Vocabulary:

Prominent – видний, помітний, значний

Observance – дотримання

Public welfare – суспільний добробут

Increase – приріст, збільшення

Decrease – зменшення

“Stop-go”policies – “стоп-уперед” (економічна політика навперемінного стримування і стимулювання ділової активності)

Demand management – контроль і регулювання попиту

Excessive – надмірний

To misconceive – невірно розуміти

Boosting – підвищення, стимулювання

Answer the questions:

1. Who was the first most notable economist of the 18^th and the 19^th century?

2. What laws should be observed according to Adam Smith’s theory?

3. What was the Smith’s attitude to labour?

4. What did John Maynard Keynes recommend to counter the business cycle?

5. What was the ultimate aim of Keynesian governmental intervention?

6. Did Keynes have all the answers to stabilize the economy?

7. What was the Milton Friedman’s argue?

8. What were the “supply-side” theorists argue?

Main economic concepts.

Economics is a science, which studies how the resources land, labour, capital and enterprise (or entrepreneurs) are used or allocated by a country to meet its demands for goods, services and ideas now and in the future. The resources are employed by businesses or firms and are also known as inputs to the production process or factors of production.

The relationship between the three main parties in an economy – businesses, households and the government defines economic system. Economic system is a way of distributing society resources to satisfy its citizens’ needs. Society resources are referred to as the factors of productions. One factor of production – land – includes not only the real estate, but also the minerals, timber, water. The second – labour – consists of the human resources used to produce goods and services. The third factor of production is capital – the machines, tools, buildings used to produce goods and services and money.

Fourth factor of production is embodied in people called entrepreneurs. They organize the other three factors of production to develop new ways of using economic resources more efficiently.

While studying economics you’ll have to deal with microeconomics, which concerns the economic factors affecting the individual consumers and companies and macroeconomics, which studies and analyses the economy as a whole.

Market, inflation, price, supply, demand, scarcity, standard of living etc. are notions familiar not only to those who study economics, but for everybody and they become inseparable from our everyday life.

Vocabulary:

Entrepreneur – підприємець

To allocate – розміщувати

To meet demand – задовольняти попит

Inputs – затрати, витрати, вкладення

Household – сім’я, домашнє господарство

Are referred to – розглядаються

Real estate – реально існуючий маєток

Timber – ліс; деревина

Is embodied in – утілений