2. According to the text, mark these statements t (true) or f (false).

1. It is important only for economists to be informed about the economy.

2. Economics is the study of making choices.

3. Economics aims to explain how economies work.

4. Microeconomics deals with unemployment and inflation.

5. Macroeconomics examines the economic behaviour of individuals and firms.

6. National economy is the study of how a nation can be made wealthy.

7. It is not valid when each country concentrates on the production of one thing it can do best.

8. International economics predicts production, trade and investment across countries.

3. Give the best definition for the following economic terms.

Economy, economics, world economics, world economy, scarcity of goods, market, allocation of resources, economic stability.

4. Choose the variants that best explain the idea of the sentences below.

1. Economics is the study of systems of production and distribution - which are called economies – and of their fundamentals, dynamics, and results.

1. Economics examines markets and their role in satisfying people’s needs.

2. Economics explains how economies work, how natural resources, machinery and people’s labour are used.

3. Economics aims at studying economic behaviour of agents, firms and individuals.

2. A society worthy of its name requires an orderly system of producing and distributing the necessities and luxuries of life.

1. The system of production and distribution depends on the name of the society: capitalist, socialist, communist, etc.

2. The system of production and distribution is ordered by the government.

3. The system of production and distribution is well-structured and aims at meeting the needs and wishes of people.

5. Give profound answers to the following questions.

1. Why can economics be regarded as the study of making choices?

2. What is the relationship between the way our economy does and the way our people do?

3. What is a market?

4. What is any country’s national economy concerned with?

5. What is world economy? What is world economics?

6. Practise reading §5 of the text. Translate it into Russian. Give a short summary of it.

C. How the text is organised

1. What do these words refer to in the text?

1) it (§ 1); 2) which (§ 4); 3) its (§ 5); 4) it (§ 6); 5) that (§ 6)

2. Find the paragraphs of the text dealing with the following concepts.

1) international trade theory; 2) the concept of business economics; 3) the subject and the aims of economics; 4) a market concept; 5) the importance of being informed about the economy.

V. Speaking

A. Giving your opinion

Explain how you understand the saying:

The economy is to business as the ocean is to fish.

B. Role play

Prepare for a role play. Read the situation and the roles, and follow the procedure.

The situation

First year students are having their first lecture on economics. The topic of it is “Introduction to Economics”.

The roles

1. Lecturer: Get your students to understand the concept of economics, the importance of studying economics and learning about our economy, the key economic terms referring to the topic of the lecture.

2. Team A: You represent the students who believe that the less ordinary people are informed about the country’s economy and economics as a science, the quieter their life is since the questions related to economics and economy are only economists’ concern and area responsibility.

Ask the lecture questions to clear up the problem. Prepare your arguments.

3. Team B: You represent the students who strongly support the idea that everyone but not only economists should be well informed about economy and economics. Prepare your arguments.

Moreover, make sure about the meaning of some economic terms related to the topic of the lecture.

4. Moderator: You evaluate the performance.

The Procedure

1. Appoint a lecturer.

2. Form two teams for the two roles.

3. The lecturer delivers the lecture.

4. Team A voice their opinions.

5. Team B give arguments against Team A’s opinions.

6. The lecturer answers the students’ questions.

7. Team B ask the lecturer questions related to the difference between such concepts as: economy / economics, economic / economical, microeconomics / macroeconomics, positive economics / normative economics.

8. The lecturer answers the questions and sums up the discussion.

9. The moderator evaluates the participants’ performance.