28. Opportunity Costs

29. Incorporated in the supply curve of goods and services are opportunity costs. Economists differ from accoun­tants and from the Internal Revenue Service by including both explicit and implicit costs, or opportunity costs. Implicit costs are mainly business costs for wages, rents, and interest, whereas opportunity costs are the alternative costs of doing something else. A sole proprietor or the owners of businesses should calculate what they forgo in wages, rents, and interest by not working for someone else, or by renting the property they use to others, or by the possibility of converting plant and equipment to alternative investment projects.

30. The Shape and Position of Supply Curves

31. (see pp. 324-328)

32. In competitive markets the shape, or elasticity of supply, reflects time in the production process, such as the immediate or market period, the short run, and the long run. Elasticity of supply is the relative change in price that induces a relative change in quantity supplied. The supply curve is a line on a diagram where the vertical axis measures price and the horizontal axis is quantity. Usually the coefficient of elasticity is positive, meaning that a rise in price induces an increase in the quantity supplied. In the immediate or market period, a given moment, time is defined as too short to allow for a change in output. The supply curve is vertical, and the coefficient of elasticity is zero.

33. The short run is defined as a period sufficiently long to permit the producer to increase variable inputs, usually labor and materials, but not long enough to permit changes in plant and equipment. The supply curve in the short run is less inelastic or more elastic than in the immediate period. The long run permits sufficient time for the-producer to increase plant and equipment. The longer the time, the greater the elasticity of supply.

34. Changes in supply are shifts in the position of. supply curves. An increase in supply is a rightward movement of a supply curve, with more of the commodity being offered for sale at each possible price. Conversely, a decrease in supply shifts the supply to the left. An increase in supply can occur because^ sellers expect lower prices in the future, or, as in the agricultural sector, because of bountiful crops. The reverse is true of a decrease in supply. Over periods of time long enough for production processes to change, improvements in technology and changes in input prices and productivities are the main causes of changes in supply.

35. Vocabulary

37. aggregate supply — совокуп­ное предложение

38. complex — сложный, комп­лексный

39. forthcoming — предстоя­щий, ожидаемый opportunity

40. costs - альтер­нативные издержки

41. accountant - бухгалтер

42. explicit — явный, откровен­ный

43. implicit - подразумеваю­щийся

44. to calculate — подсчитывать, вычислять, рассчитывать for(e)go — предшествовать (по времени или в про­странстве)

45. to convert — обращать, пре­образовывать

46. shape - форма

47. given moment — данный мо­мент

48. sufficiently — достаточно, в достаточной мере

49. to permit — позволять, раз­решать

50. variable — переменный, из­менчивый;

51. a variable — переменная rightward movement — дви­жение вправо

52. conversely — наоборот bountiful crops - обильный урожай

53. General understanding:

1. What is the difference of the concept of supply in macro— and microeconomics?

2. What are opportunity costs?

3. What are implicit costs?

4. What, according to the text, a sole proprietor or the owners should do?

5. What does the elasticity of supply show?

6. What is the difference between the short-time and long-time supply?

7. Why do changes in the supply affect the position of the supply curve?

1. Which of the following is not true:

1. Supply is a concept of macroeconomics.

2. Economists differ from bookkeepers and tax-gatherers because they include also opportunity costs.

3. The shape of the supply curve provides specialist with the information on elasticity of supply and the reflection of the shareholder.

4. The supply curve is a line on a diagram where the vertical axis measures price and the horizontal axis is quantity.

5. Bountiful crops is a cause of increase in supply.

6. Improvements in technology and changes in input prices and productivities are the main causes of the changes in elastic demand.

2. Find equivalents in Russian:

1. fundamental concept

2. current prices

3. business costs for wages,

4. sole proprietor

5. alternative investment projects.

