Foundations of Economics. Учебное пособие

ECONOMICS AS A SOCIAL SCIENCE

Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Current economic models emerged from the broader field of political economy in the late 19th century. A primary stimulus for the development of modern economics was the desire to use an empirical approach more akin to the physical sciences.

Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime, education, the family, health, law, politics, religion, war, social institutions and science. The expanding domain of economics in the social science has been described as economic imperialism.

Common distinctions are drawn between various dimensions of economics. The primary textbook distinction is between microeconomics, which examines the behavior of basic elements in the economy, including individual markets and agents (such as consumers and firms, buyers and sellers), and macroeconomics, which addresses issues affecting an entire economy, including unemployment, inflation, economic growth, and monetary and fiscal policy. Other distinctions include: between positive economics (describing "what is") and normative economics (advocating "what ought to be"); between economic theory and applied economics; between mainstream economics (more "orthodox" dealing with the "rationality-individualism-equilibrium nexus") and heterodox economics (more "radical" dealing with the "institutions-history-social structure nexus"); and between rational and behavioral economics.

TEXT ASSIGNMENTS

V.Answer the following questions:

1)What does economics analyze?

2)What was the stimulus for the development of modern economics?

3)What does economics explain?

4)Where is economic analysis applied?

5)What are the distinctions between various dimensions of economics?

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1)It was at the end of the 19th century that current economic models appeared.

2)Economic analysis can be used in different spheres of social life.

3)Modern economics developed due to the physical sciences.

4)The primary textbook distinction is between positive economics and normative economics.

5)Common distinctions are drawn only between mainstream economics and heterodox economics.

6)Macroeconomics addresses issues concerning an entire economy, including unemployment, inflation, economic growth, and monetary and fiscal policy.

7)It’s with the "institutions-history-social structure nexus" that radical economics deals.

8)Mainstream economics studies the "rationality-individualism- equilibrium nexus".

VII. Look at the following words from the text. Find at least 2 synonyms to each of these words consulting a dictionary and make up 4-5 sentences with some of them:

VIII. Match the words from the first column with the words from the second one adding prepositions if necessary. Make sentences with some of these word combinations:

1)society – sociability – sociable – social – sociality – socially – socialize – sociology – sociologist;

2)production – product – productive – productivity – produce – producer – producibility – producible > reproduce;

3) distribute – distribution – distributional– distributity–distributive

– distributer – distributable – distributed;

4)emerge – emergence – emergency – emergent – emerging;

5)distinct – distinction – distinguish – distinctive – distinctly– distinctively;

6)desire – desired – desirable – desirably – desirability;

7)consumption – consumer – consumable – consume-consuming

8)affect – affection – affective – affected – affecting – affectability – affectation – affectedly;

X. Fill in the gaps with the prepositions in black type. Consult the text if necessary. Translate these sentences:

1)Current economic models emerged … the broader field of political economy.

2)The desire to use an empirical approach more akin … the physical sciences.

3)Economic analysis is applied … society, … business, finance and government.

4)The domain of economics has been described … economic imperialism.

5)Mainstream economics deals … the "rationality-individualism- equilibrium nexus".

6)Common distinctions are drawn ... various dimensions of economics.

7)A primary stimulus … the development of modern economics.

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4)% - " " "

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5)/" " .

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7). " - ", -"

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XII. Retell the text using your plan.

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MARKETS

Microeconomics, like macroeconomics, is a fundamental method for analyzing the economy as a system. Microeconomics means economics in the small. It treats households and firms interacting through individual markets as irreducible elements of the economy, given scarcity and government regulation. A market might be for a product, say fresh corn, or the services of a factor of production, say bricklaying. The theory considers aggregates of quantity demanded by buyers and quantity supplied by sellers at each possible price per unit. It weaves these together to describe how the market may reach equilibrium as to price and quantity or respond to market changes over time.

Such analysis includes the theory of supply and demand. It also examines market structures, such as perfect competition and monopoly for implications as to behavior and economic efficiency. Analysis of change in a single market often precedes from the simplifying assumption that relations in other markets remain unchanged, that is, partial-equilibrium analysis. General-equilibrium theory allows for changes in different markets and aggregates across all markets, including their movements and interactions toward equilibrium.

TEXT ASSIGNMENTS

V.Answer the following questions:

1)What is microeconomics?

2)What does microeconomics study?

3)What does the market theory consider?

4)What is the market analysis?

5)What does analysis of change in a single market precede from?

1)Complex of quantity demanded by buyers and quantity supplied by sellers is considered by the market theory.

2)Microeconomics is economics in the small.

3)The theory describes how the market may reach equilibrium of price and quantity or react to market changes over time.

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1)Market analysis includes the theory of management.

2)It’s from the simplifying assumption that relations in other markets may change that analysis of change in a single market often precedes.

3)General-equilibrium theory takes account of changes in a single market and aggregates across the market.

4)Market analysis studies market structures.

5)Microeconomics deals with households and firms interacting through individual markets as irreducible elements of the economy.

VII. Look at the following words from the text. Find at least 2 synonyms to each of these words consulting a dictionary and make up 5 sentences with some of them:

VIII. Read and translate groups of derivatives. Learn them:

1)to mean – meaning – mean – meaningful – meaningless – meaningly;

2)respond – respondent – response – responsive – responsible – responsibility;

3)examine – examination – examinational – examinee – examiner – examining;

4)equilibrium – equilibrious – equilibrant – equilibrate – equilibrist;

5)aggregate – aggregability – aggregate – aggregation – aggregative – aggregator;

6)efficiency – efficient – efficiently – efficacious – effect – effective

– effectiveness;

7)irreducible – irreducibility – irreducibly – reducible;

8)scarcity – scarce – scarcely;

1)The method … analyzing the economy.

2)The theory considers aggregates … quantity demanded … buyers.

3)Analysis of change often precedes … the simplifying assumption.

4)…each possible price… unit.

5)The theory allows … changes in different markets and aggregates across all markets.

6)It also examines market structures, such … perfect competition and monopoly … implications

7)Respond … market changes over time.

X.Explain the meanings of the following words in English:

1). "-. ." ".

2) , , " -"

, " ".

3). " ".

4)", "-

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5)1 ", , "

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7)3 " …

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10). " .

XIII. Retell the text using your plan.

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