Verb Noun Adjective

-- -- wide

-- favour --

encourage -- --

allow -- --

-- success --

measure -- --

earn -- --

-- -- sustainable

consume -- --

-- competition --

confirm -- --

-- strength --

-- -- poor

prosper -- --

-- consideration --

8. Find in the texts the words that mean

(text 1) wish for possession of; point in question, important subject; (text 2) lack or shortage; resources required to produce economic goods; the workers of a country or industry, considered as a group; (text 3) something that is given for good behaviour, work; policy of non-interference; a long formal piece of writing about a particular subject; used so often that it no longer seems to have much meaning; (text 4) at one’s disposal, obtainable; (text 5) a long-term plan or policy; (text 6) objective or result aimed at; (text 7) sum total, amount assembled; plenty, more than enough; complete, comprising the whole; trading by exchanging goods and services directly rather than through a medium of money.

9. Read the following passage attentively and find the words that do not belong here.

A basic principle of liberal thought is that applicable individuals are the best and most accurate judges of their own interests and can be relied upon to pursue those interests with great small dedication and creativity. The mighty arm of the wonderful state with its beautiful web of regulations and bureaucratic agents often does more harm than good when trying to substitute administrative methods of organization of impersonal market process that spring out of self-interested individual action.

Classical liberals are not funny anarchists and at the very least recommend a minimal green state: a state that protects lives, produces, defines property rights, and limits enforces private contracts. A good many classical liberals went somewhat further anywhere and requested that the state build and maintain certain public works (bridges, canals, rooms, highways, recreational parks, and so on), maintain standing weak armies, provide basic education, promote invention and innovation, and intervene in the market on a limited scale for specific human childish purpose such as the enactment and enforcement of child labour law.

Generally, the classical liberal believes in the tiny general rule of laissez-faire and wants to preserve self-regulating market process as much as not possible. The classical liberal is confident that with the enactment of strict constitutional safeguards and the elimination of monopoly peace and material progress are within the reach of all ancient societies and all social young classes.

Look through the passage once again. What is it about? Express the main idea of it in 2-3 short sentences.

10. Fill in the gaps with the suitable words.

natural, quantity, price, competition, item, supply, people, low, scarce, demand, reaction, system, sufficient, consume, available, needs

A Market Economy: Self-interest and Competition

The term market economy refers to the fact that ... exists and the market forces of supply and demand determine the ... of goods and services. Through the price ..., the forces of supply and demand determine what will be produced, what ... of goods and services will be produced, and who will … the goods and services. When products are ... or in short supply, prices are high and wealthier ... are better able than poorer people to afford them. When a produce ... such as beets is not in great demand, the price for this item is ... . Thus, in a market economy price allocates ... goods and services by determining who will get them. The basic principle reads: when the price of a good or service is low, buyers are willing to buy more of it (... is high). Suppliers' … to prices is opposite to that of buyers: the lower the market price, the less suppliers are willing to sell (... is low). In a market economy, if the quantity brought to the market is ... to supply consumers' ..., the economy will create a ... market price.

11. Fill in the gaps with the necessary prepositions.

1.You should pay for the goods … 30 days. 2. If we concentrate … the problem, we will find the solution. 3.The results of his work do not compare … those of the average employee. 4. It can be done only … certain conditions. 5.Their control … the marketplace is insignificant. 6.Have you investigated the demand … this product? 7.They cannot influence … the situation. 8.Our products are known … … the borders of the country. 9.What price have you charged … our new TV set? 10.Their policy will lead … the failure, I’m afraid. 11. She asked them … financial support but they refused. 12.We work … maximizing our profit. 13. I don’t want you to interfere … my business. 14. Their influence … her is enormous. 15. We can’t rely … his information because we have no factual evidence. 16.Refer … some other sources of information. 17.They are not concerned … production. They are distributors.

12. Give the Russian equivalents to the following words and word-combinations.

Social standing; economic reasoning; costs and benefits; decision involves opportunity costs; commonly agreed-upon goals; fail to provide the highest standard of living; capital goods; subject matter of economics; data handling; monitor the performance of the economy; to encourage growth; motivated by the quest for profit; economic rewards; cast a mold; substitute products; consecutive quarters; sustainable rate; actual output; most used economic measure, shadow economy, the degree of competition, competitive market structure.

