That do you think of when you hear the word economics

What does economics study?

What do you
think of when you hear the word economics?
Money, certainly, and perhaps more complicated things like business,
inflation and unemployment. The science of economics studies all of
these, but many more things as well. Perhaps you think that economics
is all about the decisions that governments and business managers
take. In fact, economists study the decisions we all take every day.

Very
simply, economics studies the way people deal with a fact of life:
resources are limited, but our demand for them certainly is not.
Resources may be material things as food, housing and heating. There
are some resources, through, that we cannot touch. Time, space and
convenience, for example, are also resources. Think of a day. There
are only 24 hours in one, and we have to choose the best way to spend
them. Our everyday lives are full of decisions like these. Every
decision we make is a trade-off.
If you spend more time working, you make more money. However, you
will have less time to relax. Economists study the trade-offs people
make. They study the reasons for their decisions. They look at the
effects those decisions have on our lives and our society.

Что изучает
экономика?

О чем вы думаете,
когда слышите слово экономика?
О деньгах, конечно, и, возможно о более
сложных вещах, таких как бизнес, инфляция
и безработица. Экономическая наука
изучает все это, а также многое другое.
Возможно, вы думаете, что экономика –
это решения, которые делают правительства
и бизнес-менеджеры. На самом деле,
экономика изучает решения, которые
ежедневно делаем мы.

Проще говоря,
экономика изучает то, как люди справляются
с таким жизненным фактом: ресурсы
ограничены, а наш спрос на них – нет.
Ресурсами могут быть такие материальные
вещи, как питание, жилье и отопление.
Есть ресурсы, которые мы не можем
потрогать. Время, пространство и комфорт,
например, тоже ресурсы. Подумайте о
сутках. В них всего лишь 24 часа и нам
необходимо выбрать лучший способ
провести их. Наша жизнь полна таких
решений. Каждое наше решение – это
компромисс.
Если вы потратите больше времени на
работу, вы получите больше денег. Однако
у вас будет меньше времени на отдых.
Экономисты изучают компромиссы, на
которые идут люди. Они изучают причины
этих решений. Они анализируют, какие
последствия оказывают эти решения на
нашу жизнь и на общество.

What are microeconomics and
macroeconomics?

Economists
talk about microeconomics
and macroeconomic.
Microeconomics deals with people, like you and me, and private
businesses. It looks at the economic decisions people make every day.
It examines how families manage their household budgets.
Microeconomics also deals with companies – small or large – and
how they run their business. Macroeconomics, on the other hand, looks
at the economy of a country – and of the whole world. Any economist
will tell you, through, that microeconomics and macroeconomics are
closely related. All of our daily microeconomic decisions have an
effect on the wider world around us.

Another way
to look at the science of economics is to ask, ‘what’s it good
for?’ Economists don’t all agree on the answer to this question.
Some practice positive economics. They study economic data and try to
explain the behaviour of the economy. They also try to guess economic
changes before they happen. Others practice normative economics. They
suggest how to improve the economy. Positive economists say, ‘this
is how it is’. Normative economists say, ‘we should…’.

So what do economists do?
Mainly, they do three things: collect data, create economic models
and formulate theories. Data collection can include facts and figures
about almost anything, from birth rates to coffee production.
Economic models show relationships between these different data. For
example, the relationship between the money people earn and
unemployment. From this information, economists try to make theories
which explain why the economy works the way it does.

Что такое
микроэкономика и макроэкономика?

Экономисты говорят
о микроэкономике и макроэкономике.
Микроэкономика имеет дело с людьми,
такими как вы и я, и частным бизнесом.
Она смотрит на экономические решения,
которые люди делают каждый день. Она
исследует, как семьи управляют домашними
хозяйствами. Микроэкономика также имеет
дело с предприятиями – малыми или
большими – и как они ведут бизнес. С
другой стороны, макроэкономика
рассматривает экономику страны и всего
мира. Любой экономист скажет, что
микроэкономика и макроэкономика тесно
связаны. Все наши ежедневные
микроэкономические решения влияют на
мир вокруг нас.

По-другому посмотреть
на экономическую науку можно, задав
вопрос: «для чего это надо?» Не все
экономисты согласны с ответом на этот
вопрос. Некоторые занимаются позитивной
экономикой. Они изучают экономические
данные и пытаются объяснить поведение
экономики. Они также пытаются предугадать
экономические изменения до того, как
они произошли. Другие занимаются
нормативной экономикой. Они предлагают
способы улучшения экономики. Позитивные
экономисты говорят: «именно так оно и
есть». Нормативные экономисты говорят:
«мы должны…».

