Economics and economy

I. Read and learn the following words and phrases:

economics – экономика (как наука)

economic laws – экономические законы

microeconomics – микроэкономика

macroeconomics – макроэкономика

producer – производитель

consumer – потребитель

to affect – влиять

wage – заработная плата

earning – доход

economy – экономика (народное хозяйство)

values of output – уровни дохода

values of unemployment – уровни безработицы

to make predictions – прогнозировать

use of the money – использование денег

household – ведение домашнего хозяйства

a vast range of subjects – широкий круг вопросов

to attempt (to try) – пытаться, стараться

as a whole – в целом

scarce resources – скудные (недостаточные) ресурсы

to describe – описывать

to explain – объяснять

to define – определять

mankind – человечество

to expand – расширять

to allocate – распределять

to explore – исследовать

to examine – изучать

consequences – последствия

upswing – подъем

downturn – спад

patterns – образцы, модели

trade – торговля

II. Read the text: the science of economics

The modern word “economics” has its origin in the Greek word “oikonomos” meaning a housekeeper. The two parts of this word ‘oikos’ – a house and ‘nomos’ – a manager show what economics is all about.

Economics is defined as the study of mankind in the everyday business of life. It is a social science. Economics studies our everyday lives and the general life of our communities in order to understand the whole economic system, to find economic laws.

Everyday business of providing the means of life is called by the general term “economy”. It is the system for the management, use and control of the money, goods and other resources of a country, community or household.

Economics is the study of economies. It includes a vast range of subjects.

It studies how the prices of labour, capital and land are set in the economy.

It explores the behaviour of the financial markets and analyses how they allocate capital.

It analyses the consequences of government regulation.

It examines the distribution of income.

It studies the upswings and downturns in unemployment and production.

It examines the patterns of trade among nations, etc.

Economics as a science consists of microeconomics and macroeconomics. Microeconomics studies individual producers, consumers or markets. It attempts (tries) to understand factors which affect prices, wages and earnings. Macroeconomics studies the economy as a whole; the overall values of output, of unemployment and of inflation.

The essence of economics is to produce valuable commodities using scarce resources and distribute them among the people.

Economics makes predictions for national economy.

III. Do the following exercises:

Exercise 1. Read the international words and guess their meaning.

Business community system

Economics economy economic

Term management factors

Resources inflation national

Capital regulation nation

Exercise 2. Translate the word combinations from English into Russian.

A social science; economic laws; to affect the prices, wages and earnings; values of output, unemployment and inflation; individual produces; the everyday business of life; to provide the means of life; use and control of the money; a vast range of subjects; to allocate capital; valuable commodities; to make predictions; the essence of economics.

Exercise 3. Translate the given word combinations from Russian into English.

Делиться на; микроэкономика и макроэкономика; отдельные производители, потребители и рынки; народное хозяйство; ведение домашнего хозяйства; исследовать экономические законы; подъемы и спады в экономике; распределение дохода; поведение финансовых рынков; модели торговли между государствами.

Exercise 4. Choose the right word or word-combination.

1. Economics is defined as the study of ... in the everyday business of life.

a) industry b) mankind c) income

2. Economics studies the general life of our communities in order to understand ... .

a) how to use money b) the behaviour of the financial markets c) the economic laws

3. Microeconomics studies ... .

a) the whole economic system b) individual producers, consumers or markets c) upswings in economy

4. Macroeconomics studies ... .

a) the economy as a whole b) factors of production c) the resources of a country

5. ... makes predictions for national economy.

a) mankind b) individual producers c) economics

Exercise 5. Insert the necessary prepositions.

1. Economics is defined as the study ... mankind ... the everyday business ... life.

2. Economics studies our everyday lives and the general life ... our communities ... order to understand the whole economic system, to find economic laws.

3. It is the system ... the management, use and control ... the money, goods and other resources ... a country, community or household.

4. Economics as a science consists ... microeconomics and macroeconomics.

5. Economics makes predictions ... national economy.

Exercise 6. Mark the sentences that are true.

1. The modern word “economics” has its origin in the Greek word “oikonomos” meaning a manager.

2. Economics is a social science.

3. Everyday business of providing the means of life is called by the general term “government regulation”.

4. Microeconomics explores the behaviour of the financial markets and analyses how they allocate capital.

5. Economics studies the upswings and downturns in unemployment and production.

6. The essence of economics is to produce valuable commodities using scarce resources and distribute them among different countries.

Exercise 7. Answer the questions on the text.

1. What is the origin of the modern word ‘economics’?

2. Is economics a social science?

3. What is called by the general term “economy”?

4. What subjects does economics study?

5. Economists divide economics into microeconomics and macroeconomics, don’t they?

6. What does microeconomics attempt to understand?

7. Does macroeconomics study economy as a whole?

8. What is the essence of economics?

Exercise VIII. Speak about economics science.