Lesson 5

Task 1. Complete the text with the words in the box.

1. to make choices	5. the micro	9. available	13. productive resources	17. to borrow
2. economic forces	6. consumers	10. money	14. to economize	18. methods
3. scarce resources	7. scarcity	11. unlimited	15. the creation	19. income
4. production	8. rent	12. wages	16. limited	20. career

Economic Forces

Human wants are ( 11 ), but the resources necessary to satisfy those wants are

( 16 ). Thus, every society is faced with the identical problem, the problem of ( 7 ). Since there is not enough of everything to go around, everyone — individuals, business firms, and government — needs ( 1 ) from among the things they want. In the process they will try ( 14 ), to get the most from what they have. With this in mind we can define economics as the social science that describes and analyzes choices from among ( 3 ) to satisfy its wants. The need to choose is imposed on us by our ( 7 ), wealth and ability ( 17 ).

The food you eat, the home you live in, the clothes you wear, and the way you spend your leisure time are all affected, in part, by ( 2 ). The study of economics will help you to live a fuller life. Economic forces also affect decisions in the world of business. The more you know about the subject, the better ( 20 ) decisions you will be able to make.

Since that time economists have developed methods for studying and explaining how individuals, business and nations use their ( 9 ) economic resources. Large corporations use economists to study the way they do business and to suggest ( 18 ) for making more efficient use of their employees, equipment, factories, and other resources. Economists have two ways of looking at economics and the economy. One is macro approach, and the other is ( 5 ).

Macroeconomics is the study of the economy as a whole. Microeconomics is the study of individual ( 6 ) and the business firm. The resources that go into the creation of goods and services are called the factors of ( 4 ).

The factors of production include natural resources, human resources, capital and land. The price paid for the use of land is called ( 8 ). Rent becomes income to the owner of the land. Economists call the physical and mental effort that people put into

( 15 ) of goods and services labor or human resources.

The price paid for the use of labor is called ( 12 ). Wages represent income to workers, who own their labour. Capital is something created by people to produce other goods and services. A factory, tools and machines are capital resources. The term capital is often used by business people to refer to ( 10 ) they can use to buy factories, machinery and other similar ( 13 ).

Task 2. Match each of the words or phrases on the left to an appropriate definition.

1 client c	a) to put money into a bank, business, property, etc. in the hope that you will make a profit
2 develop d	b) a product or service that is brought into one country from another
3 fixed costs f	c) a person who uses the services or advice of a professional person or an organization
4 import b	d) 1) to gradually grow or become bigger, stronger, etc. 2) to make sth bigger, better, more advanced, etc.
5 invest a	e) the speed at which a worker or a company or a country produces goods, and the amount produced, compared with how much time, work and money is needed to produce them
6 productivity e	f) the costs that a business must pay that do not change, even if the amount of work produced changes
7 promotion j	g) the group of people who work for a particular company
8 share i	h) 1) a plan that you use in order to achieve sth 2) the process of planning sth or carrying out a plan in a skilful way
9 staff g	i) 1) one part of sth that is divided between two or more people 2) one of many equal parts into which the value of a company is divided and which can be sold to people who want to own part of the company
10 strategy h	j) 1) a move up to a higher position or more important job 2) activities done in order to increase the sales of a product or service; a set of advertisements for a particular product or service

Task 3. Fill in the blanks using the word combinations given below, translate the letter.

Letter 1.

Thank you for ( e ) your studios last week. I was most impressed by ( a ).

I am delighted that you can ( d ) to produce a video to celebrate the company’s 25^th anniversary. This is very special landmark in our history, and it is important that this video portrays both past, present and future.

( f ) have a draft outlining your thoughts for this special video. I ( c ) receiving this before 30 October together with your ( b ).

If you need any further information please give me a call on 2757272.

a) your new facilities

b) approximate costings

c) look forward to

d) accept our invitation

e) inviting me to visit

f) you promised to let me

Letter 2.

We ( b ) dated 27 March 2003.

We are extremely distressed to learn that an error was made pertaining to your esteemed order. Please ( f ) the cause of your complaint has been investigated and it actually appears that the error occurred in our packing section and it was not discerned before this order was ( a ).

( e ) for a repeat order to be dispatched to you ( c ) and this should this should leave our warehouse later today. It is our sincere hope that you will have no cause for further complaint with this replacement order.

Once again we offer our humblest apologies for the ( d ) that you have been caused in this instance.

Please find enclosed herewith a copy of our reference and perusal.

Kindly contact the undersigned if you require any further clarifications.

a) dispatched to your goodself

b) have received your letter

c) immediately

d) unnecessary inconvenience

e) arrangements have been made

f) be informed that

Task 4. Choose the correct variant.

1.The board of directors informed the stockholders of the risks of … in South Africa.

a) importing

b) investing

c) exporting

d) merging

2. Our … dropped by 10% in the afternoon.

a) papers

b) shares

c) goods

d) markets

3. The government spent … on light industry last year.

a) less

b) least

c) most

d) worse

4. New York … always … a center of commerce.

a) had been

b) has been

c) was been

d) will been

5. How many people … in advertising?

a) is involved

b) involved

c) involve

d) are involved

6. I doubt that it was worth … so hard.

a) work

b) working

c) worked

d) be working

7) We … to expand our staff in order to deal with additional work.

a) can

b) could

c) need

d) must

8.Our company … among the eight largest in the world now.

a) was

b) has been

c) is

d) will be

9.If you had helped me I … the work in time.

a) will finish

b) would finish

c) will have finished

d) would have finished

10.I wish I … in Paris.

a) live

b) lived

c) will live

d) am living