The economy of the country is like a machine which provides us with things we need, i.e. goods and services. The economy creates the wealth of the country. The better it works the better off are the people.
The government through its economic policy plays an important role in the control of the economy machine. The major branches of economic policy are fiscal and monetary policies. Fiscal policy is concerned with taxes and government spending activities. Monetary policy is concerned with controlling the supply of money and credit.
A nations economy can be divided into three sectors of activity. The primary sector deals with extraction of minerals, agriculture, fishing and forestry. Processing of the primary sector materials and production of manufactured goods is the field of the manufacturing sector. The service sector provides services of various kinds such as transportation, distribution, catering as well as financial services and tourism. The role of the manufacturing sector in the advanced industrialized countries is decreasing while the service sector is becoming more important.
Words and word combinations you may need
branch
fiscal policy -
monetary policy -
supply
supply of money and credit
primary sector
deal with
extraction ( )
processing
manufacturing sector
distribution ,
catering
advanced industrialized countries -
Task 2. Think of adjectives which are frequently used with the following words:
enterprise, sector of economy, programme, finances, business, policy
Task 3. Form the verbs from the following words and translate them into Russian
employment, government, privatization, decision, growth, manufacturing
investment, tax, extraction, production, transportation, distribution, supply
Task 4. Match the infinitives in A with nouns in B.
A B
to produce an enterprise
to privatize a climate
to play raw materials
to take assistance
to create productivity
to provide goods
to raise a decision
to process a role
Task 5. Read the interview with a Russian economist published in one of the specialist journals. Sum up his assessment of the economic situation in Russia.
Interview with the Economist
Foreigner: How did your economy fare last year?
Russian: Last year was one of the best for Russia. GDP grew at a reasonable pace, then we harvested a record crop.
F.: I think it was due to very favourable weather conditions. What factors resulted in it in your opinion?
R.: Undoubtedly, the weather conditions affected the crop. But I think that investment and reforms in agriculture started to pay back.
|
|
F.: And how do you assess the manufacturing sector, your industry?
R.: Industrial production went up in some branches, though the real sector still needs more investment if we want it to develop faster.
F.: If you want foreigners to invest you must give them guarantees of law and order in the country, create a more favourable business climate.
R.: I cant agree more. Last year a lot of laws were passed to this effect. Suffice it to mention our tax system, it was simplified.
F.: I see. Considerable progress was made in your country last year. Besides, as far as I know the living standards improved.
R.: Yes, pensions were increased, salaries of state employees were raised too. Demand for consumer goods increased.
Note on the dialogue
How did your economy fare last year? ?
harvest
record crop
due to
result in
affect
pay back
real sector ,
law and order
pass ()
to this effect
suffice it to mention
simplify
demand
consumer goods
Say/ write how you assess the economic situation in our country.
For the next session |
I VARIANT
Text 1. History of Economic Thought |