Итак, что делают
экономисты? Главным образом, они делают
три вещи: собирают информацию, создают
экономические модели и формулируют
теории. Сбор информации может включать
факты и цифры почти о чем угодно, от
рождаемости до производства кофе.
Экономические модели показывают
взаимосвязь между этими различными
данными. Например, взаимосвязь между
деньгами, которые зарабатывают люди и
безработицей. С помощью этой информации
экономисты пытаются сформулировать
теории, которые объяснят, почему экономика
работает так, как работает.

History of economic thought

Economic
thought goes back thousands of years. The ancient Greek, Xenophon,
used the word oikonomikos
(from
oikos,
meaning family, household, estate, and nomos,
for usage, law). He was talking about skilful or clever ways to
manage land and households. We could call many of Aristotle’s
political writings economics, although he did not use the word. The
English word economics
first appeared in the 19^th
century – two and a half thousand years after Xenophon.

Early
economic thought was all about the meaning of wealth or being rich.
There early thinkers asked, ‘what makes a state or a country
wealthy?’ For nearly 2,000 years, the answer was very simple: gold.
A country or a nation’s wealth depended on its owning precious
metals. This simple view of the economy remained until medieval
times.

During
medieval times – roughly the period between 1100 and 1500 AD,
trading between nations grew, and a new social class appeared. These
were merchants, people who made their money through the buying and
selling of goods, and they began to write their own thoughts on the
economy. They saw the economy as a way to make the state strong. For
them, the nation’s wealth depended on stocks of gold and the size
of population. More people meant bigger armies and a stronger state.

These were still simple ideas.
However, daily experience had also taught people many basic economic
concepts. For example, they understood the importance of trade with
other states. They realized that scarcity makes things more expensive
and abundance makes them cheaper.

Modern
economics was really born in the 19^th
century. At this time, thinkers like Adam Smith wrote down ideas that
are still important today. Adam Smith if often called the
Father of Modern Economics,
although the science was called political
economy
then. Smith realized that a nation’s wealth depended on its ability
to produce goods. The value of these goods depended on the cost of
production. The cost of production depended on the cost of workers,
raw materials and land. This was really the first example of
macroeconomics.

Smith and other classical
economists were writing at a time of great change. The industrial
revolution had begun. Paper money began to replace precious metals.
The middle classes were growing stronger. Economists’ theories
echoed these changes. They wrote about the division of labour (each
worker taking part in the production process). They discussed the
problem of population growth. They influenced thinking about social
classes.

For
classical economists, the value of goods depends on the cost of
production. However, the price of goods is not always the same as
their real cost. Later economists developed new theories to explain
the weakness in classical economics. These are known as the
neoclassical economists and they were writing at the end of the 19^th
and the early 20^th
centuries.

In
neoclassical economics, supply and demand make the economy work. In
other words, the price of goods depends on how much people want them
and how easily they can be found. Consumers want satisfaction from
their resources (time and money). Firms want profit. In neoclassical
economics this is the basic relationship in the economy. These ideas
are still the basic of economic thinking today.

История
экономической мысли

Экономическая
мысль насчитывает тысячи лет.
Древнегреческий писатель, Ксенофонт,
использовал слово oikonomikos
(от oikos
– семья, домашнее хозяйство, имущество,
и nomos
– пользование, закон). Он говорил об
умелых и рациональных способах
распоряжения землей и домашним хозяйством.
Множество политических писаний Аристотеля
можно назвать экономикой,
хотя он и не использовал это слово.
Английское слово экономика
впервые появилось в 19-ом веке – через
две с половиной тысячи лет после
Ксенофонта.

Ранние экономические
мысли были только о значении благосостояния
и богатства. Ранние мыслители спрашивали:
«что делает государство или страну
богатыми?» Почти 2000 лет ответ был очень
прост: золото. Богатство страны или
нации зависело от владения драгоценными
металлами. Этот простой взгляд на
экономику просуществовал до средневековья.

