1. Which countries were affected by the Great Depression?
A. only America
B. just America and Europe
C. the whole world
2. Which of the following is interested in foreign economies?
A. microeconomics
B. macroeconomics
C. both microeconomics and macroeconomics
3. The three different mechanisms which governments use are
A. all concerned with how much money people have to spend.
B. aimed at improving education and training.
C. all different ways of managing an economy.
4. Which mechanisms involve changing interest rates?
A. fiscal policy
B. monetary policy
C. administrative approach
5. Which mechanisms might involve creating job training schemes for school leavers?
A. fiscal policy
B. monetary policy
C. administrative approach
6. What do governments want to achieve with their macroeconomic policies?
A. to predict what will happen in the economy
B. to create steady economic growth
C. to combine different paths for economic growth
Task 3. Match the words and phrases with the definitions.
devastating collapse something that happens
fiscal policy a method or tool for doing something
domestic control of spending through taxation
steady growth money you gave to spend after paying tax
monetary policy a serious slowing down of the economy
recession at a slow, unchanging rate
mechanism move around
disposable income control of the cost of borrowing and movement of money in economy
interest the members of the population able to work
circulate something you know will happen
depression complete destruction
predictable the cost of borrowing money
event not foreign
workforce a very bad period for the economy
Task 4. Complete the crossword. Some letters have been given to help you.
| ACROSS | DOWN |
| 1. This kind of economy is both planned and free market. | 2. This kind of economics looks at the whole picture. |
| 3. The first kind of economy that existed | 7. In this economy, the government decides everything. |
| 4. The point where demand and supply meet. | 8. This falls as prices rise. |
| 5. This kind of economics simply describes the economy. | 9. In this kind of economy, price is set by supply and demand. |
| 6. A measure of how much demand influences price. | 12. Something that can be measured, like money spent or babies born. |
| 10.This kind of economics makes recommendations. | |
| 11.This kind of economics looks at the details of the economy. |
Task 5. Find six pairs of opposites.
■ 
benefits ■ consumer ■ drawbacks
■drought ■ flood ■ manufacturer
■private sector ■ save ■ shortage
■spend ■ state sector ■ surplus
Task 6. Now write five example sentences using as many words as possible from this exercise.
