Unit 10. What is Economics? Pre-reading activities

1. Practise the pronunciation of the following words.

economics ["i:kq'n2mIks], economy [I'k2nqmI], economist [I'k2nqmIst], science ['saIqns], essential [I'senS(F)l], mechanism ['mekqnIz(F)m], through [Tru:], structure ['str0k7q(r)], society [sq'saIqtI], issue ['Isju:, 'ISu:], scarcity ['skEqsItI], discipline ['dIsIplIn]

2. Memorize the words.

1. household n – (домашнее) хозяйство

2. consider v – полагать, считать

3. outline v – обрисовать

4. shelter n – кров, укрытие

5. essential a – существенный, необходимый

6. desire n – желание

7. society n – общество

8. considerably adv – значительно

9. similar a – похожий

10. issue n – вопрос; выпуск

11. demand n – спрос, потребность

12. distribution n – распределение

13. consumption n – потребление

14. scarcity n – нехватка, недостаток

15. deal v (dealt, dealt) – иметь дело

3. Answer the following questions before you read Text A.

1. Do “economics” and “economy” mean the same?

2. What famous economists can you name?

3. Where do economists work?

Read Text a and fulfill the tasks which follow.

Text A

What is Economics?

The word ‘economics’ comes from the Greek word ‘oikonomica’ that means household management.

Economics was first defined by Alfred Marshall, one of the greatest Victorian economists, as the study of mankind in the everyday business of life. Adam Smith is considered to be the founder of modern economics because he was the first to outline a free market economy.

Economics is a science. This science is based upon the facts of our everyday lives. We need food, clothes and shelter. If people could get food, clothes and shelter without working, they wouldn’t probably work. But we can’t be satisfied with only these essential things, we may want other things like books, radios, TV sets, telephones, etc. So the science of economics is not only concerned with basic needs, it is concerned with all our material needs and wants.

Economics is the study of economies. The economy is the mechanism through which the use of labor, land, structures, vehicles, equipment and natural resources is organized to satisfy the desires of those who live in a society. The rules, institutions and traditions used to coordinate economic activity differ considerably among nations, but all societies must deal with similar economic issues.

The discipline of economics is concerned with the use of available productive resources in a society to satisfy what often are conflicting – desires and demands. It deals, among other things, with production, distribution, consumption and scarcity.

Post-reading activities

1. Match the words on the left to those on the right. Make 10 word partnerships and translate them into Russian.

1. essential a. management

2. similar b. economy

3. available c. resources

4. market d. lives

5. household e. economics

6. economic f. things

7. basic g. wants

8. everyday h. needs

9. modern i. activity

10. material j. issues

2. Find in the text the English equivalents for the following Russian collocations.

1. происходит от греческого слова; 2. означает управление домашним хозяйством; 3. изучение человечества в повседневной жизни; 4. основоположник современной экономики; 5. мы не можем быть удовлетворены только этими самыми необходимыми вещами; 6. механизм, посредством которого; 7. сильно различаются; 8. все общества должны решать одинаковые экономические вопросы; 9. имеющиеся в наличии производственные ресурсы; 10. удовлетворять желания и потребности

3. Choose the best alternative to complete the sentence.

1. Economics deals with the use of available productive resources in a ….

a) region b) society c) district d) market

2. Desires and … are often conflicting.

a) skills b) demands c) wants d) wishes

3. People can’t be satisfied with only such … things as food, clothes and shelter.

a) unique b) similar c) affluent d) essential

4. All societies have … with similar economic issues.

a) to deal b) to consider c) to decide d) to outline

5. The word ‘oikonomica’ means … management.

a) market b) sales c) enterprise d) household

4. Complete the sentences.

1. ‘Oikonomica’ means …

2. … the study of mankind in the everyday business of life.

3. Adam Smith was the first …

4. The science of economics is concerned with …

5. All societies must deal with …

6. The discipline of economics deals with …

5. Say whether the following statements are true or false.

1. Economics is the study of mankind in the everyday business of life.

2. Economy is the study of economics.

3. People can’t be satisfied with only such essential things as food, clothes and shelter.

4. Different nations use similar rules, institutions and traditions to coordinate economic activity.

5. The discipline of economics deals with production, distribution, consumption and scarcity.

6. Alfred Marshall is considered to be the founder of modern economics.

6. Answer the following questions.

1. Who was Alfred Marshall?

2. Who was the first to outline a free market economy?

3. What does the word ‘economics’ come from?

4. What is economics?

5. Give the definition of the economy.

6. Do all societies have to deal with similar economic issues?

7. Get ready to discuss the following.

The original word ‘oikonomica’ means household management. Do you think that this meaning is still relevant? Is it important to keep your household in an economical way?

Read Text B using the dictionary and do the following tasks.

1. Think of the title to the text.

2. Make up 5-6 questions of different types.

3. Give a short summary of the text.

Text B

Companies (or businesses) are units of business organization carrying on some productive activity resulting in the creation of goods and services to satisfy wants.

Businesses take one of three forms of organization: a proprietorship, a partnership, and a corporation.

A proprietorship has a single owner, called the proprietor, who is usually also the manager. Proprietorships tend to be small retail establishments and individual professional businesses, such as those of physicians, attorneys and accountants.

A partnership joins two or more individuals together as co-owners. Each owner is a partner. Many retail establishments as well as some professional organizations are partnerships. Most partnerships are small and medium-sized, but some are gigantic, running to 2,000 partners.

A corporation is a business owned by stockholders. The business becomes a corporation when the state approves its articles of incorporation. A corporation is a legal entity, an “artificial person” that conducts its business in its own name.