Vocabulary Focus. 1. Complete the gaps choosing the right alternative.

1. Complete the gaps choosing the right alternative.

1. The current … rate is six percent.

a) behaviour

b) unemployment

c) allocation

2. Cold weather … the crops.

a) affected

b) studied

c) caused

3. I haven't had much … from my business this year.

a) income

b) rate of growth

c) price level

4. Digital technology is the latest … in television.

a) income

b) trend

c) behavior

5. An accountant (бухгалтер) has been employed to … the company's books.

a) cause

b) distribute

c) examine

6. We need to find the best way to … our resources.

a) divide

b) allocate

c) influence

2. Fill in the gaps with prepositions, where necessary.

1. The bank deals directly … the private sector.

2. I need time to study … this contract before signing it.

3. No one knows how this decision will influence … the outcome of the election.

4. Consumer magazines can be divided … a number of categories.

5. What may cause … unemployment?

3. Look through the text once again and find the words and phrases which mean the following.

-to satisfy the needs

- a very important subject or problem

- to influence decisions

- the industry as a whole

-to study economy-wide phenomena

Talking Points

1. Imagine that your friend has got an opportunity to take one course in economics, so he has a choice between macroeconomics and microeconomics. Which course would be more interesting and useful? What would your advice be? Why?

Use the following expressions:

I think, I would… (Я думаю, я бы …)

He should perhaps …(Возможно, ему следует …)

In his position, I would … (На его месте я бы …)

2. Prepare to talk about the differences and similarities between macroeconomics and microeconomics. Complete the statements and share your opinions.

a) Microeconomics and macroeconomics are the fundamental tools to be learnt, in order to understand ….

b) While the two studies are different, they are interdependent, and together they ….

c) The main differences between … are ….

Summary Points

1. Skim the text once more and identify its main idea. Use the necessary vocabulary from Unit 1 Summary Points.

2. Make up a plan of the text about micro- and macroeconomics. Discuss it in pairs, then report to the whole group.

This text can be divided into … parts.	Текст можно разделить на … частей.
The text consists of … parts.	Текст состоит из … частей.
The first part is about ….	Первая часть текста – о …
The second (third, fourth) part describes (analyzes) ….	Вторая (третья, четвертая) часть описывает (анализирует) …

UNIT 3

TYPES OF ECONOMIC SYSTEMS

Lead-in

Answer the following questions before you read the text below. If you can’t answer them now, try to answer them after reading the text.

1. What types of economic systems do you know? What is the difference between them?

2. What factors may affect the type of economy a country holds? When would it be beneficial for a country to change its economy?

Key Vocabulary

1. Study the following list of vocabulary.

1. produce v	производить
2. market n	рынок
3. determine v	устанавливать, определять
4. price n	цена
5. trade n	торговля
6. exchange n	обмен
7. government n	правительство
8. society n	общество
9. alleviate v	уменьшать, ослаблять
10. advancement n	развитие
11. decide v	решать
12. free enterprise	свободное предпринимательство
14. private adj	частный
15. wages n	зарплата
16. regulate v	регулировать
17. provide v	предоставить, обеспечить наличие
18. run v	управлять
19. tax n	налог

2. Mind the following forms of the irregular verb “to sell”:

sell (sold, sold) - продавать

Pre-reading Activities

1. Match synonyms from the two columns. Learn these pairs of words.

1. market	a) to manage
2. to regulate	b) to manufacture
3. to produce	c) to control
4. to run	d) marketplace

2. Consult a dictionary and complete the chart. Some boxes will not be filled.

NOUN	VERB	ADJECTIVE
production	to produce	productive
	to price
		governmental
decision
	to regulate

Reading

Read the text focusing on the main ideas.

There are three main questions any economy has to answer, whether it is a highly developed economy, the poorest of countries, or a small group of people.

· What is to be produced?

· How will it be produced?

· Who will get what is produced?

To answer these questions, different economic systems have been developed.

Traditional economies are dictated by tradition, customs, and religion. One of the features of this type of economy is very little economic growth. In traditional societies people use methods of production and distribution which were invented in the past and have become accepted ways of doing things.

A market economy is an economy in which the prices of goods and services are determined in a free price system. Trading and exchange of goods, services and information takes place in a free market. A market economy may, therefore, also be known as a free market economy. In the real world, market economies do not exist in pure form, as societies and governments regulate them to different degrees rather than allow self-regulation.

