4.6 Дайте развернутые ответы на вопросы в письменной форме.

1. What did Veblen mean by “conspicuous consumption”? Consider whether it is a factor in today’s economy. Provide evidence to support your opinion.

“Conspicuous consumption” means the tendency of the ‘leisure class’ (the wealthy) to buy goods and services simply to impress others. I think that it is a factor in today’s economy. A lot of people, especially young, often tend to buy things that they cannot afford, but that help to impress their friends, neighbors and so on.

2. What distinction did Knight make between risk and uncertainty? Consider how a business might limit risk or uncertainty and prevent financial loss.

Knight made the following distinction between risk and uncertainty: risk can be predicted and against it one can be insured, and the uncertainty cannot be predicted. I think that business might limit risk or uncertainty and prevent financial loss if it conducts market research.

UNIT 5

5.1 Подберите правильный перевод к словам и фразам.

1. stock (n) a) равновесие, сбалансированность

2. equilibrium (n) b) (ссудный) процент

3. wage (n) c) акционерный капитал

4. failure (n) d) экономический спад

5. interest (n) e) заработная плата

6. increase (v) f) неудача, крах

7. prevailing (adj) g) преобладающий, широко

8. recession (n) распространенный

h) увеличивать(ся), возрастать

1) c)

2) a)

3) e)

4) f)

5) b)

6) h)

7) g)

8) d)

5.2 Прочитайте текст и найдите ответы на вопросы.

1. What jobs did Keynes have in his adult life?

He served the British government as a financial adviser and treasury official through most of his adult life and was a key participant in the negotiations following both World Wars I and II.

2. What is the full title of Keynes’ General Theory?

It is General Theory of Employment, Interest, and Money.

3. In what way was the General Theory similar to The Wealth of Nations written by A.Smith?

The General Theory transformed economic thinking in the 20^th century, much the way that The Wealth of Nations had in the 18^th.

4. What role did Keynes think government should have in the economy?

Government should abandon laissez faire in favor of an active role in economic stabilization.

5.3 Прочитайте текст и отметьте, истинны или ложны (True or False) данные утверждения, согласно тексту. Исправьте ложные утверждения.

1. By the 1930s there had been great changes in the thinking of mainstream economists. (False)

By the 1930s little had changed in the thinking of mainstream economists.

2. Keynes’ General Theory was published in the period of the Great Depression. (True)

3. Keynes demonstrated that there could be no long-term unemployment. (True)

4. Keynes suggested that government regulation led to economic stabilization. (True)

5. Modern economists reject the ideas advanced by the “Keynesian Revolution”. (False)

The ideas advanced by the “Keynesian Revolution” have become part of conventional wisdom.