Week 5
Texts: «Market Economy»
Grammar: The Infinitive
Communicative practice: «Telephone conversation».
Text.Market Economy
The notion of a "free market" where all economic decisions regarding transfers of money, goods, and services take place on a voluntary basis, free of coercive influence, is commonly considered to be an essential characteristic of capitalism. Some individuals contend, that in systems where individuals are prevented from owning the means of production (including the profits), or coerced to share them, not all economic decisions are free of coercive influence, and, hence, are not free markets. In an ideal free market system none of these economic decisions involve coercion. Instead, they are determined in a decentralized manner by individuals trading, bargaining, cooperating, and competing with each other. In a free market, government may act in a defensive mode to forbid coercion among market participants but does not engage in proactive interventionist coercion. Nevertheless, some authorities claim that capitalism is perfectly compatible with interventionist authoritarian governments, and/or that a free market can exist without capitalism.
A legal system that grants and protects property rights provides property owners the entitlement to sell their property in accordance with their own valuation of that property; if there are no willing buyers at their offered price they have the freedom to retain it. According to standard capitalist theory, as explained by Adam Smith, when individuals make a trade they value what they are purchasing more than they value what they are giving in exchange for a commodity. If this were not the case, then they would not make the trade but retain ownership of the more valuable commodity. This notion underlies the concept of mutually-beneficial trade where it is held that both sides tend to benefit by an exchange.
In regard to pricing of goods and services in a free market, rather than this being ordained by government it is determined by trades that occur as a result of price agreement between buyers and sellers. The prices buyers are willing to pay for a commodity and the prices at which sellers are willing to part with that commodity are directly influenced by supply and demand (as well as the quantity to be traded). In abstract terms, the price is thus defined as the equilibrium point of the demand and the supply curves, which represent the prices at which buyers would buy (and sellers sell) certain quantities of the good in question. A price above the equilibrium point will lead to oversupply (the buyers will buy less goods at that price than the sellers are willing to produce), while a price below the equilibrium will lead to the opposite situation. When the price a buyer is willing to pay coincides with the price a seller is willing to offer, a trade occurs and price is determined.
However, not everyone believes that a free or even a relatively-free market is a good thing. One reason proffered by many to justify economic intervention by government into what would otherwise be a free market is market failure. A market failure is a case in which a market fails to efficiently provide or allocate goods and services (for example, a failure to allocate goods in ways some see as socially or morally preferable). Some believe that the lack of "perfect information" or "perfect competition" in a free market is grounds for government intervention. Other situations or activities often perceived as problems with a free market may appear, such monopolies, monopsonies, information inequalities (e.g. insider trading), or price gouging. Wages determined by a free market mechanism are also commonly seen as a problem by those who would claim that some wages are unjustifiably low or unjustifiably high. Another critique is that free markets usually fail to deal with the problem of externalities, where an action by an agent positively or negatively affects another agent without any compensation taking place. The most widely known externality is pollution. More generally, the free market allocation of resources in areas such as health care, unemployment, wealth inequality, and education are considered market failures by some. Also, governments overseeing economies typically labeled as capitalist have been known to set mandatory price floors or price ceilings at times, thereby interfering with the free market mechanism. This usually occurred either in times of crises, or was related to goods and services which were viewed as strategically important. Electricity, for example, is a good that was or is subject to price ceilings in many countries. Many eminent economists have analyzed market failures, and see governments as having a legitimate role to mitigate these failures, for examples through regulation and compensation schemes.
However, some economists, such as Nobel prize-winning economist Milton Friedman as well as those of the Austrian School, oppose intervention into free markets. They argue that government should limit its involvement in economies to protecting freedom rather than diminishing it for the sake of remedying "market failure." These economists believe that government intervention creates more problems than it is supposed to solve. Laissez-faire advocates do not oppose monopolies unless they maintain their existence through coercion to prevent competition, and often assert that monopolies have historically only developed because of government intervention rather than due to a lack of intervention. They may argue that minimum wage laws cause unnecessary unemployment, that laws against insider trading reduce market efficiency and transparency, or that government-enforced price-ceilings cause shortages.