6. coefficient of elasticity

7. a decrease in supply

8. improvements in technology

3. Find antonyms for the following words. Write one sentence with each:

1. expected —

2. complex —

3. possible —

4. future -

5. competitive -

4. Find the synonyms of the following:

1. accountant —

2. calculate —

3. permit -

4. expect -

5. complex —

6. opportunity —

7. businessman -

5. Define the following terms in English:

1. aggregate supply

2. opportunity costs

3. sole proprietor

4. elasticity of supply

5. coefficient of elasticity

54. Questions for discussion:

1. How do you understand: «Economists differ from accountants and from the Internal Revenue Service»?

2. In what sphere can a person with the economic education work?

Белых Ирина Леонидовна 1

Каскевич Алена Алексеевна 1

1

Учебное пособие 1

АНГЛИЙСКИЙ ЯЗЫК 1

ВВЕДЕНИЕ 2

UNIT 1 3

WHAT IS “MANAGEMENT”? 3

TRADITIONAL INTERPRETATION 3

VOCABULARY 12

UNIT 2 16

WHAT YOU NEED TO BECOME A SUCCESSFUL LEADER 16

HOW ТО MOTIVATE YOUR EMPLOYEES? 22

3.UNIT 3 30

4.FORMS OF BUSINESS ORGANIZATION 30

5.SOLE PROPRIETORSHIP 30

112.HOW ТО MOTIVATE YOUR EMPLOYEES? 34

177.LIMITED LIABILITY COMPANY (LLC) 38

203.Text 1 39

Case 1 54

1.Find the English equivalents for the following words and expressions: 6

growth of sales, huge potential, according to some estimates, large volume, rates of birth rate, the low price, sales abroad, fast service, the seller; 6

to be based on the main values, to create a known brand, to create the new concept, to open an outlet, to profit, be successful, to be the initiator of the organization of a fast food; 6

2.Translate into Russian: 6

3.Match the following: 6

4.Say whether these statements are true or false: 6

1.Find the English equivalents for the following words and expressions: 11

to throw down a challenge to something, to exceed, direct the enterprise, to work in the company, to get profit, to provide profit on invested, to develop capacity, to supervise production of ice cream, to employ, sell at retail, to be 11

appointed to a position of the manager; 11

gross sales volume, in-service education, position, feeling of social responsibility, consumption, profit to a deduction of taxes, growth of sales, corporate values, quality of production, the production manager. 11

Translate into Russian: 11

2.Match the following: 11

3.Say whether these statements are true or false: 11

5.Put some questions to the text and answer them 11

1.Find the English equivalents for the following words and expressions: 13

practice of business relations, short-term profitability, mutual agreement, team of managers, growth strategy, economic situation, business community, employment of the worker, joint venture, communications with suppliers, business Wednesday, business, corporate culture; to run business, to be responsible for something, to face problems, to stop activity, to make decisions, to provide the capital, to create the enterprise, to conclude the agreement, to bribe, be a success. 13

2.Translate into Russian: 13

1.Find the English equivalents for the following words and expressions: 16

share of the market, costs of labor, cheap production, quality questions, the performance level, steady demand on what - or, joint venture, consumers, the competitor, costs of production, taxes; to cut down expenses, to increase sales, to get into debt, operate the enterprise, to return a role of the leader, to raise a salary, to declare bankruptcy, to increase quality, to appear in the market, to make, face problems, to raise tariffs; 16

2.Translate into Russian: 16

4.Say whether these statements are true or false: 17

1.Find the English equivalents for the following words and expressions: to reduce costs of labor, to create joint venture, "to lose" sale, to get on the market, to create manufacturing enterprise, to share secrets of technologies; capacities, the worst quality, profitable business, counterfeit goods, worker, last achievements, advanced technology, producer, consumer, seller; 24

2.Translate into Russian: 24

3.Match the following: 24

1.Find the English equivalents for the following words and expressions: 27

profitability, style of the management, the production operations, the top management of management, the consumer, the production cost, a position, goods withdrawal from sale, production, the worker, a factor cost; to employ, make, work in the company, to call for boycott, to be on sale, to promote (in a position), to operate a production activity, to influence profitability, to be responsible for something. 27

2.Translate into Russian: 27

3.Match the following: 27

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