В средневековье
– приблизительно в период между 1100 и
1500 н.э., росла торговля между странами,
появился новый социальный класс. Это
были купцы – люди, которые зарабатывали,
продавая и покупая товары. Они начали
записывать собственные мысли об
экономике. Они видели экономику, как
один из способов сделать государство
устойчивым. По их мнению, благосостояние
нации зависело от запасов золота и
численности населения. Все больше людей
имело в виду более многочисленные армии
и более сильное государство.

Пока это все еще
были простые мысли. Однако повседневный
опыт научил людей многим базовым
экономическим концепциям. Например,
они осознали важность торговли с другими
странами. Они поняли, что дефицит делает
товары дороже, а избыток – дешевле.

Современная
экономика, в действительности, родилась
в 19-ом веке. В это время, такие мыслители,
как Адам Смит, высказали мысли, которые
до сих пор важны. Адама Смита часто
называют отцом
современной экономики,
хотя тогда наука называлась политической
экономией. Смит понял, что богатство
нации зависит от ее возможностей
производить товары. Стоимость этих
товаров зависит от стоимости производства,
которая, в свою очередь, зависит от
стоимости рабочей силы, сырья и земли.
На самом деле, это был первый пример
макроэкономики.

Смит и другие
классические экономисты писали во
времена великих изменений. Началась
промышленная революция. Бумажные деньги
стали заменять драгоценные металлы.
Крепли средние классы. Теории экономистов
отражали эти изменения. Они писали о
разделении труда (каждый работник
принимает участие в процессе производства).
Они обсуждали проблемы роста численности
населения. Они обратили внимание на
социальные классы.

По мнению классических
экономистов, стоимость товаров зависит
от стоимости производства. Однако цена
товаров не всегда равна их реальной
стоимости. Позже экономисты разработали
новые теории, чтобы объяснить этот
недостаток классической экономики. Они
известны как неоклассические экономисты,
писавшие в конце 19-го, начале 20-го веков.

В неоклассической
экономике, предложение и спрос заставляют
экономику работать. Другими словами,
цена товаров зависит от того, как сильно
люди хотят их и насколько легко достать
эти товары. Потребители желают получить
удовлетворение от своих ресурсов
(времени и денег). Фирмы хотят получить
прибыль. В неоклассической экономике
это основная взаимосвязь. До сих пор,
это основные идеи экономической мысли.

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Другие языки

Read the text and decide which answer A, B, C or D best fits each space.
Nowadays, the USA is (1)________ seen by millions as the Promised Land.
Gone are the days when you (2)________ buy US citizenship for one dollar. Yet, even though entry is strictly (3)_________ refugees continue to find freedom and people from poorer countries a better way of life.
(4)________ always, it remains a magnet to the ambitious and the energetic who are ready to commit themselves to the land that gives them a second (5)_________.

1.	A. still	C. already
	B. yet	D. always
2.	A. might	C. could
	B. had to	D. were able
3.	A. limited	C. finished
	B. over	D. ended
4.	A. How	C. However
	B. Though	D. As
5.	A. occasion	C. choice
	B. chance	D. case

1	2	3	4	5

Key:1. A; 2. C; 3. A; 4. D; 5. B

Six articles the are missing from the text. Write them in.
What do you think of when you hear word economics? Money, certainly, and perhaps more complicated things like business, inflation and unemployment. Science of economics studies all of these, but many more things as well. Perhaps you think that economics is all about decisions that governments and business managers take. In fact, economists study decisions that we all take every day. They study reasons for our decisions. They look at effects those decisions have on our lives and our society.

Key:
What do you think of when you hear the word economics? Money, certainly, and perhaps more complicated things like business, inflation and unemployment. The science of economics studies all of these, but many more things as well. Perhaps you think that economics is all about the decisions that governments and business managers take. In fact, economists study the decisions that we all take every day. They study the reasons for our decisions. They look at the effects those decisions have on our lives and our society.

Complete the text. Use one of these verbs in the proper form.

After (1)____________ in their luggage, they (2)___________ through Customs. Their flight (3)___________ from Gate 4. The plane (4)___________ off on time and they (5)__________ to Moscow two ours later.

