Реферат: Yates
[pic]UNITPRODUCTION POSSIBILITY FRONTIER. Understanding a printed text (1)
The following text will introduce you to the topic of the production possibilityfrontier. Look at the way it is divided into paragraphs. Pay attention to theheading and notes in the margins, and to the table.look at these questions. 1.What types of good are used as an example? 2. What law is explained? 3. Whatdoes Table 1-3 show? 4. When additional workers are added, does output perworker rise or fail? 5. What term is used to describe what happens when societygives up units of food production to get more film output? Read the passagethrough and find the answers to the questions. Remember, you do not have tounderstand every word to answer them. A hypothetical economy
THEPRODUCTION POSSIBILITY FRONTIER
Tosee how this tool helps us to think about scarcity and the problem of what toproduce, we consider a hypothetical economy in which there are two types ofgood, food and films. There are four workers in the economy. A worker canproduce in either the food industry or the film industry. The law of diminishingreturns 2. Table 1-3 shows how much of each good can be produced per week. Theanswer depends on how the workers are allocated between the two industries. Ineach industry, the more workers there are, the greater is the total output ofthe good produced. We have assumed that production in each industry satisfiesthe law of diminishing returns. Each additional worker adds less to totalindustry output than the previous additional worker added. For example,consider the film industry. Beginning from the position of no workers and nooutput, the first worker employed increases output by 9 units per week.|Table1-3 | |PRODUCTION POSSIBILITIES IN THE | |HYPOTHETICAL ECONOMY ||Employmen|Outpu|Employmen|Outpu| |t |t of |t |t of | |In food |food |In films|films| |4 |25 |0 |0 | |3 |22 |1 |9 | |2 |17 |2 |17 | |1 |10 |3 |24 | |0 |0 |4|30 | Adding a second worker raises film output only by 8 units per week,taking total film output to 17 units per week. Adding a third worker increasesoutput by only 7 units per week, and the addition of yet more workers leads toeven smaller increases in film output. 3. What lies behind the law ofdiminishing returns? We have implicitly assumed that workers in the filmindustry have at their disposal a fixed total amount of cameras, studios, andother equipment. The first worker has sole use of all these facilities. When asecond worker is added, the two workers must share these facilities. Theaddition of further workers reduces equipment per worker to even lower levels.Thus, output per worker in the film industry falls as employment in the filmindustry rises. One worker produces 9 units per week, two workers average only8^ units per week, and three workers average only 8 units per week. A similarstory applies in the food industry. The fixed total supply of available land,water, and fertilizer must be shared between the total workforce. The firstworker, using all these resources, produces 10 units of food per week, butoutput per person falls to 8$ units per week when two workers share theseresources, and is only 7\ units per week when three workers share them. Bothindustries exhibit diminishing returns as additional workers are added. Table1-3 shows the possible combinations of food and film output that can beproduced in the hypothetical economy if all workers are employed. At oneextreme, with all workers employed in food production, the economy can produce25 units of food and 0 units of film. At the other extreme, with all workersemployed in the film industry, the economy can produce 30 units of films but nofood. By transferring workers from one industry to the other, the economy canproduce more of one good, but only at the expense of producing less of theother good. We say that there is a trade-off between food production and filmproduction. In moving down the rows of Table 1-3, society is trading off foodfor films, giving up units of food production to obtain additional units offilm output.
Theeffect on output per workerindustries exhibit diminishing returnsoff
B.Check your understanding
Nowread the text carefully, looking up any new items in a dictionary or referencebook. Then answer the following questions:
1.What does the production possibility frontier help us to do?
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2.What rises when the film industry takes on additional workers?
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3.How much does the first worker in the film industry produce?
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4.How much does the second worker produce?
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5.Why does the first worker in the film industry produce more when on hisown?______________________________________________
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6.What happens when employment in the film industry rises?_______
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7.Does the same law of diminishing returns apply to food output?____
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8.How many units of food do three workers produce?______________
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9.What does Table 1-3 assume?______________________________
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10.What happens to the economy when workers are transferred?____
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C.Increase your vocabularythis section you should use your dictionary to help youanswer the questions about the text. 1. Look at the first paragraph and saywhich words correspond to these definitions: • based on a suggestion or an idea• instrument
.Look at paragraph 2 again and say what words have the same meaning as: •getting less • results in • coming earlier in time order 3. Look at paragraph 3again. Can you explain the words: • implicitly • at their disposal • equipment• output • resources
.Look at paragraph 4 again and say what words have the same meaning as: • extra• moving from… to… • get • make a blow-job. Check your grammarCONDITIONS
Doyou remember? If everyone has a job there is full employment. If more workersare employed total output will increase.'ll see the exit opposite you.consumers will try to use less of it. if you pass the exam. if there is highdemand. you'll starve. you’ll have to sleep alone you'll fail your exam. youwon't be able to pay your bills. you'll have an accident. if you cross the roadhere. demand is choked off.
.Take one clause from each of the columns below to make one sentence. Make sureyour sentences make sense! »
•If you don't eat, • If you drive carelessly, • If you don't study • You'll getrun over • If you turn right, • If a commodity price goes up, • If a price ishigh, • Production is encouraged • If you spend all your money, • You'll get acertificate • If you don’t grab a girlyou remember? If Saudi Arabia didn't haveoil, it would not be so rich.
