3. Check your progress:

1. What is economics? Differentiate between microeconomics and

macroeconomics.

2. Explain what an economic system is.

3. Name the three major types of economic systems and give their

identifying characteristics.

4. What does the term mixed economy mean?

5. Distinguish between developed and developing countries.

6. Explain how supply and demand interact.

7. What is competition? Name three ways companies compete.

8. Name and describe the four stages of the business cycle.

9. How do countries measure the state of their economies?

III. Vocabulary practice exercises

1. Choose the right word or word-combination and put it in the sentence.

competition demand supply free enterprise system business cycle

economics economy low-income per capita GDP inflation

equilibrium price developed developing recession macroeconomics microeconomics

1. ………. Is a social science that studies how goods and services get produced and how they are distributed.

2. The national ………. is the system of the management and use of resources of a country.

3. The study of economics at the level of individual consumers, groups of consumers, or firms is called ………., whereas ………. is the study of the economy as a whole.

4. Most industrialized nations operate economies based on the ………., also known as capitalism or a market economy.

5. Economists generally divide the countries of the world into two groups – rich countries and poor ones. They usually call the rich countries ………. and the poor countries ………. .

6. Among the industrial, developed countries of the world, Norway in 2009 had the highest ………. - $87,000. (World Department Indicators database, World Bank, 15.09.09)

7. In contrast to the developed countries, most of the ………. developing countries had an annual per capita GDP of less than $500. (Uganda - $420, Ethiopia -$280, Congo - $150). (World Department Indicators database, World Bank, 15.09.09)

8. Only when ………. equals ………., people can buy or sell as much as they want.

9. ………. is the price at which the quantity demanded is equal to the quantity supplied.

10. Since late 2008, the industrialized world has been undergoing a deep ………., a decline in production, employment, and income.

11. A period of ………. is a time of rising prices; during this period, a set amount of money buys less than it did before.

12. ………. is the rivalry among businesses for consumers’ dollars.

13. A nation’s economy flows through various stages of ………. : expansion, recession, depression, and recovery.

2. Match the words on the left with their equivalents on the right.

1. to affect a) to sell

2. per capita b) often

3. shortage c) to influence

4. capitalism d) Third World counties

5. to measure e) First World countries

6. society f) to happen

7. competition g) per head

8. basic industries h) family

9. freedoms i) to grow

10. low-income developing countries j) free enterprise

11. developed countries k) to evaluate

12. to market l) community

13. the sum m) deficit

14. high n) rivalry

15. to expand o) key industries

16. to contract p) competitor

17. frequently q) the amount

18. to occur r) rights

19. household s) to shrink

20. rival t) low

3. Learn the pronunciation of the following words:

ударение на втором слоге ударение на третьем слоге

economy economics

economist economic

to economize economical

4. What is the difference between economic and economical? Find in the dictionary the meaning of these words. Then change the following phrases, using economic or economical:

1. A practical woman.

2. Problems of economics.

3. A crisis in the field of economy.

4. To be careful in the spending of money.

5. Reforms in the field of economy.

6. A law (закон) regulating the sphere of economics.

7. A plan of the industrial development of the country.

8. A small car that doesn’t use too much fuel.

9. Geography that studies the location (размещение) of industries, markets,

transport.

5. Complete the sentences using the following words: economy,

economics, economist, economic, economical, to economize.

1. The study of ………. is of great use even to those students who have no wish to become professional ………. .

2. The United States is a mixed ………. based on capitalism.

3. Michael Mescon is a famous American ………. .

4. Various nations have different ………. systems.

5. During a period of recession people try to be more ………. and buy less.

6. You can ………. if you compare the prices of goods before buying them.

7. Unemployment may become a major ………. problem.

8. Many ………. believe that deciding how to ………. is the most important ………. decision that all persons and nations must make.

6. Give the Russian equivalents of the following international words:

equivalent, democratic, standard, problem, balance, traditionally, innovation, to finance, quota, exports, imports, tariff, statistics, energy, subsidy, license, dynamic, corruption, dividend, specific, special, partner, indicator, migration, privatization, to calculate, investment, real, reserve, protectionism, politician, industrialization, to stimulate, to motivate, productivity, negative, compensation, global, strategy.

7. Complete the crossword with words defined below:

		1				M
				2		A
			3			C
		4				R
5						O
	6					E
			7			C
				8		O
	9					N
				10		O
					11	M
					12	I
		13				C
					14	S

1. The condition in which a percentage of the population wants to work but is

unable to find jobs.

2. An economic system in which individuals own and operate the majority of

businesses that provide goods and services; also known as free enterprise.

3. A decline in production, employment, and income that lasts for six months

and longer.

4. A condition of the economy in which unemployment is very high, consumer

spending is low and business activity is sharply reduced.

5. The countries that are wealthy and have many industries are called………. .

6. Synonym of the word “rival”.

7. A period when the economy begins to improve after having been weak.

8. The total number of people living in a particular country, city, etc.

9. The number of goods and services that consumers are willing to buy at

different prices at a specific time.

10. A Scandinavian country famous for its salmon, fjords, and a very high

standard of living.

11. The economies which have elements from more than one economic

system are called ………. .

12. Money, goods, or services received in return for labor or other resources.

13. The amount of money that you have to pay in order to buy something.

14. Not developing or growing; inactive.

8. Find in the Text English equivalents for the following:

1. принимать экономические решения

2. на более широком уровне

3. частная собственность

4. наименьшая степень экономической свободы

5. плановая экономика

6. низкий уровень жизни

7. критический дефицит потребительских товаров

8. свободное предпринимательство

9. средние доходы людей

10. страны третьего мира

11. спрос и предложение

12. количество предложенного товара

13. количество требуемого товара

14. равновесная цена

15. ценовая конкуренция

16. сниженные цены

17. получать конкурентное преимущество

18. экономический рост

19. покупательная способность

20. растущий уровень безработицы

21. тяжёлая рецессия

22. различные стадии экономического цикла

23. экономический подъём, спад, депрессия и восстановление

24. ВВП на душу населения

25. торговый баланс

26. разница между экспортом и импортом

27. индекс цен на потребительские товары

28. производительность труда