Key: 1. checking; 2. went; 3. went; 4. took; 5. got

Complete the sentences with the Present Perfect Continuous forms of the verbs in brackets.
1. He ___________________ (train) harder this year and his results are better.
2. Why are you so wet? ______________ (it/rain)?
3. I can’t make a report in French. I ________________ (not/learn) it very long.
4. A: You look tired. B: Yes, I _________ (prepare) my project work.
5. Sorry, I’m late. I ______________ (help) my mother…

Key: 1. has been training; 2. Has it been raining? 3. haven’t been learning; 4. have been preparing; 5. have been helping

By Youdif Boyarskaya ,
School No. 814, Moscow

Presentation on theme: «What comes to your mind when you hear the word, “Economics”?»— Presentation transcript:

1

What comes to your mind when you hear the word, “Economics”?
$

2

Do you see a jumble of Economic Terms and graphs that all run together in your mind?…
Movements of workers from region to region, or country to country, is an obvious and often important source of shifts in labor supply. When immigrants come to the United States, for instance, the supply of labor in the United States increases and the supply of labor in the immigrants’ home countries contracts. In fact, much of the policy debate about immigration centers on its effect on labor supply and, thereby,equilibrium in the labor market. An increase in demand in the short run and the long run. The market starts in a long—ruu equilibrium, shown as point A in panel (a). In this equilibrium, each firm makes zero profit, and the price equals the minimum average total cost. Panel (b) shows what happens in the short run when demand rised from D1 to D2. The equilibrium goes Price An important implicit cost of almost every business is the opportunity cost of the financial capital that has been invested in the business. Suppose, for instance, that Helen had instead left this money deposited in a savings account that pays in interest rate of 5%, she would have earned $15,000 per year. To own her cookie factory, therefore, Helen has given up $15,000 a year in interest income. To see how a firm goes about mazimizing profit, we must consider fully how to measure its total revenue and its total cost. Total revenue is the easy part: it equals the quantity of output the firm produces times the price at which it sells its output. By contrast, the measurement of a firm’s total cost is more sbtle. Price MC One of the Ten Principles of Economics in Chapter 2 is that people face tradeoffs. Probably no tradeoff is more obvious or more important in a person’s life thatn the tradeoff between work and leisure. The more hours you spend working, the fewer hours you have to watch TV, have dinner with friends, or pursue your favorite hobby. The tradeoff between labor and leisure lies behind the labor supply curve. The efficiency of a tax system refers to the costs it imposes on taxpayers. There are two costs of taxes beyond the transfer of resources from the taxpeyer to the government. The first is the distortion in the allocation of resources that arises as taxes alter MC Demand MR ATC P Quantity produced stically competitive industry. In both panels of this figure, the profit=maximizing quantity is found at the intersection of the marginal-revenue and marginal-cost curves. P = MC MR (demand curve) Quantity produced = Efficient scale Efficient scale ATC Quantity Quantity

3

It’s not so tough to understand
It’s not so tough to understand. After all, you live economics every day of your life Sometimes it feels like economics…

4

…and sometimes it feels like you are just going about your life

5

Our goal is to help you integrate economics into your life
Our goal is to help you integrate economics into your life. Like the climbing wall, this is an effort to give you a toehold on economic understanding. We hope it will provide enough to get you started, and a desire to learn more.

6

There are 6 basic Economic Principles woven into your everyday life.
We all make choices (People economize) All choices have costs Economic systems influence choices Incentives produce “predictable” responses Do what you do best, trade for the rest (voluntary trade creates wealth) Consequences of our choices lie in the future.

7

When you understand the key Economic Reasoning Principles, you will
Understand How Understand Why Make Better Choices Become Empowered

8

How Do We Define Economics?
The study of the allocation of scarce resources Resources : human, natural, capital, and entrepreneurial. These productive resources are used to create the goods and services people want. Scarce : wants exceed resources Allocation: deciding who gets it? In other words, who does what, how do they do it, and for whom do they do it?

9

#1 We All Make Choices (People economize)
Scarcity forces us to choose Unlimited wants, limited resources Not making a choice is itself a choice Active, not passive Children need a framework for making choices that is best begun early Factors driving choices can be material, behavioral, moral, or some combination of all three.

10

BENEFITS Most of us want to maximize our benefits While minimizing our
#1 We ALL Make Choices Most of us want to maximize our benefits BENEFITS While minimizing our costs. COSTS

11

#2 TANSTAAFL™

12

Don’t confuse “cost” with “price”
#2 TANSTAAFL™ Everything has a cost! Don’t confuse “cost” with “price” Opportunity Cost – the 2nd best choice (it is “The Road Not Taken”) Costs are measured in many ways Material Monetary Labor v. foregone leisure Time Morality Security

13

WHY ARE YOU IN THIS CLASS RIGHT NOW?
Application of Opportunity Costs Cost / Benefit Analysis It’s the best of your alternatives Would your decision change if you didn’t have to take this class to graduate? Would your decision be different if you won the powerball lottery? (118 million)

14

Would you pick these up if you approached this?
What would be the opportunity cost of this decision?