13. Give the English equivalents to the following words and word combinations.

Тенденция продолжается; приемлемо ли определенное поведение; влияет на экономическое решение; оставить эмоции в стороне; как ресурсы размещены в пределах одной отрасли; имеющиеся альтернативы; неограниченные потребности; незанятое оборудование; немногие привилегированные живут в роскоши; с экономической точки зрения; создает и является владельцем бизнеса; держать под контролем; конкурирующие фирмы; назначить цену; состояние экономики; доходы от внешнеэкономической деятельности

14. Translate the following ‘noun+noun’ word-combinations.

Demand curve, time period, capacity utilization, target capacity utilization rate, sales volume, market structure, export oil, oil export, capital investment, investment capital, monopoly control, monopoly superprofits, unemployment figures, market conditions, unemployment benefit, services price, price index, services price index, world market, world market prices, world market cotton prices, world market cotton prices index.

15. Explain the meaning of the following terms in your own words.

Supply, demand, economic institution, opportunity costs, inputs, output, labour, laissez-faire, pure competition, target unemployment rate, exports, totals, bartering goods, monetary value, trough, recession, boom, depression.

16. Match the halves

1. Economy is

2. Economics is

3. Learning economic reasoning

4. Opportunity costs are

5. Resources refer to anything

6. Demand is

7. Supply is

8. Economic competition often leads

9. Pure competition exists

10. Industries with only one producer

11. Making the right prediction can

12. Whatever is not consumed in the country

13. Policymakers use GNP

    1. that can be used to manufacture products.

    2. to lower prices and the introduction of differentiated products.

    3. determine whether the business will be profitable or not.

    4. can be sold to other countries as exports.

    5. to forecast trends and the analyze the economy’s performance.

    6. when there are no barriers to competition.

    7. are called monopolies.

    8. means learning how to think as an economist.

    9. willingness and ability to purchase goods and services.

    10. a community’s system of wealth creation.

    11. social science concerning behaviour in the fields of production, consumption, distribution, and exchange.

    12. providing of what is needed.

    13. benefit lost by not employing an economic resource in the most profitable alternative activity.

17. Think of the situations where you can use the following idioms.

work against time; work body and soul; work hand in hand; work one’s finger to the bone; work one’s heart out; work round the clock; play a trick on somebody; play for time; play hardball; play one’s cards right; play it safe; play one’s ace; play the game; a fair play

18. Open the brackets.

Mercantilism

As cities and their markets (to grow) in size and power, a whole new variety of possible economic activities (to develop). Individuals in particular occupations (to organize) into groups (to call) guilds, which (to be) similar to strong trade unions today. These guilds, many of which (to finance) and (to support) the king, (to expect) the king and his government (to protect) their interests. As new economic activities, such as trading companies, (to develop), individuals (to involve) in these activities similarly (to depend) on the king for the right (to trade) and for help in (to finance) and (to organize) their activities. For example, in 1492, when Christopher Columbus (to have) the wild idea that by (to sail) west he could ( to get) to the East Indies and (to trade) for their riches, he (to go) to Spain’s Queen Isabella and King Ferdinand for financial support.

Since many traders (to play) and (to continue) (to play) important roles in (to finance), (to establish), and (to support) the king, the king (to be) usually happy (to protect) their interests. By the late 1400s western Europe (to evolve) from a feudal to a mercantilist economy.

The mercantilist period (to mark) by the increased role of government, which could (to classify) in two ways: by the way it (to encourage) growth and by the way it (to limit) growth. Government (to legitimize) and (to finance) a variety of activities, thus encouraging growth. But government also (to limit) economic activity in order (to protect) the monopolies of those it (to favoured), thus limiting growth. So mercantilism (to allow) the markets (to operate), but it (to keep) the market under its control. The market (not to allow) (to respond) to the laws of supply and demand.

19. Using the Infinitive turn these fragments into complete sentences

e.g.: They are strong enough to launch a new project.

1.t’s absolutely necessary for us to… 2.There were too many goods to… 3.The prices were reasonable enough to… 4.The salesmen were not experienced enough to… 5.Their goal was clear enough to… 6.Her policy is too shortsighted to … 7.Our resources are big enough to… 8.It is necessary for the firm to… 9.It is difficult for me to…

20. Use the given sentences in your own situations.

1.There was nothing to explain. 2. I have something to tell you. 3. They were the first to congratulate him. 4. Here is someone to speak to you. 5. He is the first to answer at the exam. 5. I’m sorry to say it. 6. I’m sorry to have said it.

