Exercises

Ex.2 Give English equivalents to the following word combinations:

Незмінна характеристика; змінюють одне одного; працює на повну потужність; мають тенденцію зростати; таким, що сам себе створює; тісно пов'язане, поза межами економічної діяльності, технологічні винаходи, декілька років.

Ex.3. Find where in the text it is said about the points given below. Put down the number of the paragraph.

1. economic situation during a boom;

2. economic situation during a recession;

3. the highest and the lowest point of the business cycle;

4. Internal theories as to the cause of the business cycle;

5. External theories as to the cause of the business cycle.

Ex.4. Find the terms in the text which designate the following:

1. alternating period of expansion and contraction in economic activity;

2. negative growth;

3. the lowest point on the business cycle;

4. the highest point on the business cycle;

5. a serious, long-lasting recession.

Ex.5. Say if the following statements are true or false:

1. The business cycle is a permanent feature of market economies.

2. During a boom production, employment, prices, profits, investment and interest rates all tend to fall.

3. External theories consider business cycle to be self-generating, regular, and indefinitely repeating.

4. As far back as the mid-nineteenth century, it was suggested that the business cycle results from people infecting one another with optimistic or pessimistic expectations.

5. When economic times are good or when people feel good about the future, they tend to save more.

6. A country's output, investment, unemployment, balance of payments, and so on, all depend on millions of decisions by consumers and industrialists on whether to spend, borrow or save.

7. Joseph Schumpeter believed that the business cycle is caused by major technological inventions

Ex. 6. Find the answers to the questions in the text. Put down the number of the paragraph:

1. What is business cycle?

2. What happens during a boom? During a recession?

3. How do internal theories consider the business cycle?

4. When does investment takes place?

5. What causes business cycle according to external theories?

6. What is business cycle caused by in the countries where there is no independent central bank?

Ex. 7. Answer the questions of the Ex. 6 orally

Ex. 8. Describe the business cycle model.

Ex. 9. Explain the difference between internal and external theories as to the cause of the business cycle.

Ex. 10. Prove that business cycles are permanent features of market economies.

Ex. 11. Make up a plan covering the main ideas. Discuss the text according to the plan.

Ex. 12. Discussion points.

1. Think over and discuss the impact of governments on the business cycles.

2. What theory (internal or external) gives more objective and comprehensive view on causes of business cycle. Define advantages and disadvantages of each theory.

Unit 5 Measuring economies

Ex.1 Read and memorize the following words, words combinations and word-groups:

national-income accounting - облік національного доходу

measurement - вимірювання

aggregate - сукупний

to evaluate - оцінювати

average - середній (показник)

to relate - визначати співвідношення

to refer to - мати відношення

encounter - обчислювати, підраховувати

to arise - виникати, з’являтися

to involve - включати в себе

to exclude - виключати

intermediate goods - проміжний продукт

input - ресурс, введення продукції

to distinguish - розрізняти

to take into account - брати до уваги

production possibilities - можливості виробництва

depreciation - амортизація

gross investment - валові капіталовкладення

net investment - чисті інвестиції

to wear out - зношуватися

to exceed - перевищувати