Try to explain the above mentioned economic notions as you understand them, by your own words.

2. Match English and Ukrainian equivalents.

1. accuracy	в умовах, що суворо контролюються
2. assume	соціальне забезпечення
under tightly controlled conditions	спрощення; припустиме спрощення
4. simple model	інші величини залишаються незмінними
5. to predict	реагувати
6. at a disadvantage	у повному розумінні слова
7. food stamps	у невигідному становищі
8. handicapped	точність, достовірність
9. social security	припускати, приймати
10. to benefit	розробити
11. elderly	проста модель
12. natural sciences	природничі науки
13. simplifying assumption	передбачати, пророкувати
14. to develop	талони на харчування
15. other things remain constant	суспільні науки
16. to respond	літні
17. in a broad sense of the word	особи, що потерпають від якоїсь фізичної вади
18. social sciences	приносити користь
19. welfare	допомога з безробіття
20. unemployment benefit	добробут
WARMING UP.

For eight working years a working person creates up the quantity of product which is considered to be sufficient to satisfy his basic needs up to the end of his life. Some people work for 40-45 years. So, we may say, that one working person provides with his product 5 more people.

• Where and what is the excess product, created after 8 years of work, spent for? Are there any organizations in Ukraine which help the elderly, lonely, handicapped people?

• Who gets pension in your family? Is it enough for living?

• What do you think is necessary to do to improve the situation?

• We say that economics is a social science. Why?

Read the text; get the general notions about economics as a social science.

Economics as a social science.

Economics studies how people act. Natural sciences examine and study environment. Everything changes in environment according to the natural laws. Economics, mainly, doesn’t change according to the laws. There are no laws for human behaviour. It is difficult to make controlled experiments in economics. And it is impossible to predict it. Physicists make their experiments in the laboratory. But the laboratory of economists is real world. Nevertheless they develop simple models for explanation and predicting some economic changes, events. The accuracy of this prediction is not high. That is why government intervenes into economy to provide people with services they wouldn’t be inclined to invest themselves. It’s defence, police, social security, unemployment benefits etc.

• Divide the text on paragraphs. Give headings to them.

• Comment on the following concepts as you understand them: human behaviour, economics, natural sciences, social sciences.

Let’s ponder!

Does a country need social services? Did social services appear with the state, before the state or in the recent time? What promoted the birth of social services? Is it necessary to study social sciences and develop social services?

The given text contains more information about economics as a social science.

Read the text carefully and pick up additional knowledge of the subject.