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FAQ

Exercise 6. Find words in the text synonymous in meaning to the following. Read the sentences containing them

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UNIT THREE

ECONOMICS MICROECONOMICS VS. MACROECONOMICS

ESSENTIAL VOCABULARY

1. Activity n things that people do to achieve a particular goal , . Business activity / ; economic activity .

2. Allocate v to use something for a particular purpose especially after an official decision has been made , . Syn. to distribute.

3. Consume v to buy and use goods, services, energy, or natural resources .

4. Determine v to settle or decide (an argument, question, etc.) conclusively, as by referring to an authority . Todetermine a price / . Syn. to establish.

5. Focus on v to give special attention to a particular person or thing or to make people do this (). Syn. to concentrate on.

6. Involve v to include or contain as a necessary part ( ), , . Syn. to contain, to include.

7. Indicator n a fact, measurement, or condition that shows what something is like or how it is changing , , . Economic indicator . Syn. a measure.

8. Growth n the process of developing or maturing physically, mentally, or spiritually ; .

9. On the other hand (side) from that point of view , , . On the one hand (side) on the other hand (side) . Syn. in contrast, on the contrary (to).

10. Output n the total amount of goods and services produced in the economy or a part of the economy during a particular time period , . Total/overall output / .

11. Overall adj including or covering everything , , . Overall productive/production efficiency . Syn. total.

12. Price n the amount of money for which something is bought, sold, or offered . Price level/level of prices .

13. Principle n a fundamental rule concerning a natural phenomenon or the behaviour of a system , . Syn. a law.

14. Produce v to make something in large quantities to be sold, bought, used, or enjoyed by people . Syn. to make, to manufacture.

15. Solve v to find the explanation for or solution to a problem, etc. , , . Syn. to decide.

16. Seek v attempt to find (something) , . Syn. to search for, look for.

17. Statement n that someone says or writes, especially publicly or officially , ; ; ; . Policy statement . Syn. an assertion.

18. Study n an investigation and analysis to find out about a particular subject, problem, situation, etc , . Syn. an investigation.

19. Study v investigate and analyze (a subject or situation) in detail , : ; , . Syn. to examine, to look into/over, to investigate.

TEXT

We have already known that economics deals with the problems of scarcity and choice that face all the societies and nations throughout history. But it must be admitted * that the development (progress) of modern economics began in the 17th century. Since that time economists have developed methods for studying and explaining how individuals, businesses and nations use their available economic resources.

So, what is economics? There are many various opinions concerning economics, but, in general, economics is the systematic study of choosing which goods and services will be produced and consumed to satisfy societys wants. Since economics involves interactions among members of society it is a social science that studies the behaviour of people in producing, distributing, exchanging, and consuming goods and services. Understanding economic behaviour and the ways in which economic activity is organized and coordinated are at the heart of economics.

The discipline of economics is divided into two interrelated branches: macroeconomics and microeconomics.

Microeconomics is the study of individual consumers and business firms who make choices on such matters as what to buy and what to sell, how much to work and how much to pay, how much to borrow and how much to save. Microeconomics focuses on how individuals and firms behave, how they interact in the market, and how these interactions establish a price and allocate scarce resources. Microeconomics is not used to determine how a specific individual will act, since it examines how an average individual will probably behave under a specific set of conditions. It tracks cause-and-effect relationships that influence choices of individuals, businesses and society and is concerned with issues such as scarcity, choice and opportunity costs, and with production and consumption. Principal emphasis is give by microeconomists to the study of prices and their relationship to any economic units.

Macroeconomics is the study of the economy as a whole. Macroeconomics seeks solutions to macroeconomic problems such as how fasttheeconomy is developing, how employment can be increased, what can be done to increase the overall output of goods and services, how much total income is, how inflation will effect economic growth and how different governmental policies can be used to stabilize the level of business activity in the economy. Macroeconomics looks into the total effect of individual choices on the overall productive efficiencyof the economy reflected by such economic indicators as the nations price level, total output, and level of employment. Macroeconomics concentrates on determining the overall effect of decisions made in the system.

Just as the whole consists of the sum of its parts, the economy is ultimately driven by individual choices. Thus, an investigation of the big picture of economic aggregates * such as unemployment and inflation must begin with an understanding of the individual choices behind those aggregates.

