Ex. 21. Put the verbs in brackets into the correct tense form.

 

1. In many countries economic development ____________________(to lead) to periods of

rapid population growth.

2. We _____________________________(to develop) this product for three years.

3. As soon as we _______________________(to install) the new line, productivity went up.

4. In 2010 the plant ________________________________________(to manufacture) this car

model for ten years.

5. When the company joined the New York stock market, it ______ already ___________ (to be)

on the London market for 5 years.

6. She ____________________ (to work) for “Procter & Gamble” at the moment.

7. She ____________________ (to work) for ABC when the merger (слияние) took place.

8. ___________ you ______________(to choose) the advertising agency yet?

9. The company _____________________(to cover) all losses by the end of the month.

10. They _________________ (to reward) their employees once a year.

 

Ex. 22. Complete the following sentences with one of the time prepositions below.

over ago on in at since for

 

1. He’s been off work __________ three months.

2. He ought to have retired a year __________.

3. She’s been with the company ______________ it began.

4. She left the country _________ 14.00 __________Tuesday.

5. We didn’t receive the delivery _____ time.

6. _______the beginning of the year, prospects looked good.

7. There was a downturn _______ the middle of March.

8. _______2007 our prices have been falling.

_____________________________________________________________________________

FINAL QUESTIONNAIRE

 

 

1. What sort of mechanism is economy?

2. What is economy?

3. What sort of issues must all societies deal with?

4. What is economics?

5. What subjects were taught in the universities in 1500^th?

6. What was the answer to question “Why am I poor?” in Pre-Enlightenment period?

7. What word does the word “economics” derive from?

8. What does Greek word “oikonomika” mean?

9. Who made the extraordinary contributions to economics?

10. Whose contributions to economics are considered the most important?

11. What did Adam Smith’s work “The Wealth of Nations” found?

12. Which Adam Smith’s work founded economic science?

13. What major economic thinkers do you know?

14. When did Karl Marx’s work “Capital” appear?

15. What did Karl Marx proclaim in his work “Capital”?

16. Name five tangible and intangible things.

17. How do things get to us?

18. What constrains does every society face at any moment in time?

19. How are societies differ in terms of constrains (limits) provided by nature and previous

generations?

20. Why are some countries rich and why are some poor?

21. What do young people discover when they grow older?

22. Why do we have to limit our choice to one or two things on sale?

23. What answer will most people give to question “Why are there so many wants and needs

that we cannot satisfy?”

24. Is shortage of money the real economic problem?

25. If the government decides to print more money will it solve the economic problem of

a country?

26. Does printing more money produce more goods and services?

27. What will happen if the government decides to print more money and thus to double all

of the incomes of everybody?

28. What is the real cause of shortage of goods and services in a country?

29. How many factors of production are there? What are they?

30. What people do we call entrepreneurs?

31. What economic problem arises because the factors of production are limited in supply?

32. Why do we have to make choices every day?

33. What do all choices involve?

34. What would happen if the factors of production were not scarce?

35. In what case could we have everything we wanted?

36. What is “opportunity cost”?

37. What problem does economics deal with?

38. Is the problem of scarcity faced by only poor societies?

 

 

 

UNIT 2 LEVELS OF ECONOMICS

Text 1

MICROECONOMICS versus MACROECONOMICS

VOCABULARY

unit – хозяйственная единица

household – домашнее хозяйство

to charge – назначать цену

income - доход

field of economics – сфера (область) экономики

suppliers of labour – поставщики рабочей силы

applied economics – прикладная экономика

labour economics – экономика труда

cost-benefit analyses – анализ “затраты-выгоды”; анализ выгодности затрат

demand - спрос

supply - предложение

market equilibrium – равновесие рынка

total national output – общий объем продукции, совокупный продукт

level of price – уровень цен

rate of inflation – уровень инфляции

consumption patterns – структура потребления

aggregate - совокупный

gross national product (GNP) – валовый национальный продукт (ВНП)

production facilities – производственные мощности

prosperity - процветание

well-being – благосостояние, благополучие

 

 

Economics is divided into two major branches: macroeconomics and microeconomics.

The word “micro” means small, and microeconomics means economics in the small.

Microeconomics deals with the functioning of individual industries and the behaviour of individual economic decision-making units: single business firms and households. The choices of firms about what to produce, how much to charge and the choices of households about what to buy and how much of it to buy help to explain why the economy produces the things it does.

Another big question that microeconomics addresses is who gets the things that are produced. Why do we have poverty? Who is poor? Why do some jobs pay more than others? Why do teachers or plumbers or baseball pitchers get paid for what they do?

Think again about all the things you consume in a day, and then think back to that view out over a big city. Somebody decided to build those factories. Somebody decided to construct the roads, build the housing, produce the cars, knit the T-shirts, and smoke the bacon. Why? What is going on in all these buildings? It is easy to see that understanding individual micro decisions is very important to any understanding of your society.

The distribution of products and income among all these units is also analyzed by microeconomics. In this field of economics individuals are considered both as suppliers of labour and as consumers of goods. Firms are also studied as suppliers of products and as consumers of labour and capital. Microeconomics theory is used widely in many areas of applied economics. For example, it is used in industrial organization, labour economics, international trade, cost-benefit analyses and many other economic subfields.

The central components of microeconomics are demand, supply and market equilibrium. Demand refers to how individuals or households form their demands for different goods and services. Supply refers to how firms decide which and how many goods or services they will supply and what combination of factors of production they should employ in supplying them. Market equilibrium refers to how markets enable these supplies and demands to interact. There was a long period in the 19^th and early in the 20^th centuries when microeconomic questions dominated in economics.

 

Macroeconomics adds it all up and looks at the economy in the large. Macroeconomics deals with economic factors such as total national output and income, unemployment, level of price, and the rate of inflation. Instead of trying to understand what determines the output of a single firm or industry or the consumption patterns of a single household or group of households, we turn to the factors that determine national output, or national product. Macroeconomics turns from household income to national income.

While microeconomics focuses on individual product prices and relative prices, macroeconomics looks at the price level and the general rate of inflation. Microeconomics questions how many people will be hired (or fired) this year in the steel industry or in the high-tech firms around a definite region – what factors determine how much labour a firm or an industry will hire. Macroeconomics deals with aggregate employment and unemployment: how many jobs exist in the country, and how many people who are willing to work will not be able to find work.

Microeconomics, then, looks at the individual unit - the household, the firm, the industry. It sees and examines the “trees”. Macroeconomics looks at the whole, the aggregate. It sees and analyzes the “forest”.

Macroeconomic theory is largely concerned with what determines the size of gross national product (GNP), its stability and its relationship to unemployment and inflation. The GNP is the value of all goods and services produced by a country during a given period, even if production facilities are in another country. The key to prosperity in an economy is steady growth in national output. When growth in nation’s output exceeds its growth in population, this improves the well-being of the population of a country.

 

WORD-STUDY