Economics General terms:

bare subsistence level – голый прожиточный минимум

business enterprise – коммерческое предприятие, торгово- промышленное предприятие

consumer price index – индекс потребительских цен

consumption – потребление

distribution – распределение

economic indicators – экономичечские показатели

economic recession – экономический спад

entrepreneur – предприниматель

equilibrium of the economy – равновесное состояние экономики

favourable balance of trade – активный (благоприятный) торговый баланс

foregone earnings – упущенные доходы

goods and services – товары и услуги

gross national product – валовой национальный продукт

incentive – побудительный мотив

inflation – инфляция

interest rates – процентные ставки

marginal costs of production – предельные издержки производства

market basket – потребительская корзина

market price – рыночная цена

money costs – денежные затраты

opportunity costs – альтернативные издержи, издержки неиспользованных возможностей (отражающие лучшие альтернативные возможности использования ресурсов)

output – выпускаемая продукция

private sector – частный сектор

PRODUCTIOn – производство

production costs – издержки производства

profit – прибыль, доход

PUBLIC SECTOR – ГОСУДАРСТВЕННЫЙ СЕКТОР

scarcity – дефицит

standard of living – уровень жизни

state-owned enterprise – государственное предприятие

supply and demand – предложение и спрос

Economic Considerations

LESSON 1. The aim of the lesson is to teach you to relate the given information to your practical experience and fill in your experiential and linguistic information gaps. “Economic considerations” will help you broaden your perspective of economics and increase your communicative skills in English.

1. Getting started. Working in groups of three or in pairs, consider the issues below. After you have reached some conclusions, share your ideas with the whole group.

1) The dictionary defines economics as “the study of the production of wealth and the consumption of goods and services in a society.” List five economic issues relating to production and consumption that your national or local government has to deal with today.

2) John Maynard Keynes, one of the most influential economists of the twentieth century said, “The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else.” What do you think Keynes meant by this statement? Do you agree or disagree? Give reasons to support your opinion.

3) Two basic components of an economic system are business enterprise and households. Businesses produce goods and services, households consume them. Clothes, cars, stereos, books, and other material items are economic goods. They cost money - or have economic value. It takes skill and effort to create goods. People want them, and a limited number are available. Therefore, goods are scarce and have a price.

Explain the following phrases using the above passage:

1. Economics is the study of the allocation of scarce resources.

2. A person doesn’t have to give up anything to acquire free goods.