Answer the following questions
1. How should government act in an ideal free market?
2. How do you understand the concept of mutually-beneficial trade?
3. How is the price determined?
4. What is a market failure?
5. What is the best known externality?
| transfer | - | 1) передача, передача в собственность; 2) уступка (имущества, права); 3) перевод (денежных сумм); 4) перечисление; 5) (бухг) перенос |
| voluntary | - | 1) добровольный; 2) неоплачиваемый; безвозмездный (о работе); 3) намеренный, сознательный, умышленный |
| influence | - | влияние, воздействие |
| to contend | - | утверждать, заявлять (that) |
| to prevent | - | 1) предотвращать, предупреждать, предохранять; 2) мешать, препятствовать, не допускать |
| to coerce | - | принуждать, принудить |
| hence | - | 1) значит; 2) отсюда; 3) следовательно |
| coercion | - | 1) принуждение, насилие, применение силы 2) сила принуждения; возможность принудить |
| to bargain | - | 1) торговаться о цене; 2) вести переговоры, договариваться; 3) заключить сделку; 4) прийти к соглашению, условиться (for), договориться |
| to compete | - | состязаться, соревноваться, конкурировать |
| defensive | - | защитный, оборонительный, оборонный, защищающий, направленный на защиту, защитительный |
| mode | - | 1) способ, метод; 2) образ действий; 3) режим |
| to engage | - | 1) нанимать (проводника, адвоката, прислугу); 2) заниматься чем-л. (in/on/with); 3) обязываться (oneself) |
| proactive | - | 1) активный, прогрессивный; 2) ухудшающий; |
| compatible | - | совместимый, сходный |
| entitlement | - | 1) право на что-л.; 2) документ о праве; 3) предоставление права |
| in accordance with | - | согласуясь с (чем-л.), в соответствии с (чем-л.) |
| valuation | - | оценка, определение ценности, стоимости |
| to retain | - | 1) удерживать; 2) поддерживать; 3) сохранять |
| mutually beneficial | - | взаимовыгодный |
| to ordain | - | устанавливать в законодательном порядке, предписывать |
| to part | - | 1) разделять(ся), отделять(ся); 2) отдавать; 3) расставаться |
| equilibrium point | - | точка равновесия |
| in question | - | о котором идет речь |
| oversupply | - | поставка, превышающая спрос или требование |
| to coincide | - | совпадать, совмещаться |
| to proffer | - | предъявлять, представлять (документ в суд) |
| market failure | - | трудности на рынке труда |
| perfect information | - | полная информация |
| perfect competition | - | совершенная (чистая) конкуренция (такое положение, при котором цена товара на рынке одинаковая, у продающих отличное знание условий рынка; имеет место полная свобода перемещения факторов производства от промышленности одного вида к промышленности другого вида и нет транспортных издержек; этот тип конкуренции называют также немонопольным, представляет собой традиционный экономический идеал эффективности) |
| monopoly | - | монополия (рыночная структура, характеризующаяся наличием на рынке какого-либо товара или услуги единственного продавца, защищенного от появления конкурентов любого рода барьерами на вход, а также многочисленных покупателей, что обеспечивает продавцу возможность влияния на рыночную цену) |
| monopsony | - | монопсония, монополия покупателя (рыночная структура, характеризующаяся наличием на рынке только одного покупателя товара, услуги или ресурса, что обеспечивает покупателю возможность влиять на уровень цен) |
| insider trading | - | инсайдерные торговые операции с ценными бумагами, покупка (акций) осведомленным лицом (незаконные операции с ценными бумагами на основе внутренней информации о деятельности компании-эмитента) |
| to gouge | - | обманывать, надувать; назначать завышенную цену |
| unjustifiably | - | неоправданно, незаконно, непозволительно |
| critique | - | 1) критика; 2) рецензия; критическая статья |
| externalities | - | внешние эффекты, экстерналии (положительные или отрицательные побочные последствия производства или потребления, осуществляемого одним субъектом/субъектами, напрямую затрагивающие другого субъекта/субъектов) |
| agent | - | 1) агент, представитель; 2) посредник, поверенный; снабженец; 3) действующая сила, фактор |
| pollution | - | загрязнение (окружающей среды) |
| allocation of resources | - | распределение ресурсов |
| health care | - | здравоохранение |
| unemployment | - | безработица |
| to oversee | - | 1) надзирать 2) наблюдать (за) |
| to label | - | 1) прикреплять ярлык, этикетку, навешивать бирку и т. п.; 2) категоризировать, относить к какой-л. категории; приклеивать, навешивать ярлык (as) |
| mandatory | - | обязательный |
| price floor | - | минимальная цена |
| price ceiling | - | потолок цен, максимальная цена (установленный государством предел повышения цен) |
| thereby | - | 1) таким образом; 2) в связи с этим, следовательно |
| eminent | - | выдающийся, знаменитый, видный |
| legitimate | - | 1) законный; 2) правильный |
| to mitigate | - | смягчать, уменьшать (строгость, суровость; наказание), умерять, сдерживать (жар, пыл), облегчать (боль, страдание) |
| involvement | - | вовлеченность, участие (в чем-л. - in; with) |
| to diminish | - | 1) уменьшать(ся), сокращать(ся); 2) ослаблять, слабеть |
| for the sake of | - | ради |
| to remedy | - | 1) исправлять; 2) излечивать; 3) возмещать |
| laissez-faire | - | "лессэ-фэр" (Принцип невмешательства государства в экономическую деятельность частного сектора. Теоретические основы такой политики разработаны в трудах Адама Смита и представителей классической школы политэкономии. Применение этого принципа в чистом виде характерно для ранних стадий развития американской экономической системы (XIX - начало XX вв.)) |
| to assert | - | утверждать, заявлять, отстаивать, защищать (претензию, право) |
| minimum wage | - | минимальная заработная плата |
Grammar:
The Infinitive
The infinitive developed from the verbal noun, which in course of time became verbalized, retaining at the same time some of its nominal properties. Thus in Modern English the infinitive, like the participle and the gerund, has a double nature, nominal and verbal.
