9. Make up your own dialogue using the following expressions:

to stabilize the economy, to enter the expansion phase, to fight recession and inflation, to control taxing and spending, to provide effective tools, monetary policies, to reduce inflation, to fuel inflation, to increase taxes, fiscal policies, to reduce taxes

10. Change the following sentences using the Passive Voice:

Model: At that time the government was controlling taxing.

Taxing was being controlled by the government at that time.

1. They were stabilizing the economy during the last two years. 2. Congress was reducing inflation the whole year. 3. The President was applying fiscal policy, while they controlled taxing and spending. 4. They were providing effective tools to fight recession and inflation. 5. When the government borrowed money, it was reducing taxes.

11. Ask when and what -questions using the Passive Voice:

Model: The company was being managed extremely well, when he was president.

When was the company being managed extremely well?

1. Fiscal policy was being applied by the government successfully at that time. 2. Taxing was being controlled by the Congress. 3. Money was being spent by individuals and business firms for the things they wanted, when taxes were reduced. 4. Effective tools were being provided, when government fought recession and inflation. 5. Debts were being financed by the federal government, while they printed money.

12. Translate into English using the Past Continuous Tense (the Passive Voice):

1. Рівень податку змінювався з липня по вересень минулого року. 2. Витрати цього підприємства зростали, тоді як економіка вступала в нову фазу. 3. За час інфляції провадилася фіскальна політика. 4. Коли уряд робив позики та випускав нові гроші, податки збільшувалися. 5. Під час оздоровлення економіки урядом випуск грошової маси зменшувався.

13. Communicative situations:

1. Although economists know a great deal about how to stabilize the economy, our system still goes through periods of expansion and contraction. Describe some of the problems facing decision makers who are trying to use fiscal and monetary policies to keep the economy growing steadily but smoothy.

2. As the economy moves from «recession» to «expansion», what is likely to happen to wages, investment, employment, profits?

3. During which phase of the cycle («recession» or «expansion») is production increasing? Why?

Self-assessment criteria

Now you may assess your progress based on your knowledge, skills and achievement.

If you have got:

• 10 correct answers (A-level), your linguistic and communicative proficiencies are high. You can read and understand in detail lengthy, complex texts related to your area of study. You can recognize a full range of professional terminology.

• 9 correct answers (B-level), your linguistic and communicative proficiencies are very good. You can read and understand with a large degree of independence a range of complex texts. You can recognize a broad range of professional terminology.

• 7-8 correct answers (C-level), your linguistic and communicative proficiencies are good. You can read and understand with an average degree of competence a range of complex texts. You can recognize quite a broad range of professional terms.

• 6 correct answers (D-level); 5 correct answers (E-level), your linguistic and communicative proficiencies are basic. You can read and understand a limited range of information. You can recognize little professional terms.

• 3-4 correct answers (FX-level); 1-2 correct answers (F-level), you should bridge the gap through extra language training, because your linguistic and professional proficiencies are very low.

Unit 1

Test

1. Every society is faced with the identical problem, the problem of …. .

a). deficiency b). scarcity

c). shortage d). lack

2. Microeconomics is the study of …. consumers and the business firm.

a). individual b). group

c). person d). a lot of

3. The resources that go into the creation of goods and services are called the …. of production.

a). ways b). reasons

c). needs d). factors

4. Each factor of production has a …. in our economic system.

a). base b). branch

c). place d). bag

5. The price paid for the use of land is called …. .

a). loan b). rent

c). interest d). investment

6. The price paid for the use of labor is called …. .

a). wages b). money

c). salary d). fund

7. A factory, tools and machines are capital …. .

a). resources b). functions

c). buildings d). funds

8. Payment for the use of someone else’s money or capital is called …. .

a). loan b). rent

c). investment d). interest

9. …. in a market economy are allocated in accordance with the laws of supply and demand.

a). Money b). Investments

c). Resources d). Loans

10. The way in which a society goes about answering fundamental questions is known as its … . system.

a). market b). economic

c). industry d). capital

Unit 2

Test

1. The right to private property gives the owners of natural resources and capital the incentive to use their …. as they can.

a). money b). funds

c). assets d). investments

2. Economic …. influence our decisions about what and where to buy.

a). incentives b). factors

c). growth d). relations

3. …. are what remain after the costs of production have been deducted from sales.

a). Interests b). Profits

c). Loans d). Money

4. People in business buy or sell land or other natural resources if they think they can profit from the …. .

a). business b). deal

c). agreement d). transaction

5. The gross national product, or GNP, is the total value of all the goods and services produced by the American economy in a …. year.

