11. Employment and unemployment

Employment – is a contact between two parties one being the employer and the other being the employee. The employer conceives of productive activity, generally with the intention of creating profits, and the employee contributes labour to the enterprise, usually in return for payment of wages.

The relationship employers share with employees is affected by three significant factors – interests, control and motivation.

There are different classifications of workers within a company. Some are full-time and receive a guaranteed salary, while others are hired for short term contracts or work as consultants.

Employees can organize into labor unions or trade unions which represent most of the available work force in a single organization.

Unemployment occurs when a person is available to work but currently without work. Mainstream economics believes in the main that unemployment is inevitable, and a necessary evil to prevent inflation. There is also disagreement on how exactly to measure unemployment. Different countries experience different levels of unemployment. Economists distinguish between various types of unemployment, including cyclical unemployment, frictional unemployment, structural unemployment and classical unemployment. Some additional types of unemployment that are occasionally mentioned are seasonal unemployment, hardcore unemployment, and hidden unemployment. Real-world unemployment may combine different types. The magnitude of each of these is difficult to measure, partly because they overlap.

12. Inflation

Inflation is generally defined as a persistent rise in the general price level with no corresponding rise in output, which leads to a corresponding full in the purchasing power of money. It leads to a redistribution of income and wealth.

There are different rates of inflation: From gentle creeping (mild) inflation (perhaps 5% per annum) to galloping or hyper-inflation (say 100%+)

Demand-pull inflation occurs as a means of limiting demand to the available supply.

Cost-push inflation. This takes place when firms face increasing costs because of the rising costs of imported raw materials etc.

The monetarists argue that inflation is caused by increase in the supply of money.

13. Odessa

Odessa is rather young – it is 211 years old. Its population is over 1 million. Odessa is one of the biggest industrial and cultural centres of Ukraine on the Black Sea. A lot of cargo and passenger ships from many foreign countries come to the port of Odessa. Odessa is the Southern gates and an important trade centre of our country. The city has a developed engineering, metal-working, machine-tool construction, light and food industry and so on. A lot of new industrial associations, joint ventures and institutions are created nowadays. Odessa is also a popular health resort centre of Ukraine on the Black Sea shore. There are many sanatoriums, rest homes and tourist centres here. Odessa is a scientific and cultural centre. There are 5 universities, a number of academies, institutes and colleges in the city. Odessa is a lovely city. It is well planned with straight streets and big squares. Practically every building in the centre of the city is a monument of architecture. Potyomkin Stairway and the Opera House attract a lot of tourists and guests of our city.