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7.2. Answer the questions

1. What are Debits?

2. What is Services balance?

3. What are Net current transfers?

4. What is Goods balance?

5. What are Credits?

6. What is Net income?

7. What is the net income deficit?

Unit VIII Management in economics

1. Management in economics

    1. Words to remember

businesses

фирмы

endeavor

усилие

claim

претензия, обязательство

ubiquitous

вездесущий

constraints

ограничения

mainstream

основное направление, главная линия, тенденция

underlying

основной; лежащий в основе

economic theory

теория экономической деятельности,

eco'nomics

экономика, народное хозяйство, экономическая наука,

household

домашнее хозяйство, как предмет хозяйственных забот

distribution

1) распределение; 2) распространение товаров через торговые точки, торговых посредников и т. п.

trade [treId]

1) торговля; 2) сделка

consumption

1) потребление (сфера); затрата, издержки, расход

aggregate supply and demand

совокупное предложение всех услуг рынка

commodity

товар, продукт труда для продажи

resource allocation

распределение ресурсов

scarcity

недостаток, нехватка, дефицит;

utility-maximizing rule

правило максимизации полезности, как распределить свой денежный доход, чтобы последний доллар, израсходованный на каждый товар или услугу, приносил предельную полезность)

    1. Glossaries

  1. (macroeconomics) considers the economy as a whole

  2. utility-maximizing rule).It states: consumers decide to allocate their money incomes so that the last dollar spent on each product purchased

  3. (resource allocation) is scheduling of both activities and resources required and

  4. is used to assign the available resources in an economic way.

  5. (microeconomics deals with individual agents

  6. (Consumtion of the product), influences the payoff associated with the consumption of that product.

  7. (aggregate supply) is the total value of the goods and services produced in a country, plus the value of imported goods less the value of exports.

    1. Read the text.

Economics (from the Greek "household management") is a social science that studies the production, distribution, trade and consumption of goods and services.

It focuses (её основное внимание направлено на) on measurable variables, is broadly divided into two main branches: microeconomics, which deals with individual agents, such as households and businesses, and macroeconomics, which considers the economy as a whole, in which case it considers aggregate supply and demand AS AD for money, capital and commodities. Aspects receiving particular attention in economics are resource allocation, production, distribution, trade and competition.

Economic logic is increasingly applied to any problem that involves choice under scarcity or determining economic value. Mainstream economics focuses on how prices reflect supply and demand, and uses equations to predict consequences of decisions. The fundamental assumption underlying traditional economic theory is the utility-maximizing rule.

    1. Answer the questions.

1. What is the definition of economics?

2. What are the two main branches of economics?

3. Which aspects receive particular attention in economics?