The opposite of a market economy is a planned or command economy, where the government decides what to produce, in what quantity, and to be sold at what price. A planned economy alleviates the use of private enterprises and allows the government to determine everything from distribution to pricing. Planned economies can provide stability, but they can also limit the growth and advancement of the country if the government does not allocate resources to the innovative enterprises.

A mixed economy is the one in which there exists a mixture of free enterprise and government control. In some areas of a mixed economy, the government may even have a monopoly. In a typical mixed economy, the government may run such things as the postal service, rail lines, libraries, and in some cases, the health care service. Even in industries which are not owned or run by the government, its influence is very noticeable in the form of taxes and regulations like wage controls.

Comprehension Check

1. Are these statements True or False? Use the following expressions:

I (don’t) agree that… (я (не) согласен, что…)

I think that… (я думаю, что…)

1. Any highly developed country has to answer three main questions.

2. Traditional economies are dictated by very little economic growth.

3. A free market economy is an economy in which the prices of goods and services are determined in a free price system.

4. A planned or command economy is the opposite of a mixed economy.

5. A planned economy is the one that can limit the growth and advancement of the country.

6. A mixed economy is a mixture of market and planned economies.

7. In a mixed economy the influence of the government is considerable.

2. Complete the sentences.

1. Three main questions any economy has to answer are: ….

2. Different economic systems have developed to ….

3. One of the features of traditional economies is ….

4. In a market economy … takes place in a free market.

5. In a command economy, the government decides ….

6. Planned economies can provide stability, but ….

7. … the government may have a monopoly.

3. Check how well you know some characteristic features of different types of economic systems. Are these statements about market, command, or traditional economies?

1. You can decide what job you would like to do in this economic system.

2. Making a profit is highly stressed in this economic system.

3. Making money is not stressed in this economic system.

4. You will work at the same job that your ancestors worked at in this economic system.

5. You produce what your ancestors produced in this economic system.

6. The government decides what you will produce in this economic system.

7. You decide what you will produce in this economic system.

8. You work in this economic system to make as much money as you want.

9. Competition, material rewards, self-gain, and freedom are the basic values for this economic system.

10. Custom, traditional ways and beliefs are the basic values of this economic system.

Vocabulary Focus

1. Complete the sentences, choosing the right word.

1. It’s … property!

a) market b) private c) free

2. He … the car to me for $1000.

a) produced b) determined c) sold

3. This shop … my favorite brand.

a) determines b) sells c) regulates

4. Our manager … not to leave.

a) has provided b) has determined c) has decided

5. The Prime Minister has formed a new ….

a) market b) government c) society

6. Most shops allow the purchaser … goods.

a) to alleviate b) to sell c) to exchange

2. Look through the text and find English equivalents.

устанавливать цены

торговля и обмен товарами и услугами

саморегулирование

решать, в каком количестве производить

обеспечить стабильность

правительственный контроль

находиться во владении и управляться государством

3. Match the words from Key Vocabulary with their definitions.

a) an organized group of people associated together for religious, cultural, scientific, political, patriotic, or other purposes

b) a sum of money demanded by a government for its support or for specific facilities or services

c) the sum or amount of money or its equivalent for which anything is bought, sold, or offered for sale

d) money that is paid or received for work or services, as by the hour, day, or week

e) the act or process of buying, selling, or exchanging commodities within a country or between countries

Talking Points

1. Think about features, advantages and disadvantages of different types of economic systems. Discuss these issues in pairs or small groups first, and then make a report.

	Traditional economies	Market economies	Planned economies	Mixed economies
Features
Advantages
Disadvantages

2. List countries which have these economic systems.

Summary Points

1. Look through the text about different types of economic systems once more and identify its main idea.

2. Draw up an outline of the text.

3. Can this text be divided into some parts? How many and what are they? Give a one-sentence summary of each point of your plan.

Use the following vocabulary:

This text can be divided into … parts.	Текст можно разделить на … частей.
The text consists of … parts.	Текст состоит из … частей.
The first (second, third, etc.) part deals with …	В первой (второй и т.д.) части говорится о…
In the first (second, third, etc.) part the author describes (discusses, studies, offers, states, analyzes) …	В первой (второй, третьей) части автор описывает (обсуждает, изучает, предлагает, утверждает, анализирует) …
Finally, the author shows …	В заключение, автор показывает …

UNIT 4

SCARCITY AND CHOICE

Lead-in

Working in a group, try to identify the term ‘scarcity’ and answer the following questions.

1. Why does scarcity exist?

2. How do individuals, communities and countries attempt to solve the problem of scarcity?

Key Vocabulary

Make sure you know the following words and word-combinations.

