Exercises

2. Match the words and phrases with the definitions.

1 devastating collapse	A something that happens
2fiscal policy	B a method or tool for
	doing something
3domestic	C control of spending
	through taxation
4steady growth	D money you have to
	spend after paying tax
5monetary policy	E a serious slowing down
	of the economy
6recession	F at a slow, unchanging
	rate
7mechanism	Gmove around
8disposable income	H control of the cost
	of borrowing and
	movement of money in
	economy
9interest	I the members of the
	population able to work
10 circulate	G something you know will
	happen
11depression	K complete destruction
12 predictable	L the cost of borrowing
	money
13 event	M not foreign
14 vorkforce	N a very bad period for the
	economy

2.Now read the text again and answer the questions

1 Which countries were affected by the Great Depression?

A only America

B just America and Europe

C the whole world

2 Which of the following is interested in foreign economies?

A microeconomics

B macroeconomics

C both micro and macro economics

3 The three different mechanisms which governments use are ...

A all concerned with how much money people

have to spend.

B aimed at improving education and training.

C all different ways of managing an economy.

4 Which mechanisms involve changing interest rates?

A fiscal policy

B- monetary policy

C administrative approach

5 Which mechanisms might involve creating job training schemes for school leavers?

A fiscal policy

B monetary policy

C administrative approach

6 What do governments want to achieve with their macroeconomic policies? A to predict what will happen in the economy

B to create steady economic growth

C to combine different paths for economic growth

3. Discuss these questions with your partner.

-» Micro means small and macro means large. What do you think macroeconomics is?

-» How is it different from microeconomics?

Unit 3

Text 1. Marketing

Marketing includes all the business activities connected with the movement of goods and services from producers to consumers. Sometimes it is called distribution. On the one hand, marketing is made up of such activities as transporting, storing and selling goods and, on the other hand, a series of decisions you make duringthe process of moving goods from producer to user. Marketing operations include product planning, buying, storage, pricing, promotion, selling, credit, traffic and marketing research.

The ability to recognize early trends is very important. Producers must know why, where, for what purpose the consumers buy. Market research helps the producer to predict what the people will want. And through advertising he attempts 10 influence the customer to buy. Marketing operations are very expensive. They take up more than half of the consumer’s dollar. The trend in the USA has been to high mass

consumption. The construction of good shopping centres has made goods available to consumers. It provided a wide range of merchandise and plenty of parking facilities.