15

Would you pick this up if you approached this?
What is the incentive to pick up this as opposed to the pennies?

16

#3 Economic Systems Influence Choices
An “economic system” is the way societies organize themselves to answer the three basic questions of economics: What to Produce? How to Produce It? For Whom to Produce It?

17

#3 – Economic Systems Influence Choices
A model of the Circular Flow

18

# 3 — Economic Systems Influence Choices
There are three basic systems. Most economies have some elements of all three. Traditional Economies – A system that answers the what, how, and for whom questions by following what has always been done in the past. These economies are usually characterized by subsistence living and limited trade.

19

#3 — Economic Systems Influence Choices
Command Economies – The answers to the economic questions above are made by a central authority, usually “the state.”

20

How are the basic questions answered by a Market Economy?
# 3 — Economic Systems Influence Choices Market Economies – Decision-making carried out by buyers and sellers at mutually agreeable terms. Such economies are characterized by the decentralization of decision-making. How are the basic questions answered by a Market Economy?

21

#3 – Economic Systems Influence Choices
The main difference between economic systems: Who owns the resources Who incurs the costs of resources Who receives the benefits from resource utilization

22

#4 Incentives produce “Predictable” Responses
Monetary and non-monetary. That which is subsidized or rewarded will increase, and that which is taxed or penalized will decrease. To change behavior, change the incentive. Sometimes it is only with hindsight that “predictability” becomes obvious! Haifa day care story; lipstick on the mirror story

23

Completing Extended Application
= &

24

#5 Do What You Do Best, Trade for the Rest.
(As long as the trade is voluntary, both parties are better off).

25

#5 Do What You Do Best, Trade for the Rest
Trying to produce everything yourself limits both production and consumption What do you “do best”? Sell what you produce at low opportunity cost. Buy what you would produce at a high opportunity cost.

26

#5 Do What You Do Best, Trade for the Rest
Trade works best when there is Honesty Transparency Expected Gain for both parties The gain for both parties does not need to be equal in order to be valuable.

27

#5 Do What You Do Best, Trade for the Rest
Trading goods and services with others adds value to seemingly disparate parties. This provides the incentive to ease social and political tension among people and nations. Parity between trading partners is desirable. Power and information disparities can make trade involuntary.

28

#6 Choices Have Consequences
Consequences lie in the future Predictability improves decision-making Observe patterns to make predictions Unpredictability leads to inconsistent decision-making

29

#6 Choices Have Consequences
Theory of unintended consequences Our character is the consequence of thousands of choices made throughout our lives. Understanding the past can help us start in the present to make choices that can change the future!

30

Applying Costs, Choices, and Consequences to make sound decisions
Identify the problem Analyze alternative solutions and select the two best Make a list of the foreseeable positive and the negative consequences of each choice Be sure to differentiate between the short-run and long run when evaluating consequences Select the best choice

31

Pros Cons Choice #1 Choice #2 My Decision: ____________________
Defining the Problem: _______________ _________________________________ Choice #1 Choice #2 Pros Cons My Decision: ____________________ _______________________________

32

#2b Economic Thinking is Marginal Thinking
In thinking economically, economists coined the term “marginal” to describe the cost or benefit of attaining one more unit of something. Key Question Do the marginal benefits exceed marginal costs?

33

#2b Economic Thinking Is Marginal Thinking
Sunk Costs Generally, we tend to “hang on” to questionable decisions made in the past because we want to get value out of time, effort, or dollars dedicated to some prior activity. We say, “I can’t sell my house, sell a stock, quit working toward a degree in art history, stop studying for a test, fire Smith, or change occupations because of all my time, dollars, or energy that I’ve already put in.” Your time, dollars, and energy are sunk costs and are gone. Doing one more thing is not always a good economic choice, and can be counterproductive.