a). single b). five

c). double d). some

6. Adam Smith gave the …. description of the principles upon which our economic systems are based.

a). good b). best

c). bad d). better

7. The term capital (to use) often by business people.

a). is used b). are used

c). was used d). will be

8. Monopolies can set the price at which their goods (to sell).

a). is sold b). was sold

c). are sold d). were sold

9. The …. elements of the economic system are described by Adam Smith in his book «The Wealth of Nations».

a). bad b). good

c). nice d). principal

10. Market economies are directed by…. .

a). assets b). prices

c). loans d). interests

Unit 3

Test

1. Wealth can be expressed as the value of the …. you own.

a). things b). tools

c). objects d). sets

2. Wealth in the form of money that is loaned to others or deposited in a savings account will earn …. .

a). money b). assets

c). interests d). credits

3. The number and value of things we are able to …. depends upon the size of our income and how wisely we spend it.

a). sell b). buy

c). invest d). keep

4. A …. is a financial plan that summarizes income and expenditures over a period of time.

a). table b). scheme

c). project d). budget

5. Budgets in which income exceeds expenditures will have a …. .

a). surplus b). profit

c). loss d). interest

6. Bank and savings institutions …. your money against fire, theft and other disasters.

a). save b). destroy

c). protect d). help

7. One of the main …. people save their money is to earn interest.

a). reasons b). matters

c). things d). businesses

8. …. allows you to purchase the things you want now and pay for them over a special period of time.

a). Loan b). Credit

c). Money d). Assets

9). Money- market funds generally pay a …. rate of return than savings and NOW accounts.

a). higher b).lower

c). highest d). less

10. Most accounts .... compound interest.

a). give b). propose

c). offer d). bring

Unit 4

Test

1. Many business leaders begin their careers as entrepreneurs after …. years of undergraduate college training.

a). two b). four

c). five d). six

2. …. colleges now offer programs that teach students how to start and operate a business.

a). Many b). Some

c). A lot of d). Few

3. These programs help potential entrepreneurs decide whether their own ideas are …. and how to follow through with them.

a). bad b). better

c). good d). best

4. About 50 percent of …. start their businesses in industries in which they have some experience.

a). entrepreneurs b). workers

c). builders d). doctors

5. Evidence shows that people who come from families whose members were in business themselves are more likely to …. their own companies.

a). create b). stop

c). run d). start

6. Small businesses face …. problems.

a). much b). many

c). some d). few

7. Bad economic times affect …. business more than they do big business.

a). big b). smaller

c). small d). bigger

8. A corporation is one kind of business…. .

a). organization b). company

c). structure d). establishment

9. All debts and all problems associated with the business belong to the…. .

a). master b). owner

c). organization d).debtor

10. A partnership is a business …. that is owned by two or more persons.

a). structure b). company

c). organization d). establishment

Unit 5

Test

1. Most of the …. used by business comes from the sale of its products and services.

a). assets b). money

c). papers d). profits

2. As a …. sells its products or services, it receives money, which it uses to meet its expenses.

a). corporation b). business

c). company d). firm

3. Businesses use …. to cover the cost of depreciation.

a). external funds b). money

c). internal funds d). profit

4. Business loans are generally …. as either short-term or long-term loans.

a). classified b). said

c). used d). spoken

5. For short-term loans, the principal (the amount borrowed) must be repaid within …. year.

a). two b). one

c). some d). three

6. A security exchange is a market where brokers meet to buy and sell stocks and bonds for their …. .

a). sellers b). owners

c). customers d). bosses

7. Products and services …. by a firm soon.

a). will be sold b). were sold

c). are sold d). is sold

8. The …. summarizes a corporation's assets, what it owns; its liabilities, what it owes; and its net worth, the difference between the two sums at a given time.

a). balance sheet b). income statement

c). common stock d). sheet

9. This amount of money …. to meet expenses of a firm next week.

a). is used b). are used

c). was used d). will be used

10. If …. no longer want certain products, sellers will stop producing them and shift into something that is in demand.

a). buyers b). teachers

c). sellers d). builders

Unit 6

Test

1. A nation's standard of living is measured by the amount of goods and services available to its …. .

a). citizens b). children

c). workers d). doctors

2. Productivity is a measure of how …. we work.

a). badly b). greatly

c). perfectly d). efficiently

3. To measure …., economists determine the amount of goods and services produced for every unit of input.

a). standard of living b). division of labor

c). productivity d). consumption

4. Input can be any …. that goes into the production process.

a). thing b). service

c). resource d). money

5. Among the principal ingredients of productivity are the …. and training of workers.

a). resting b). education

c). using d). culture

6. To use machinery efficiently, producers must also use division of …. .

a). entertainment b). rest

c). studying d). labor

7. Everything that takes place between production and consumption falls into the category of …. .

a). economy b). business

c). marketing d). pleasure

8. Everyone who …. work can find a job.

a). is looking for b). was looking for

c). were looking for d). are looking for

9. Look! The new device …. the operation into 30 steps performed by individual workers.

a). was breaking b). were breaking

c). is breaking d). are breaking

10. Marketing includes the activities that bring the buyer and seller …. .

a). individually b). together

c). separately d). lonely

Unit 7

Test

1. Markets exist wherever people come together to buy and sell their …. .

a). economy b). collusion

c). goods and services d). needs

2. Buyers and sellers are able to enter or …. the market at will.

a). leave b). govern

c).run d). go

3. Public Utilities are privately owned firms that provide an …. public service.

a). important b). essential

c). famous d). good

4. …. are special designs, names or symbols that identify a product, service or company.

