MODULUS 1.
UNIT ONE.
I. INTRODUCTORY LESSON.
EXERCISE 1. Producing the Correct Tenses.
For the student: Put the verbs in brackets in the Present Indefinite tense-form and
be ready to translate the text & speak on the contents.Translate the bold typed
words & word combinations into Ukrainian.
For the teacher: Remind the students of the theory (Present Indefinite)
Definitions of Economics
On first encountering economics, you may want a definition. Here are a few that are
commonly heard:
• Economics (is) the study of those activities that involve the production and
exchange of goods.
• Economics (is) an empirical science that (aims) to explain the world around
us.
• Economics (to analyze) movements in the overall economy – trends in prices,
output, and unemployment. Once such phenomena are understood,
economics (to help) to develop the policies by which governments can
improve the performance of the economy.
• Economics (to be) the science of choice. It (to study) how people choose to use
scarce or limited productive resources (land, tabor, equipment, technical
knowledge), to produce various commodities (such as wheat, beef, overcoats),
and to distribute these goods to various members of society for their
consumption.
• Economics (studies) the commerce among nations. It (helps) to explain why
nations export some goods and import others, and (analyzes) the effects of
putting economic barriers at national frontiers.
• Economics (to investigate) the study of money, banking, capital, and wealth.
The list is a good one, yet you could extend it many times over. But if we boil
down all these definitions, we would find a common theme like the following:
Economics (to be) the study of how society use scarce resources to produce
valuable commodities and distribute them among different groups.
EXERCISE 2. Speaking: Introduce Yourself to the Group. (Students’ Personal
File).
II. LESSON 1.
WHAT IS ECONOMICS? YOU STUDY ECONOMICS.
EXERCISE 1. a) Read and memorize the following words, wordcombinations and word-groups:
Economics – 1. економіка, народне господарство; 2. економічна наука
e.g. global (international) ~; Keynesian ~; market ~; planned ~; regional ~;
statistical ~; ~ of education; ~ of production.
economy – 1. економіка, господарство; 2. економія, бережливість;
3. –ies – економія, збереження; 4. економічна доцільність
e.g. agricultural ~; barter ~; black (shadow) ~; developed ~; global
(international) ~; domestic (home) ~; market ~; mixed ~; municipal ~;
national ~; planned ~; profitable ~; stable (unstable) ~; world ~; ~ of scarcity;
to bust (stimulate) the ~; to regenerate the ~; to restruct (restructure,
reorganize) the ~.
scarcity — недостатня кількість, брак чогось
e.g. Every society is faced with identical problem, the problem of
scarcity.
to make choice — зробити вибір
e.g. Everyone goes through life having to make choices.
resources — ресурси
to satisfy one's wants — задовольняти чиїсь потреби
e.g. Human wants are unlimited, but the resources necessary to satisfy
those wants are limited.
individual consumer — окремий споживач
e.g. Microeconomics is the study of individual consumers and the
business firms.
to be faced with the problem — стикатися з проблемою
opportunity costs — можливі витрати
e.g. Business is faced with the problem of choices and opportunity costs.
private ownership — приватна власність
profit — прибуток
e.g. Private ownership gives people the incentive to use their property to
produce things that will sell and earn them a profit.
b) GLOSSARY to the text for its detailed perception
consumer - customer, shopper, client, buyer, end user, purchaser
definition = clearness of outline, meaning, significance, denotation, explication,
interpretation, gist, message
employee = worker, clerk, laborer, hired hand, assistant, toiler, hand
entrepreneur = business-person, manager, executive, capitalist, contractor
to escape = run away, steal away, flee, decamp, skip out; avoid, elude, shun
grips = (here: come to grips with) be in close contact, hold one's attention
and interest to smth.
innovative = progressive, advanced, creative, inventive, resourceful
living = means of subsistence, livelihood, means of survival (existence); way
(mode) of life
profit = gain, earnings, return, revenue
reward = prize, award, honor, premium, grant
to spend - consume, use up, employ, exhaust; disburse, lay out.
c) Vocabulary Training.
For the student: Read the English word-combinations and their Ukrainian
variants: find proper translation for those with the question marks. Make up
your own sentences (or situations) using these word-combinations.
For the teacher: Oral or written; group or individual.
to make (earn) a living = заробляти для забезпечення життя
to work for a living = заробляти на хліб (для життя)
to make an earnest living = заробляти на життя чесною працею
the art of living = вміння жити
the living = світ тварин; наші сучасники
he is still in the land of the living - він ще живий
economics is the study of how people make a living = ?????
heavy responsibilities - важкі обов'язки
to assume (take) a responsibility = взяти на себе відповідальність
to be revealed of responsibility = бути звільненим від зобов'язань
a post of responsibility = відповідальна посада
on one's own responsibility = під свою відповідальність.
to fulfill a promise = виконувати обіцяне
to fulfill conditions = відповідати умовам
economics will also help you to fulfill your responsibilities = ?????
to allocate funds = асигнувати кошти
to allocate duties = розподіляти обов'язки
to allocate = встановлювати, локалізувати
natural resources are allocated under the Earth = ?????
to earn one's living = заробляти на життя
to earn fame = заслужити славу
to earn a great reputation = заробити гарну репутацію
businessmen produce things that will sell and earn them a profit = ?????
individual tastes = особисті смаки
individual question = окреме запитання
an individual style of writing = оригінальний стиль письма
to be individual in one's views = дотримуватись особливих
поглядів
microeconomics is the study of individual consumers and the business firm =
?????
holidays involve expense = свята, пов'язані з витратами
to involve a nation to union = залучати країну до союзу
to involve smb's rights = зачіпати чиїсь права
to involve people in building = запрошувати людей до будівництва
he was involved in working = він занурився у роботу
clouds involved the mountain-top = хмари вкрили
вершину гори
there are several very good reasons, all of which involve you = ?????
the law digest = збірка законів
criminal law = кримінальне право
law sitting = час судових засідань
law of nature = закон природи
open the door, it's a law = Відчиніть двері! Поліція!
the laws of golf = правила гри в гольф
the law of demand describes the relationship between prices and the quantity
of goods and services = ?????
to produce one's passport = пред'явити паспорт
to produce Shakespearean plays = ставити п'єси Шекспіра
to produce pictures = створювати картини
to produce a small income = приносити невеликий прибуток
to produce a rise in prices = викликати підвищення цін
property owners know they will make a profit if they can produce goods and
services =?????
to refer a patient to the drugstore = направити пацієнта до аптеки
to refer to a map = звернутися до карти
to refer ill temper to smth = відносити поганий характер на рахунок...
referring to your letter = посилаючись на ваш лист
several times he referred to the increase in expenditure = він декілька разів
нагадував про збільшення витрат
these remarks refers only to = ці зауваження відносяться лише до...
the term "capital" is often used by businessmen to refer to money they can use
to buy factories = ?????
EXERCISE 2.
Give English equivalents of the following:
приватна власність
зробити вибір
прибуток
задовольняти чиїсь потреби
можливі витрати
pecypcи
недостатня кількість витрачати гроші
окремий споживач
стикатися з проблемою
досягти мети
виробляти товари
EXERCISE 3. Fill in the blanks with appropriate words:
1. Everyone goes through life having to make…
scarcity
2. The price paid for the use of land is called…
wages
3. The price paid for the use of labor is called ....
interest
4. Traditional economic ... are usually found in
rent
the more remote areas of the world.
choices
5. Payment for the use of someone else's money,
systems
or capital, is called ....
resources
6. ...exists because human wants are virtually
unlimited, whereas the necessaries to satisfy those
wants are limited.
7. The ... or factors of production as they are called,
are land, labor, capital and entrepre-neurship.
IV. Read and translate the text:
Human wants are unlimited, but the resources necessary to satisfy those
wants are limited. Thus, every society is faced with the identical problem,
the problem of scarcity. Since there is not enough of everything to go
around, everyone — individuals, business firms, and government — needs
to make choices from among the things they want. In the process they will
try to economize, 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 scarce resources to satisfy its wants. The need to
choose is imposed on us by our income, wealth and ability to borrow.
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 economic forces.
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 carreer decisions you will be able to make.
The development of modern economics began in the 17th century. Since
that time economists have developed methods for studying and explaining
how individuals, business and nations use their available economic
resources. Large corporations use economists to study the way they do
business and to suggest methods 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 the micro. Macroeconomics is the
study of the economy as a whole. Microeconomics is the study of individual
consumers and the business firm.
The resources that go into the creation of goods and services are called
the factors of production. The factors of production include natural
resources, human resources, capital and entrepreneurship. Each factor of
production has a place in. our economic system, and each has a particular
function. Our country is rich in natural resources. Economists also use the
term «land» when they speak of natural resources as a factor of production.
The price paid for the use of land is called rent. Rent becomes income
to the owner of the land. Economists call the physical and mental effort
that people put into the creation of goods and services labor or human
resources. The price paid for the use of labor is called wages. Wages
represent income to workers, who own their labor.
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 money they can use to
buy factories, machinery and other similar productive resources.
Payment for the use of someone else's money, or capital is called
interest.
Closely associated with labor is the concept of entrepreneurship, the managerial or organizational skills used by
most firms to produce goods and services. The reward to
entrepreneurs for the risks, innovative ideas and efforts that
they have put into the business are profits, whatever remains
after the owners of land, labor and capital have received their
payments.
... _
In exercising the choices imposed upon individuals, business
firms and governments by their unlimited wants and limited
resources, every society must come to grips with the
fundamental economic questions: ,
—What goods and services are to be produced?
—How are they to be produced?
—Who Will receive them?
, The way in which a society goes about answering these fundamental
questions is known as its economic system. Economic systems may be
classified as traditional, command or market systems. As the names
suggest, resources are allocated (distributed) in a traditional economy in
accordance with tradition and in a command economy by government
planners. Resources in a market economy are allocated in accordance
with the laws of supply and demand (pp.1—10).*
V.Answer the following questions:
1. Why must all societies deal with scarcity?
2.What is rent?
3.How can we define the term «economics»?
4.What is wages?
5.Why is the need to choose imposed on us?
6.What is interest?
7.What is microeconomics?
8.What is macroeconomics?
9.When did the development of modern economics begin?
10.What questions must every society provide answers to?
11.How do you understand the term «factors of productions?
VI. Define the terms:
economics
capital
interest
microeconomics
macroeconomics wages
profit
labor and human resources
VII. Translate into English:
1. Бажання людини безмежні, а кошти, для здійснення цих бажань,
надто обмежені. 2. Перед кожним суспільством постає проблема нестатку.
3. Економічні чинники впливають на рішення у світі бізнесу. 4. Ресурси,
необхідні для утворення товарів і послуг , називають чинниками
виробництва. 5. Заробітна плата - це та винагорода, яку отримують
робітники за свою працю. 6. Купуючи фабрики, машини та інші засоби
виробництва, ділові люди часто вживають термін "капітал". 7. Економіка це наука, яка описує та аналізує вибір з-поміж недостатніх ресурсів, які
мають задовольнити потреби населення. 8. Кожний чинник виробництва
має місце в нашій економічній системі і кожний виконує відповідну
функцію.
VIII.
Read and dramatize the following dialogue:
P.: Hello, Bob!
B.: Oh, Peter, glad to see you. Haven't seen you for a long
time. What have you been busy with, and what are you
doing now?
P.: I'm a student of the Kyiv University. And what about you?
B.: You know, when I received my school leaving certificate,
I decided to work at a plant and get a speciality.
P.: What speciality have you got?
S.: I'm a fitter now, I get good wages and I can support my
mother. And now that I have become a skilled worker
I think already I can combine my job with studies by taking correspondence
courses or attending the evening faculty of an institute.
P.: What institute do you want to enter?
В.: I have thought about the Cherkassy Engineering and Technological
Institute, but I haven't yet decided. I'd like to become an economist.
Р.: Is it really interesting for you?
В.: Oh, yes, of course. I know that the studying of economics will help us to
understand the economic forces better and enable us to live a fuller life.
Р.: Do you know what is the basic economic problem?
В.: I think I do. The central problem of economics is to determine the most
efficient ways to allocate the factors of scarcity created by society's
unlimited wants and limited resources.
Р.: But in doing so, every society must provide answers to the following
three questions:
—What goods and services are to be produced and in what qualities are
they to be produced?
—How are those goods and services to be produced?
—Who will receive and consume (get to use) those goods and services?
В.: You are right. The way in which a society goes about answering these
fundamental questions is known as its economic system. I'd like to study the
economic system of our country.
Р.: Now I understand you and I hope you will enter the institute and become
a very good economist.
В.: Well, I am a bit hungry, why don't we have a snack together?
Р.: Good idea. Let's go and have a snack in the cafe.
IX. Make up your own dialogue using the following
expressions and word-combinations:
a limit to the resources
the problem of scarcity
to make choices
to purchase goods and services
to pay opportunity costs
economic forces
factors of production
the basic economic problem
X.Inform the group about your activities and find out if
he or she does the same:
M o d e l : I decide to become an economist. And what about him? (too)
He decides to become an economist too.
1. I pay for the use of land. And what about her? (regularly) 2. I negotiate a
sale. And what about her? (too) 3. I want to know more about the subject.
And what about him? (too) 4. I need to make choices from among the things
I want. And what about her? (from time to time) 5. I expect you to use your
property to produce things that will sell and earn you a profit. And what
about him? (too)
XI.
Express doubt concerning the truth of the following statements:
M o d e l : He understands your question.
I'm afraid he doesn't understand your question. 1. You know his decision.
2. Everyone goes through life having to make choices. 3. Economic forces
affect decisions in the world of business. 4. Large corporations use
economists to study the way they do business and to suggest methods for
making more efficient use of their equipment, factories, and other
resources. 5. Each factor of production has a place in our economic
system. 6. The study of economics helped me to understand the economic
forces better.
XII. Ask about the following as in the model:
M o d e l : Ask your friend if he knows what is the basic economic problem.