1. satisfy v	удовлетворять
2. face v	сталкиваться с
3. land n	земля, земельные угодья
4. labour n	труд, рабочая сила
5. capital n	капитал
6 insufficient adj	недостаточный
7. exist v	существовать
8. economic activity	экономическая деятельность
9. benefit n	польза, прибыль
10. forgo v	отказываться, воздерживаться от чего-либо
11. opportunity costs	альтернативные издержки; издержки неиспользованных возможностей
12. evaluate v	оценивать
13. non-monetary adj	неденежный

Pre-reading Activities

1. Consult a dictionary and find in the columns groups of synonyms and antonyms.

Match synonyms:
desire n	profit n
forgo v	select v
benefit n	give up v
choose v	want n

Match antonyms:
balance n	abundance n
scarcity n	non-monetary adj
monetary adj	unlimited adj
limited adj	imbalance n

2. Translate in writing the following paragraph.

Scarcity is the fundamental economic problem: humans have unlimited wants and needs in a world of limited resources. It states that society has insufficient productive resources to satisfy all human wants and needs. Goods (and services) that are scarce are called economic goods (or simply goods). Other goods are called free goods if they are desired but in such abundance that they are not scarce, such as air and seawater.

Reading

Read the text and explain what the terms “scarcity” and “opportunity cost” mean.

Scarcity is the fundamental economic problem. Not all human needs and wants can be satisfied, scarcity limits us both as individuals and as a society. As individuals, we face scarcity of time and ability. As a society, our resources, land, labor, and capital, are insufficient to produce all the goods and services we might desire.

So, scarcity is the condition of not being able to have all of the goods and services a person wants. It exists because a society can only produce limited amounts of goods and services with the limited resources. The resources, however, have alternative uses and can be combined in various proportions. With the alternative use of scarce resources, choices must be made.

People must choose how to use scarce resources and which of their desires they will satisfy and which they will leave unsatisfied. When we, either as individuals or as a society, choose more of something, scarcity forces us to take less of something else.

Economics is sometimes called the study of scarcity because economic activity would not exist if scarcity did not force people to make choices. The fact that choices must be made reflects the fact that scarcity exists.

Scarcity is an imbalance between what is wanted and the amount that is freely available. Choice, in economic terms, is rational choice and is defined as an act of making calculated, self-interested decisions. Basically, this type of choice is about choosing what will cost the least and have the highest benefit.

In making a choice, some alternatives are forgone. Economists use the term ‘opportunity cost’ to mean the cost of a specific choice measured in terms of the next best alternative choice. In other words, it is what the decision-maker must forgo in order to make the choice that is finally made. Another term for opportunity cost is “real cost”. Opportunity cost is useful when evaluating the cost and benefit of choices. It is often expressed in non-monetary terms.

Comprehension Check

1. Answer the questions.

1. Why are scarcity and choice basic problems of economics?

2. What is scarcity? Give different definitions.

3. Why must people make choices?

4. What is choice?

5. What do economists mean when they use the term ‘opportunity cost’?

6. In what way is opportunity cost expressed?

2. Are these statements True or False? Prove your decision.

1. Human needs and wants can’t be satisfied.

Scarcity exists because society can produce limited amounts of goods and services with insufficient resources.

Scarcity forces us to forgo some alternatives.

Economics is sometimes called the study of choice.

5. ‘Opportunity cost’ is what the decision-maker must forgo in order to make the choice that is finally made.

Opportunity cost is the fundamental economic problem.

Reproduce the context in which the following word-combinations are used.

To satisfy needs and wants

To produce goods and services

Economic activity

Scarce resources

To forgo alternatives

To evaluate the cost and benefit

Vocabulary Focus

1. Complete the gaps using the vocabulary.

choice; free goods; limited; opportunity cost; resources; scarce; scarcity; services; unlimited

… (1) are important because they are used to make goods, like television, cars and houses and to provide …(2), like banking, insurance and transport. All of these resources are …(3). Any resources that are not scarce are called …(4). Wants are …(5) but the resources used to produce the goods and services to satisfy these wants are …(6). So, there exists …(7). …(8) is necessary because scarce resources can be used in lots of ways to make different goods and services. The real cost of choosing one thing and not another is known as the …(9).

