

13. Supply refers to the quantity of a specific good that sellers will provide under alternative conditions during a given period.

14. Market equilibrium occurs at the price-quantity combination where the quantities demanded and supplied are equal.

15. Asurplus is the excess of the quantity supplied over quantity demanded when the price is above equilibrium.

16. Gross Domestic Product (GDP) is the total market value of goods and services produced within a country during some period, usually one year.

17. Gross National Product (GNP) is the value of all output produced by resources owned by the citizens of a country.

18. Economic growth is a positive quantitative change in an economic system; occurs when a society acquires greater productive capacity that can be used for consumption or investment.

19. Capital is all physical improvements made to natural resources that facilitate production, including buildings and all machinery and equipment.

20. Wealth is the value of the assets owned by an individual or a group of individuals.

SPEAK AND WRITE

1.Why is it important to view organizations open systems interacting with their environment?

2. Do you know any closed systems? Give some examples.

3. Give your own examples of the environmental influence on a business / on an individual.

4. Prepare a short report on the biography of a famous economist.

5.What would happen to standards of living in your country if all foreign trade were prohibited? How significant do you think this would be? In what areas would this impact be the strongest?

6.Does everything have a price? Are there some things you would not do regardless of price? Remember: prices and money are not synonyms; prices may be nonmonetary.

7. Summarize the information of the Unit to be ready to speak on Economics. The first step to be done is to write the plan of your future report.

8. Choose any question (problem, topic) relating to Economics and prepare a 5-7 minute report. Refer to different additional sources to make your report instructive, interesting and informative.

UNIT 2

BUSINESS ORGANIZATION

The world is a chain, one links another.

Your vocabulary

Business

– work relating to the production, buying, and selling of goods and services;

– an organization which produces and sells goods, or which provides a service;

– important matters that you have to discuss or deal with.

Businessman, Businesswoman – a person engaged in trade or commerce.

Business cycle

– process by which investment, output, and employment in an economy tend to fluctuate up and down in a regular pattern causing boom and depression, with recession and recovery as intermediate stages.

Organization

– a large group of people that has particular aims.

Organizer

– the person who makes all the arrangements for something and makes sure that happens as planned.

Ex. 1. Study the following words and word combinations and translate the sentences given below into Russian. Consult a good dictionary if necessary.

mean business, none of one’s business, go out of business, businesslike, be busy with, have no business to do, be in business, like nobody’s business, mind one’s own business

1. Mother has busied herself with our affairs for too long.

2. When traveling on business I take my tiny travel kit.

3. Let’s get down to business.

4. She had no business to publish his letters to her.

5. 50% of these stores were not in business five years ago.

6. They are working away like nobody’s business.

7. Umbrella sellers went out of business.

8. Stop teaching me! It’s none of your business.

9. Listen to me! I mean business!

10. The visit to Copenhagen was brisk and businesslike.

Ex 2. The words given below are the synonyms to the word organization. In what do they differ? Give your own definition to each of them.

Institution, council, body, entity, fund, trust, party, club, society, association, league, federation, union.

Ex. 3. Match thewords listed below with the dictionary definitions which follow.

accountability, effort, pattern, requirement, accomplish, existence, consumer, foster, affect, establish, benefit, involve

1. Create or set it up in a way that is intended to be permanent.

2. Help its development or growth by encouraging people to do or think about it.

3. Something that you must do or possess in order to be allowed to do some other thing.

4. The state of being real, alive, or actual.

5. Energy in the form of thought, action, time, or money that people use in their work.

6. It influences someone or something or causes them to change in some way.

7. Succeed in doing or finishing something.

8. Being responsible for and prepared to justify one’s actions.

9. A good result of something.

10. A person who buys things or uses services.

11. A particular, recognizable way in which something is done or organized.

12. To include somebody or something as a necessary part or use them in some way.

Ex. 4. Make the following words negative. Use prefixes -un, -in, -mis, -dis, -ir, and so forth.

Human, existence, enable, realized, regard, responsible, careful, systematic, effective, mature, aware, understand, loyal, formal, direct, continuous.

Ex. 5. Give the opposites to the following words. Use each of them in your own sentence.

Flexible, voluntary, to share, to adhere to, enjoy, confidential, consensus, versus.

Ex. 6. Be sure you know the meaning of the words given below. Give their derivatives.

Existence, accomplishment, benefit, authority, obligation, responsibility, extend, consider, favour, perception, value, equal, assume, conscious.

Ex. 7. Give the synonyms to the following words. Make up your own sentences to show the shades in their meaning.