of an economy such as exports and foreign investment, which are included in the wider measure, GNP.

Neither GDP nor GNP, however, completely measures the size of a country's economy. Illegal activities, such as drug sales or prostitution, are never reported and are consequently not included in these official measures. In addition, work done for no salary, such as house-work or volunteer work at hospitals and schools, is not included, since no payment is made for these goods and services. A country with working parents would consequently show a larger GNP, reflecting the added costs of day-care and cleaning services otherwise provided "for free" by a stay-at-home spouse.

Although neither GDP nor GNP is the perfect measure of the size of a country's economy, they still provide the best means we have for comparing the economic activity of different countries, big or small, rich or poor.

COMPREHENSION CHECK

Exercise 1. Choose the correct answer according to the text.

1.What is IDP often used to compare? a) spending figures of different countries. b) wages.

c) mineral resources.

2.Is it useful to compare spending the economic statistics of different countries by using figures in the local currency?

a) Yes, it is. b) No, it isn’t.

c) It is rarely useful.

3.Is GDP or GNP the perfect measure of the size of a country’s economy?

a)GDP.

b)GNP.

c)Neither.

Exercise 2. Choose the correct word (words) according to the information in the text to complete the sentences.

1.GDP is often used to compare figures of different countries because it represents only the … production of goods and services.

a) domestic

b) international c) foreign

2.Economic statistics has to be related to the country’s ….

a)position

b)size

c)history

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3. GDP does not include the international components of an economy, such as … and foreign investment.

a)import

b)exports

c)salary

INCREASE YOUR VOCABULARY

Exercise 1. Match the antonyms.

Exercise 2. Choose the Russian equivalents to the collocations given below.

LANGUAGE ACTIVITY

Exercise 1. Insert articles where necessary.

1.… production of goods and services produces … food, … clothing and … shelter.

2.Whatever is not consumed in … country itself can be sold to … other countries as … exports.

3.… size of … country’s economy is determined by … total amount of goods and services that country produces.

4.A company’s share price is based on … its earnings.

5.Almost every country uses … different currency.

Exercise 2. Insert the proper prepositions (by, of, in, with, for, to, during) where necessary.

1.It is rarely useful to compare the economic statistics … different countries … using figures … the local currency.

2.A country … working parents would show a larger GNP.

3.Neither GDP nor GNP is the perfect measure … the size of a country’s economy.

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4.GDP and GNP provide the best means … comparing the economic activity of different countries.

5.… periods of economic turmoil, the world often turns … a particular currency, as a refuge.

Exercise 3. Study the words.

Economy

1) экономика страны

Economy of some countries has had a deep crisis over the past years. 2) экономия

One should take care of domestic economy.

Economic – экономический, относящийся к экономике

In 1998 we had an economic crisis in Russia.

Economical - экономный

Small cars are more economical to run.

To economise – экономить

We can’t economize on healthy food.

Economics – наука и учебный предмет

Economiсs is a very important subject.

Exercise 4. Translate the sentences from Russian into English.

1.Мы изучаем экономику в университете.

2.Автомобильные компании борются за экономичный автомобиль.

3.Многие экономисты критикуют плановую экономику за дефицит и недостаток конкуренции.

4.Экономическая ситуация в этой стране очень серьезная.

5.Не следует экономить на фруктах.

Exercise 5. Pay attention to the translation of the words only, the only, very, the very, few, a few, little, a little.

1.Very much attention was paid to the translation of some pronouns from the very beginning.

2.These are only a few facts about this science.

3.Civil engineering is not the only branch of engineering.

4.Few scientists supported the new theory because they had little information about

it.

5.Röntgen was a little puzzled when he understood the rays were unknown to him.

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