Vocabulary

behavior - поведение

optimization - оптимизация

to provide - обеспечивать

foundation - основа

to investigate - исследовать

applied economics – прикладная экономика

distinction - отличие

to blur – затуманивать, размывать

to remain -оставаться

to maximize - увеличивать

utility - полезность

constraint - ограничение

to sacrifice - жертвовать

II. Answer the questions

1. What does the word «micro» mean?

2. What does the optimizing behavior of individual units provide for microeconomics?

3. What may microeconomists investigate?

4. Where can microeconomic theory be used?

5. What does the tools and analyses of microeconomics provide?

6. Was there a sharp distinction in both methodology?

7. What blurred during the 1970s?

8. What plays a key role in microeconomics?

9. What is the consumer assumed to do?

10. What is the producer assumed to do?

11. What is opportunity cost?

12. What is the opportunity cost of a public project?

III. Make up your own sentences with the vocabulary

IV. Make up a dialogue on the basis of the text

V. Make up a brief summary of the text

VI. Retell your summary

VII. Fill the table

Difference between micro and macroeconomics

macroeconomics	microeconomics

VIII. Read, translate and play out the dialogue

Tara and Nancy come to their economics’ teacher Mr. Williams for tutoring

Dr. Williams: Hello! Tara, Nancy.

Tara: Good afternoon, Dr. Williams.

Nancy: Hello, how are you?

Mr. Williams: Good thank you. So I guess you are here for some tutoring. What questions do you consider to be revised?

Tara: Micro and macro economics and the difference between them

Mr. Williams: All right, well, economists have two ways of looking at economics and the economy. One is the macro approach, and the other is the micro. What do you know about macroeconomics and microeconomics as a discipline?

Nancy: Macroeconomics is the study of the economy as a whole; microeconomics is the study of individual consumers and the business firm.

Mr. Williams: That’s right, but it’s important to remember that macroeconomics examines questions such as how fast the economy is running; how much overall output is being generated; how much total income. It also seeks solutions to macro-economic problems such as how employment can be increased, and what can be done to increase the output of goods and services. Microeconomics examines cause-and-effect relationships that influence choices of indi­viduals, business firms and society. You should remember it because I shall put it in the test.

Tara: Is it correct to say that principal emphasis is given by microeconomists to the study of prices and their relationship to units in the economy.

Mr. Williams: Absolutely. Do you have any more questions?

Nancy: No, thank you, I think now I’ve got everything.

Tara: Thank you for your help. Now I have answers to my questions.

Mr. Williams: Then you may go, read your lectures and see on the test next Wednesday

Nancy: Goodbye, Mr. Williams, thank you!

Tara: Have a nice day!