Do you know what is the basic economic problem? 1. Ask your friend if
John knows the answers to the fundamental economic questions. 2. Ask
your friend if rent becomes income to the owner of the land. 3. Ask your
friend if he wants to study economics. 4. Ask your friend if economic forces
affect decisions in the world of business. 5. Ask your friend if the
resources go into the creation of goods and services.
XIII. Translate into English:
1. Приватна власність дає любдям стимул використовувати свою
власність для отримання прибутку. 2. Економіка – наука, яка вивчає
специфіку розвитку економічних відносин в окремих сферах
народного господарства. 3. Відношення власності на засоби
виробництва утворюють основу економіки. 4. Мені цікаво знати, чи
впливають економічні чинники на рішення у світі бізнесу. 5. Вивчення
економіки дає мені можливість краще орієнтуватися в бізнесі. 6.
Заробітня плата – це грошова винагорода за використану працю.
EXERCISE № 2
Discussion.
For the student: Divide the text into some sense-fragments, entitle each one in
question-form, and present your partner with a chance of answering them. The
questions are desirable to he offered in some variants.
For the teacher: Group or pair discussion.
EXERCISE № 3
Sentence Structure.
For the student: While translating the sentences mind the accentuation.
For the teacher: Remind the students of the theory ("there to be ").
There are still important gaps in our understanding of the economy. 2. Thus on a
microeconomic level, there are identifiable gainers and losers from international
trade. 3. There are other, perfectly legal ways to achieve a positive balance. 4. We
shall also refer to all depository institutions as "banks", even though there are
important distinctions among them. 5. Suppose, to keep things simple, that there is
only one bank in town, University Bank. 6. There are many alternative
combinations of houses and cars that we could produce. 7. There are times,
however, when the car breaks down. 8. There are always political choices to be
made. 9. There is simply no compelling reason why we have to continue polluting
the environment. 10. There will always be a gap between competitive outcomes and
those monopoly outcomes likely to entice new entry. 11. There is still a problem,
however. 12. There are few schools or teachers, little educational material is
available, and the children are needed to help produce income. 13. There is little
margin for saving. 14. There is some doubt about the wisdom of shipping nuclear
submarines or long-range missiles to a potential enemy, even for a high price. 15.
Trade restrictions are justified only if there is tangible evidence that the industry
can develop reasonable quickly and expand the gains from trade. 16. There is an
obvious link between macro theory and micro policy. If macro theory can identify a
few major causes of the business cycle, there is at least some hope of devising an
effective policy to control it.
EXERCISE № 4
For the student: Grasp the full sense of this sentence, divide it into word-groups or
segments to demonstrate your understanding of it (choose one of the variants).
For the teacher: Written (on blackboard or in exercise-book).
Example:
Variant 1 = Despite the widespread concern for the economy, || few people really
understand || how it works.
Variant 2 = Despite the widespread concern for the economy, few
people really understand
how it works.
However abstract "the economy" might seem, it is very much a part of our everyday
lives. We spend much of our lives working to produce the goods and services that
flow from our factories and offices. We spend a good part of the remaining time
consuming those same goods and services.
EXERCISE № 5
For the student: Fill in the blanks with the following words: wages, interest,
rent, choices, systems, resources.
For the teacher: Oral or written; group or individual.
Everyone goes through life having to make (1)….. The price for the use of land
is called (2)….. The price paid for the use of labor is called (3)..... Traditional
economic (4)…… are usually found in the more remote areas of the world.
Payment for the use of someone else's money, or capital is called (5)……The
(6)…… or factors of production as they arc called, are land, labor, capital and
entrepreneurship.
EXERCISE № 6
For the student: Give the English translation of the text.
For the teacher: Oral or written; group or individual.
Чим більше ми знаемо про економіку, тим краще ми можемо розрахувати свій
бюджет. 2. Економічні чинники впливають на рішення у світі бізнесу. 3.
Ресурси, необхідні для утворення товарів та послуг, називають чинниками
виробництва. 4. Заробітна плата – це та винагорода, яку отримують робітники
за свою працю. 5. Купуючи фабрики, машини та інші засоби виробництва
ділові люди часто вживають термін «капітал». 6. Кожен чинник виробництва
має місце в нашій економічній системі і кожний виконує відповідну функцію.
7.Економіка – це наука про те як люди забезпечують своє проживання.
EXERCISE № 7
Producing the correct tenses.
For the student: Put the verbs in brackets in the Present Indefinite tense-form
and be ready to speak on the contents.
For the teacher: Remind the students of the theory (Present Indefinite)
The Supply of Foreign Currency
Foreigners (1)....... (have) the same kind of demand for US dollars that we (2)
..... (have) for foreign currencies. They (3)........ (buy) our merchandise (our
exports, their imports), (4) .......... (travel) in the United States, and (5)............
(invest) in productive resources located within or borders. Such demands for US
dollars also (6) ..........(represent) a supply of foreign currencies. That is to say,
foreigners (7) ............(offer) to exchange (or supply) foreign currency when they
(8).... …(desire) US dollars. Another source of demand for US dollars (9)…….
(be) the overseas profits of American firms. A company that (10)…….(invest)
in a foreign country (11) ……….(want) to get some of its profits out sooner or
later. US firms have accumulated a tremendous investment in foreign countries.
These investments now (12) …….. (generate) a steady flow of profits and
dividends back to the United States. This flow (13)…..…(require) the
conversion of foreign currencies into US dollars: supply of foreign currencies or
demand for US dollars. US dollars are also demanded for foreign purchases of
US securities. Foreign investors and governments (14)……..(buy) a huge
volume of US Treasury bonds, which (15)……..(offer) both good security and
a relatively high rate of interest. Foreigners also (16)…….(buy) shares of stock
in US corporations and sometimes entire companies. They (17) …….(need) US
dollars for ail these investments.
EXERCISE № 8
Modal Verbs.
For the student: While translating the sentences mind the accentuation.
For the teacher: Remind the students of the theory ("can ").
Efficient division of labour requires a system where people can exchange the
things they produce for the things they desire. 2. The "money" you have in a
checking account can be used to buy goods and services or to pay debts, or can be
retained for future use. 3. Checking accounts can and do perform the same market
functions as cash. Hence you can spend your saving account just as easily as your
checking-account balance. 4. Commercial bank imposed strict minimum-balance
requirements and limits on the number of checks that could be written. 5. You can
spend all such deposits directly in the marketplace, simply by writing a check. 6.
Because all transactions accounts can be spent as readily as cash, they are counted
as part of our money supply. 7. Demand deposits can be converted into cash "on
demand" or used to pay for goods and services directly. Traveler's checks issued by
nonbank firms, too, can be used directly in market transactions, just like good oldfashioned cash. Transactions accounts are not the only substitute for cash: even a
conventional savings account can be used to finance market purchases. 8. Funds
held in certificates of deposit cannot be transferred automatically to a checking
account. Nevertheless such accounts still function like "near money" in the sense
that savers can go to the bank and withdraw cash if they really want to buy
something. 9. Moreover, the deposits made into the funds can often be withdrawn
immediately, just like those in transactions accounts.
EXERCISE № 9
Degrees of Comparison.
For the student: While translating the sentences mind the accentuation
and be ready to give the explanations.
For the teacher: Remind the students of the theory ("regular & irregular forms of
comparison ").
The resultant interest payments are typically higher than those paid by banks. 2.
Transaction-account balances are the largest portion of our money supply. 3. The
most important agency in this regard is the Federal Reserve System. 4. The third
defence of market power is the most convincing and also the simplest. A large firm,
it is argued, can produce goods at a lower unit (average) cost than a small one. We
desire to produce goods in the most efficient way and with the least amount of
resources per unit of output. 5. In Haiti, less than 16 percent of children attend
secondary school. 6. One final argument for restricting trade rests on our earlier
discussion of the way the gains from trade are distributed. If we buy fewer imports,
foreign producers may lower their prices. If they do, the terms of trade will move in
our favour, and we shall end up with a larger share of the gains from trade. One
way to bring about this sequence of events is to put restrictions on imports, making
it more difficult or expensive for Americans to buy foreign products. 7. One of the
most popular and visible restrictions on trade is the tariff, a special tax imposed on
imported goods. 8. The most common form of adjustment assistance to importcompeting firms is a subsidy, a direct payment from the public treasury to the
affected firm. 9.Microeconomic resistance to international trade arises from the fact
that imports typically mean fewer jobs and less income for some domestic
industries.
EXERCISE № 10
Producing the Correct Tenses.
For the student: Put the verbs in brackets in the Past Indefinite tense-form and
be ready to speak on the contents.
For the teacher: Remind the students of the theory (Past Indefinite)
Adam Smith (1)....(publish) his pathbreaking book "The Wealth of Nations" in
1776. Almost a century later there (2)....(appear) the massive critique of
capitalism: Karl Marx's "Capital". Economic panics and deep depressions in
1890s and 1930s (3).....(lead) intellectuals of the 20th century to question the
viability of private-enterprise capitalism. For example, during the German
inflation of the 1920s, prices (4).....(rise) one billion percent in 2 years. This
(5)......(destroy) much of the wealth of the middle class, (6)......(lead) to social
unrest, and (7)…..(abet) Hitler's rise to power.
EXERCISE JVs 11
Sentence Structure.
For the student: Give the English translation of the text.
For the teacher: Oral or written: group or individual.
В Україні поступово формується розуміння того, що посилення на
національному ринку ролі банків, які контролюються іноземним капіталом, є
бажаним і корисним з точки зору розвитку національної кредитно-фінансової
системи. В зв’язку з цим проблема використання нових можливостей для
підвищення ефективності діяльності іноземних дорічних банків в Україні є
актуальною для вітчизняних і зарубіжних фінансових і політичних кіл.
Головним питанням постає варіативність вибору напрямів діяльності, які
може розвивати дочірня структура зарубіжного банку з метою одержання
прибутку і підвищення цього показника. Практично всі банківські інститутинерезиденти, що задіяні на ринку України, входять до числа найкрупніших
кредитних організацій за основними фінансовими показниками, але,
відповідно до даних рейтингових агентств, зазвичай не займають провідних
позицій ані за розміром власного капіталу, ані за розміром валюти балансу.
При цьому іноземні дочірні банки все ж утворюють окрему групу в
національному банківському бізнесі, що обумовлено, перш за все, їх
завданнями. Завдання створення і функціонування дочірньої структури
зарубіжної кредитно-фінансової установи визначаються відповідно до цілей і
завдань концерну в даному регіоні. При цьому пильна увага приділяється
економічним характеристикам регіону. Україна належить до категорії
emerging markets, які характеризуються, з одного боку, високим країновим
ризиком, а з другого, - можливостями одержання прибутку у
короткотерміновий період часу.
EXERCISE № 12
Discussion.
For the student: Be ready to inform the audience on the latest economic news
(home or international).
For the teacher: From individual presentation to group discussion.
PART I
UKRAINIAN ECONOMY
Following a decade of economic decline, Ukraine gradually turned to a steady
growth path. Macroeconomic stabilization and favourable external conditions
contributed to rapid economic recovery. After an impressive economic
performance, Ukraine's economic growth slowed as external conditions
deteriorated. Nevertheless, the Ukrainian economy demonstrated one of the highest
growth rates during the last years. Strengthening domestic consumption, a gradually
improving external environment and continuing investment expansion contributed
to 5% GDP growth. The major sectors that drove economic growth were industry,
wholesale and retail trade and agriculture.
Relatively rapid expansion of capital investments and continuous growth of foreign
direct investment inflow provided evidence of positive development of the real sector.
Although the overall level of FDI (foreign direct investment) attracted into Ukraine's
economy was one of the lowest in the region, its sustained growth since the financial
crisis of 1998 proved that the Ukrainian economy became more attractive for foreign
investment. On the other hand, an increase in foreign direct investment inflow was
more than offset by massive portfolio outflows, driven mostly by political instability
and some legislative deficiencies.
The current account surplus increased significantly, driven by strong exports and
a high level of transfers, and international reserves continued to accumulate.
Constant interventions by the National Bank of Ukraine contributed to the stability
of the national currency against the US dollar, and to a rapid growth of monetary
aggregates that accommodated high money demand during the following years.
The growing working capital needs of the real sector were partly satisfied by a
marked increase in commercial bank lending. At the same time, the cost of loans
and their maturity structure were not conducive to wide use of loanable funds to
finance long-term investment projects of
enterprises.
Good harvest was the main reason for a substantial decline in inflation.
Consumer prices followed a deflationary path that, in combination with a sizeable
shortfall in privatization revenues, led to fiscal expenditure cuts and an increase in
government borrowing in order to avoid substantial fiscal deficit. Ukraine placed a
new Eurobonds issue and resorted to additional borrowing from domestic
creditors to satisfy its financing needs. As a result, the consolidated budget posted
small surplus and the stock of Ukraine's public debt increased. Nevertheless, the
country's debt to GDP ratio remained relatively modest
at 34% of GDP.
Although the following years brought about positive economic and political
developments, as the external environment remained favourable, the gradually
unfolding presidential election campaign contributed to a generally cautious
investor attitude towards Ukraine. Among the achievements of Ukraine were the
following: 1) an impressive 7.5% GDP growth; 2) real household incomes
continued to grow, indicating an improvement in living standards; 3) adoption of
the new tax laws reflected the government strong intentions to proceed with
structural reforms; 4) sound external debt management led to successful
Eurobonds placement, which followed an increase in the country's international
investment ratings; 5) the favourable external environment drove foreign trade
surpluses, which allowed for the National Bank's international reserves to reach
record high levels; 6) improvement of the country's international image
following cancellation of sanctions and warming relations with the US
government.
Even though Ukraine's macroeconomic performance was improved
significantly over the last several years, a number of economic risks are still in
place. Despite the fact that inflation accelerated to almost 6%, monetary policy
remained loose.