Everyone should realize that economists deal with two worlds: the world that is, and the world that ought to be. Economists have developed and generally agree on basic economic principles and economicmodels that try to explain or describe the world that is. In many cases, however, economic issues cannot be solved with theories and models alone. Solutions to these problems include opinion, politics, and personal values.

Economists make a distinction between positive economics and normative economics. To the economists the positive-normative distinction is useful because it helps people with very different views about what is desirable to communicate with each other.

For example, economists can use basic principles like the laws of supply and demand and simple economic models to predict that the price of coffee in Ukraine will go up after a freeze destroys much of the coffee crop abroad. This assertion is called positive economic statement. The assertion like something ought to be done about the high rate of unemployment is a normative economic statement.

Positive economics looks at/on the facts and the economy as they actually are, avoiding value judgements* and attempting to seek scientific bases about economic activities. It is an approach that deals with what is rather than* with what ought to be and includes no indication of approval or disapproval. What are the causes of poverty in the country? What will be the effect of higher cigarette taxes on the number of smokers? These questions can be solved only by reference to facts. Notice that a positive statement can be wrong. The moon is made of green cheese is incorrect, but it is a positive statement because it is a statement about what exists. Thus, positive economics is used to analyze what is, what was, and what will happen when one activity is performed instead of another activity.

Normative economics, on the other hand, is concerned about what ought to be. It comprises ethical precepts and value judgments* about whether economic policies are good or bad. Normative economics is used to take decisions as for issues of equity, equality, and fairness, since these concepts include judgments about what ought to be. Normative economics attempts to show that one activity is better than another activity. The world would be a better place if the moon were made of green cheese is a normative statement because it expresses a judgment about what ought to be. Notice that there is no way of disproving this statement.

Should the government give money to poor people? Should the budget deficit be reduced by higher taxes or by lower spending? There are no right or wrong answers to these questions as they involve ethics and values rather than facts. Thus, these issues can be debated, but they can never be decided by using facts. These questions are solved by political decisions, not by economic science.

Since most assertions are not easily classified as purely positive or purely normative statements, they must be combined to make a good policy statement. One must decide what goals are desirable (the normative part), and choose a way of attaining those goals (the positive part).

 

COMMENTS:

it must be admitted ;

value judgement ᒺ ;

rather than ;

value judgment ;

economic aggregates .

Exercise 1. Read, translate into Ukrainian in written form and memorize the definitions of the following key economic terms and concepts:

1. Business firm:organization that produces goods and services. : ,
2. Economist:an expert in economics. :
3. Economic model:any simplified statement, diagram or formula used to understand economic events : - ( ), ,
4. Economics:the study of a man in his attempts to make a living by using his scarce resources. : ,
5. Macroeconomics:the branch of economics that studies behaviour and overall productive efficiency of the economy as a whole. : ,
6. Microeconomics:the study of the individual parts of the economy, with special attention to the market price and how it works. ̳:

 

Exercise 2. Give the Ukrainian equivalents for the following.

1. to develop methods for studying and explaining
2. in producing, distributing, exchanging, and consuming ,
3. two interrelated branches ()
4. a specificindividual
5. principal emphasis is given by microeconomists ̳
6. to seek solutions to
7. total output
8. behind those aggregates
9. to agree on basic economic principles
10. the high rate of unemployment
11. to contain no indication
12. to include ethical precepts
13. to involve ethics and values rather than facts ̳ ,
14. most affirmations are not easily classified  

 

Exercise 3. Find the English equivalents for the following.

1. 䳿 To involve interactions
2. To be at the heart of economics
3. Under a specific set of conditions
4. -, To look into the total effect of individual choices
5. The nations price level
6. The overall effect of decisions
7. Solutions to these problems
8. / To make a distinction betweenand
9. To seek scientific bases about economic activities
10. Reference to facts(to look at the effects)
11. Economic policies
12. There is no way of disproving
13. These matters can be debated

 

Exercise 4. Match the verbs/verbal phrases, prepositions/adverbs and nouns/noun phrases as they occur together in the text. Translate the expressions they make into Ukrainian.

