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15
1. It is Britain's role in the projected political union which is at the
heart of the discussion.
2. It was the failure either to coordinate these Ministries successfully,
or to present an intelligent picture of their activities to the electorate, which
was the chief weakness of the previous Cabinet.
3. It is just this issue that is at present in the centre of financial con-
troversy in the USA.
4. It is the developing countries who are perpetually in deficit to the
United States.
5. It is surplus value which provides the fund out of which all the in-
comes are paid, the rent, interest and profit.
6. It is obvious that it was the Portuguese army's siding with the peo-
ple that spelled the doom on the fascist regime.
7. It is not only in the economic sphere that the advantages of this
system manifest themselves.
8. It is not only the rate of profit but also the total amount of corpora-
tion profits that changes direction before the major turns in business activity
as a whole.
9. It is not monopolies that should get compensation when industries
are nationalized.
10. It is when one comes to determine the proper level of such a capi-
tal charge that the problem becomes difficult, even intractable.
11. It is only when labour productivity has been raised in all fields,
disguised unemployment in agriculture removed, and labour appropriately
allocated among the export, domestic, and import-competing sectors that a
country can be said to be exporting in proper proportions.
12. It is not until June 5 that the Bill will be published.
Translate the following texts
Text 1
PER CAPITA OUTPUT AND THE DEGREE OF SPECIALIZATION
We now turn to an examination of the relationship between specializa-
tion and per capita output. At low output levels the following conditions are
likely to exist. (1) The variety of activities engaged in per man will be very
large. Not only will single individuals and production units produce a number
of commodities. Inver but they are also likely to produce a number of com-
modities. (2) The performance of many operations is of a seasonal nature and
therefore it is usually very difficult to spread the necessary work very evenly
16
over the year. (3) There will be considerable time lost in shifting from one
activity to the next. (4) The skill displayed in performing any given activity or
operation is likely to be very low, on the average. (5) The nature of the activi-
ties is such that very little capital per unit of product is required.
To facilitate analysis we postulate that for every level of per capita
income there is a degree of specialization that is optimum and that this op-
timum is in effect. For the moment let us also postulate that population size
is constant. Since we assume that the proportion of different goods remains
constant, an increase in income (or output) manifests itself in an increase in
output of all commodities in the same proportion. The increase output of
every commodity permits the concentrations of each worker on fewer ac-
tivities. If workers are employed the same period of time as before, the
economy as a whole can then produce more units of each commodity with
the same labor force. It can do so because labor efficiency increases via
specialization in the following ways: time lost in shifting from activity to
activity is eliminated, activities are somewhat better synchronized than be-
fore, repetition leads to increased skill in performance, and, last, efficiency
is increased, because increased specialization permits a better distribution
of men among the activities in which they are most skilled.
But the crucial question is this: Why was not the increased degree of
specialization possible at the lower level of output? Increased specializa-
tion, given the smaller bundle of goods, would have meant less time needed
per man to produce that bundle of goods, and hence the gain could have
been taken in greater leisure per man. Surely, this represents a better solu-
tion than the one that involves less specialization. Why is this not done?
Briefly, the answer that suggests itself is that specialization is costly, and its
cost is both of a fixed and a current nature. But it is the fixed part of the cost
that is significant, because this implies that increased specialization requires
additional capital.
In discussing the costs of specialization two types of costs must be dis-
tinguished. One is the cost of shifting from one stage of specialization to the
next; the other is the differential cost of different degrees of specialization.
The first type of cost is dynamic in nature. Some part of the costs of labor
mobility and urbanization, as they are usually considered in discussions of
economic development, involves the first type of cost. It really has to do with
the cost of shifting from one resource and manpower base to another.
1. It is Britain's role in the projected political union which is at the over the year. (3) There will be considerable time lost in shifting from one
heart of the discussion. activity to the next. (4) The skill displayed in performing any given activity or
2. It was the failure either to coordinate these Ministries successfully, operation is likely to be very low, on the average. (5) The nature of the activi-
or to present an intelligent picture of their activities to the electorate, which ties is such that very little capital per unit of product is required.
was the chief weakness of the previous Cabinet. To facilitate analysis we postulate that for every level of per capita
3. It is just this issue that is at present in the centre of financial con- income there is a degree of specialization that is optimum and that this op-
troversy in the USA. timum is in effect. For the moment let us also postulate that population size
4. It is the developing countries who are perpetually in deficit to the is constant. Since we assume that the proportion of different goods remains
United States. constant, an increase in income (or output) manifests itself in an increase in
5. It is surplus value which provides the fund out of which all the in- output of all commodities in the same proportion. The increase output of
comes are paid, the rent, interest and profit. every commodity permits the concentrations of each worker on fewer ac-
6. It is obvious that it was the Portuguese army's siding with the peo- tivities. If workers are employed the same period of time as before, the
ple that spelled the doom on the fascist regime. economy as a whole can then produce more units of each commodity with
7. It is not only in the economic sphere that the advantages of this the same labor force. It can do so because labor efficiency increases via
system manifest themselves. specialization in the following ways: time lost in shifting from activity to
8. It is not only the rate of profit but also the total amount of corpora- activity is eliminated, activities are somewhat better synchronized than be-
tion profits that changes direction before the major turns in business activity fore, repetition leads to increased skill in performance, and, last, efficiency
as a whole. is increased, because increased specialization permits a better distribution
9. It is not monopolies that should get compensation when industries of men among the activities in which they are most skilled.
are nationalized. But the crucial question is this: Why was not the increased degree of
10. It is when one comes to determine the proper level of such a capi- specialization possible at the lower level of output? Increased specializa-
tal charge that the problem becomes difficult, even intractable. tion, given the smaller bundle of goods, would have meant less time needed
11. It is only when labour productivity has been raised in all fields, per man to produce that bundle of goods, and hence the gain could have
disguised unemployment in agriculture removed, and labour appropriately been taken in greater leisure per man. Surely, this represents a better solu-
allocated among the export, domestic, and import-competing sectors that a tion than the one that involves less specialization. Why is this not done?
country can be said to be exporting in proper proportions. Briefly, the answer that suggests itself is that specialization is costly, and its
12. It is not until June 5 that the Bill will be published. cost is both of a fixed and a current nature. But it is the fixed part of the cost
that is significant, because this implies that increased specialization requires
additional capital.
Translate the following texts In discussing the costs of specialization two types of costs must be dis-
Text 1 tinguished. One is the cost of shifting from one stage of specialization to the
PER CAPITA OUTPUT AND THE DEGREE OF SPECIALIZATION next; the other is the differential cost of different degrees of specialization.
The first type of cost is dynamic in nature. Some part of the costs of labor
We now turn to an examination of the relationship between specializa- mobility and urbanization, as they are usually considered in discussions of
tion and per capita output. At low output levels the following conditions are economic development, involves the first type of cost. It really has to do with
likely to exist. (1) The variety of activities engaged in per man will be very the cost of shifting from one resource and manpower base to another.
large. Not only will single individuals and production units produce a number
of commodities. Inver but they are also likely to produce a number of com-
modities. (2) The performance of many operations is of a seasonal nature and
therefore it is usually very difficult to spread the necessary work very evenly
15 16
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