1. The nominal character of the infinitive is manifested in its syntactic functions. The infinitive can be used:
(a) as the subject of a sentence. To go on like this was dangerous. (Galsworthy)
(b) as a predicative. Her plan was now to drive to Bath during the night. (Hardy)
(c) as an object. I have never learnt to read or write. (Collins)
2. The verbal characteristics of the infinitive are as follows:
(a) the infinitive of transitive verbs can take a direct object. He... began to feel some curiosity... (Eliot)
(b) the infinitive can be modified by an adverb. I cannot write so quickly.
(c) the infinitive has tense and aspect distinctions; the infinitive of transitive verbs has also voice distinctions.
In Modern English the infinitive has the following forms:
| Active | Passive | |
| Indefinite | to write | to be written |
| Continuous | to be writing | — |
| Perfect | to have written | to have been written |
| Perfect Continuous | to have been writing | — |
The tense and aspect distinctions of the infinitive.
Like the tense distinctions of all verbals those of the infinitive are not absolute but relative.
1. The Indefinite Infinitive expresses an action simultaneous with the action expressed by the finite verb, so it may refer to the present, past or future.
I am glad to meet you. (Dreiser)
I was glad to see Mr. Paul. (Ch. Bronte)
Mr. Forsyte will be very glad to see you. (Galsworthy)
2. The Continuous Infinitive also denotes an action simultaneous with that expressed by the finite verb, but it is an action in progress. Thus the continuous, infinitive is not only a tense form, but also an aspect form, expressing both time relations and the manner in which the action is presented.
They happened, at the moment, to be standing near a small conservatory at the end of the garden. (Collins)
В этот момент они как раз стояли около небольшой оранжереи в конце сада.
3. The Perfect Infinitive denotes an action prior to the action expressed by the finite verb.
“I’m glad to have seen you,” he said. (Dreiser)
«Я рад, что повидал вас», — сказал он.
An intimate friend is said to have dined with him that day. (Hardy)
Говорят, что в этот день у него обедал его близкий друг.
After such verbs as to mean, to expect, to intend, to hope used in the Past Indefinite, the Perfect Infinitive shows that the hope or intention was not carried out.
I meant to have gone there.
Я собирался пойти туда (но не пошел).
I meant to have given you five shillings this morning for a Christmas-box, Sam. I’ll give it you this afternoon, Sam. (Dickens)
Я хотел подарить вам пять шиллингов на рождество, Сэм; я подарю их
вам сегодня, Сэм.
The same meaning can be conveyed by the Past Perfect of the finite verb followed by the Indefinite Infinitive.
I had meant to go there.
He had meant to marry me. (Eliot)
Он имел намерение жениться на мне.
Some English grammarians prefer the latter construction.
N o t e. — The idea, however, is often expressed in the following way: I meant to go there, but never did.
4. The Perfect Continuous Infinitive denotes an action which lasted, a certain time before the action of the finite verb. It is not only a tense form, but also an aspect form.
For about ten days we seemed to have been living on nothing but cold meat, cake and bread and jam. (Jerome)
Дней десять мы, казалось, питались только холодным мясом, печеньем и хлебом с вареньем.
Exercise 1.
Translate.
1. He objects to spending his summer vocation in the south. 2. He objects to Helen’s spending her summer vocation in the south.3. He has some hope of going there in the autumn. 4. He has some hope of his daughter’s going there in the autumn. 5. I insist on going there at once. 6. I insist on your going there at once. 7. I have no objections to spending the summer on the Volga. 8. I have no objections to my children’s spending the summer on the Volga. 9. She is proud of being Professor A’s pupil. 10. She is proud of her son’s being Professor A’s pupil.
Exercise 2.
Define the function of the gerunds in the following sentences.
1. On entering the room he greeted everybody. 2. I am fond of skating. 3. I don’t remember seeing him before. 4. Skiing is very pleasant. 5. I’ve finished reading this book. 6. You can improve your knowledge of English by reading more. 7. He succeeded in finishing his work in time.
Exercise 3.
Translate.
1. He has a strange habit of drinking strong tea in the evening. 2. Is there any hope of getting this information tonight? 3. There is no hope of our getting a letter from him soon. 4. There is very little hope of the goods being received before the 1st June. 5. We have no possibility of getting a ticket for this play tonight. 6. There is no hope of the goods being shipped tomorrow. 7. He has a strange way of speaking to children. 8. He has no objection(s) to subscribing to this magazine. 9. They have no objections(s) to Comrade A’s being sent there. 10. He gave me a good idea of using this material for my article. 11. I have no objection(s) to their coming here. 12. There are different ways of solving this problem. 13. There is some hope of his life being saved. 14. There are many ways of making him do it.