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. . . . 4,7. . -. . 5,46. 400 . 491 - 190000, -, . . , 67 "", 2004 R T I UNIT 1. THE SCIENCE OF ECONOMICS Read the international words and guess their meanings:

Economic activity, economic system, macroeconomics, microeconomics, to produce, to operate, to protect, to analyze, to finance, to manufacture, to specialize, to focus, to affect, service, school, hospital, garage, fact, base, production, material, industry, radio, strategy, status, export, import, institution, distribution, division, investment, history, organization, period, spectrum, agriculture, essential, basic, industrialized, oriented (policy), national, financial, social, major, fact, base, total, primarily, public.

Text 1.1 Read and memorize the following words and word combinations:

in order to , goods and services to provide services () either or. , both and , to make up commodity () Read and translate the Text into Russian.

ECONOMIC ACTIVITY Most people work in order to earn their living.

They produce goods and services.

Goods are either produced on farms, like maize and milk, or in factories, like cars and paper.

Services are provided by such things as schools, hospitals and shops.

Some people provide goods, some provide services.

Other people provide both goods and services. For example, in the same garage, a man may buy a car or he may buy some service which helps him to maintain his car.

The work which people do is called their economic activity.

Economic activities make up the economic system.

The economic system is the sum-total of what people do and what they want.

The work which people undertake either provides what they need or provides them with money.

People buy essential commodities with money.

Notes:

the sum-total EXERCISES Give Russian equivalents to the following:

To earn their living, goods like maize, services are provided by , to provide both goods and services, to maintain a car, the work which people undertake, to buy with money, essential commodities.

Complete these sentences with the words given below and translate them into Russian:

essential commodities, provide, undertake, maintain, the sum-total 1. People buy . with money.

2. Some people ., some . services.

3. The work which people provides what they need.

4. Some service may help a man a car.

5. The economic system is .. of what people do and what they want.

Complete the sentences:

1. Most people work..

2. Economic activities make up 3. Economic activity is 4. Economic system is.

5. A man may buy some service which Answer some questions on the Text:

1. Why do most people work 2. What do they produce 3. Where are goods produced 4. What do schools, hospitals and shops provide 5. What two different things can a man buy in, for instance, a garage 6. What do we call the work which people do 7. What is an economic system the sum-total of 8. What two things can work provide for the market 9. What can people buy with money Text 1.Read and memorize the following words and word combinations:

to affect smth., smb. -, - to describe to explain scientific to be concerned with , , - Read and translate the Text into Russian.

THE SCIENCE OF ECONOMICS Economics is a science.

This science is based upon the facts of our everyday lives.

Economists study our everyday lives. They study the system which affects our lives.

The economist tries to describe the facts of the economy in which we live.

He tries to explain how the system works.

His methods should be objective and scientific.

We need food, clothes and shelter.

If we could get food, clothes and shelter without working, we probably would not work.

But even when we have these essential things, we may want other things.

If we had them, these other things (like radios, books and toys for children) might make life more enjoyable.

The science of economics is concerned with all our material needs and wants.

It is not just concerned with basic needs like food, clothes and shelter.



EXERCISES Give Russian equivalents to the following:

to be based upon, to affect our lives, to describe the facts, to explain how the system works, objective, probably, essential things, make life more enjoyable, to be concerned with, basic needs Complete these sentences with the words given below in appropriate form and translate the sentences into Russian:

to be concerned with, to explain, to affect, enjoyable, method 1. Economists study the system which . our lives.

2. The economist tries how the system work.

3. Economic should be objective and scientific.

4. Radios, books and toys for children make life more .

5. It . essential things.

Complete the sentences and translate them into Russian:

The science of economics ..

Economists try Even when we have We need .

Economics is based upon If we could get food .

Answer some questions on the Text:

1. What is economics 2. What is it based upon 3. What two things do economists study 4. What does the economist try to describe 5. What should the economists methods be 6. What do we need 7. What things might make life more enjoyable 8. What is the science of economics concerned with Text 1.Read the Text.

ECONOMIC STRATEGIES Four Asian nations Hong-Kong, Singapore, South Korea and Taiwan are now called NICs, newly industrialized countries. Their new status is a product of outward-oriented development strategies.

In the 1950s and 1960s, the governments of the four countries protected domestic markets from foreign competition to stimulate domestic production for domestic consumption.

Taiwan was the first to replace an inward-oriented policy with an outwardoriented policy. The other three countries followed closely behind. Soon each country experienced rapid growth in exports and domestic national income.

These countries maintain some restrictions on the domestic economy, but operate with another set of rules for exporting firms. Production for export occurs in a free market setting, with no taxes or restrictions on imports of the materials needed to manufacture goods for export.

The governments have developed banking and financial institutions that can finance export production and sales.

Notes:

setting , 1. Answer some questions on the Text:

1. What are four Asian countries called 2. What is their new status 3. What did the governments of these four countries protect in the 1950s and 1960s 4. What did they want to stimulate 5. What was Taiwan the first to replace 6. What was the result of this new policy 7. Do these countries maintain some restrictions on the domestic economy 8. How does production for export occur in a free market setting in these countries 9. What have the governments developed 2. Render the contents of the Text in Russian.

Text 1.Read and translate the Text.

