Discussion

1. What is the most efficient economic system? Why?

2. How can a market economy solve what, how and for whom to produce?

3. What role does the price mechanism play in free-market economy?

4. Prove, please, that competition is an important force of the market.

UNIT 3. WHY STUDY ECONOMICS?

Assignment 1. Remember the meaning of the following words and word- combinations:

issue

in nature

tax

public debt

intense

media

coverage

opinion

impact

income tax

to master

citizen

vote

to evaluate

implication

properly

skill

both … and …

argument

to involve

costs

ground

value

protection

to encounter

consequence

working

to enable

performance

enlightened

to make sense

basics

спорный вопрос, предмет спора разногласие; проблема

по сущности, по характеру, по природе

налог

государственный долг

сильный; интенсивный, напряженный

средство, способ; обстановка, условия жизни

охват; зона действия, освещение в печати, по радио и т.п.

мнение, взгляд

влияние, воздействие

подоходный налог

владеть, овладевать

гражданин

голос

оценивать, определять

смысл, значение

правильно, как следует

мастерство, умение

как …, так и …; и… и…

довод, аргумент; дискуссия, спор

вовлекать, затрачивать; включать в себя (in)

издержки, расходы

основание, мотив

ценность; значение, смысл

защита

(неожиданно) встретиться; сталкиваться

последствие; значение, важность

работа, действие, деятельность

давать возможность

работа; исполнение; действие

просвещенный

ощущать, чувствовать, понимать

основы

operation

manager

executive

profit

to merge

to expand

and so on

to outperform

to be quick

recession

downturn

to maximize

satisfaction

to hedge (against)

reduction

purchasing power

to accompany

to lease

credit card

cash

occupation

immune

relationship

budget deficit

Interest rate

foreign exchange rate

bond

to allocate

savings

работа

менеджер, управляющий; управленец

должностное лицо, руководитель; управляющий

прибыль, доход

сливать(ся), соединять(ся)

расширять(ся), увеличивать(ся)

и так далее

делать лучше, чем другой

спешить

спад, снижение (цен, спроса на товары, деловой активности)

уменьшение, спад

увеличивать до предела, максимизировать

удовлетворение

страховать себя от, ограждать

снижение, понижение, уменьшение

покупательская способность

сопровождать, сопутствовать

арендовать, брать в аренду; сдавать в аренду

кредитная карточка

наличные деньги

профессия

невосприимчивый; свободный; неприкосновенный

отношение, взаимоотношение; связь

дефицит бюджета

процентная ставка

курс обмена валюты

облигация

размещать; распределять; ассигновать

сбережения

Assignment 2. Practice the pronunciation of the following words:

issue, nature, public debt, media coverage, physics, principles, methodology, process, philosophical, economics, law, supply, consequences, throughout, survival, professionally, concepts, enlightened, success – successfully, exactly, vital, basics, executive, technology, causes, recession, rational, period, to maximize, to hedge, purchasing power, to accompany, to lease, occupation, immune, financial, budget deficits, foreign exchange rate.

Assignment 3. Read and translate the text using a dictionary.

TEXT

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 the economic impact of a new health care policy or an income tax.

2. It is important for you to master the principles 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 policy properly. 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 economies, you will be able to see the “real” costs of deciding any issue 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. 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 workings of the economy is an important survival skill.

5. There is one more important reason for studying 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.

6. Studying economics helps students to improve their analytical skills, which are in great demand in the workplace. Also, the study of economics helps us to make sense of the everyday activity we observe around us. How is it that so many different people, in so many different places, doing so many different things, produce exactly the goods and services we want to buy? Economics provides an answer.

7. Economics is also vital to business. An understanding of the basics of economic decision-making and the operation of the economic system enables business managers and executives to increase profit. The executive who understands when to use new technology, when to merge with another firm, when to expand employment, and so on, will outperform the executive who is less quick at such decision-making. The manager who understands the causes and consequences of recessions – downturns in the overall economy – can make more rational business decisions during these periods.

8. Economics helps consumers and workers to make better buying and employment decisions. How can you spend your limited money income to maximize your satisfaction? How can you hedge against the reduction in the dollar`s purchasing power that accompanies inflation? Is it more economical to buy or lease a car? Should you use a credit card or pay cash? Which occupations pay well? Which occupations are most immune to unemployment?

9. An understanding of economics makes for better financial decisions. Someone who understands the relationship between budget deficits and interest rates, between foreign exchange rates and exports, between interest rates and bond prices, is in a better position to allocate personal savings successfully.

Assignment 4. Find in the text English equivalents for the following Russian phrases:

по сущности (по характеру); государственный долг; новейшее достижение; подоходный налог; по ряду причин; на местном и государственном уровнях; принять мудрое решение; мастерство (умение) на выживание; улучшить работу фирмы; быть в большом спросе; и так далее; делать лучше, чем другой; спад во всей (общей) экономике; ограниченный денежный доход; покупательская способность; кредитная карточка; платить наличными деньгами; процентная ставка; курс обмена валюты; находиться в лучшем положении; успешно размещать личные сбережения.

Assignment 5. Fill in the gaps with the words and expressions from the text:

1) Many of the __________ in economics are public in nature, such as __________ and __________ __________, and are frequently the focus of intense media coverage.

2) Almost everyone has an __________ on the economic impact of a new health care policy or an __________ __________ .

3) The study of economics can provide many of the tools you need to make wise choices as you encounter the __________ of __________ and __________, the forces of __________, and the consequences of economic activity throughout your life.

4) Understanding the __________ of the economy is an important __________ __________ .

5) The study of this field will enable you to __________ your __________ better, improve the __________ of your firm, and grow professionally.

6) An understanding of the __________ of economic decision-making and the __________ of the economic system enables __________ __________ and __________ to increase __________ .

7) How can you hedge against the __________ in the dollar`s __________ __________ that accompanies __________?

8) Should you use a __________ __________ or __________ __________?

9) Someone who understands the relationship between __________ __________ and __________ __________, between __________ __________ __________ and exports, between interest rates and bond prices, is in a better position to __________ personal __________ successfully.

Assignment 6. Complete the sentences in column A choosing the correct ending from column B:

A

1) It is important for you to master the principles of economics, …

2) You must have a “road map” to

evaluate fully the economic

effect of the important issues…

3) Most issues have both political and

economic implications, and the political arguments involved in your personal decision-making process …

4) A second reason for studying

economics …

5) Economics is not easy to master; but

if you persist and learn the concepts of economics, …

6) Studying economics helps students to improve their analytical skills, …

7) The executive who understands when use new technology, when

to merge with another firm, when

to expand employment, and

so on, will outperform the executive …

8) The manager who understands

the causes and consequences of recessions – downturns in the overall economy – …

B

a) may be more important than the

economic ones.

b) which are in great demand in the

workplace.

c) can make more rational business

decisions during these periods.

d) for a number of reasons.

e) that we must decide at the local and

state levels.

f) is the value it often has as a form of

consumer protection.

g) you will become better informed, to

more enlightened.

h) who is less quick at such decision-

making.

Assignment 7. Answer the questions on the text:

1) What issues in economics are public in nature?

2) What is the first reason for studying economics?

3) What is the second reason for studying economics?

4) How does studying economics help students?

5) How does economics help consumers and workers?

6) In what way does an understanding of economics make for better financial decisions?

Assignment 8. Enumerate the problems that are touched upon in the text. Write them in your notebook.

Assignment 9. Give the most suitable heading for each paragraph.

Assignment 10. Find the parts (sentences) of the text related to the following ideas:

a) to grasp economics is rather difficult;

b) our personal decision-making depends on how well we know economics.