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Text 2. Studying economics

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Economics is a social science that studies how society uses, regulates, and distributes its natural and human-made re­sources such as land, labour, raw materials, and machinery to produce goods and services (Horizons, 2000).

Economics is the only social science for which a Nobel Prize is awarded—an indication of its im­portance. Eco­nomic concepts are applied to understand nearly every aspect of human activity. Economics analyzes the way an economy can be changed and improved through learning how the various parts of society affect each other and studying the relationships between government, business, and the individual (Basta, 1991).

Economics is the science of the choices people make and the actions they take in order to make the best use of scarce resources in meeting their wants. On the level of the economy as a whole economists study how eco­nomic systems address three basic questions: What shall we produce?; How shall we produce it?; For whom shall we produce it? They then compile, process, and interpret the answers to these questions ("Economists," 1997).

Econo­mists analyze the relationship between sup­ply and demand and develop theories and models to help predict these future relationships. They help provide a logical, ordered way of looking at various problems. They attempt to explain social concerns such as unemployment, inflation, eco­nomic growth, business cycles, tax policy, or farm prices. Most economists apply their skills to solve problems in specific areas, such as transpor­tation, labor, heath, finance, marketing, corpo­rate planning, energy, or agriculture. Business firms, banks, insurance companies, labor unions, governmental agencies, and others seek advice from economists to use in their decision making (Horizons, 2000).

Economics provides important insights in areas from gov­ernment fiscal and monetary policy, to business, to law and property rights, to poverty and health issues, to environmental and natural resource issues, to the choice of marriage partners.

Speak on the situation “Economics as a science” using the plan

1. The definition of economics. The difference between “economics” and “economy”.

2. Similarities to other subjects.

3. Economics is a science of making choices in the world of scarcity. What is scarcity? Why do people always have to make choices? What does every choice involve?

4. What choices are to be made on the level of economics as a whole?

5. Macroeconomics and microeconomics as the two major branches of economics. What do they study? Prove that they are interdependent.

6. Economic system: its definition, main types, peculiarities.

7. What is the importance of economics? Prove that basic understanding is economics is essential for each person.

 


[1] за

[2] против

[3] aptitude tests - тесты на способности (cтандартизованные тесты, проводимые для определения способностей испытуемого к решению определенных задач; широко используются при поступлении в высшие учебные заведения и найме персонала (в некоторых компаниях)

[4] выпуск новых товаров на рынок

[5] обида; недовольство


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