Английский для Экономистов Агабекян данный файл принадлежит сайту www.crypower.ru

Date: 2015-10-07; view: 427.

Английский для Экономистов Агабекян данный файл принадлежит сайту www.crypower.ru

Complementary goods

Goods that are often consumed together, like peanut butter and jelly, are complements.

If the price of peanut butter should increase, the quantity of peanut butter consumed will decrease. Since peanut butter and jelly are consumed together, the quantity of jelly demanded at each and every price will also decline, and the demand curve for jelly will shift in.

What are some other factors that might cause the demand to increase or decrease? How would these changes be reflected in the demand curve? The following is a brief list of factors that might affect the curve:

• Change in the environment.

• Change in the item's usefulness.

• Change in income.

• Change in the price of a substitute product.

• Change in the price or availability of complementary products.

• Change in styles, taste, habits, etc.

If any of these events occurred, the demand schedule would change in such a way that the quantity demanded at any particular price would be higher or lower.

Here is a chart of supply-demand curves. The point of their intersection is the market price.

Past_4_Lesson_3_Text 3 (Стр. 319 – 330)

MICROECONOMICS VS. MACROECONOMICS

Economists have two ways of looking at economics and the economy. One is the 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.

Macroeconomics examines questions such as how fast the economy is running; how much overall output is being generated; how much total income. It also seeks solutions to macro-economic problems such as how employment can be increased, and what can be done to increase the output of goods and services. Microeconomics examines cause-and-effect relationships that influence choices of indi­viduals, business firms and society.

It is concerned with things such as scarcity, choice and opportunity costs, and with production and consumption. Principal emphasis is given by microeconomists to the study of prices and their relationship to units in the economy.

Factors Of Production

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 economic system, and each has a particular function. People who own or use a factor of production are expecting a «return or reward.» This generates income which, as it is spent, becomes a kind of fuel that drives the economy.

Natural Resources or «Land»

Natural resources are the things provided by nature that go into the creation of goods and services. They include such things as minerals, wildlife and timber 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.

Human Resources or «Labor»

Economists call the physical and mental effort that people put into the creation of goods and services labor. The price paid for the use of labor is called wages. Wages represent income to workers, who own their labor.

Capital

To the economist, physical capital (or «capital» as it is commonly called) is something created by people to produce other goods and services. A factory, tools and machines are capital resources because they can be used to produce other goods and services. 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.

Entrepreneurship

Closely associated with labor is the concept of entrepreneurship, the managerial or organizational skills needed by most firms to produce goods and services. The entrepreneur brings together the other three factors of production. When they are successful, entrepreneurs earn profits. When they are not successful, they suffer losses. The reward to entrepreneurs for the risks, innovative ideas and efforts that they have put into the business, they obtain the money that remains after the owners of land, labor and capital have received their payments.