21. Render in English

1. Economics – наука, изучающая то, как люди осуществляют выбор среди ограниченных ресурсов, которые могут ими альтернативно использоваться для производства различных товаров и услуг и распределяться затем для потребления в настоящем и будущем.

2. Capital – один из основных факторов производства, представленный всеми средствами производства, которые созданы людьми для того, чтобы с их помощью производить другие товары и услуги.

3. Empirical evidence – доказательство, основанное на результатах эксперимента или наблюдения и имеющее важное значение для подтверждения справедливости той или иной теории.

4. Factors of production – основные компоненты, использующиеся в процессе производства.

5. Labour – вклад в процесс производства, сделанный людьми в форме непосредственного расходования умственных и физических усилий.

6. Law of scarcity – закон, утверждающий, что в каждый данный момент существует ограниченное количество трудовых и других ресурсов, которые при имеющемся уровне технологии могут быть использованы для производства только ограниченного количества благ.

7. Output – разнообразные товары и услуги, произведенные с помощью факторов производства, потребляемые либо в настоящем, либо в будущем, либо используемые для производства других товаров и услуг.

8. Principle of “the invisible hand” – предположение, в соответствии с которым отдельная личность, стремясь к собственной выгоде, независимо от ее воли и сознания, направляется к достижению выгоды и пользы для всего общества.

9. Theory – система представлений о том, каким образом связаны друг с другом те или иные факты и явления, основанные на эксперименте или наблюдении.

10. What? Who? How? For whom? – четыре вопроса, отражающие совокупность экономических проблем любого общества.

11. Equilibrium of supply and demand – положение на рынке, при котором количество товаров или услуг, которые хотят приобрести потребители, абсолютно идентично количеству товаров и услуг, которые желают продать производители, и, таким образом, силы, влияющие на спрос и предложение на рынке, сбалансированы.

12. Classical economics -- направление в экономической теории, основанное А. Смитом, развитое позднее Т. Мальтусом , Д. Рикардо, Д.С. Миллем, А. Маршаллом, и А. Пигу, утверждающее, что экономика обладает способностью к саморегулированию, а любое производство организуется для того, чтобы увеличить потребление.

13.Economic growth – одна из макроэкономических целей, достижение которой вызвано необходимостью опережающего роста национального

Speaking

1. There are four main factors of production. What are they? Explain the way they work.

2. What is a business cycle? How does it work? Why is it important to predict it?

3. Explain in your own words what oligopoly, pure competition, monopolistic competition, monopoly mean.

4. Choose and explain one of the economic laws. Show how it works in real life. Demonstrate your knowledge with the help of graphs.

5. Explain why we cannot have all that we want.

6. Briefly describe economic systems existing today. What economic system is the most efficient? Why?

7. With the help of your own examples explain how market operates.

8. What are the most important economic resources? What are the main problems any economic system has to solve with regard to them?

9. What is GNP? Why is it one of the most important indicators of the economy’s performance?

10. Prepare a short report on the biography and works of a well-known economist. Make emphasis on his tribute to Economics.

Writing

1. What is economics? Give some definitions from different texts, dictionaries. Compare them, choose the best one from your point view. Explain your choice in written form (100-120 words).

2. To what extent do you agree with the statement “The truth is we are all caught in a great economic system which is heartless” (W.Wilson)? Express your opinion in 150-170 words.

3. Give you pros and cons: “That government is best which governs least” (Thomas Jefferson).

Key Vocabulary

economy pure competition curve

economics monopoly equilibrium

capital oligopoly opportunity costs

supply and demand recession scarcity

GDP boom (un)certainty

GNP trough costs and benefits

factors of production peak downturn

human resources sustainable growth upturn

material resources macroeconomics needs and wants

entrepreneurship microeconomics standard of living

invisible hand aggregate (v, adj) economic reasoning

laissez faire output economic growth

depression labour subject matter

transaction salary wages

rent inputs (un)employment

U N I T III

GOODS AND SERVICES

Lead -- in

1.Give your examples of goods and services. What are the main differences between them?

2.What sphere of economic life of a country is more important nowadays: service or production? Give your reasons.

3.Which is more difficult to work in? Why?

4.What makes a product/service popular?

5.What new types of product/service have appeared recently?

Reading

Text 1

Look at the tree-diagram given below. Read the text. Find in the text the information to explain the tree-diagram.

PEOPLE

PRODUCERS CONSUMERS

work managers investors indiv families house businesses govern.

force iduals holds purch.

products/services

standard custom