2. Choose the right word to complete the sentences.

1. Hunger... in many parts of the world.

a) evaluates b) exists c) satisfies

2. We have to … the results of our experiment.

a) face b) forgo c) evaluate

3. We want to build a house. Last year we bought some … in the village.

a) capital b) labour c) land

4. The company offers its employees a pension plan, free health insurance, and other ….

a) economic activity b) benefits c) desires

5. The wants we seek to … are limited.

a) satisfy b) forgo c) face

3. Give the English equivalents to the following.

ограниченные ресурсы

вынуждать людей делать выбор

оценить затраты и выгоды

рациональный выбор

лицо, принимающее решение

Talking Points

1. Explain the fact that people exchange goods and services because they expect to be better off (материально жить лучше) after the exchange.

2. Explain that whenever a choice is made, something is given up.

3. Discuss the following question with your groupmates. Give your arguments for or against.

Do you agree that the problem of scarcity is faced by rich and poor societies?

Summary Points

1. What is the main idea of the text about scarcity and choice? Is it only to explain what scarcity and choice are?

2. Divide the text into parts and make up a plan. What are these parts about?

3. Find in the text the most important details that may be added to support the main points. Use the following vocabulary.

The author thinks (believes) that …	Автор думает (считает), что…
The author notes that …	Автор отмечает, что …
According to the author …	Согласно мнению автора …
In conclusion …	В заключение …

UNIT 5

DEMAND AND SUPPLY

Lead-in

1. Discussing in groups or pairs, try to identify the factors that influence:

a. consumer’s decisions to demand goods or services

b. producer’s decisions to supply goods or services

2. Do you know how the law of demand and supply works?

Key Vocabulary

Study the following vocabulary.

1. buyer n	покупатель
2. seller n	продавец
3. demand n	спрос
4. supply n	предложение
5. have an influence on smth	оказывать воздействие на что-либо
6. competitive adj	конкурентоспособный, конкурентный
7. interact v	взаимодействовать
8. support v	поддерживать
9. pay v	платить
10. commodity n	продукт, товар
11. law n	закон
12. quantity n	количество
13. consumer n	потребитель
14. substitute n	заменитель
15. complementary adj	дополняющий (о товаре)
16. increase n	увеличение, рост
17. profitable adj	прибыльный
18. tend v	иметь тенденцию
19. encourage v	побуждать, стимулировать
20. influence smth v	влиять на что-либо
21. equal adj	равный, одинаковый
22. attain v	достигать
23. state of equilibrium	состояние равновесия

Pre-reading Activities

1. Mind the pronunciation of the following words. Learn this vocabulary.

increase (n) - ['inkri:s] – увеличение, рост

increase (v) - [in'kri:s] – возрастать, усиливаться

decrease (n) - ['di:kri:s] – уменьшение, спад

decrease (v) - [di'kri:s] – уменьшаться, сокращаться

equal (adj) - ['i:kwəl] – равный, тождественный

equal (v) - ['i:kwəl] – быть одинаковым, равным

Use one of the words from Task 1 to complete the sentences. Mind grammar forms.

1. Our company provided … employment opportunities.

2. We divided the profits into three … shares.

3. Unfortunately, sales … by five percent this year.

4. They will soon … the price from $50 to $60.

5. These changes will … our expenses.

6. His salary … mine.

Reading

Read the text and single out the following notions:

· a competitive market

· the law of demand

· the law of supply

A market is defined as a group of buyers and sellers of a particular product or service. Competitive markets are markets with many buyers and sellers, so that each has a very small influence on the price. Supply and demand is the most useful model for a competitive market, and shows how buyers (citizens) and sellers (businesses) interact in that market.

The first thing to understand is that demand is not the same as desire, or need, or want. When desire is supported by the ability and willingness to pay the price, it becomes an effective demand and has an influence in the market.

Demand, in economics, may be defined as “the quantity of the commodity which will be demanded at any given price over some given period of time”. According to the law of demand, price has a significant effect on demand. Consumers will buy less at higher prices and more at lower prices.

Among the factors which influence consumers to buy more or less of a product, even when the price of the product does not change are:

· Income

· Tastes and preferences

· Substitutes

· Complementary goods

Supply is not the same thing as “amount available”. We are only concerned here with the amounts actually brought to market and these amounts depend on the ruling market price. The basic law of supply says “More will be supplied at a higher price than at a lower price”. An increase in price usually means that production will become more profitable. In addition, an increase in price would tend to encourage new firms to enter the industry.

In addition to price, there are other factors that will strongly influence the amount of a good or service supplied to the market:

· Number of producers

· Resource prices

It is possible for supply and demand to be equal. In this case, the amount of supplied products or services must equal the demand for those products and services. If this relationship between supply and demand is attained, the economy is balanced in a state of equilibrium.

Remember!

If supply continues to increase and demand softens (or even remains constant), prices will continue to fall.

Дата добавления: 2015-10-29