a). Companies b). Emblems

c). Trademarks d). Signs

5. Many businesses are naturally interested in growing and …. as much of a market – or several markets – as possible.

a). controlling b). losing

c). improving d). making

6. The combination (or «integrating») of two or more companies engaged in the same business is a …. merger.

a). vertical b). conglomerate

c). horizontal d). plain

7. A conglomerate merger combines two or more unrelated businesses under a …. management.

a). double b). single

c). triple d). much

8. The principal kinds of market structures …. (to describe) now.

a). is being described b). are being described

c). were being described d). was being described

9. The customers (to treat) in the best way.

a). are being treated b). is being treated

c). were being treated d). was being treated

10. A market in which there is only one seller is a …

a). pure competition b). oligopoly

c). monopoly d). competition

Unit 8

Test

1. …. can be anything that is generally accepted in payment for goods and services.

a). Money b). Economy c). Market

2. The …. of money should be more or less the same today as tomorrow.

a). amount b). value

c). price d). level

3. The money you are most familiar with, currency, consists of the paper money and …. that you almost use daily.

a). metal b). coins

c). silver d). wood

4. …. money has to be small enough and light enough for people to carry.

a). Old b).Our

c). Modern d). Some

5. For that reason most countries use a very high quality …. for their money.

a). metal b). paper

c). gold d). silver

6. One of the …. advantages of money over barter is its ability to be divided into parts.

a). principal b). important c). interesting

7. In a money economy people can …. what they have to anyone and use the money to buy what they want.

a). give b). borrow c). sell

8. Money enables us to state the …. of something in terms that everyone can understand.

a). value b). price c). number

9. Money enables us to use the value of something that we sell today to make a purchase sometime in the …. .

a). future b). present c). past

10. Our bank …. loans to corporations when they were in need.

a). were making b). is making c). was making

Unit 9

Test

1. Fiscal policy is applied by changing the …. of tax receipts relative to federal spending.

a). way b). level

c). power d). right

2. When taxes are …., individuals and business firms will have more money available to spend for the things they want.

a). reduced b). increased

c). lost d). spent

3. If taxes are increased consumers and business would have less to …. .

a). waste b). bring

c). spend d). invest

4. When …. reduces taxes to fight a recession, it often creates a budget deficit.

a). power b). government

c). authorities d). individuals

5. The federal government can also finance its debts by …. money.

a). using b).coping

c). printing d). giving

6. Monetary policy refers to …. the supply of money as a way of stabilizing the economy.

a). regulating b). establishing

c). disordering d). disorganizing

7. There is a …. relationship between the amount of money in circulation and the level of business activity.

a). indirect b). new

c). direct d). perfect

8. When the money supply is increased, consumer spending and business spending tend to …. with it.

a). increase b). decrease

c). rise d). lower

9. Inflation …. by Congress the whole year.

a). was being reduced b). was reduced

c). will be reduced d). were being reduced

10. The economy …. during the last two years.

a). are being stabilized b). was being stabilized

c). were being stabilized d). is being stabilized

Keys

Unit 1

What is economics?

1. b 2. a 3. d 4. c 5. b 6. a 7. a 8. d 9. c 10. b

Unit 2

The American economic system

1. c 2. a 3. b 4. d 5. a 6. b 7. a 8. c 9. d 10. b

Unit 3

The consumer in our economy

1. a 2. c 3. b 4. d 5. a 6. c 7. a 8. b 9. a 10. c

Unit 4

Launching a business

1. b 2. a 3. c 4. a 5. d 6. b 7. c 8. a 9. b 10. c

Unit 5

Financing a business

1. a 2. d 3. c 4. a 5. b 6. c 7. a 8. a 9. d 10. a

Unit 6

Production and marketing. The business of business.

1. a 2. d 3. c 4. c 5. b 6. d 7. c 8. a 9. c 10. b

Unit 7

How firms compete

1. c 2. a 3. b 4. c 5. a 6. c 7. b 8. b 9. a 10. c

Unit 8

Money

1. a 2. b 3. b 4. c 5. b 6. a 7. c 8. b 9. a 10.c

Unit 9

Economic stability

1. b 2. a 3. c 4. b 5. c 6. a 7. c 8. a 9.a 10. b

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