4

Chapter 8 measuring economic performance and growth

1. Key terms – matching and translation.

Read aloud the key term and its definition so that they make up a single sentence. (Remember about the agreement between the subject and the predicate!). Translate the sentences you have arrived at from English into Russian.

Set 1

1 exports	GDP adjusted to better estimate economic welfare.
Gross Domestic Product	A way to account for cost-of-living differences between countries when comparing their GDPs.
Measure of Economic Welfare (MEW)	National Income + Indirect business taxes + deprecation.
imports	GDP minus depreciation of capital stock.
indirect business taxes	Uses relative nominal values of countries’ currencies to make international comparisons of GDP.
Net National Product	Homogenous goods should have same price everywhere if transactions costs are zero.
Purchasing power parity approach	Domestic production that is sold to foreigners.
Law of one price	Income taxed from one set of households and given to another set.
transfer payments	Sales, excise, and property taxes.
Exchange rate approach	Goods produced abroad and purchased by consumers in this country.

Set 2

1 net private domestic investment	NI + transfer payments - corporate taxes -retained earnings.
2 value-added	C + I + G + (X - M)
3 personal income	Corporate income after taxes and dividends.
4 capital consumption allowance	A way to avoid the double-counting problem.
5 retained earnings	X - M
6 government purchases	Capital accumulation after adjusting for depreciation.
7 net exports	g) w + i + r + П
8 personal taxes	h) Plus transfer payments equals government outlays.
9 income approach	i) Subtracted from Personal Income to calculate Disposable Personal Income
10 expenditure approach	j) Known by accountants as depreciation.

2. Text translation.

Translate the text from English into Russian in writing paying particular attention to the translation of the economic terms in bold as well as words and phrases relevant to the subject of the text. Read out your translation in class and introduce the necessary corrections.