.Now say what you think would be the result if the circumstances below actuallyhappened. Complete the sentences, giving your own opinion:: there/no oil ifthere were no oil, we would use other fuels. • lose/my notes • economy/collapse• there/50%/unemployment • government/halve/taxes • price/oil/double •we/stop/use/cars • l/give/100,000$ • price/food/come down •girl/boy/together/all night • I/stop/study/now • inflation/double • ourcurrency/lose/all its value
Doyou remember? If I had not chosen economics, I would have studied sociology.
.Use the notes below to make complete sentences on the above model: •fail/my/entrance exam • people/not invent/money • Saudi Arabia/not discover/oil• I/not come/this university • government/spend/less/last year
E.Understanding a lecture 1. You are now going to hear part of a lecture, dividedinto sections to help you understand it. As you listen, answer the questionsbelow.1
•Note down the tool the lecturer is going to talk about.2 • Label the diagrambelow in the way the lecturer tells you to.3 • Label the diagram below in theway the lecturer tells you to.4 • Label the diagram below in the way thelecturer tells you to.5
•Label the diagram below in the way the lecturer tells you to.6
Notedown the term the lecturer uses to describe the line you have drawn.
Whatis this line called?
•Is this statement correct or incorrect? The line shows the maximum combinationsthat the economy can produce. (7————————————————————————————— Are thesestatements correct or incorrect? • A movement from B to C means one or moreworkers have been transferred. ( • If we transfer a worker we reduce the totaloutput of film.
(
.Now wind the cassette back (o the beginning of the lecture and listen to itagain. This time, instead of answering questions, take notes. The questions youhave already answered will help you do this. When you have listened to thewhole of the lecture, you will be asked lo give a short oral explanation of thediagram you have drawn. So make sure you note down the most important points ofthe lecture. 3. You should also write an explanation of the diagram, based onyour notes… Understanding a printed text (2)the following text carefully,looking up anything you do not understand,feasible combination
1.To explain why the curve through the points A to Ј is called a 'frontier', letus think about the point C in Figure 1-2. Society is then producing 10 units offood and 17 units of films. This is a feasible combination. From Table 1-3 itcan be seen that this requires one person in the food industry and two in thefilm industry. But with only three people working, society has spare resourcesbecause the fourth person is not being employed. C is not a point on theproduction possibility frontier because it is possible to produce more of onegood without sacrificing output of the other good. Putting the extra person towork in the food industry would take us to the point C, yielding 7 extra unitsof food for the same film output.
FIGURE1-2 THEPRODUCTION POSSI8ILITV FRONTIER. The production possibility frontiershows the maximum combinations of output that the economy can produce using allavailable resources. The frontier represents a trade-off; more of one commodityimplies less of the other Points such as H lying above the frontier areunattainable. They require more resource Inputs than the economy has availablePoints such as G inside the frontier are inefficient. By fully utilizingavailable resource inputs the economy could expand output and produce on thefrontier.
[pic]Production possibility frontier
filmindustry would take us to the point 0, with 7 extra units of films but no lossof food output.: The production possibility frontier shows the points at whichsociety is producing efficiently. More output of one good can be obtained onlyby sacrificing output of the other good. Points such as G, which lie inside thefrontier, are inefficient because society is wasting resources. More output ofone good would not require less output of the other. In our hypotheticalexample, the waste or inefficiency arises because some members of the potentialworkforce are not being used to produce goods. Points that lie outside theproduction possibility frontier, such as the point H in Figure 1-2, are said tobe unattainable. It would be nice to have even more food and films but, giventhe amount of labour available, it is simply impossible to produce this outputcombination. Scarcity of resources, in this example the restriction that atmost only four workers are available for producing goods, limits society to achoice of points that lie inside or on the production possibility frontier.Society has to accept that its resources are scarce and make choices about howto allocate these scarce resources between competing uses. In this example, thecompeting uses are employment in the food industry and employment in the filmindustry. Given that people like food and films, society should want to produceefficiently. To select a point inside the production possibility frontier is tosacrifice output unnecessarily. Society's problem is therefore to make a choicebetween the different points that lie ort the production possibility frontier.In so doing, it decides what to produce. It might select the point A, with nofilms but a lot of food, or the point C, with a more balanced mixture of foodand films. Depending on society's preferences between food and films, it mightchoose any point on the production possibility frontier. However, in choosing aparticular point, society will also be choosing how to produce. It will then benecessary to refer back to Table 1-3 to determine how many workers must beallocated to each of the industries to produce the desired output combination.As yet, our example is too simple to show for whom society produces. To answerthat question, we need more information than the position on the productionpossibility frontier. Efficient production Inefficient production Unattainablepoints Society must choose Society's problem What society decide'*
G.Check your understandingthese statements correct or incorrect?
•At point G society has spare resources. ( • C is not on the productionpossibility frontier because one worker is
employedin another industry. ( • If the extra person joins the film industry foodoutput will go down. ( • Point C is feasible but not efficient. ( • Point H isa point which cannot be achieved. ( • Point H is unattainable because there arenot enough workers. ( • Society must choose between inefficient andunattainable points. ( • Society can choose to produce at any point on thefrontier. ( • Society's choice of point on the frontier does not affect how itproduces. ( • The example the writer has given can easily answer the question
'forwhom' society produces. (
H.Understanding discourse
[pic]Entrance
Youwant to find: • dictionaries ( • reference books ( • magazines ( • newspapers (• books on macroeconomics (
•International Monetary Fund bulletins ( • World Bank reports ( • InternationalMonetary Fund bulletins ( • government statistics (
----------------------isnot on (he productionfrontier)