Renewal of suspended adjustment lending from the international financial
institutions remains uncertain as the government has yet to demonstrate its ability
to cope with outstanding problems, such as reduction of VAT refund arrears and
abolishment of tax privileges.
economic performance
economic recovery
domestic consumption
investment expansion
wholesale trade
retail trade
investment inflow
political instability
legislative deficiencies
current surplus
national currency fiscal
expenditure cuts
household income
living standards
функціонування економіки
пожвавлення економіки
внутрішнє споживання
зростання розміру капіталовкладень
оптова торгівля
роздрібна торгівля
приплив капіталовкладень
політична нестабільність
недоліки законодавства
активне сальдо по поточних розрахунках
національна валюта
скорочення бюджету
сімейний дохід
життєвий рівень
I. Underline all international words in the text Give their Ukrainian
equivalents.
II. Read, translate and learn the meaning of the following words and use them
in sentences of your own.
stabilization
wholesale
trade
retail trade
portfolio
campaign
tax
the process of becoming firm, steady or unchanged.
the business of selling goods in large quantities, especially to shopkeepers.
the business of selling goods in shops to customers for their own
use and not for selling again.
a collection of shares by a particular person or company.
a series of actions intended to achieve a particular result, in politics
or business.
an amount of money that you must pay to the government according to your income, property, goods etc. That is used to pay
for public services.
III.Find in the text the following words and word combinations,
translate the sentences in which they are used and make up sentences with them.
a high level of transfers; conducive; constant interventions; current account
surplus; deflationary path; domestic consumption; economic decline; economic
recovery; fiscal expenditure cuts; foreign trade surpluses; household income;
impressive economic performance; inflation; investment expansion; investment
inflow; legislative deficiencies; living standards; massive portfolio outflow;
maturity structure; monetary aggregate; monetary policy; national currency;
political instability; stability; the cost of loans; wholesale and retail trade.
III.Find English equivalents of the words and word combinations given
below and make up sentences with them.
Активне сальдо по поточних рахунках; внутрішнє споживання; життєвий
рівень;зростання розміну капіталовкладень; національна валюта; недолік
законодавства; оптова торгівля; пожвавлення економіки; політична
нестабільність; приплив капіталовкладень; роздрібна торгівля; сімейний
дохід; скорочення бюджету; функціонування економіки.
V. Complete the following sentences filling in appropriate words from the
box.
aggregates; conducive; current account surplus; decline; domestic
consumption; economic performance; economic recovery; fiscal expenditure
cuts; investment expansion; investment inflow; legislative deficiencies;
maturity; national currency; offset; political instability; wholesale and retail
trade.
1. After an impressive ..., Ukraine's economic
external conditions deteriorated.
2. An increase in foreign direct investment
growth
slowed
inflow
was
as
more
than ... by massive portfolio outflows, driven mostly by ... and
some ....
3. At the same time, the cost of loans and their ... structure were
not ... to wide use of loanable funds to finance long-term investment
projects of enterprises.
4. Constant interventions by the National Bank of Ukraine
contributed to the stability of the ... against the US dollar, and to a
rapid growth of monetary ... that accommodated high money demand
during the following years.
5. Consumer prices in combination with a sizeable shortfall in
privatization revenues, led to ... and an increase in government
borrowing in order to avoid substantial fiscal deficit.
6. Following a decade of economic ..., Ukraine gradually turned to a steady growth
path.
7. Macroeconomic stabilization and favourable external conditions contributed to
rapid ....
8. Relatively
rapid
expansion
of
capital
investments
and
continuous growth of foreign direct ... provided evidence of positive
development of the real sector.
9. Strengthening ..., a gradually improving external environment
and continuing ... contributed to 5% GDP growth.
10.The ... increased significantly, driven by strong exports and a high level of
transfers, and international reserves continued to accumulate.
11.The major sectors that drove economic growth were industry,... and agriculture.
VI. Learn the words given below and their synonyms, consult dictionaries and try
to explain the differences, if any.
campaign, n. — operation, exercise, expedition crusade, drive, fight, battle,
attack, offensive.
cancellation, n. — annulment, repeal, revocation, abrogation, deletion, obliteration,
elimination, abolition.
community, n. — society, general public, nation, state, people, populace,
brotherhood, association, company, colony, village, town-ship, district,
neighbourhood, parish.
condition, n. — stipulation, provision, proviso, term, clause, qualification,
restriction, requirement, necessity.
currency, n. — money, cash, notes, coins, legal tender.
expansion, n. — enlargement, increase, amplification, dilation, inflation, spread,
unfolding, extension, growth, augmentation, development, elaboration.
incomes, n. — revenue, receipts, takings, proceeds, yield, return, gains, profits,
earnings, pay, wages, salary.
loan, n. — advance, credit, usury.
recovery, n. — recuperation, convalescence, rally, revival, improvement,
amelioration, cure, healing.
surplus, n. — excess, surfeit, superabundance, plethora, residue, remainder, rest,
balance.
VII. Match the verbs on the left in column A with their corresponding definitions
on the right in column C (a — g).
А
В
1) to abolish
C
means a) to continue to do something that has
already been planned or started.
2) to accelerate
b) to develop into a bad or worse situation.
3) to
accumulate
c) to gradually get more and more money,
possessions, knowledge etc over a period of
time.
d) to make something happen faster than
usual or sooner than you expect.
4) to
deteriorate
5) to indicate
e) to officially end a law, system etc,
especially one that has existed for a long
time.
6) to proceed
f) to show or be a sign of a particular
situation or feeling.
7) to reflect
g) to show that a particular situation exists,
or that something is likely to be true.
VIII. Match the words in column A with their synonyms in column B and
antonyms in column C.
A
Word
cautious
constant
current
direct
domestic
favourable
impressive
B
Synonym
careful
confident
encouragin
fast
g
general
imposing
main
C
Antonym
changeable
foreign
indirect
insignificant
local
minor
obsolete
A
Word
loose
major
national
outstanding
positive
rapid
successful
B
Synonym
native
personal
present
prosperous
regular
superb
untied
C
Antonym
rash
secure
slow
uncertain
unfavourable
unimpressive
unsuccessful
IX. Fill in prepositions, where necessary.
1. ... the other hand, an increase ... foreign direct investment inflow was more than
offset ... massive portfolio outflows, driven mostly ... political instability and some
legislative deficiencies.
2. Constant interventions ... the National Bank ... Ukraine contributed ... the
stability ... the national currency ... the US dollar.
3. Even though Ukraine's macroeconomic performance was improved
significantly ... the last several years, a number ... economic
risks are still... place.
4. Following a decade ... economic decline, Ukraine gradually
turned ... a steady growth path.
5. Good harvest was the main reason ... a substantial decline ...
inflation.
6. Relatively rapid expansion ... capital investments and continu
ous growth ... foreign direct investment inflow provided evidence ...
positive development... the real sector.
7. Renewal ... suspended adjustment lending ... the international financial
institutions remains uncertain as the government has yet to demonstrate its ability to
cope ... outstanding problems.
8. The cost ... loans and their maturity structure were not conducive ... wide use ...
loanable funds to finance long-term investment projects ... enterprises.
9. The current account surplus increased significantly, driven ... strong exports and
a high level ... transfers, and international reserves continued to accumulate.
10. The growing working capital needs ... the real sector were partly satisfied ... a
marked increase ... commercial bank lending.
11. The Ukrainian economy demonstrated one ... the highest growth rates ... the
region ... the following years.
12. Ukraine placed a new Eurobonds issue and resorted ... additional borrowing ...
domestic creditors to satisfy its financing needs.
X. Fill in articles where necessary.
1. ... constant interventions by ... National Bank of ... Ukraine contributed to ...
stability of ... national currency against ... US dollar, and to ... rapid growth of...
monetary aggregates that accommodated ... high money demand during ... following
years.
2. ... current account surplus increased significantly, driven by ... strong exports
and ... high level of transfers, and ... international reserves continued to accumulate.
3. ... good harvest was ... main reason for ... substantial decline in
... inflation.
4. ... increase in ... foreign direct investment inflow was more
than offset by ... massive portfolio outflows, driven mostly by ... political instability and some legislative deficiencies.
5. ... macroeconomic stabilization and ... favourable external conditions
contributed to ... rapid economic recovery.
6. ... major sectors that drove economic growth were ... industry, ... wholesale
and ... retail trade and ... agriculture.
7. ... relatively rapid expansion of ... capital investments and ... continuous
growth of ... foreign direct investment inflow provided evidence of... positive
development of... real sector.
8. ... Ukraine gradually turned to ... steady growth path.
9. ... Ukraine's macroeconomic performance was improved significantly over
... last several years.
10. ... Ukrainian economy demonstrated one of ... highest growth rates in ...
region during ... following years.
11. After ... impressive economic performance, ... Ukraine's economic growth
slowed as ... external conditions deteriorated.
12. Despite ... fact that ... inflation accelerated to almost 6%, ... monetary policy
remained loose.
13. Strengthening domestic consumption, ... gradually improving external
environment and ... continuing investment expansion contributed to 5% GDP
growth.
14. Ukraine placed ... new Eurobonds issue and resorted to ... addi
tional borrowing from... domestic creditors to satisfy its financing needs.
XI. Agree or disagree with the statements. Give your reason. The following
phrases may be helpful:
As I see it...;
In addition ...;
To my mind...;
That depends...;
Furthermore ...;
In my opinion ...;
To tell the truth…;
(Not) quite so ...;
I don't think so ...;
The thing is that…;
On the contrary…;
Putting it mildly…;
Strictly speaking…;
As a matter of fact...;
Generally speaking...;
I can't agree with you...;
I fully agree with you ...;
I'm of the same opinion…;
I should say it’s only partly
true… .
1. Macroeconomic stabilization and favourable external conditions in Ukraine
contributed to rapid economic recovery.
2. After an impressive economic performance, Ukraine's economic growth slowed
as external conditions deteriorated.
3. Strengthening
domestic
consumption,
a
gradually
improving
external environment and continuing investment expansion contributed to 5% GDP growth.
4. Relatively
rapid
expansion
of
capital
investments
and
continuous growth of foreign direct investment inflow provided
evidence of positive development of the real sector.
5. The current account surplus increased significantly, driven by strong exports and
a high level of transfers, and international reserves continued to accumulate.
6. At the same time, the cost of loans and their maturity structure were not
conducive to wide use of loanable funds to finance long-term investment projects of
enterprises.
7. Good harvest was the main reason for a substantial decline in inflation.
8. Consumer
prices
followed
a
deflationary
path
that,
in
combination with a sizeable shortfall in privatization revenues, led to
fiscal expenditure cuts and an increase in government borrowing in
order to avoid substantial fiscal deficit.
9. As a result, the consolidated budget posted small surplus and the
stock of Ukraine's public debt has increased.
10. The country's debt to GDP ratio remained relatively modest at
34% of GDP.
11. The following years brought about positive economic and political
developments, as the external environment remained favourable, the gradually
unfolding presidential election campaign contributed to a generally cautious investor
attitude towards Ukraine.
12. Despite the fact that inflation accelerated to almost 6%, monetary policy
remained loose.
13. Renewal of suspended adjustment lending from the international financial
institutions remains uncertain as the government has yet to demonstrate its ability to
cope with outstanding problems.
XII. Ask questions to elicit the information.
1. Following a decade of economic decline, Ukraine gradually turned to a steady
growth path.
2. The Ukrainian economy demonstrated one of the highest growth rates in the
region during the following years.
3. The major sectors that drove economic growth were industry, wholesale and
retail trade and agriculture.
4. Although the overall level of FDI attracted into Ukraine's
economy was one of the lowest in the region, its sustained growth
since the financial crisis of 1998 proved that the Ukrainian economy
became more attractive for foreign investment.
5. On the other hand, an increase in foreign direct investment
inflow was more than offset by massive portfolio outflows, driven
mostly by political instability and some legislative deficiencies.
6. Constant interventions by the National Bank of Ukraine
contributed to the stability of the national currency against the US
dollar, and to a rapid growth of monetary aggregates that
accommodated high money demand during the year.
7. The growing working capital needs of the real sector were partly satisfied by a
marked increase in commercial bank lending.
8. The cost of loans and their maturity structure were not conducive to wide use
of loanable funds to finance long-term investment
projects of enterprises.
9. Ukraine placed a new Eurobonds issue and resorted to additional
borrowing from domestic creditors to satisfy its financing needs.
10. Although the following years brought about positive economic and political
developments, as the external environment remained favourable, the gradually
unfolding presidential election campaign contributed to a generally cautious investor
attitude towards Ukraine.
11. Though Ukraine's macroeconomic performance was improved significantly over
the last several years, a number of economic risks
are still in place.
12. Despite the fact that inflation accelerated to almost 6%, mone
tary policy remained loose.
13. Renewal of suspended adjustment lending from the international
financial institutions remains uncertain as the government has yet to
demonstrate its ability to cope with outstanding problems, such as re
duction of VAT refund arrears and abolishment of tax privileges.
XIII. Answer the questions. Begin your answers with:
Actually...;
As a rule ...;
In any case...;
As things are...;
To tell the truth...
As far as I know ... ;
The matter is that...;
I suppose/believe...;
That depends (on)...;
I am declined to think…
As far as I remember ...;
As far as I am concerned ...;
Frankly/strictly
speaking...;
To make a long
story short... .
1 What contributed to rapid economic recovery?
2. Why did Ukraine's economic growth slow?
3. What did the Ukrainian economy demonstrate in the region
during the following years?
4. What were the major sectors that drove economic growth?
5. What did relatively rapid expansion of capital investments and continuous
growth of foreign direct investment inflow provide?
6. What proves that the Ukrainian economy became more
attractive for foreign investment?
7. What contributed to the stability of the national currency against the US
dollar?
8. What was the main reason for a substantial decline in inflation?
9. What led to fiscal expenditure cuts and an increase in
government borrowing? Why?
10.Why did Ukraine resort to additional borrowing from domestic creditors?
11.Did the consolidated budget post small surplus?
12.What are the achievements of Ukraine in the field of economy?
13. Do you agree that even though Ukraine's macroeconomic performance was
improved significantly over the last several years, a number of economic risks are
still in place? Why?
