I. Read and learn the following words and phrases:

science – наука

scientist – ученый

to make a great contribution – вносить большой вклад

economics – экономика

founder – основатель

cause – причина

wealth – благосостояние, богатство

nation – нация, народ

great success – большой успех

to publish – опубликовать

specialization – специализация

to emphasize – придавать особое значение

competitive nature – конкурентный характер

society – общество

to lay (laid, laid) – положить начало

basic principle – основной принцип

system of taxation – система налогообложения

appointment – назначение

grant – денежное вознаграждение

financial security – финансовая поддержка

to regard – расценивать, считать

to benefit – приносить пользу

to put forward – положить начало, выдвинуть (теорию)

thanks to – благодаря

II. Read the text:

G R E A T E C O N O M I S T S

Adam Smith was a great Scottish scientist who made extraordinary contributions to economics.

He was born in 1723 in a small fishing town near Edinburgh, Scotland.

At the age of 28 Adam Smith became a Professor of Logic at the University of Glasgow. It was his first academic appointment. Some time later he became a tutor to a wealthy Scottish duke. Then he received a grant of 300 pounds a year.

With the financial security of his grant Smith devoted 10 years to writing his work which founded economic science. Its full title was: “An Inquiry into the Nature and Causes of the Wealth of Nations”. His book was an analysis of the Industrial Revolution which has taken place in his lifetime. It was published in 1776 with great success.

Adam Smith made economics a science. He is often regarded as the founder of economics and the first modern economist.

According to Adam Smith specialization was the cause of the wealth of nations. He emphasized the competitive nature of the industrial society. He argued that the individual pursuit of self-interest would lead to the maximum public good.

Adam Smith laid certain canons of taxation which are still generally acceptable as basic principles for the system of taxation.

David Ricardo was one of the first of the Classical School of economists who tried to explain the basic ideas of economic theory. In his main book “Principles of Political Economy and Taxation” he showed that international specialization benefits a nation.

Thomas Robert Malthus was an English economist of the Classical School who put forward the theory of overpopulation.

Alfred Marshal developed microeconomic theory in particular and was the first to put forward the idea of consumer’s surplus and elasticity of demand.

Thanks to John M. Keynes we know how to control the worst excesses of the business cycle.

III. Do the following exercises:

Exercise 1. Read and translate the given derivatives.

science – scientist – scientific to found – founder

economy – economist – economical to appoint – appointment

academy – academic to compete – competitive

theory – theoretical to accept – acceptable

wealth – wealthy to develop – development

policy – political to consume – consumption

finance – financial to explain – explanation

Exercise 2. Translate the given word combinations from English into Russian.

A great scientist; extraordinary contributions; academic appointment; with the financial security; grant; to devote; lifetime; with great success; the founder of economics; according to; wealth; the competitive nature; to argue; the individual pursuit of self-interest; certain cannons of taxation; generally acceptable; to explain; to benefit; the theory of overpopulation; to put forward the idea; the worst excesses; business cycle.

Exercise 3. Make up suitable word combinations and translate them into Russian.

to emphasize great contributions

to lay competitive nature

to make nature

great success

industrial scientist

basic principle

famous society

competitive basic principles

Exercise 4. Finish the sentences using the right variant. Translate the sentences into Russian.

1. Adam Smith was ...

2. He founded ...

3. At the age of 28 Adam Smith became ...

4. With the financial security of his grant Smith ...

5. His book was an analysis of ...

6. Adam Smith laid ...

7. T. R. Malthus put forward ...

8. A. Marshal was the first to put forward ...

a) the theory of overpopulation; b) devoted 0 years to writing his book; c) the Industrial Revolution of the 18^th century; d) a great Scottish scientist; e) the science of economics; f) the basic principles for the system of taxation; g) a Professor of Logic; h) the idea of consumer’s surplus and elasticity of demand.

Exercise 5. Translate the words and word combinations from Russian into English.

Исследование; согласно (чему-либо); подчеркивать (уделять большое внимание); финансовая поддержка; благосостояние наций; конкурентный характер; личная заинтересованность; общепринятый; максимальное общественное благо.

Exercise 6. Insert prepositions where necessary.

1. At the age ... 28 Adam Smith became a Professor ... Logic ... the Glasgow University.

2. Adam Smith devoted 10 years ... writing his book.

3. Smith emphasized the competitive nature ... the industrial society.

4. A. Smith laid the basic principles ... the system ... taxation.

5. T.R. Malthus was an English ... economist ... Classical School.

Exercise 7. Answer the questions.

1. What is Adam Smith?

2. When and where was he born?

3. What was his first academic appointment?

4. What work did he devote 10 years of his life?

5. What was the title of the book?

6. What problems did the book deal with?

7. A. Smith laid the basic principles of taxation, didn’t he?

8. Who did put forward the theory of overpopulation?

9. Why do we speak about A. Marshal as a great economist?

10. What do we know thanks J.M. Keynes?

Exercise 8. Speak about the great economists.