What is Economics? Topical Vocabulary

aggregate – множество, совокупность

to allocate – распределять

allocation - размещение, распределение

to apply – применять

available – имеющийся в наличии

to concern – касаться, заниматься

concern – проблема

consumer – потребитель

consumption – потребление

to define – определять

demand – спрос

desire – желание

to distribute – распределять

efficient – рациональный, эффективный

employment – занятость

exchange – обмен

finite – конечный

goods – товар, товары

to govern – управлять

income – доход

infinite – бесконечный

market – рынок

need – необходимость, надобность, нужда

production – производство

to promote – способствовать, содействовать

to reconcile – согласовывать, приводить в соответствие

resource – запасы, ресурсы; природные богатства

scarce – недостаточный, скудный

scarcity – недостаток, нехватка, дефицит

to seek – стремиться, искать

service – услуга

social – общественный; социальный

society – общество

study – наука, область науки

trader – торговец

value – стоимость

virtually – фактически

wealth – богатство

welfare – благосостояние

Exercise 5. Read and translate the following text.

What is Economics?

Most economists define economics as a social science concerned with the production, distribution, exchange, and consumption of goods and services. Economics is the study of how goods and services get produced and how they are distributed. By goods and services, economists mean everything that can be bought and sold. By produced, they mean the processing and making of goods and services. By distributed, they mean the way goods and services are divided among people.

Economics is the study of how, in a given society, choices are made in the allocation of resources to produce goods and services for consumption, and the mechanisms and principles that govern this process. Economics seeks to apply scientific method to construct theories about the processes involved and to test them against what actually happens.

Human needs are virtually unlimited and resources are finite, so most goods and services are, in the economic sense, scarce. Because resources are scarce, only a limited amount of goods and services can be produced from them, and there arises the necessity for choice.

So, its two central concerns are the efficient allocation of available resources and the problem of reconciling finite resources with a virtually infinite desire for goods and services.

Economics promotes a better understanding of the nature and organization of different societies, the arguments underlying many of the great public issues of the day, and the operation and behaviour of business firms and other decision-making units. Economics relates to many problems in the real world.

The major divisions of economics include microeconomics which deals with the behaviour of individual consumers, companies, traders, and farmers; and macroeconomics, which focuses on aggregates such as the level of income in an economy, the volume of total employment, and the flow of investment.

The founder of the classical school of economics is Adam Smith.