34

#4b Quantity and Quality of Resources Impact Living Standards.
The four factors of production o Natural Resources (Land) o Human Resources (Labor) o Capital Resources (Equipment) o Entrepreneurial Resources (risk, profit motive) There are two ways for any given sector of an economy to grow – by taking growth from another sector and adding it to one’s own, or by growing the economy as a whole with all sectors participating in that growth (although not necessarily equally). Over time, living standards rise by increasing the output of one or more of the four factors, even if the other three remain stable.

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Here are some ways we can grow our resources:
#4b Availability and quality of resources influence living standards. Here are some ways we can grow our resources: To increase capital resources– technological changes To increase human resources – better education, better skills, higher birth rate, removal of age, race, gender and other barriers to employment To increase natural resources – environmental controls, land management To increase entrepreneurial resources – establishment of private property, patent and copyright laws, access to financial markets, friendly tax and regulatory policy

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#4b Availability and quality of resources influence living standards.
Everyone is better off if we can grow our economy from this TO THIS! Natural Resources Human Resources Capital Resources Entrepreneurial Resources

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# 6b Prices are determined by the market forces of supply and demand.
Supply and demand are the two words that economists use most often because they are the forces that make market economies work. These concepts work most efficiently in COMPETITIVE markets. The LAW OF DEMAND states that, other things being equal, the quantity demanded of a good falls when the price of the good rises, and rises when the price falls.

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# 6b Prices are determined by the market forces of supply and demand.
$8.00 Supply $6.00 Equilibrium Price $4.00 Demand $2.00 Equilibrium Quantity Quantity 1 2 3 4

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# 6b Prices are determined by the market forces of supply and demand.
Price is not the only determinant of demand. The demand curve can change (shift) because of such things as: Tastes Costs of Substitute Goods/Services (hot dogs and hamburgers Costs of Complementary Goods/Services (hot dogs and mustard) Changes in income Number of Buyers in the market Expectations

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# 6b Prices are determined by the market forces of supply and demand.
The LAW OF SUPPLY states that, other things being equal, the quantity of a good supplied rises when the price of the good rises, and falls when the price falls. ·Shifts in supply are the result of changes in: Resource Costs Costs of Producing Other Goods with the Same Resources Taxes and/or Subsidies Technological Change Expectations Number of Sellers

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# 6b Prices are determined by the interaction of supply and demand.
A specific scenario might help make the relationship clearer. How do we answer the question, “Why does a gallon of gas cost $3.00 this week, $3.50 next week and then $3.25 the following week?”

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#6b Prices are determined by the intersection of supply and demand
Market for Gasoline Price (per gallon) Supply Supply II $3.50 $3.25 $3.00 Demand II Demand $0 13M Barrels 9M Barrels 12M Barrels Quantity

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Any Questions? ERP’s were adopted from Powell’s Center for Economic Literacy & other sources

ОГСЭ.03 Иностранный язык______________________

По специальности 43.02.11 Гостиничный сервис_________

ПРАКТИЧЕСКОЕ ЗАНЯТИЕ №­­­ 23

ТЕМА: What is Economics? Что такое экономика? Будущее продолженное время.

ЦЕЛЬ : Сформировать лексические и грамматические навыки то теме;

Понятие об экономике англоговорящих стран.

Формируемые компетенции:

ОК 2. Организовывать собственную деятельность, выбирать типовые методы и способы выполнения профессиональных задач, оценивать их эффективность и качество.

ОК 9. Ориентироваться в условиях частой смены технологий в профессиональной деятельности.

ПК 2.2. Предоставлять гостю информацию о гостиничных услугах.

Оборудование, наглядность: 1. Задания для практических работ;

Задание 1. Прочитайте и переведите текст «What is Economics?» (ОИ-2, упр.8, стр.79,80):

What do you think of when you hear the word economics? Money? Certainly, and perhaps more complicated things like business, inflation and unemployment. Knowledge of economics will help you run a business or manage your personal finances. Very simply, economics studies the decisions people make every day. Every decision we make is a trade-off. If you spend more time working, you earn more money. However, you will have less time to relax. Economists study the trade-offs people make, the reasons for their decisions. They look at the effects these decisions have on our lives and society.

Economics is a social science that seeks to analyze and describe the production, distribution, and consumption of wealth. It is characteristic of any society that while wants of people are growing constantly, the economic resources required to satisfy these wants are limited and scarce. Scarcity of resources makes it necessary to save them. As a result any economic system is trying to find most effective and efficient ways of utilizing resources for the production of goods and services. The rational solution of the problem brings about the maximum economic growth, full employment, stable prices, equitable distribution of revenues, and social security of the needy.

