Exercises

Ex.2 Give English equivalents to the following word combinations:

галузі предмету, наукові пояснення, задовольнити нашу цікавість, реагувати на зміни обставин, предмет загальної згоди, повністю відрізняється, об'єктивна правда, надавати субсидії для оплати рахунків за медичне обслуговування, присвячувати значну частину ресурсів, визначити перелік можливих виборів.

Ex.3. Find where in the text it is said about the points given below. Put down the number of the paragraph.

1. The aim of positive economics;

2. Examples of positive economics in action;

3. The statement that combines positive and normative economics;

4. The usage of positive economics;

Ex.4. Find the terms in the text which designate the following:

1. the branch of economic study that deals with objective or scientific explanations of the working of the economy;

2. the branch of economic study that offers prescriptions or recommendations based on personal value judgements;

Ex.5. Say if the following statements are true or false:

1. In studying economics it is important to distinguish two branches of the subject.

2. Positive economics is similar to the natural sciences such as physics, geology or astronomy.

3. Normative economics is based on the search for objective truth.

4. Nothing can be made about the resolution of disagreement in normative economics.

5. Economics can be used to show that one of these normative judgements is correct and the other is wrong.

6. Society might have to devote a great deal of resources to providing check-up facilities, leaving less resources available than had been supposed to devote to improving the environment.

7. Normative economics can be used to clarify the menu of options from which society must eventually make its normative choice.

Ex. 6. Find the answers to the questions in the text. Put down the number of the paragraph:

1. What does positive economics deal with? What is its aim?

2. With what sciences can we compare positive economics? Why?

3. What does normative economics offer?

4. Why is there no way that economics can be used to show that one of these normative judgements is correct and the other is wrong?

5. What can positive economics be used to?

Ex. 7. Answer the questions of the Ex. 6 orally

Ex. 8. Explain the essence of each branch of economic study: positive economics and normative economics.

Ex. 9. Describe the difference between those branches using examples to illustrate.

Ex. 10. Prove that positive economics can be used to clarify the menu of options from which society must eventually make its normative choice.

Ex. 11. Make up a plan covering the main ideas. Discuss the text according to the plan.

Ex. 12. Discussion points:

1. Give your own examples of statements illustrating positive and normative economics.

2. Discuss what branch is more prospective for modern world? Explain your point of view.

Unit 4 Economy as a system

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

business cycle - цикл ділової активності

permanent - постійний

recession - рецесія, економічний спад

capacity - потужність

interest rates - відсоткові ставки

depression - економічний занепад, депресія

downturn (downswing) - пониження, спад

upturn (upswing) - піднесення

trough - найнижча точка циклу

to run up debts - збільшувати борги

mortgage - іпотека

output - продукція, виробіток

balance of payments - платіжний баланс

borrow - брати кредит

to put up prices - підвищувати ціни

to lay off - звільняти

creative destruction - творче знищення (коли малі компанії завдяки творчим та іноваційним підходам стають більш конкурентноспроможними, ніж великі потужні компанії)

periods of office - термін перебування при владі (на посаді)

austerity Programmes - програма суворої економії

tax cut - зниження податків

monetary expansion - збільшення грошової маси в обігу