14. Why does renewal of suspended adjustment lending from the international
financial institutions remain uncertain?
XIV. Translate into English.
1. Після десятилітнього економічного спаду в Україні спостерігаеєься
поступова стабілізація економічної ситуації.
2. Погіршення політичної ситуації у світі було причиною сповільненого
економічного росту в Україні.
3. Останнім часом українська економіка продемонструвала найвищі темпи
росту за останнє десятиліття.
4. Основними галузями, що викликали економічне зростання в країні, були
промисловість, оптова і роздрібна торгівля, сільське господарство.
5. Відносно швидке збільшення капіталовкладень, безперервне зростання
припливу прямих іноземних інвестицій позитивно вплинуло на розвиток
економіки.
6. Результатом політичної нестабільності в країні і недоліків діючого
законодавства було перевищення відтоку капіталу в порівнянні з
прямими іноземними інвестиціями.
7. Гарний урожай був основною причиною істотного зниження рівня
інфляції.
8. Хоча наступні роки мали сприятливі умови для економічного і
політичного розвитку країни, але поступове розгортання президентської
виборчої кампанії в країні спричинило насторожене ставлення з боку
інвесторів до України.
9. Незважаючи на те, що інфляція наблизилася майже до 6%, грошова
політика залишалася невизначеною.
10.Уряд повинен показати свою здатність упоратися з головними
проблемами, такими як скорочення заборгованості по сплаті податку на
додану вартість, скасування податкових привілеїв
XV. Dialogues.
1. Read, translate and learn the following dialogues, dramatize them in class.
A. You see yesterday a friend of mine invited me to a lecture on
economic situation in Ukraine and I dare say it was rather interesting. I got to know that following a decade of economic decline, Ukraine gradually turned to a steady growth path.
B. Yes, I read that macroeconomic stabilization and favourable external conditions contributed to rapid economic recovery. Yet,
after an impressive economic performance, Ukraine's economic
growth slowed as external conditions deteriorated.
A. But nevertheless, the Ukrainian economy demonstrated one of
the highest growth rates in the region during the last years.
B. I know strengthening domestic consumption, a gradually improving external environment and continuing investment expansion contributed to 5% GDP growth.
A. Well, as far as I am concerned the major sectors that drove economic growth were industry, wholesale and retail trade and agriculture.
B. But we shouldn't forget that relatively rapid expansion of capital
investments and continuous growth of foreign direct investment
inflow provided evidence of positive development of the real sector.
A. Yes, you are right, but on the other hand, an increase in foreign direct
investment inflow was more than offset by massive portfolio outflows, driven
mostly by political instability and some legislative deficiencies.
B. You should remember that the current account surplus increased significantly,
driven by strong exports and a high level of transfers, and international reserves
continued to accumulate.
A. I do know it. But we can't help admitting that constant interventions by the National Bank of Ukraine contributed to the stability
of the national currency against the US dollar, and to a rapid
growth of monetary aggregates that accommodated high money
demand during the following years.
B. Yes, but the growing working capital needs of the real sector
were partly satisfied by a marked increase in commercial bank
lending.
A. You are right, but at the same time, the cost of loans and their maturity structure
were not conducive to wide use of loanable funds to finance long-term
investment projects of enterprises.
2. Complete the open dialogue.
P. ...
F. Ukraine placed a new Eurobonds issue and resorted to additional borrowing from
domestic creditors to satisfy its financing needs.
P. ...
F. The consolidated budget posted small surplus and the stock of Ukraine's public
debt increased.
P. ...
F. Although the following years brought about positive economic and political
developments, as the external environment remained favourable, the gradually
unfolding presidential election campaign contributed to a generally cautious
investor attitude towards Ukraine.
P. ...
F. Even though Ukraine's macroeconomic performance was improved significantly
over the last several years, a number of economic risks are still in place.
P. ...
F. Despite the fact that inflation accelerated to almost 6%, monetary policy remained
loose.
P. ...
F. Renewal of suspended adjustment lending from the international financial
institutions remains uncertain as the government has yet to demonstrate its ability
to cope with outstanding problems, such as reduction of VAT refund arrears and
abolishment of tax privileges.
UNDERSTANDING 6
ECONOMICS
Practical men who believe themselves to be quite exempt from any
intellectual influences are usually the slaves of some defunct economist.
Madmen in authority who hear voices in the air are distilling their frenzy
from some academic scribbler of a few years back.
—John Maynard Keynes
Keynes was an economist who certainly would not have underestimated his own
influence on practical people and those in authority. In fact, he probably considered
all those who did not seek out and listen to his advice to be mad. Although Keynes
recognized his own importance during his lifetime, even he might be surprised by
the continuing controversy and enduring influence of his ideas. It is not
unreasonable to assert that, since his death in 1946, Keynes's theories about
macroeconomics and the policies that have been based on them have been at the
center of the debate regarding the role of government in the management of
domestic economic policies and the global economic system.
To understand issues such as balanced budgets, Federal Reserve policies,
how interest rates are determined requires some knowledge of Keynesian
ekonomics and its philosophical counterpoint, monetarism. At times, the theories
underiving the conduct of economic policy are grounded in arcane mathematics
and highly stylized assumptions, yet the essential points can be presented in an
accessible manner. It is important to keep the following points in mind as you proceed through the chapter. First, economics can be extremely useful in understanding what is going on in the financial markets, in industry, or in the efforts of a
firm trying to enhance its value to shareholders. The second point is that there are
substantial differences of opinion regarding many economic issues. However, while
disagreements exist on precisely how policies affect outcomes, we should not
dismiss the use of the frameworks to refine our economic forecasts and improve
our decision making. Think of it as a map that directs us to the correct
neighborhood even if it neglects to provide the specific address. Finally, as Keynes
pointed out in the opening quote, many of our ideas, policies, and actions stem
from the theories of economists, perhaps largely unknown and now defunct.
Economics is usually divided into two areas: microeconomics and macroeconomics. Macroeconomics looks at the economy as a whole, providing answers,
or at least insights, into how rapidly an economy grows, the rates of inflation and
unemployment, the factors that determine the level of interest rates, and the
establishment of the exchange rate. Microeconomics is more concerned with individual household, firm, or industry issues. For example, how is the price of a
product determined, what influences the profit of a firm, and how do individuals
allocate their limited budgets among almost unlimited wants, needs, and choices?
Although these questions will not be addressed specifically here, a framework will
be developed that relates to many of these questions as well as other important
issues.
Microeconomics is a good starting point because its basic framework of supply
and demand will be used to introduce the macroeconomic issues. In addition,
emphasis will be placed on markets and how they function. The basic principles of
markets reside on the microeconomics side of the discipline, thus making this the
logical place to begin.
MICROECONOMICS
Microeconomics is frequently about choices. How much does my firm producer At
what price do we sell it? What quantity will we sell? These decisions are not made
in a vacuum. They are affected by literally hundreds and thousands of fac-tors that
can be reduced to a handful of key determinants. In addition, these determinants or
factors often interact with one another. For example, the pricing decision is
affected by factors affecting the cost of production, the quantity that consumers are
willing and able to buy, and the availability of alternative or substitute products. To
deal with all of these factors and their interactions, economists since Alfred Marshall, the nineteenth-century British economist, have used
the framework or tool of supply and demand analysis.
SUPPLY AND DEMAND
Supply and demand graphs, tables, and equations summarize those factors or forces
in a market that determine the price and quantity of a particular good, product, or
service. Exhibit 6.1 is a representative graph containing a supply curve and a
demand curve. Before looking at the details of the factors that influence the shape
and position of the curves, let us first examine the conclusions that can be drawn
from them by learning what those conclusions are and by what means these
conclusions are determined. While this may initially appear a bit mechanical, we
will flesh out the details later.
The intersection of the two curves reflects the interaction of all the forces in the
market for that product. In our example, assume the product is a six-pack of beer.
The price of a six-pack of beer is $3.75, and the quantity produced and sold is 4
million units (remember, this is the whole market for beer, so this is probably too
small a number). This combination of price and quantity represents the marketclearing equilibrium (point E1 on Exhibit 6.1). These terms are important.
Equilibrium implies that there are no forces leading to a change in price or quantity.
As long as all the factors stay as they are, brewers will continue
EXHIBIT 6.1 Supply and demand for beer.
Price
S1
E1
D1
Units of
Beer (000)
EXHIBIT 6.5 The impact of deregulation.
Price
S1
S2
S3
E1
$0,74
E2
$0,15
37,5
220
Long
Distance Usage
(millions)
approximately 15. At that price, the quantity demanded was 220 million, in comparison with a price of $.74 and quantity of 37.5 million prior to deregulation.
There are a number of lessons that can be learned from the AT&T case and the
related supply and demand analysis. When a firm is able to gain competitive
advantages, it can increase prices and profits. In fact, a measure of its competitive
advantage is the level of profit margin compared with those earned by firms in
more competitive industries. When prices are held at high levels because of
regulation or monopoly power, then the quantity produced is lower than in more
competitive industries. High profits attract competition. To maintain these profits,
the monopolist or near monopolist must have some means of keeping new
competitors out of the industry. The barrier to entry might be that the industry is
regulated (e.g., AT&T) or that the technological lead of the dominant firm (e.g.,
Intel) is too great to overcome. There are many other possible barriers, but the point
here is that firms strive to keep competition out because of the ability to earn
superior returns, and the lure of these same returns makes maintaining a
competitive advantage difficult
MACROECONOMICS
Whereas microeconomics is about individual and company decisions, macroeconomics is about the aggregate state of the economy. When people ask about the state
of the economy or the stock market, they generally have in mind macroeco-nomic
issues. Macroeconomics is about unemployment, inflation, growth, interest rates,
and the policies governments pursue to influence them. Because the impact of
policies ultimately depends upon the behavior of individuals and firms,
macroeconomics cannot ignore microeconomic analysis. This is particularly true
when someone is trying to develop models for the economy. We will not be doing
that here. Instead, we will focus on the key macroeconomic relationships and the
two primary policy instruments: fiscal policy and monetary policy.
To begin with, what goes on in the economy can be represented with a supply
and demand graph very similar to those used in the microeconomics section.
Exhibit 6.6 is such a graph. Notice that we have appended an A to the D and S to
note that we are now dealing with aggregate demand and supply. The term aggregate refers to all of the goods and services produced in the economy during a period
of time. The more common phrase is the gross domestic product (GDP). The price
in this case is some price index that is representative of the millions of good and
services produced in the economy; the GDP deflator is the broadest. The aggregate
demand and supply curves are generally determined by the same factors as
individual demand and supply, although we need to interpret them in a broader
way. Notice that the supply curve becomes almost vertical at some level, Q F. This
point represents the absolute highest possible level of production in the economy,
when all of the resources are fully employed.
Two crucial questions are implicit in the construction of the AD and AS curves
in Exhibit 6.6. Is it possible to have an equilibrium at some level of GDP other than
full employment, and is it possible to have inflation at a level of GDP below full
employment? In simplistic terms, these questions characterize the
GDP
Deflator
AS1
AD1
Qf
GDP
debate between Keynesians and monetarists. The first question in particular is the
one that Keynes addressed in his book, The General Theory of Employment,
Interest and Money, published in 1936. Before turning to these questions and
related ideas, we first need to introduce national income accounting and examine in
more detail the concept of GDP.
NATIONAL INCOME ACCOUNTING
To understand the relationship between aggregate demand and aggregate supply
and to be able to better evaluate economic policy, economists began to develop the
concept of national income accounting in the 1920s. This concept attempts to
measure the output or production of the economy, how that output is allocated
among different uses, and what decisions are made about the income the output
generates. The key to analyzing and using the national income accounts is to
understand that they are based on an identity or a relationship that is by definition
true. This identity connotes that the total output, what we have called GDP, is equal
to the total income, which in turn is equal to the total allocation of income among
the various forms of expenditure and savings:
Output = income = expenditure
This might appear to be vague at first glance, but once the discussion has been
expanded it will become clearer. Output has already been defined as the total value
of goods and services produced in an economy during some period of time or GDP.
Since the value of something equals its cost plus the profit margin, and the cost and
profits represent someone's income, then GDP can be measured from an income or
an output perspective. Moreover, since the recipients of the income can either
spend that income, save it, or pay taxes, the total income must then equal GDP.
And finally, if we look at the various types of expenditures in the economy, they
must total the output or GDP as well. Therefore, the national income identity can
be worked with in the following form:
GDP = C + J + G + (X - M) = C + T + S
where
C = household consumption
I = business investment
G = government spending
X = exports
M = imports
T = taxes
S = savings
Countable and uncountable nouns
A Countable nouns
Countable nouns are things like people, animals, plants (a boss, a dog),
concrete objects (a desk, a fax machine), or units of measurement (a
metre, a Deutschmark).
B Uncountable nouns
Uncountable nouns include things like substances, materials, and
commodities (e.g., water, oil, money, information), abstract ideas
(profitability, progress), and languages (English, Arabic). We do not
usually talk about 'three informations', 'six monies', 'two waters', etc.
Some other uncountable nouns which sometimes cause difficulty are:
advice
equipment
machinery
progress
trouble
accommodation
furniture
money
room (=space)
weather
baggage
information
news
traffic
work
cash
luggage
permission
travel
C Singular or plural?
Countable nouns can be singular or plural. Uncountable nouns are singular
The new brochures have arrived. (COUNTABLE)
The new furniture has arrived. (UNCOUNTABLE)
D A, an, or some?
With uncountable nouns we can often use some instead of a or an:
WRONG: He
RIGHT: He
E Parts of a mass
gave me an advice.
gave me some advice.
We can refer to parts of an uncountable mass by using words of
measurement, e.g., a cup of coffee, a glass of water, a tonne of coal, a
kilo of sugar, a barrel of oil.
We often use these measurements when talking about the price of
something:
Mineral water is 75p a bottle.
The price of oil is $17 a barrel.
