VI. Прочитайте текст, перепишите и письменно переведите абзацы № 2, 4, 5. David Hume (1711-1776)

1. Though better known for his treatments of philosophy, history, and politics, the Scottish philosopher David Hume also made several essential contributions to economic thought. His empirical argument against British mercantilism formed a building block for classical economics. His essays on money andinternational tradepublished inPolitical Discourses strongly influenced his friend and fellow countryman Adam Smith.

2. British mercantilists believed that economic prosperity could be realized by limiting imports and encouraging exports in order to maximize the amount of gold in the home country. The American colonies facilitated this policy by providing raw materials that Britain manufactured into finished goods and reexported back to the colonial consumers in America. Needless to say, the arrangement was short-lived.

3. But even before the American Revolution intervened in mercantilistic pursuits, David Hume showed why net exporting in exchange for gold currency, hoarded by Britain, could not enhance wealth. Hume’s argument was essentially the monetarist quantity theory of money: prices in a country change directly with changes in the money supply. Hume explained that as net exports increased and more gold flowed into a country to pay for them, the prices of goods in that country would rise. Thus, an increased flow of gold into England would not necessarily increase England’s wealth substantially.

4. Hume showed that the increase in domestic prices due to the gold inflow would discourage exports and encourage imports, thus automatically limiting the amount by which exports would exceed imports. Surprisingly, even though Hume’s idea would have supported Adam Smith’s attack on mercantilism and argument for free trade, Smith ignored Hume’s argument. Although few economists accept Hume’s view literally, it is still the basis of much thinking onbalance-of-paymentsissues.

5. Considering Hume’s solid grasp of monetary dynamics, his misconceptions about money behavior are all the more noteworthy. Hume erroneously advanced the notion of “creeping inflation”—the idea that a gradual increase in the money supply would lead toeconomic growth.

6. Hume made two other major lasting contributions to economics. One is his idea, that economic freedomis a necessary condition for political freedom. The second is his assertion that “you cannot deduce ought from is”—that is, value judgments cannot be made purely on the basis of facts. Economists now make the same point by distinguishing between normative (what should be) and positive (what is).

Hume died the year The Wealth of Nations was published, and in the presence of its author, Adam Smith.

VII. Дайте письменные ответы на следующие вопросы к тексту:

1. What conception of the British mercantilism did D. Hume oppose?

2. What are the most important contributions of D. Hume to the economic science?

3. Were any of Hume’s conceptions wrong?

Вариант 2.

I. Составьте предложения, используя данные слова, переведите предложения на русский язык.

1. and / work / system / a / economy / supply / demand / of / doesn’t / in / planned / the /.

2. fourth / China / now / largest / trade / is / partner / Russia’s /.

3. economists / new / economics / to explain / weakness / theories / developed / in / later / the / classical /.

4. another / one / what / country / wealthier / makes / than /?

5. there / a / world / controlled / aren’t / any / today / the / examples / of / completely / in / economy / .

II. Перепишите предложения, подчеркните глаголы to be и to have, определите их функцию и переведите предложения на русский язык.

1. In a free market, things are bought and sold because there is a demand for them.

2. People have to pay much more for services if they are of a high quality.

3. Like any other economic system, the traditional economy has its benefits and drawbacks.

4. The expansion programme is to create 5,000 jobs and increase retail space by 33 per cent.

5. The middle classes were growing stronger in the 19^th century Europe.

III. Перепишите предложения, поставьте глаголы, данные в скобках, в Present, Past или Future Simple активного залога и переведите предложения на русский язык.

1. The Head of the department hopes he (to get) the report tomorrow morning.

2. The stock market crash in the United States in 1929 (to be) huge and it (to lead) to a severe and lasting economic crisis in the world.

3. A sole trader (to provide) all the capital and (to have) unlimited liability for business debts.

4. In the next twenty or thirty years the world of business (continue) to change quickly.

5. The financial crisis at the end of 2008 (to cause) a sharp reduction of investments in telecommunications industry.