Text a. Economics

PREREADING

Task 1. Answer the questions.

1. Why do people have to make choices very often?

2. What does every choice involve?

READING

Task 2. Read the text, find out key-words and make up their definitions.

Economics is the social science that analyses the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia, "management of a household, administration") from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". Political economy was the earlier name for the subject, but economists in the latter 19th century suggested 'economics' as a shorter term for 'economic science' that also avoided a narrow political-interest connotation and as similar in form to 'mathematics', 'ethics', and so forth.

A focus of the subject is how economic agents behave or interact and how economies work. Consistent with this, a primary textbook distinction is between microeconomics and macroeconomics. Microeconomics examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers and sellers) and markets, and their interactions. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment, inflation, economic growth, and monetary and fiscal policy.

Other broad distinctions include those between positive economics (describing "what is") and normative economics (advocating "what ought to be"); between economic theory and applied economics; between rational and behavioral economics; and between mainstream economics (more "orthodox" and dealing with the "rationality-individualism-equilibrium nexus") and heterodox economics (more "radical" and dealing with the "institutions-history-social structure nexus").

Economic analysis may be applied throughout society, as in business, finance, health care, and government, but also to such diverse subjects as crime, education, the family, law, politics, religion, social institutions, war, and science. At the turn of the 21st century, the expanding domain of economics in the social sciences has been described as economic imperialism.

An increasing number of economists have called for increased emphasis on environmental sustainability; this area of research is known as Ecological economics.

Model: Economics (a defined or key-word) is the social science that analyses the production, distribution, and consumption of goods and services (a definition).

Microeconomics –

Text b. International economics

Task 2. What are the statements: a) true, b) false or c) no information?

International trade studies determinants of goods-and-services flows across international boundaries. It also concerns the size and distribution of gains from trade. Policy applications include estimating the effects of changing tariff rates and trade quotas. International finance is a macroeconomic field which examines the flow of capital across international borders, and the effects of these movements on exchange rates. Increased trade in goods, services and capital between countries is a major effect of contemporary globalization.

The distinct field of development economics examines economic aspects of the development process in relatively low-income countries focusing on structural change, poverty, and economic growth. Approaches in development economics frequently incorporate social and political factors.

Economic systems is the branch of economics that studies the methods and institutions by which societies determine the ownership, direction, and allocation of economic resources. An economic system of a society is the unit of analysis.

Among contemporary systems at different ends of the organizational spectrum are socialist systems and capitalist systems, in which most production occurs in respectively state-run and private enterprises. In between are mixed economies. A common element is the interaction of economic and political influences, broadly described as political economy. Comparative economic systems studies the relative performance and behavior of different economies or systems.

1. International trade is the exchange of capital, goods, and services across international borders or territories.

2. International finance is a microeconomic field which examines the flow of capital across international borders, and the effects of these movements on exchange rates.

3. The main result of contemporary globalization is increasing goods, services and capital.

4. The main problem in economics is the question of allocating scarce resources.

5. When the price of some commodity increases, consumers will try to use less of it.

6. Social and political factors are frequently incorporated into general aspect.

7. Economic systems is an absolute synonym of economics that studies the methods and institutions by which societies determine the ownership, direction, and allocation of economic resources.

8. Socialist systems and capitalist systems are different kinds of economics as a science.

9. Oil is an important commodity in modem economies.

10. Mixed economy is an economic system in which both the state and private sector direct the economy.