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Exercises

Ex.1. Find where in the text it is said about the points given below.

  1. the circular flow model;

  2. “leakages” and “injections”;

  3. economic growth as an economic indicator;

  4. meaning of GDP;

  5. higher education as one of the factors leading to the economic growth;

  6. investment and capital accumulation;

  7. cumulative cycle of the economic growth.

Ex.2. Find the terms in the text which designate the following:

  1. money which is not passed directly into domestic business;

  2. a basic model of the relationship between flows of physical goods and money flows;

  3. increase in the flow of income;

  4. reducing the flow of income;

  5. a concept used to measure output;

  6. actual volume of goods and services produced by the economy;

  7. income from sources other than domestic households;

  8. more output from the same resources.

Ex.3. Say if the following statements are true or false:

  1. A surplus of leakages over injections will increase the flow of income.

  2. A surplus of injections will reduce the flow of income.

  3. Government seeks by various means to maximize the flow of income in the economic system.

  4. The development of human skills will decrease the capacity of an economy to grow.

  5. Higher incomes may be channeled into the higher investment.

  6. The GDP refers to the output produced by individuals and businesses actually located within any foreign economy.

  7. Capital accumulation is often called investment.

Ex. 4. Answer the following questions:

  1. What does the economy as a system generate?

  2. How do injections and leakages influence on the flow of income?

  3. What do governments do to maximize the flow of income in the system?

  4. What do we mean by “real output”?

  5. What does the GDP refer to?

  6. What factors may help to create growth?

  7. What does capital accumulation include?

  8. How can a growth cycle be cumulative?

Ex. 5. Describe a circular flow model in the economy.

Ex. 6. Explain why factors mentioned above really lead to the economic growth.

Ex. 7. Prove that economic growth is the most important economic indicator.

Ex. 8. Make up a plan covering the main ideas. Discuss the text according to the plan.

Ex. 9. Discussion points.

  1. Think about other factors that may lead to the economic growth of a country.

  2. What is the best way of the government management of the economy: through businesses or directly by restrictions and regulations.

Unit 3 Forms of business organization

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

Sole proprietor – одноосібний власник

Qwnership - власність

Savings - заощадження

Salaried manager – менеджер, який отримує зарплату

To be restricted – бути обмеженим

Utilize - використовувати

in favour –на користь

Raise finance – збирати кошти

Go public – ставати державною (комунальною) компанією з обмеженою відповідальністю

Appeal - привабливість

Expansion - розширення

limited liability – обмежена відповідальність

encouragement - заохочення

Invest in – інвестувати у

Legal device – законний засіб

Rely on – покладатися на

Bear losses – нести збитки

Be liable for debts – бути відповідальним за борги

To the full extent – повною мірою

continuity of existence – тривалість існуваання

permanently - постійно

Irredimable – який не підлягає обміну на гроші

Have money tied up somewhere – мати гроші, інвестовані у

Quote shares – визначати ціну за акції

Stock Exchange – фондова біржа

Be freely negotiable – бути у вільній продажі

Estate duties – податок на нерухоме майно

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