2. Read and translate the text:

Human wants are unlimited, but the resources necessary to satisfy those wants are limited. Thus, every society is faced with the identical problem, the problem of scarcity. We can define economics as a social science that describes and analyzes how society chooses from among scare resources to satisfy its wants. In fact, one common definition of economics is "the study of how people make a living". Individuals and families are limited by the size of their personal income, savings and ability to borrow. Business firms are limited by their profits, savings and borrowing power.

Economists have two ways of looking at economics. One is macro approach, and the other is micro. Macroeconomics is the study of the economy as a whole. Microeconomics is the study of individual consumers and business firm.

The resources that go into creation of goods and services are called the factors of production. The factors of production include natural resources, human resources, capital and entrepreneurship.

The price paid for the use of land is called rent. Rent becomes income to the owner of the land. Economists call the physical and mental effort that people put into the creation of goods and services labour or human resources.

The price paid for the use of labour is called wages. Wages represent income to workers, who own their labour.

Capital is something created by people to produce other goods and services. A factory, tools and machines are capital resources.

Payment for the use of someone else's money, or capital is called interest.

The fundamental economic questions are:

- What goods and services are to be produced?

- How are they to be produced?

- Who will receive them?

The way in which a society goes about answering these fundamental questions is known as its economic system.

3. Answer the following questions:

1. Why must all societies deal with scarcity?

2. What is one common definition of economics?

3. What are individuals, families and firms limited by?

4. What is microeconomics?

5. Define the term macroeconomics.

6. What is rent?

7. Characterize the term "wages".

8. What is interest?

9. What questions must every society provide answers to?

10. How do you understand the term "factors of production"?

4. Read and translate the international words:

Economics, social, to distribute, to analyze, individual, to limit, personal, business, firm, product, service, problem, alternative, subject, career, democracy.

5. Match the synonyms:

1 to define 1 solution

2 among 2 to divide

3 person 3 chance

4 firm 4 to buy

5 income 5 merchandise

6 to purchase 6 profit(s)

7 goods 7 company

8 opportunity 8 individual

9 to share 9 between

10 decision 10 to determine

6. Explain the word building:

economy - economic - economics - economist - economical - to economize;

to satisfy - satisfaction - satisfactory;

to limit - limited - limitation;

to borrow - borrower - borrowings;

to produce - producer - product - production.

7. Make up the sentences:

1. Why, study, we, should, economics?

2. The study of, will help, economics, you, a fuller life, to live.

3. Economics, the study of, is, a living, make, how, people.

4. The use of, rent, paid, is called, the price, for, land.

5. A whole, the study, macroeconomics, of the economy, is, as.

8. Translate into English:

1. Заробітна плата - це винагорода, яку отримують робітники за свою працю.

2. Перед кожним суспільством постає проблема нестатку.

3. Ресурси, необхідні для утворення товарів і послуг, називають чинниками виробництва.

4. Економіка - це наука про те, як люди заробляють на життя.

5. Купуючи фабрики, машини та інші засоби виробництва, ділові люди часто вживають термін "капітал".

6. Бажання людини безмежні, а кошти, необхідні для здійснення цих бажань, надто обмежені.