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II. Complete the blanks.

1. Mars and Keynes are two famous …s. 2. Those people are studying the science of … . 3. We sometimes call a person’s work his … activity. 4. People should be very … with the money they earn. 5. The economic system of a country is usually called the national … . 6. The people in that town live very … .

III. In these sentences, certain nouns are printed in bold. Change them into adjectives which can be used in the blanks.

1. These goods belong to the nation. They are therefore …. 2. Minerals are a part of nature. They are therefore … . 3 Schools provide education. They are therefore … . 4. Shops are places of commerce. They are therefore … centres of … activity. 5. He does not want anyone else to do this work. He wants to do the work in person. It is his … concern. 6. The government define monetary policy. By …, banks are institutions which accept money from people. 7. People produce both goods and services. Economics is the social science that studies the …, distribution and consumption of goods and services.

IV. Say whether these statements are true or false, and if they are false say why.

1. Economic resources are unlimited. 2. Economics is a science that studies only the production of goods. 3. The term economics comes from the Romans. 4. Economic resources are classified as material and labour resources. 5. Macroeconomics examines the economy as a whole. 6. Microeconomics is focused on the activity of firms and consumers. 7. Every economic society has to answer six fundamental questions. 8. The science of economics is based upon the facts of our everyday lives. 9. Welfare economics does not concern microeconomics. 10. Welfare economics examines the economic activities of the individuals. 11. Economics is a vital discipline for business. 12. A basic understanding of economics is essential for citizens.

V. Answer these questions.

1. Does life require that we have a basic knowledge of economics? 2. Why is economics of practical value in business? 3. How may economic resources be classified? 4. Why do we have to save resources? 5. Is economic environment determined by the economic policies of the government? 6. What does economics study? 7. How are areas of economics classified? 8. What does macroeconomics examine? 9. What is microeconomics focused on? 10.What fundamental questions does every economic society have to answer?

Unit 2 the business environment Word list

Tertiary – третий, в-третьих; community services – коммунальные службы, услуги; emergency services – экстренные службы (полиция, пожарные); to result from - вытекать, происходить в результате, быть следствием; mixed economy – смешанная экономика; entrepreneur − бизнесмен, предприниматель; to set up – учреждать, основывать, открывать; price mechanism – механизм цен; to substitute – заменять, использовать вместо; advanced economy – передовая, развитая экономика; interdependent – взаимозависимый, взаимосвязанный; to tend to − стремиться; medium of exchange – средство обмена; measure of value – мера стоимости, критерий ценности; store of value – средство сбережения; savings – сбережения; saver – откладывающий свои сбережения человек; borrower – заёмщик; with a view to – с намерением, с целью; to pay interest – выплачивать проценты; obsolete – вышедший из употребления, устаревший; to face problems – столкнуться с проблемами; scope – смысл, сфера, диапазон; nearness – близость, соседство; access – доступ, подход; supplier – поставщик, завод-поставщик; availability – доступность, наличие, возможность использования; site – место, местоположение, местонахождение.