When we use a or an with a noun that is usually uncountable (e.g., wine,
water, beer), we often refer to a part of a mass:
'Would you like a coffee?' (one cup of coffee) 'I'll
have a beer, please.' (a glass of beer)
Exercise 1
Countable or uncountable?
In the following pairs of words, one is countable and
the other is uncountable. Write some or a before each word.
1 _a______ book / some literature
2 ________ report / ________ news
3 ________ desk / ________ furniture
4 ________ accommodation / ________ hotel
5 ________ chance / ________ luck
6 ________ water / ________ litre
7 ________ equipment / _______ machine
8 ________ dollar / ________ money
9 ________ cheque / ________ cash
10 _______ letter / ________ correspondence
Exercise 2 Singular or plural?
Fill in the blanks with is or are.
1 The equipment that we ordered _________ here.
2 What ________ the weather like at this time of year?
3 There ________ a lot of cars in the car park this morning.
4 The agenda for tomorrow's meeting ________ on your desk.
5 The reports that I have just received from Tokyo _______ not
very good.
6 Your Japanese visitors have gone to the hotel, but their
luggage __________ still at the office.
7 On the foreign exchanges this morning, the dollar _______ up
0.5 cents against the yen.
Exercise 3
A, an, or some?
In the dialogue, choose the correct option from the words in italics.
got (1) a problem/some problem with Petersens. They owe
us (2) a money/some money for (3) a work/some work we did for
them, but they won't pay.
JANET: We've had (4) a trouble/some trouble with them before, haven't
we?
HARRY: Yes, that's right. Last year they sent us (5) a cheque/some
cheque for (6) an equipment/some equipment we had supplied and
the bank returned it. So they haven't got (7) a good record/some
good record.
JANET: May I make (8) a suggestion/some suggestion? Send them
(9)
a final demand/some final demand, saying we want to be
paid immediately.
HARRY: And if they still don't pay?
JANET: Go and see (10) a lawyer/some lawyer and get (11) an
advice/some advice about what to do next.
HARRY: All right, I'll send them (12) a letter/some letter today.
JANET: Yes, OK. And by the way, there's (13) an information/some
information about the company and who runs it in the Accounts
Department. Have a word with Kerry, because she's got (14) a
correspondence/some correspondence from them that might be
useful.
HARRY: I've
Practice
Exercise 4 Parts
of a mass
Use a word from box A and a word from box B to describe the
items below.
A
a litre
a pint
a kilo
a tonne a barrel a glass
a sheet
B
paper
coal
water
oil
beer
wine
sugar
1________________
5________________
Exercise 5
Prices and quantities
2_______________
3_________________
6____________________
4______________
7_______________
Complete the following items of news with the words from the box.
packet
ounce
Petrol and gold rise in Middle East fears
Shell and Texaco have announced that they
intend to raise the price of petrol to just over
65 pence (1) a litre. They blame the political
situation in the Middle East, where shortages
of crude have pushed the price of oil up
to over $20 (2) ___ . The political
worries have also affected the price of gold,
which has risen to over $700 (3) _____in the
last few weeks.
barrel
pint
litre
bottle
Budget misery for smokers and drinkers
In his Budget statement, the Chancellor
raised taxes on most alcohol and tobacco.
The effect of the changes will mean that the
pub price of beer will rise by about ten
pence (4). Supermarket
prices for wine will go up by about
twenty pence (5)______ , and
cigarettes
will
increase
by
over
(6)
thirty pence
_____ .
Production
Task 1
Fill in the blanks with an uncountable noun. Use one word only.
1 A: Would you like to try the salmon? The trout is good
as well. B: No thanks, I don't really like fish.
2 A: Would you like wine, or a beer, or a gin and tonic, or
something?
B: No thank you. I'll just have mineral water. I don't drink _ .
3 A: Could I have a talk with you about the arrangements for
next week?
B: I'm sorry, could we talk later? I haven't got __ at the
moment.
4 A: It's been raining here for two weeks.
B: Oh dear. When we were on holiday we had marvellous _ .
5 A: So your wife handles the accounts, does
she? B:
Yes, it's because I'm no good with ____.
6 A: Signomi, pou einai o xenodochio Divani
Acropolis? B: _____________ I'm sorry, I
don't speak ________________ .
7 A: What will you have - chicken, a steak, a
hamburger? B:
Actually, I'm a vegetarian. I don't eat ___ .
8 A: We're going to a couple of department stores to try and buy
some
clothes.
B: 1 think I'll stay here. I hate _____ .
Task 2
Fortune cookies are biscuits that contain a little piece of paper
with a short
philosophical message. You have been asked to write some of
these messages. Remember that the (ancient Chinese) messages
can say anything.
Money ... _________________________________
Time ...___________________________________
Meetings ...________________________________
Work... ___________________________________
Men ...____________________________________
Women ...__________________________________
Experience ... _______________________________
Productivity...______________________________
36
Articles: a/an, the, or Ø (no article)?
A a vs an
We use a before consonant sounds, and an before vowel sounds:
VOWEL SOUNDS:
an appraisal, an hour, an interview, an
office, an MBA CONSONANT SOUNDS: a director, a code, a
unit, a question
B Uses of a. an
We use a or an before unspecified singular countable nouns:
'Could let me have an envelope?'
We use a or an to talk about jobs, (but not areas of
business): Janet's a Personnel Manager, and her
husband is in 0 marketing.
We use a or an to talk about frequency:
We have to submit VAT returns four times a year.
C Uses of the
We use the with a specific noun we have mentioned before:
We have bought a Mac and a PC. The Mac cost $2500 and the
PC cost $2100.
We use the when we add information that defines something:
Where is the file that I gave you this morning?
We use the when it is clear what we are referring to because there is only one:
Would you like to come in? The chairman will see you now.
We use the with superlatives:
Coca Cola is the most famous soft drink in the world.
We use the with adjectives to refer to a group:
The rich do not do enough to help the poor.
We use the to refer to rivers, mountains, seas, and names of
countries that include a noun like republic, kingdom, union,
etc.:
The Aral Sea in the former Soviet Union is very polluted.
D No article (Ø)
nouns:
We use no article (Ø) to generalize about uncountable or plural
Ø Money is the root of all evil. (i.e., money in general, or all
money)
We do not use an article (Ø) to refer to companies, cities, roads,
single islands, or lakes:
1 work for Ø Goldman Sachs in Ø London, and I have a house
in Ø Western
Road. I also have a holiday home in Ø Crete and another near
Ø Lake Garda.
Practice
Exercise 1
A vs an
Complete the dialogue. Fill in the blanks with a or an.
A: I had (1) an appraisal with the Personnel Manager the other
day, and ...
B: Oh really? How did it go?
A: Fine. We were talking about qualifications and career
development, and she said to me that I should consider doing (2)
_______course in Business Administration.
B: That's not (3)______bad idea. You've already got (4)
________university degree, haven't you?
A: Yes, and I'm doing (5) __________ evening course in
accounting, but that takes up about( 6)_______ hour a week
B: That sounds like (7)_________ waste of time to me What you
need to do is (8)_________MBA at (9)
________ institution like Insead, so that you end up with (10)
_________ decent qualification
Exercise 2
Uses of a, an
Fill in the blanks with a, an, or Ø (no article).
Exercise 3
Uses of the
Read the following newspaper extract. Fill in the blanks
with a or the.
1. I like to go abroad about three times______year.
2. Have you met my brother? He's______engineer
too.
3. I'm thinking about buying______new car. What
would you recommend?
4. The I.loyds Bank Review is published four times
_______ year.
5. _______computer software is not as expensive as you may
think
6. The government has urged businesses not to give
pay rises
above inflation.
7. How long have you been in ______engineering?
8. I go to meetings in London twice_________month.
Coca-Cola has launched (1) ___a____ £4 million TV advertising
campaign - one of (2) _______ biggest ever seen in Britain - in
what will be seen as (3)_______ direct attack on supermarkets'
own-brand colas (4) _______ six-week campaign, which opened
last night, is part of an attempt to boost (5) _____ size of the £6
billion (6) _______ year soft drinks market. The advertisements
young, but middle-aged will be aimed mainly at(7)___________
drinkers will also be targeted.
________drinks giant denied that (9) _________ new advertisement
are (10)_________ response to (11)_________ cola wars' that raged in
supermarkets in (12) _________ summer, but admitted that there was room for improving sales.
Practice
In each pair of sentences, fill in one blank with the, and (he
other blank with Ø (no article).
Exercise 4
Uses of the
A
В
А
В
А
В
А
В
А
В
А
В
А
В
А
В
Exercise 5
The vs no
article (0)
I am not motivated by money.
When are you going to pay back _the_ money I lent you?
Carbon-dating helps scientists to work out
age of fossils.
We never refuse to give someone a job on the basis of____ age.
______mistakes you have made cost us a great deal of money.
Don't worry. Everybody makes_______mistakes.
______crime in the cities is now at record levels.
The police have no idea who committed_______crime.
This book will give you _______information you need.
CD-ROMs can store large quantities of_______information.
________visitors must be accompanied at all times.
________visitors are on a fact-finding mission from Japan.
Should______unemployed people do more to help themselves?
Should the government do more to help________unemployed?
________Japanese imports are currently at very high levels.
It is very difficult tо sell to________ Japanese.
Complete the following passages. In each space, put the or Ø
(no article).
Hi, my name's Todd Sawyer. I'm a
financial analyst, and I work for a
company called
(1)_______ Pacific Investments which
is based in (2)________Channel
Islands. Our offices are in (3)________St
Helier (4)_________capital.
(5)_______Jersey is very popular with
financial institutions from (6)_______
England because it is (7)_______ UK for
tax purposes, and it is also popular
with investors from (8)_______ Europe.
I work for a tour operator called (9)____
Lakeland Travel, and we specialize in
bringing people to (10)_______Lake
District, which is in (11)_______north of
(12)_______ England. We run a de luxe
hotel in (13) ______ Morrison Road,
which is in (14) ________ Ambleside, a
small town on the shores of'
Many of our visitors come from
Scotland, which is very close, but
others come from as far away
as (16) ______New York or (17) ______
Far East.
Production
Task 1
HERE'S WHERE THE MONEY LIVES
USA
NIGERIA
(1)_______richest man in
(2)_______USA
is
Bill
Gates,
(3)_______Chairman
of
(4)___
Microsoft. The billionaire,
who is known to have a
boyish streak, gives 'theme'
parties for his employees.
One theme was
(5)________Africa. Party goers
tried to fill in names of
African
countries on (6) giant map
and played (7)_________
computer quiz, game called
'Jungle Jeopardy'.
Task 2
Five ships full of industrial
waste were shipped from Italy
to Koko in Nigeria, where
(1)_________ farmer was paid
US$8,750 to store (2)______
waste on his land. This was a
bargain for the Europeans and
a fortune for (3)_________
firmer. Local children played
in the waste, and took the
containers home. However,
(4)______waste was toxic and
radioactive. (5)_______farmer
died
from
(6)________
poisoning
JAPAN
Sanwa Bank, one of (1)_____
world's largest banks, is
offering its clients (2)_______
savings accounts for (3)_____
pets. Clients' pets can hold
accounts where they can save
for special treats, (4)________
holidays, or visits to the vet. A
funeral for (5)________ cat
can cost up to $400, and a
gravestone can cost another
$2,400.
Choose two other countries. Write two short reports about
them (as in the examples above) for the Benetton Report.
1
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
2
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
Some and any
A a/an, some, any
We use a or an with singular countable nouns. We use some and
any with
plural countable nouns and with uncountable nouns:
SINGLE COUNTABLE:
PLURAL COUNTABLE:
UNCOUNTABLE:
B Some or any
I've got an invoice for you.
I've got some invoices for you.
I've got some information for you.
We normally use any in questions and negative statements; we use
some in
positive statements:
A Have you got any information about marketing policy?
B There are some notes in the file on my desk.
However, we often use some in questions if the question is an offer
or request, or if we expect the answer to be 'yes':
Would you like me to send you some more information?
Could I take some samples with me?
C Something, anything
We can use something/anything, someone/anyone,
somewhere/anywhere
in a similar way:
Someone has used my files, and now I can't find anything anywhere!
D Free choice
We can give people permission to do things using anything, anywhere,
etc.:
A 'Where should I sit?'
A 'What should I tell them?'
E How much and how many
B
B
'You can sit anywhere.'
'Tell them anything you like.'
We use How many, not... many, only... a few with plural countable
nouns:
'How many people did you talk to?'
7 didn't talk to many people. I only talked to a few people.'
We use How much, not... much, only... a little with uncountable
nouns:
'How much money did you make last month?'
'We didn't make much money. We only made a little money.'
In positive answers, we use a lot of with both countable and
uncountable nouns:
I met a lot of people at the conference. (This is more common than
many people.)
We made a lot of money last year. (This is more common than much moneу)
Practice
Exercise 1 A/an,
some, any
Exercise 2
Some or any?
Underline the correct option from the words in italics.
1
2
3
4
5
6
7
8
I'd like an/some advice about the government's latest tax proposals.
I've just received a/some very nice gift from one of my suppliers.
Shall we carry on working, or would you like to go out for a/some meal?
Do you have an/any information about conference facilities in Monaco?
I just have to go to the bank to get a/some money.
Bill wants you to phone him. He says he has a/some good news for you.
Did you meet an/any interesting people at the trade fair?
The engineers are having a/some problems with the new engine.
A manager is getting the results of some 'upward feedback', and is hearing
what his staff think about him. Complete the dialogue with some or any.
MANAGER: SO what did they say? Were there (1)______serious problems?
CONSULTANT: Well, we interviewed all the people who work for you, and
there are (2)_______aspects of your management style that are very good.
MANAGER: Did they make (3)_____complaints? I'd like to start with them
first.
CONSULTANT: AS you like. There are some people who work for you who
feel that you don't listen very much. They say that you don't spend (4)_____
time talking to them and that you seem very busy.
MANAGER: I am. Were there (5)_______other criticisms?
