9. Make up your own dialogue using the following expressions and word-combinations:

a limit to the resources the problem of scarcity

to make choices to purchase goods and services

to pay opportunity costs economic forces

factors of production the basic economic problem

10. Inform the group about your activities and find out if he or she does the same:

Model: I decide to become an economist. And what about him? (too) He decides to become an economist too.

1.1 pay for the use of land. And what about her? (regularly)

2. I negotiate a sate. And what about her? (too) 3. I want to know more about the subject. And what about him? (too)

4. I need to make choices from among the things I want. And what about her? (from time to time) 5. I expect you to use your property to produce things that will sell and earn you a profit. And what about him? (too)

11. Express doubt concerning the truth of the following statements:

Model: He understands your question.

I'm afraid he doesn't understand your question.

1. Yog know his decision. 2. Everyone goes through life having to make choices. 3. Economic forces affect decisions in the world of business. 4. Large corporations use economists to study the way they do business and to suggest methods for making more efficient use of their equipment, factories, and other resources. 5. Each factor of production has a place in our economic system. 6. The study of economics helped me to understand the economic forces better.

12. Ask about the following as in the model:

Model: Ask your friend if he knows what is the basic economic problem. Do you know what is the ba­sic economic problem?

1. Ask your friend if John knows the answers to the fundamental economic questions. 2. Ask your friend if rent becomes income to the owner of the land. 3. Ask your friend if he wants to study economics. 4. Ask your friend if economic forces affect decisions in the world of business. 5. Ask your friend if the resources go into the creation of goods and services.

13. Translate into English:

1. Приватна власність дає людям стимул використовувати свою власність для отримання прибутку. 2. Економіка — це наука, яка вивчає специфіку розвитку економічних відносин в окремих сферах народного господарства. 3. Відношення власності на засоби виробництва утворюють основу еконо­міки, 4. Мені цікаво знати, чи впливають економічні чинники на рішення у світі бізнесу. 5. Вивчення економіки дає мені можливість краще орієнтуватися в бізнесі. 6. Заробітна пла­та — це грошова винагорода за використану працю.

14. Communicative situations:

1. Assume that you have just received your first paycheck of $135. Describe how the concepts of scarcity, opportunity costs, and the need to make choices will affect the way in which you spend your money.

2. If all people could have anything they wanted simply by rubbing a magic lantern, there would be no need to study economics. Explain this statement.

3. Suppose the United States Government decided to send every man, woman and child living in Ukraine a package containing 10,000 crisp new $10 bills. What effect would this have on us all?

Lesson 2 THE AMERICAN ECONOMIC SYSTEM

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

a pillar — опора, стовп

e.g. There are three «pillars» of economic system: private property, the price system and competition.

to use one's assets — використовувати (чиє-небудь) майно e.g. According to the right to private property the owners of natural resources and capital can use their assets as efficiently as they can.

economic incentives — економічні стимули e.g. Economic incentives influence our decisions about what and where to buy.

to switch one's deposits from one bank to another — переводити депозити з одного банку в інший

to receive higher interest rates — одержувати вищі відсотки за вкладом

e.g. Savers will switch their deposits from one bank to another to receive higher interest rates, profit motive — мотив прибутку

e.g. The profit motive is the force that drives our economic system.

entrepreneur — підприємець

e.g. Profits drive entrepreneurs to risk capital, hire employees and purchase the things they need to produce goods and services.

to set the price — встановити ціну

e.g. Monopolies can set the price at which their goods are sold.

gross,national product — валовий національний продукт e.g./jhe total value of the goods and services produced by the economy in a single year is called the gross national product (GHP). \ S*"

household — домашнє господарство; сім'я

e.g. We live in what economists like to call households.