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Unit VII why we study economics?

1. Many of the issues in economics are public in nature, such as taxes and public debt, and are frequently the focus of intense media coverage. While only a few of us might have an opinion on the latest development in physics, almost everyone has an opinion on economic impact of a new health care policy or an income tax.

2. It is important for you to master the principle of economics, for a number of reasons.

3. First, as a citizen, you want to be informed – to use your vote wisely and to evaluate the economic implications of public property. To do this, you must have a methodology, “a road map”, to evaluate fully the economic effect of the important issues that we must decide at the local and state levels. A better understanding of economic principles can provide you with the skills you will need to make wise decisions. Of course, most issues have both political and economic implications, and the political arguments involved in your personal decision-making process may be more important than the economic ones. However, if this is true, by understanding economics, you will be able to see the “real” costs of deciding any issues on strictly political or philosophical grounds.

4. A second reason for studying economics is the value it often has as a form of consumer protection. “Caveat emptor” – “let the buyer beware” – is a warning that challenges all participants is a free market economy to take responsibility for making educated, well-informed decisions. The study of economics can provide many of the tools you need to make wise choices as you encounter the laws of supply and demand, the forces of competition, and the consequences of economic activity throughout your life. Understanding the working of the economy is an important survival skill.

5. There is one more important reason for you to study economics: to become a better economist. The study of this field will enable you to serve your customer better, improve the performance of your firm, and grow professionally. Economics is not easy to master, but if you persist and learn the concepts of economics, you will become better informed, more enlightened, and your deeper understanding of any economic system will position you for growth and success in your profession.

Vocabulary

tax налог

public debt государственный долг

frequently часто

media coverage охват средствами рекламы

development развитие

economic impact экономическое влияние

income tax подоходный налог

master овладеть, управлять, изучать

reason

причина

citizen

гражданин

vote

голос

wisely

мудро

evaluate

оценить

implications

выводы, смысл

public property

государственная собственность

make decisions

принимать решения

involve

включать, подразумевать

costs

издержки

strictly

строго

on grounds

на основании, по причине

value

ценность, важность

consumer protection

защита потребителя

caveat emptor

риск покупателя, без гарантии

warning

предупреждение

take responsibility

брать ответственность

encounter

сталкиваться

supply and demand

спрос и предложение

consequences

последствия

improve

улучшать

enlightened

осведомленный

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