. ways of dealing with
CONSULTANT: Yes, but I would like to suggest (6)______
this particular point before we carry on. I think there should be (7)_______
fixed times when staff can come and see you. If they don't have (8)______
opportunities to discuss their problems, they will feel nervous
about coming to talk to you. The other thing that they mentioned is that
you don't give them (9)__________responsibility, and that they don't make
(10)___________decisions themselves. Now, this is a common problem, and I
think it's something you should think about.
Exercise 3
Some or any?
Read the following sentences. Put a tick (۷ ) by the ones that are right, and
correct the ones that are wrong.
1 Could you send me some information about your latest range of furniture?
2
3
4
5
6
7
Did you make any progress in the meeting?
_______۷
I've got any letters for you to sign.
_________
Shall I send you some samples of our latest fabrics?
_________
We haven't had some major orders for several weeks.
_________
Would you like me to get you some money from the bank? _________
I'm having any problems with this new software.
_________
8 Are there any seats left on the BA flight to Tokyo next Tuesday?
_____
Practice
Exercise 4
Something, anything
Fill in the blanks with the words from the box.
someone
anyone
something
anything
somewhere anywhere
1 Did anyone ring when I was out?
2 We've got to find that letter! It must be here________!
3 We returned the machines because there was _______ wrong
with them.
4 By the way, ____ __called in to see you when you were away
last week.
5 These plans are secret. You mustn't discuss them with _ ______.
6 We are trying to cut down on hotel bills, so now our executives
can't stay ________that costs more than $100 a night.
7 Yes, a meeting next Thursday would be fine. I'm not doing_____.
Exercise
5 Free
choice
Fill in the blanks with anyone, anywhere, or anything.
Exercise 6
Much, many,
etc.
Two colleagues are discussing the opening of a new office in
Madrid. Fill in the blanks with the words from the box.
1 This is not confidential. You can discuss it with ______you like.
2 If you hire a car, you will be able to go _______you want.
3 I am now responsible for recruitment, so I can hire ______I like.
4 George Soros' Quantum Fund has so much money that the
company can buy almost _______it wants.
5 You have to attend the course from 8.00 a.m. to 5.00 p.m., but in
the evening you can do _______you like.
6 Most of the hotels are empty, so you can stay ______you like.
much
many
a lot of
a little
a few
A: How are things in Madrid?
B: We're nearly ready. We didn't have (1) much trouble rinding a
suitable
office. There seem to be (2) _____empty places at the moment.
A: How (3) _______work will you need to do on the building?
B: Nothing really. We only need to do (4) ______painting and
decorating and it will be fine.
A How (5) ______people are going to be working there?
В About twenty. We've filled most of the jobs, so it'll only take
(6)_______ weeks to find the other people we need. We haven't
appointed a sales manager yet, but there has been (7) ______interest
in the job, so we'll get someone soon.
A: How (8) _______time do you think you will spend there?
B: At the beginning, I'll have to spend (9) _____time over there, so
I have rented an apartment. But I'm hoping that it will only go on
for (10) ______months, and then the office will be able to look after
itself.
Production
Task 1
Answer the following questions, using the words in brackets.
1
Why do we need to stop at the garage? (any)
We haven't got any petrol left.
2
Why did you see a lawyer? (some)
3
Are you sure they have moved offices? (somewhere)
4
Did you tell staff about the redundancies we are planning? (anything)
Task 2
Task 3
Reply to the questions using anyone/anywhere/anything you like.
1
What is the company policy about hotels?
You can stay anywhere you like.
2
Is this information confidential?
3
Are any of these seats reserved?
4
What sort of information can you store on a CD-ROM disk?
Write short paragraphs answering the questions. Use the words in the box.
not much
a lot of
a little
a few
not many
Did you lose a lot of stock in the break-in?
No. Luckily the burglars didn't have much time, because the alarm went off.
They took a lot of cheap pieces of jewellery, and they took a
little money as well.
I'm sorry to hear your trip wasn't a success. What went wrong?
Tell me about your training course in England. Did it go well?
Adjectives and adverbs
A Form of adverbs
Most adverbs can be formed by adding -ly, -y, -ally, or -ily, depending
onthe spelling of the adjective or noun on which they are based:
expensive/expensively
dramatic/dramatically
full/fully
day/daily
Some adverbs and adjectives have the same form. Common examples of
these are:
hard
daily
early
weekly
fast
monthly
late
quarterly
Some words ending in -ly are adjectives and have no corresponding
adverbs. Common examples are friendly, elderly, lonely, silly, costly.
B Adjectives vs adverbs
Adjectives describe nouns and adverbs are used to describe most verbs:
ADJECTIVE:
ADVERB:
C Adverbs + adjectives,
participles, adverbs
There has been a significant improvement in the economy.
(Gives more information about the noun improvement.)
The economy has improved significantly.
(Gives more information about the verb has improved.)
Adverbs can also describe adjectives, past participles, and other
adverbs:
ADVERB + ADJECTIVE:
ADVERB + PAST PARTICIPLE:
ADVERB + ADVERB:
D Verbs and adjectives
We have had a relatively good year.
Their products are always attractively
packaged.
She does her job extremely well.
Some verbs are qualified by adjectives rather than adverbs. Most of
these are verbs of appearance or verbs of the senses:
be
get
look
smell
seem
taste
appear
sound
become
feel
'You look tired. Are you all right?' (NOT: look tiredly)
Honda felt angry about the sale of Rover to BMW. (NOT: felt angrily)
E Good and well
Good is an adjective, Well is an irregular adverb:
You ought to go to one of his presentations. He is a very good
speaker. You ought to go to one of his presentations. He speaks
very well.
The word well can also be an adjective meaning in good health:
She isn't in the office today because she isn't well.
Practice
Exercise 1
Form of adverbs
Fill in the blanks with words from the box. Make any changes to the
adjectives necessary to form adverbs.
economic
public
hard
punctual
heavy
quarter
late
safe
patient
silent
1 When you get to New York, give me a ring to let me know you've
arrived safely.
2 The Economic Review is published __ , and comes out in March,
June, September, and December.
3 Trains in Japan arrive so ____ that you can set your watch by them.
4 The train to the airport arrived_____ , and as a result I very nearly
missed the plane.
5 Most stockbrokers will buy and sell shares in __ -quoted
companies.
6 Before privatization, many nationalized industries were __
subsidized by the government.
7 He was not in a hurry, so he waited____ until the client was ready to
see him.
8 The new motor is very quiet, and at most speeds it operates
almost_______
Exercise 2 Adjectives
vs adverbs
Look at the graph showing the price of Fisons' shares. Rewrite the
sentences using verbs and adverbs.
1 There was a sudden fall in March. In March the shares
fell suddenly.
2 There was a brief recovery in April. In April they
recovered _____________.
3 In June there was a dramatic collapse. In June they
collapsed ______________ .
4 There was a considerable fall in July. In July they fell
_________________ .
5 There was only a slight fall in August. In August they
only fell ________________ .
6 There was a steady improvement in September and
October. In September and October they improved
___________________.
7 There was a gradual improvement from mid-November.
From mid-November, they improved____________.
Practice
Exercise 3
Adverbs + participles/
adjectives/adverbs
Choose a word from box A and one from box B to complete the
sentences.
A
surprisingly
B
qualified
badly
quickly
commercially
designed
well
viable
totally terribly
good
illegal
1 She has a PhD and an MBA so she's certainly very well qualified.
2 The results at the end of the year were _________ , and certainly much
better than we had thought.
3 The bank decided that the project was not _________ , so they refused
to given them a loan.
4 Insider dealing is __________ - if they catch you, you could go to
prison.
5 The engine on the XR86 was very _________ , and the car soon gained a
reputation for unreliablilty.
6 He spoke___________ , so I couldn't really understand what he was
saying.
Exercise 4
Adjective or adverb?
Choose either an adjective or an adverb from the words in italics.
Exercise 5
Good and well
Complete the sentences with either well or good.
1
2
3
4
5
Their new offices in the city look very impressive/'impressively.
It's a pity that airline food never tastes as good/well as it looks.
He reacted calm/calmly when I told him the bad news.
The new perfume from Dior smells very expensive/expensively.
We stopped ordering from them, because a lot of their products were
bad/ badly designed.
6 They've changed the clocks, so now it gets dark/darkly at about 3.00 in
the afternoon.
7 Waiter, could you bring us some more milk - this tastes sour/sourly.
8 Your new secretary seems very competent/competently.
9 Most policy decisions are taken at head office, but day-to-day decisions
are taken local/ locally.
10 When I spoke to Jeremy, he didn't sound confident/confidently about
meeting this year's targets.
1 Did you have a good flight?
2 I've been learning English for three years, so I speak it quite________.
3 He's on sick leave at the moment, but it won't be long before he's
________enough to return to work.
4 The magazine gave their latest fridge-freezers a very _________ review.
5 I think it would be a ______ idea to discuss this at next week's meeting.
6 Jane and I are old friends. We know each other very_________.
7 The new computer system seems to be working__________.
Production
Read this letter from a retailer to a manufacturer of air-conditioners.
Choose either the adjective or the adverb in brackets.
Dear Mrs Jones,
I am writing with reference to a (1) (recent/recently) shipment of 16 M-113
air-conditioning units which we received on Tuesday 17 May.
Unfortunately three of the units are not working (2) (proper/properly).
One of them may have been broken in transit as the packing case was
(3) (bad/badly) dented, and I suggest you take this matter up with your
insurers. The two others looked (4) (fine/finely), but when we tested them
they sounded very (5) (noisy/noisily), and their cooling systems seemed
very (6) (ineffective/ineffectively).
I am therefore arranging for the three units to be returned to you
(7) (immediate/ immediately). I would be (8) (grateful/gratefully) if you
could send us three new units as soon as possible, as the
(9)(warm/warmly) weather is approaching and we are expecting a
(10) (strong/strongly) demand for air-conditioners in the next few weeks.
I look forward to hearing from you,
Henrietta Watson Stores
Manager
Task 2
Improve the following advertisement for a business handbook by adding
adjectives or adverbs of your choice.
Hoover's Handbook is a (1) revolutionary new book that gives a(n) (2) ___________ insight
into (3)____________ companies. Each (4) ____________ profile includes a(n) (5) _________
company description and a resume of the (6) __________ events in the company's history.
Each profile is (7) ___________ laid out and provides information about the company's (8)
__________ Directors, its (9) __________ products, and its (10) ___________competitors.
'it's (11) _________ amazing that this wealth of information is available at such a(n) (12)
_____________price. It's a(n) (13) _______________book for anyone interested in the (14)
__________business scene.
Task 3
Write a short extract from a sales letter to a potential customer describing
one of the products or services you offer.
I would like to tell you about... _________________________________
Comparison (1): comparing adjectives
A Short adjectives
To make comparisons, adjectives with one syllable add -er and est:
COMPARATIVE
SUPERLATIVE
old
older
the oldest
big
bigger
the biggest
BT is large. NTT is larger than BT AT&T is the largest company in the
world. Two important exceptions are good and bad:
good
bad
better
worse
the best
the worst
Adjectives ending in -y (e.g., friendly, wealthy, easy) and some two-syllable
adjectives (e.g., clever, quiet, narrow) follow this pattern:
friendly/
friendlier/friendliest
B Longer adjectives
clever/cleverer/cleve
rest
With most other two-syllable adjectives, and other adjectives with three or
more syllables, we use more/less and the most/the least:
modern
profitable
COMPARATIVE
more/less modern
more/less profitable
SUPERLATIVE
the most modern
the most profitable
Toyota is profitable. BT is more profitable than Toyota. The Royal
Dutch Shell Group is the most profitable company in the world.
C Not as ... as, etc.
We can also make comparisons using not as ... as, as ... as, and just as... as.
In this case the adjective does not change:
BT is not as large as AT&T.
In America, Toyota is as well-known as Ford.
Pepsi is just as popular as Coca-Cola.
D The present perfect
and superlatives
The present perfect ever is often used with superlatives:
We're having the best year that we have ever had.
He's one of the most interesting people I have ever met.
E Ranking
The superlative can be used with the second, third, fourth, etc. to talk about
the position of something in a list:
Siemens is the largest electronics company in Europe. Philips
is the second largest electronics company in Europe.
Practice
Exercise
1 Form
valuable
Complete the table showing the adjectives and their
comparative and superlative forms.
more valuable than
the most valuable the
most expensive
good
wealthier than
the biggest
narrow
cheaper than
the worst
profitable
longer than
the most interesting
Exercise 2
Comparativ
es
Fill in the blanks by putting the adjectives into the correct form.
Two multinational consumer giants, Sony
and Philips, are fighting a fierce war to
provide a replacement for the standard
cassette tape. Sony has produced the
Minidisc, and Philips has backed the
Digital Compact Cassette (DCC).
According to Sony, the Minidisc will appeal to a (1)
wider (wide) range of consumers than DCC. The
minidiscs themselves are (2) _______ (small) and
(3)___________(portable) than DCCs, and the
players are (4) ________ (easy) to carry around. Sony
claims that its sales figures are much (5) _________
(good) than Philips's, and that it will win the war. Philips
points out that Sony's sales of Minidisc players refer to
units shipped, not actual sales, and
that the real sales figure is much (6) ________(low).
Philips, which has spent £ 65 m in developing DCCs,
says that the sound quality of Minidiscs is
not as (7) _______ (good) as DCCs, and that DCC
players, which are (8) _______(large) and (9) ________
(sophisticated) than Sony's, will sell to (10) __________
(serious) customers.
According to Philips, there is room for both products. Its
spokesperson said, 'The Minidisc will appeal to people
who want a tiny, expensive Walkman to show off. and
DCC will sell to (11) _________ (quality-conscious)
consumers. The minidisc is a much (12) ________(sexy)
idea, sure, hut.
DCC is much (13) ________(sensible).'
Practice
Exercise 3
Superlatives
Read the information about Poland, Mexico, and Norway.
