4. Economic Policy

An economic policy is a course of action that is intended to influence or control the behavior of the economy. Economic policies are normally implemented and administered by the government. The goals of economic policy consist of value judgements about what economic policy should strive to achieve. While there is some disagreement about the appropriate goals of economic policy, there are three widely accepted goals including:

1. Economic growth: it means that the incomes of all consumers and firms (after accounting for inflation) are increasing over time.

2. Full employment: it means that every member of the labor force who wants to work is able to find work.

3. Price stability: it means to prevent increases in the general price level known as inflation, as well as decreases in the general price level known as deflation.

Economics can also be divided into numerous sub-disciplines including: development economics, economic geography, environmental economics, industrial organization, information economics, institutional economics, international economics, labor economics, and public finance.

So, economics is the ancient science. Economics is the method and the instrument of thinking. It helps us to come to a right conclusion. It always attracts attention of scientific and educated people. Today the interest for economics is growing.

Exercises

I. Translate from Russian into English:

Экономика, сфера активности людей, создавать, продавать, распространять, потреблять, выпуск, доход, расход, цена, производство, транспортировка, торговля, обеспечивать материальные удобства, ограниченное количество экономических ресурсов, рациональное использование ресурсов, прибыль, безработица, экономический рост, трудоустройство, продуктивность, справедливое распределение доходов, годовой доход, средства к существованию, рынок, дефицит, ценовая стабильность.

II. Answer the questions:

1. What’s economics? 2. When did economics appear? 3. What does economics consist of? 4. What’s economic theory? 5. What’s economic life? 6. Why does the matter of the rational use of economic resources exist? 7. What’s the subject of study of economic theory? 8. What are the purposes of economic theory? 9. Who’s the founder of economics? 10. What are economic subclasses? 11. What’s microeconomics? 12. What’s macroeconomics? 13. What’s economic policy? 14. What are the goals of economic policy? 15. What are the subdisciplines economics divided into?

III. Fill in the gaps:

1. _______________ is an area of activities of people. 2. An economic theory appeared in _______________. 3. The scope of economics consists of ______________________________. 4. _________________________ is a science about the bases of the economic life of society. 5. ________________________ is an activity of people connected with ensuring material conditions of their life. 6. The subject of studies of economic theory is ______________________________. 7. _____________________ is economic growth, complete employment, economic efficiency, economic disengagement, the fair distribution of incomes, economic ensuring, commercial balance and so on. 8. ________________ is the founder of economics. 9. Areas of economics may be divided into ________________________. 10. ________ economics examines an economy as a whole "top down". 11. ________ economics examines the economic behavior of agents and their interactions through individual markets, given scarcity and government regulation. 12. An economic policy is ___________________________. 13. _____________________ consist of value judgements about what economic policy should strive to achieve. 14. _________________ means that every member of the labor force who wants to work is able to find work. 15. __________________ means that the incomes of all consumers and firms are increasing over time.

IV. Translate the sentences:

1. Основні задачі економічної політики – це економічний ріст, повне працевлаштування та цінова стабільність. 2. Дискусії щодо виробництва, транспортування та розповсюдження товарів є одним з головних аспектів економіки. 3. Раціональне використання ресурсів, створення, продаж та придбання товарів є основною лінією діяльності людей. 4. Інфляція – це загальне зростання цінового рівня. 5. Менеджер з продажу товарів відповідає за транспортування та продаж продукціі.

V. Be ready to speak on the problem of economics.