ECONOMICS Economics is a social science that seeks to analyze and describe the production, distribution, and consumption of wealth. The major divisions of economics include microeconomics, which deals with the behaviour of individual consumers, companies, traders, and farmers; and macroeconomics, which focuses on aggregates such as the level of income in an economy, the volume of total employment, and the flow of investment. Another branch, development economics, investigates the history and changes of economic activity and organization over a period of time, as well as their relation to other activities and institutions. Within these three major divisions there are specialized areas of study that attempt to answer questions on a broad spectrum of human economic activity, including public finance, money supply and banking, international trade, labour, industrial organization, and agriculture. The areas of investigation in economics overlap with other social sciences, particularly political science, but economics is primarily concerned with relations between buyer and seller.

UNIT 2. ECONOMIC SYSTEMS Read the international words and guess their meanings:

To characterize, to determine, indifferently, differently, traditional, private, resources, to maximize, centralize, to act, manner, productive, planned economics, theory, epoch, culture, to contribute, technique, cultivation,Roman empire, bourgeois revolutions, socio-economic formations, primitive-communal system, period, nature, instruments, to separate, to lead (led), to control, to regulate, to expand, dominant, universal, prevailing form of production.

Text 2.Read and memorize the following words and word combinations:

private ownership () to rely on to allocate , value , profit income an entrepreneur sufficient according to , - equal (ant. unequal) decision-making wage rather than , Read and translate the Text.

ECONOMIC SYSTEMS Different economic systems answer the what, how and for whom questions differently. The main economic systems today are capitalism, socialism, communism, mixed economies and traditional economies.

Capitalism - is an economic system characterized by private ownership of most resources, goods and services. Capitalism relies on the market system to allocate resources, goods and services to their most highly used value. In capitalist economy what to produce is determined by consumers, how to produce is determined by profit-seeking entrepreneurs, who maximize profit by producing in the most sufficient manner, and for whom to produce is determined by income and prices. In a capitalist system workers are generally paid according to how productive they are, and the distribution of income is unequal because people differ in their abilities.





Socialism - is an economic system characterized by government ownership of resources other than labour and centralized economic decision making.

Under socialist system government authorities answer the what, how and for whom questions. In a socialist system government planners set wages and though wages are not equal for all workers, incomes tend to be more evenly distributed than in capitalist countries.

In centrally planned economies government planners decide what goods will be produced and set the prices at which they are sold.

Communism - is an economic system in which all resources (including labour) are commonly owned and economic decisions making is centrally planned. According to communist theory, people contribute what they are able to the economy but receive what they need. In theory, this means that goods are produced for use rather than to earn profits and that everyones needs are met. Communist countries have central planning boards that set prices.

EXERCISES 1. Give English equivalents to the following:

, , -, , , , , , , , () .

2. Complete these sentences with the words given below in appropriate form and translate the sentences into Russian:

government authority, a government planner, the distribution of income, to determine 1. Capitalism relies on ...

2. In capitalist system how to produce is .. by profit-seeking entrepreneurs.

3. In capitalist system is unequal because people differ in their abilities.

4. Under socialist system .. answer the what, how and for whom questions.

5. In centrally planned economies .. decide what goods will be produced.

3. Complete the sentences and translate them into Russian:

1. The main economic system today are.

2. Entrepreneurs maximize profit by.

3. In a capitalist system workers are paid according to.

4. Different economic systems answer.

5. Capitalism is characterized by ..

6. According to communist theory ..

4. Answer some questions on the Text:

1. What are the main economic systems today 2. What economic system does private ownership of most resources, goods and services characterize 3. Who determines what to produce in a capitalist economy in a socialist economy 4. Why is distribution of income unequal in a capitalist economy What is it like in a socialist economy 5. What economic system does government ownership of resources characterize Does the government own labour in such systems 6. How can you characterize centrally planned economies What are their specific features 7. What is the difference between socialist and communist economies Text 2.Read and memorize the following words and word combinations:

semi-savage , to be engaged in smth -.

slavery advance , , , means o production tools roughly Read and translate the Text.

FIRST SOCIO-ECONOMIC FORMATIONS The first socio-economic formation was the primitive-communal system, which covered the period of many hundred years. At first people were in a semi-savage state, powerless against nature. They gathered nuts, wild fruit and berries, roots and plants. Mans first instruments were roughly chipped stones and sticks. Later people learnt to make the simplest tools.

The basis of production relations was communal ownership of the primitive labour instruments and production means. People lived together in communes.

With the advance of cattle-breeding and agriculture there arose a social division of labour: animal husbandry () separated from agriculture.

This led to higher productivity and productive forces growing.

Productive forces continued to expand and man began to produce more. It became possible to use workmen obtained through warfare ( ). Captured prisoners became slaves. There followed the first division of society into classes known as slavery. Slave-owners possessed both the means of production and the people engaged in production. The ancient world achieved considerable progress in economy and culture. But time passed, and the necessity to replace the slave-owning relations arose: the new feudal mode of production began to take shape.

EXERCISES 1. Give English equivalents to the following:

, , , , , , , , .

2. Complete these sentences with the words given below in appropriate form and translate the sentences into Russian:

to cover, to possess, to gather, to achieve, to learn, to separate 1. The ancient world considerable progress in economy and culture.

2. Slave-owners . both the means of production and the people engaged in production.

3. The primitive-communal system . the period of many hundred years.

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