Using superlatives, write sentences comparing them. (* =
New York City)
1 income per capita/high
2 income per capita/low
3 expensive/to live in
4 cheap/to live in
5 corporate tax rate/high
6 corporate tax rate/low
7 literacy rate/good
8 literacy rate/bad
Exercise 4
Present perfect and
superlatives
Norway has the highest income per capita.
Poland has the lowest income per capita.
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
Rewrite the sentences using the present perfect and a
superlative.
1 I have never been to such a long meeting.
That was the longest meeting I have ever
been to.
2 I have never heard such a boring presentation.
That was ____________________________________
3 I have never dealt with such difficult customers.
They are ____________________________________
4 We have never produced a product as good as this.
This is _____________________________________
5 I have never used a program as simple as this.
This is _____________________________________
Exercise 5
Ranking
Read the information and write sentences using the words in
brackets.
1 In 1991, British Telecom made profits of $3,557 million.
It is (no.2/profitable company/world)
the second most profitable company in the world.
2 Yoshiaki Tsutsumi deals in land, railways, and resorts, and has a
personal fortune of $10 billion. He is (no.2/rich/person/world).
______________________________________________________
3 Exxon had sales of $103,242 million in
1991. It is
(no.3/large/industrial corporation/world).
______________________________________________________
4 Eviran Haub from Germany owns supermarkets, and is
worth $6.9 billion. He is (no.4/wealthy/person/world).
______________________________________________________
Production
Task 1
Write sentences comparing the following items.
1
The company I work for/the last company 1 worked for
(big) The company I work for is bigger than the last company I worked for.
(small) It is not as small as the last company I worked for.
2
The job I do now/my last job
(hard to do) _____________________________________________________
(easy to do) ____________________________________________________
3
Inflation this year/it was last year
(high)___________________________________________________________
(low) __________________________________________________________
4
Our company/our main competitor
(large) _________________________________________________________
(small) _________________________________________________________
Task 2
Task 3
Complete the sentences using the present perfect and a superlative adjective.
1 good meal/have The best meal I have ever had was in France.
2 interesting course/go on ________________________________
3 good computer/use ____________________________________
4 nice country/visit ______________________________________
5 expensive hotel/stay in _________________________________
6 fast car/drive _________________________________________
7 reasonable boss/work for _______________________________
8 bad job/have _________________________________________
Write a short paragraph comparing one of your products or services
with a product or service of one of your competitors. Here is an
example.
I work for Darlingtons, a law firm that specializes in commercial
property, and our main competitors are Kenworth & Brown. We are
not as large as they are, but we have the best taxation department in
the City. Because we are smaller, we offer our clients a better
service, and our charges are significantly lower.
Comparison (2): comparing adverbs and comparing nouns
A Pattern 1: short adverbs
Most adverbs of one syllable, and the adverb early, add -er and -est.
These adverbs are usually the ones that have the same form as the
adjective:
early
fast
earlier
faster
the earliest
the fastest
He usually arrives earlier than I do.
The most important irregular short adverbs are well and badly:
well
badly
better
worse
the best
the worst
The company did slightly worse than the analysts had expected.
B Pattern 2: longer adverbs
Adverbs with two or more syllables are compared using more/less and
the most/least:
efficiently
fluently
more/less efficiently the most/least efficiently
more/less fluently
the most/least fluently
All our manufacturing plants are efficient, hut at the moment the one
in northern France is operating the most efficiently.
C Adverbs and participles
We often need adverbs when we are comparing present participles (e.g.,
growing) and past participles (e.g., chosen, given):
South East Asia has one of the fastest growing economies in the world.
She is one of the best qualified people in the department.
The Engineering Division is much more efficiently run than the Plastics
Division.
D Comparing nouns
We can compare quantities and amounts by using more, less, fewer, not
as much as, not as many as, etc. The correct word depends on whether
the noun in question is countable or uncountable (see Unit 35):
COUNTABLE
The board decided that the company needed more/fewer retail outlets.
Our Paris office doesn't employ as many people as our Munich office.
The R&D Department has the most/fewest people working for it.
UNCOUNTABLE
I spent more/less time on the project than I had expected. We
didn't make as much money on the deal as we had hoped. Of
all our surveys, this produced the most/least information.
Practice
Exercise 1
Short adverbs
Complete the sentences with the comparative forms of the adverbs in the box.
early
fast
late
well
badly
1
1 arrived in New York a little later than I had planned because the
plane was delayed by bad weather.
2 PCs with clock speeds of 66 mhz process information much________than
PCs that run at only 33 mhz.
3 I got to the meeting a few minutes ________ than the others, so I had time
to look through my papers before we started.
4 The company did _________ than analysts had been expecting, so their
shares fell when they announced their losses for the year.
5 I speak Spanish well, but my assistant speaks it even ______ than I do.
Exercise 2
Longer adverbs
Complete the sentences with the comparative form of adverbs in the
box.
carefully
1
2
3
4
5
Exercise 3
Adverbs and participles
frequently
quietly
slowly
efficiently
1 don't think Qantas flies to Paris very often. Air France flies there
much more frequently.
There were a lot of mistakes in that report you gave me last week. I
think you need to check your figures a bit________.
Could you speak a little _______ , please? I don't understand English very
well.
The new engine uses fuel ______than previous models, so it is cheaper to
run.
We used to have a very noisy dot matrix printer, but the new ink jet
prints much ________.
Rewrite the sentences using superlatives and present or past
participles.
1 In the earthquake, few areas were affected as badly as southern
California. In the earthquake, southern California was one of the
worst affected areas.
2 Few drugs on the market have been tested as extensively
as this. This is one of ________ drugs on the market.
3 None of our products is selling as well as
this. This is our _________ product.
4 Few departments in the company are managed as efficiently as
this one. This is one of _______ departments in the company.
5 Few countries in the world are developing as rapidly as
Taiwan. Taiwan is one of______ countries in the world.
6 Few buildings in London are protected as heavily as the Bank of
England. The Bank of England is one of _____ buildings in
London.
163
Practice
Compare the fuel consumption of three 4-wheel drive vehicles,
measured in miles per gallon (m/gall), using more... than, the most,
fewer... than, the fewest, not as many... as.
Exercise 4a
Comparing countable nouns
4X
Town driving
Motorway driving
Touring
Average
m/gal
21.5
23.0
29.5
24.0
V6
gall/100
4.65
4.35
3.39
4.16
m/gall
19.0
21.0
25.0
21.5
Hobo
gall/100
5.26
4.76
4.0
4.65
m/gall
19.5
18.5
26.0
21.0
gall/100
5.12
5.40
3.85
4.76
1 In town, the 4X does the most miles to the gallon.
2 In town, the Hobo does _____________ miles to the gallon________V6
3 On the motorway, the Hobo does________miles to the gallon _____ V6
4 On the motorway, the V6 does not do __________ miles to the gallon
_____________ the 4X.
5 Touring, the Hobo does ________ miles to the gallon_________ the 4X.
6 Touring, the V6 does ________ miles to the gallon.
On average, the Hobo does__________ miles to the gallon.
8 On average, the 4X does___________ miles to the gallon then the V6.
Exercise 4b
Comparing uncountable
nouns
Read the information again. Now compare how much petrol each car
uses per 100 miles (gall/100), using more ... than, less ... than, not as
much... as, the most, the least.
1
2
3
4
5
6
7
8
Exercise 5
Review: comparing countable
and uncountable nouns
In town, the Hobo uses more petrol than the 4X.
In town, the V6 uses_____ petrol of the three models.
On the motorway, the Hobo uses ____ petrol______ the V6.
On the motorway, the 4X uses ____ petrol of the three models.
When touring, the Hobo does not use ___ petrol ______ the V6.
When touring, the Hobo uses ____ petrol ______ the 4X.
On average, the V6 uses____ petrol ______ the Hobo.
On average, the Hobo uses ______ petrol of the three models.
Complete the sentences with more, less, much, many, or fewer.
1 Eurotunnel may never make a profit because the tunnel
cost substantially ________ money to build than they
had expected.
2 Because of ATMs, banks don't have as _______ branches as
they used to.
3 They made 2,000 staff redundant, so now they employ _______
people than they did last year.
4 Now that I’m in management, I don’t spend as ______ time at
home.
Production
Task 1
Write sentences comparing your life now with your life five years ago.
Use a comparative adverb (e.g., more easily), or not as ... as.
1 How early do you get up now?
I get up earlier than I used to. or I don't get up as early as I used to.
2 How regularly do you go abroad now? ________________ I used to.
3 How hard do you work now? ________________ I used to.
4 How late do you stay at work now? _______________ I used to.
5 How well do you speak English now? _______________ I used to.
6 How far from work do you live now? ________________ I used to.
Task 2
Task 3
Complete the sentences using an adverb of your choice in the
superlative.
1 Of the three of us, I would say that I probably drive the fastest.
2 Of all the people in the Sales Department, I think Peter works
__________________.
3 We all go abroad quite often, but Jane goes______________.
4 Of all the shares I have, the ones I have in ICI have performed
5
Of all the companies we looked at, DHL deliver mail _________
6
I did not like any of their reps at all, but I thought Henry behaved
Answer the questions comparing the present with five years ago. Use
more than, less than, fewer than, not as much as, or not as many
as in your answers. You can use these phrases without a noun if the
context is clear.
1 Do you do a lot of work at the weekends?
I don't do as much work as I used to. or I don't do as much as I
used to.
2 Do you have a lot of free time? ___________________________
3
Do you go to a lot of parties? _____________________________
4
Do you listen to a lot of music? ___________________________
5
Do you get a lot of sleep? _______________________________
6
Do you buy a lot of books? ______________________________
Degree: too, enough, so, such, such a
A Too
Notice the position of too, too much, and too many in the sentences:
BEFORE ADJECTIVES:
BEFORE ADVERBS:
BEFORE COUNTABLE
BEFORE UNCOUNTABLE NOUNS:
AFTER VERBS
B Enough
We can't afford another photocopier.
They're too expensive.
I can't understand what he says. He
talks too quickly.
We've got too many employees.
YOU spent too much time on that project
You talk too much
Notice the position of enough in these sentences:
AFTER ADJECTIVES:
I feel I'm experienced enough to apply for promotion.
AFTER ADVERBS: I'll need an interpreter. I don't know English well enough.
BEFORE NOUNS: Have you ordered enough chairs for the presentation'?
AFTER VERBS:
I don't think we advertise enough.
C Too/enough (+ for)
+ infinitive
Too and (not) enough can be followed by an infinitive or for
someone/something + infinitive. We do not use a pronoun at the end of a
sentence:
The manual was too complicated. I couldn't understand it.
The manual was too complicated (for me) to understand, (NOT: …TO
understand it.)
D So and
such
So and such can be used to add emphasis. So is used with adjectives and
adverbs, and such (a) is used with a noun or adjective + noun:
(so before adjectives and adverbs)
(such a with singular countable nouns)
(such with plural countable nouns)
(such with uncountable nouns)
(so much with uncountable nouns)
(so many with plural countable nouns)
E So and such (a) +
that
You're so reliable. You work so
hard.
I've got such a good accountant.
He has such good ideas.
He gives me such good advice.
I have so much work to do.
There are so many people here!
So and such with that express result. So is used with adjectives and
adverbs:
The manual was so complicated that I couldn't understand
it. The manual was written so badly that I couldn't
understand it.
Such (a) is used with an adjective + noun:
They were such noisy machines that we couldn't hear her
voice. It was such a bad manual that I couldn't understand it.
Practice
Exercise 1
Too/enough + adjectives
and verbs
Exercise 2
Too/enough + nouns
Put either too or enough in the correct space in each sentence. Put a
dash (-) in the other space.
1 We need new premises. This building isn't_____-____ big enough .
2 We've changed our insurers because we felt the premiums we were
paying were _____ high ______ .
3 He's not a very good manager - he doesn't communicate his ideas
______ clearly _____ .
4 It's never _____ early _____ to start contributing to a pension.
5 You'd better fax them the information. If you post it, it will
arrive late _____ .
6 You needn't rewrite the report. It's ____good _____ .
The Publicity Manager of a book distribution company is commenting
on the first draft of this year's catalogue. Fill in the blanks with too
much, too many, too few, or too little.
1 There are too many sections. They make the catalogue confusing.
2 There are _____ printing errors. These must be corrected.
3 There is _____ space given to new titles. They should have a whole
page.
4 There is _____ information about each title. It needs to be shorter.
5 There are _____ different text styles. We have to make it more varied.
6 There are _____ entries in the index. This needs to be much shorter.
Exercise 3
Combine the following sentences using too and
enough.
Too/enough + infinitive
1 The exhibition was too far away. We couldn't
attend it. The exhibition was too far away for us
to attend.
2 Your products are too expensive. We can't stock
them._____________________________________
3 This contract is too complicated. I can't
understand it.______________________________
4 My fax wasn't clear enough. He couldn't read it.
5 Your quotation wasn't low enough. We couldn't
accept it.
6 The project was too risky. They couldn't go ahead
with it.
Practice
Fill in the blanks with so or such. Then match the words to the
things they describe.
Exercise 4 So
and such
1
2
3
4
5
6
7
8
entertaining/such marvelous acting/written so well
good graphics/____fast/______userfriendly
a good idea/______ clever/_____
useful
light/decorated _________ beautifully/
_______________ modern
tasty/presented______nicely/________
good value
nice weather/______friendly people/
____________ lovely beaches
illogical/______useful/ ________easy
to learn
fair/________a good sense of humour/
______ supportive
an office
an invention
a language
a colleague a film
a computer
a meal in a restaurant
a holiday destination
Match the sentences in column A with the results in column B.
Then rewrite them as one sentence, using so and such.
Exercise 5
So/such + that
The meeting went on for such a long time that I missed the train
home.
A
1
2
3
4
5
6
7
The meeting went on for a long time.
A
The company was in a very bad financial state. B
Frankfurt was very busy during the book fair. C
They treat their employees very well.
D
My portable computer is very unreliable.
E
The new drug was very successful.
F
He had a very good CV.