There are different economic systems in the world today. Many economists argue that free enterprise, or the market economy is the most effective system, because businesses are free to choose whom to buy from and sell to and on what terms, and free to choose whom to compete with. It is done through a market, which is a set of arrangements through which buyers and sellers make contact and do business. In the market individual consumers and producers act on their own behalf.

The market functions as a rationing device with the price mechanism as its principal instrument. In free markets, prices direct allocations of inputs of firms that make the most profitable use of them. The market mechanism brings about an allocation of resources that reflect two basic factors: consumer preferences and production costs. The prices which play the coordinating role of the market mechanism are determined through the interaction of demand and supply.

All businesses produce goods and services and seek profits. They all compete with other businesses for inputs of labour, capital and natural resources.

Freedom of enterprise is not total in the market economy. Businesses are subject to laws and government regulations.

Economic machines do not always run smoothly. They are subject to a business cycle that alternates between periods of rapid expansion and periods of recession in which outputs fall and unemployment rises.

Economic environment is determined by the economic policies of the government, fiscal and monetary policies being the major factors. So, if an economic system is to perform well it must deal with many economic challenges.

Задание 2. Найдите в тексте английские эквиваленты русских фраз (ОИ-2, упр.9, стр.80):

Вести бизнес; управлять личными средствами; принимать компромиссные решения; оказывать влияние на нашу жизнь и общество; производство, распределение и потребление материальных благ; ресурсы, необходимые для удовлетворения потребностей людей, ограниченны; нехватка ресурсов делает необходимой их экономию; использовать ресурсы наиболее эффективным образом; производство товаров и услуг; вызывать максимальный экономический рост; справедливое распределение доходов; социальное обеспечение нуждающихся; свободное предпринимательство – наиболее эффективная экономическая система; устанавливать контакты; действовать от своего имени; распределение ресурсов; взаимодействие спроса и предложения; подчиняться законам.

Задание 3. Поставьте слова в предложении в правильном порядке (ОИ-2, упр.10, стр.80):

1. are, different, today, in, world, there, systems, economic, the 2. demand, if, price, exceeds, tends, rise, to, the, supply 3. wants, constantly, people, are, of, growing 4. is, competition, force, the, market, of, an, important 5. producers, must, scarce, economically, and, suppliers, utilize, resources 6. figures, dropped, according, production, to, official, oil, of 7. service, of, consists, the, transport, banking, sector, insurance, and 8. smoothly, run, always, machines, not, economic, do 9. between, rapid, business, and, periods, alternates, recession, cycle, periods, of, expansion, of 10. to, businesses, regulations, government, subject, laws, are, and

Задание 4. Заполните пропуски в предложениях, поставив слово, выделенное курсивом в правильную форму. Иногда необходима отрицательная форма:

1. Economy

1) What sort of … system do you have in your country? 2) Strict financial controls ensure that an organization’s resources are used … . 3) Some countries have a mixed … while others have a high degree of state control.

2. engage

1) The line is … so I’ll have to try again later. 2) Cancel all my … for the rest of the day, please.

3. finance

1) Her … adviser says the project will be a success. 2) If the company is … sound we might consider taking it over.

4. grow

1) There is a …awareness of the need to improve productivity. 2) The government is worried about the … in public expenditure.

5. legal

1) It’s … to sell such goods without a proper permit. 2) They questioned the … of the company’s action.

Задания для самостоятельной внеаудиторной работы:

Задание 5. Заполните пропуски в предложениях, поставив слово, выделенное курсивом в правильную форму. Иногда необходима отрицательная форма (ДИ-1, у.10, с.34):

1. possess

1) I had in my … a portion of money. 2) I am a proud …of two kiosks in Plekhanov Street. 3) A small business is one which … at least two characteristics.

2.. own

1) The … is held by an individual or a small group. 2) Julie’s father … a business that deals with bulk orders. 3) The … of the bookstore was sitting at his desk.

3. distribute

1) British Leyland … their cars throughout the world. 2) His job is to organize the … of money to students.

4. know

1) We need somebody with a good working … of French. 2) Our company is well-… abroad.

5. establish

1) The … of legal minimum pay is one of the objectives. 2) There he had set out to … his own business.