G
B
The factory couldn't meet the demand for it.
Nobody ever wants to leave.
We decided to interview him.
They called in the receivers.
I missed the train home.
We couldn't get a hotel room.
I don't like to use it.
Production
Task 1
Reply to these questions using your own ideas and too and enough.
1 Why are you thinking about moving
jobs? I've been there too long.
2 Why don't you think we should give him the job?
3
Why can't we use your office for the meeting?
4
Why don't you get on with your boss?
5
Why can't you finish the job by Friday?
6
Task 2
Why didn't you go on the course?
Rewrite the following sentences in two ways, using too and not enough.
1 Emerging markets are too volatile. You shouldn't invest in them.
A (too/volatile) Emerging markets are too volatile to invest in.
B (enough/stable) Emerging markets aren't stable enough to invest in.
2 Their forecasts are always very inaccurate. We never use them.
A (too/inaccurate) __________________________________________
B (enough/accurate)__________________________________________
3 Our tax laws are very complicated. Most people can't understand them.
A (too/complicated) __________________________________________
B (enough/simple) ____________________________________________
4 Rents in the city are very high. We can't have an office there.
A (too/high) _________________________________________________
B (enough/low) _____________________________________________
5 The town is very small. We don't have a branch in it.
A (too/small) _______________________________________________
B (enough/big) ______________________________________________
Task 3
Add extra comments to these sentences, using so or such.
1
2
3
4
5
6
I'm surprised he is the Managing Director. He seems so young.
I've got to get to bed early tonight. _________________
I really thought you were English. _________________
I am amazed that she has resigned _________________
How can she complain about her salary?_____________
I always go to his talks.__________________________
Adjective + preposition combinations
A Adjectives + prepositions
B Form
Many adjectives are followed by a particular preposition. Here is
a list of common adjectives and the prepositions that normally
follow them:
accustomed to afraid of
attached to
aware of
dependent on different to
enthusiastic
excited about
about guilty of interested in
pleased with
popular with
related to
rich in
serious about similar to
suspicious of
used to (= accustomed to)
These adjectives and prepositions may be followed by a noun or
noun phrase:
The engineers were very excited about the results of the tests.
When followed by a verb, the -ing form must be used:
Please let me know whether you would be interested in arranging
a meeting.
C Adjective + choice of
preposition
Some adjectives can be followed by either of two or more
prepositions. Look at these common examples and at the
differences in meaning:
annoyed about something He was annoyed about the criticisms
in the papers.
annoyed with someone
They were annoyed with us for
charging them extra.
good/bad at something
I'm very bad at mathematics.
good/bad for something
Another cut in interest rates would be
good for industry.
good/bad with something She should be in Personnel. She's
very good with people.
responsible to someone
the Sales Director.
responsible for something
conference arrangements?
sorry about something
you didn't get it.
The Export Manager is responsible to
Who is responsible for making
/ am sorry about the job. It's a shame
sorry for doing something
waiting.
He said he was sorry for keeping me
(feel) sorry for someone
been fired.
I feel very sorry for Peter. He has
answerable
capable of
doubtful ab
famous for
opposed to
proud of
satisfied wi
suitable for
Practice
Complete the sentences with a suitable preposition or
adjective. Then complete the word comb.
Exercise 1
Adjectives + prepositions
1 The Bordeaux region of France is famous for its fine wines. (3 letters)
2 If you are serious ___________ going ahead with this, let's have a meeting. (5)
3 The Mini-TV is very popular _________ our younger customers. (4)
4 The NV8 Camcorder is __________ to the NV7 in many ways, but it has some
interesting new features. (7)
5 The salesman did not want to sell me the most expensive model he had
because he said it would not really be __________ for me. (8)
6 Wage demands are___________ to inflation in a number of important ways. (7)
7 The Finance Director said he was strongly _________ to awarding everyone a
10% pay rise, and explained that the company could not afford it. (7)
8 South Africa is ___________ in natural resources like diamonds and gold. (4)
9 I have to travel by car or boat because I am ________ of flying. (6)
10 He has very little experience. I don't think he would be _______ of running
such a large project. (7)
11 He was found __________ of fraud and was sent to prison for three years. (6)
12 I would be very _________ in discussing the idea of a joint venture. (10)
Exercise 2
Form
Fill in the blanks with the verbs from the box, using the -ing form.
buy
1
2
3
4
5
6
hire
manufacture
move
run
take
I am interested in buying a new computer. Could you tell me a little about
the different models you have?
Some of the staff are not very enthusiastic about ________ to our new
offices.
My boss is not afraid of __________ risks.
Most politicians know nothing about business, and wouldn't be capable
of ____________ a small business.
Our Personnel Manager is responsible for _____ new staff.
Rolls Royce is famous for _________ hand-made luxury cars.
Practice
Exercise 3
Adjectives + choice of
prepositions
Fill in each blank with a word from box A and a word from box B.
A
B
annoyed
bad
good
responsible
sorry
1 I heard him shouting at you.
What was he so annoyed about*.
2 I am _____ your holiday; it must-have been disappointing to
have to come home early.
3 The activities of the Insurance Division were ___ a large part of
the company's profits.
4 She was ____ her secretary for forgetting to send the letter in
time.
5 Sales reps are _____ the Area Manager; her boss is the Export
Director.
6 He said he was_____ not calling back, but something had come
up.
7 He's __ his job, but unfortunately he’s very _____customers.
8 Falls in the value of the pound are______ British exporters.
Exercise 4
Review
Complete this letter from a conference centre to a potential
customer, using the words in the box.
accustomed
aware
capable
famous
interested popular proud
responsible
good
rich
Dear Miss Harman,
I was delighted to hear that you may choose Warner Park Hotel as the venue for your next
conference, and am writing to introduce myself as the person (1) responsible for liaising
with potential conference organizers.
We are (2) ______ of the very high level of service we offer and are (3)_____to organizing
conferences of up to two thousand delegates. As you will see from the enclosed brochure,
we are (4) ______of organizing anything from an AGM to a major international conference.
Past clients have included BT, ICI, and Hanson, and these firms believe that a successful
conference can be very (5) _______ for business in the following year.
The hotel has an excellent range of facilities and no doubt you will be (6) _______of the
fact that the local area is (7) _______in cultural interest. In addition, our restaurant is
(8)_______ for its excellent cuisine, and I am enclosing samples of menus that have been (9)
_________with conference delegates in the past.
Please let me know whether you would be (10) _____ in taking the matter further, and I
will be happy to meet you to discuss any special requirements you may have.
I look forward to hearing from you.
Yours sincerely,
Lionel Royston
(Managing Director)
Production
Task 1
Rewrite the sentences, using the words in brackets.
1
A lot of executives like the BMW 500 series, (popular)
The BMW 500 series is popular with executives.
2
I don't think she can do the work. (capable)
_________________________________________
Task 2
3
Everyone knows Bordeaux because of its fine wines,
(famous) __________________________________
4
Janet is the person who hires new staff,
(responsible)________________________________
5
The Industrial Society thinks that higher taxes are a bad idea,
(opposed) ___________________________________
6
Would you like to arrange a meeting?
(interested) _________________________________
Answer the following questions, using the words in italics.
1 What are you responsible for in your job?
In my job, I'm responsible for researching into new allergy drugs.
2 Who are you answerable to?
Task 3
3
What are you good at?
4
What other jobs in the company would you be capable of doing?
5
What sort of salary would you be satisfied with?
Using a word from box A, and a word from box B, write sentences about yourself.
capable
interested
different
to
afraid
proud
similar
in of
A
of
of
from
B
1 I think I would be capable of doing what my boss does.
2 ______________________________________
3 ______________________________________
4 ______________________________________
5 ______________________________________
6 ______________________________________
Noun + preposition combinations
A Nouns +
prepositions
Here is a list of nouns and the prepositions normally used with them:
advantage of
application for
cheque for
difference
between fall in,
of interest in
need for price of
request for tax
on
B Nouns followed by a
choice of prepositions
advice on
benefit of
cost of
example of
increase/decrease in,
of
lack of
opinion of
reason for
rise in, of
trouble with
alternative to
cause of
demand for
experience of,
in invitation
to matter
with order
for reply to
solution to
Words referring to increases and decreases can be followed by in or
of. In refers to something that has risen or fallen; of refers to a
quantity or amount:
There has been a large fall in unemployment over the last few
months. There has been a fall of 9.7%.
C Prepositions + nouns
Here is a list of some common preposition and noun
combinations
at a good price
at your
convenience
by hand
by law
for sale
in stock
in the end
in bulk
on application
on holiday
on hold
on the whole
out of order
under pressure
at a profit/loss
at short notice
by return
by car, bus,
airmail
for lunch
in writing
in a hurry
in charge of
on sale
on business
on the phone
on order
out of date
with reference
to
at cost price
by post by
cheque by
mistake in
advance in
general in
my opinion
in debt on
loan on a
trip on
television
on time to
my mind
Look at the following examples:
This matter is urgent. Please reply by return.
Could you please confirm your order in writing.
The traffic is so bad I usually get into the centre by taxi, (NOT:
by the taxi.)
Practice
Exercise 1
Noun + preposition
Complete the sentences using a noun from box A and a
preposition from box B.
A
B
difference A
request
experience
trouble
cheque
solution
invitation
reply
advantage
price
of
of
of
to
to
to
for
for
between
with
1 Thank you very much for your invitation to the launch party.
2 At the moment the bank is considering our __ a larger
overdraft, and it will let us have a decision next week.
3 In my opinion, the _____ having a credit card is that you can pay
for things over the phone.
4 Have we received a ____ that letter we sent them last week?
5 Yes, they have paid us. We received a___£1800 a few days ago.
6 I don't think he would be suitable for the job in Tokyo. He has
had very little ______ working overseas.
7 In the long term, inflation is linked to the ___ raw materials.
these two fax machines? They look the same to me.
8 Is there any _______these two fax machines? They look the
same to me.
9 We had a lot of ______one of our customers who wouldn't pay
us, so we took legal advice.
10 Let me known if you can thing of a ______ the problem.
Exercise 2
Noun + choice of
prepositions
In the newspaper extracts, fill in the blanks with in or of.
1 There has been an unexpected fall _____________ the number of
people looking for work. Figures released yesterday showed a fall _____
28,900 in August, and ministers said that this was a sign that the
recovery was going well.
2 The Bundesbank announced yesterday an interest raterise ________
0.5%, taking the annual figure to 7.5%.The rise ________ rates had a
negative effect on shares, which fell sharply in Frankfurt and London.
3 The increase __________ inflation seem to be slowing
down. Figures released this morning showed an
increase ________________only 0.15% last month, compared
to a rise _______________ 0.4% the previous month.
Practice
Exercise 3
Preposition + noun
combinations
In the following telephone conversations, fill in the blanks with the missing
prepositions.
A: Hello, Finance.
B: Good morning. I'm calling (1) ________reference to a cheque I’ve
just had from you. I'm afraid you have put the wrong year on it
(2) ______mistake. The bank have just returned it because it is
(3) _______ date.
A: I'm so sorry. It must be because it's January. If you send it back we’ll
issue a new one (4) ___________
A: Hello, can you put me through to the Marketing Department, please?
B: Yes, of course ... I'm afraid the line's busy, I'll have to put you
(1) _______ hold for a moment.
A: OK...
C: Hello, Marketing.
A: Could I speak to the person who is (2) _______charge of booking
advertising space, please?
C: I'm afraid she's away (3) ______business at the moment. Can I help you?
A: Well, we are currently offering some attractive discounts for next
month's issue of Face magazine.
C: Well, (4) _______the whole we don't book advertising space
(5)________ such short notice, but if you’d like to give us details of your
rates (6) ________ writing, we’ll look at them and let you know.
Exercise 4
Review
Complete the following advertisement with the missing
prepositions.
THE MOST IMPORTANT INVESTMENT YOU’LL
EVER MAKE
More and more parents are looking to independent schools to provide an alternative
(1) to state education.
However, the cost (2) _______ sending a child to boarding school from 7 to 18
can be as much as Ј150,000, and annual increases (3) ______ school fees are often
greater than inflation.
So there is a need (4) ______specialist advice, and we at Knight Willis have
many years of experience (5) _______helping parents plan for their children's
education (6) ______advance. Early planning can help to achieve reductions (7) ____
over 75%, and (8) ______the whole, the earlier the school fee plan is started, the
greater the savings.
If you would like our advice (9) ______ the best way to plan for your child’s future,
please fill in the reply-paid from below. We will send you examples (10)_______
different school fee plans, and we can discuss these (11) ______ the phone or at a
meeting (12) ______ your own convenience.
Production
Task 1
Task 2
Task 3
Complete the following sentences using your own ideas.
1 I don't have much experience of dealing with difficult customers.
2 I don't think there is much difference _______________
3 I think unemployment is responsible for the rise _______
4 It will be difficult to find a solution _________________
5 During the winter months, the demand ______________
Rewrite the following sentences in a different way, using one of the
phrases from page 170, section C (prepositions + nouns).
1 This machine doesn't work. This machine is out of order.
2 Quick! I can't wait. ___________________________________
3 We lost money when we sold the car._____________________
4 I usually drive to work. ________________________________
5 The train did not arrive late. ____________________________
6 My house is on the market. ____________________________
7 He owes money. _____________________________________
8 We expect delivery of the goods soon. ____________________
Look through the extract from a dictionary, which gives a
number of different idioms using the word hand. Then fill in
the blanks with the correct expression.
1 I have a problem on my hands, and I'd like your advice about
what to do.
2 At first, some of the strikers on the picket line threw stones at the
police; then more joined in and soon the demonstration got____.
3 We don't use machines at all; everything is made____.
4 When you arrive at your holiday villa, one of our representatives
will be ______to help you with any problems you may have.
5 I can't stop the court case from going ahead. Everything is
now_____ of my lawyer, and I can't discuss it with you.
6 On the one hand, a job in England would be a good career move
for me ______.I would miss the people I know here in Milan.