1. to agree   theories and models
2. to allocate about the level of business activity
3. to be   political decisions
4. to be concerned on scarce resources
5. to be divided   ethics and values
6. to be solved by the facts and the economy
7. to be solved   basic economic principles
8. to begin at cause-and-effect relationships
9. to face   the total effect
10. to look into the heart of economics
11. to look   what ought to be
12. to involve with all the societies and nations
13. to stabilize   an understanding
14. to trace   two interrelated branches

 
1. To agree on basic economic principles
2. To allocate scarce resources
3. To be at the heart of economics
4. To be concerned with what ought to be  
5. To be divided into two interrelated branches  
6. To be solved by political decisions  
7. To be solved with theories and models  
8. To begin with an understanding  
9. To face all the societies and nations  
10. To look at/on the facts and the economy  
11. To look into the total effect  
12. To involve ethics and values  
13. To stabilize the level of business activity  
14. To trace cause-and-effect relationships  

 

Exercise 5. Copy out from the texts the sentences containing the following words and word-combinations and translate these sentences into Ukrainian.

1. to satisfy societys wants _____________________________________________

________________________

2. the study of individual consumers ______________________________________

________________________

3. cause-and-effect relationships _________________________________________

________________________

4. the output of goods and services ______________________________________

__________________________________________________________________________________________________

5. deal with two worlds _______________________________________________

____________________

6. what is desirable ____________________________________________________

____________________

7. instead of another activity ____________________________________________

____________________

8. attempts to show ___________________________________________________

________________

9. to make a good policy statement _______________________________________

____________________

Exercise 6. Find words in the text synonymous in meaning to the following. Read the sentences containing them.

word synonym word synonym
progress development many A large amount of
really actually in place of instead of
fundamental basic necessary required
to separate to divide An ingredient a component
to look for to seek for/about(to search for) to guide to lead
special specific in the end finally
commonly Generally (in general) helpful useful
to foreseen to predict To explain to account

 

Exercise 7. Find in the box the English equivalents to the words listed below. More than one is possible.

1. (2) a study, an investigation
2. (2) to determine a price, to establish a price
3. (3)to produce, to manufacture, to make
4. (3) to involve, to contain, to include
5. (3)to examine, to look into, to study, to investigate
6. (3) on the other hand, in contrast, on the contrary
7. (3)usually, generally, in general
8. (2) a law, a principle
9. () (3) to rise, to increase, to go up
10. (2) to focus on, to concentrate on
11. (2)a measure, an indicator
12. (2)a price level, a level of prices
13. (3) to solve, to decide, to find a solution
14. (2) to allocate, to distribute
15. (3) total, overall
16. (3)an assertion, a statement
17. (2) an opinion, a view

 

to concentrate on to contain a view in general an indicator a study
on the contrary to decide to make to examine a statement overall
to rise total a measure to allocate to distribute to go up
to produce usually an assertion to look into an opinion generally
a level of prices to solve to include in contrast to increase a price level
an investigation a law to focus on a principle to involve
on the other hand to determine a price to manufacture to establish a price
             

Act, behave

Exercise 8. Replace the words or word combinations in bold type with their synonyms.

1. The laws of economics help (to) decide problems in a wide variety of areas.

2. Economics helps us look into trade-offs between various goals.

3. Almost all matters of governmental policies contain(include) economics.

4. Studying economics helps people realize the difference between assertions of fact and expressions of view.

5. Microeconomics concentrate on determining why people purchase one product instead of another.

6. Macroeconomics, in contrast, investigates behaviour and the total productivity of the economy as a whole.

7. Macroeconomics generally involves such issues as the consequences of overall employment on the economy, overall output and general a level of prices.

8. Economics is the systematic investigation of how the decisions taken by individuals, business firms and the government to have an effect on the way in which resources are allocated in society.

9. Good economic measures show a nations high living standards.

 

Exercise 9. What economic terms given in the text do the following definitions refer to?

Macroeconomics a. The branch of economics that deals with large-scale economic phenomena, particularly inflation, unemployment and economic growth.
Normative economics b. Economic analysis that is concerned with what ought to be rather that with what is.
Microeconomics c. The study of the behavior of individual units such as consumers, firms and resource owners.
Positive economics d. The area of economics that deals with facts and relationships among them.
Economic model e. The representation of the essential features of a theory expressed in the form of words, diagrams, graphs used to understand economic events.
Business firm f. The organization that brings together and coordinates factors of production for the purpose of producing goods and services.
Economics g. The study of how people choose to use scarce productive recourses, to produce various goods and services, and to distribute them among consumers.

 

Exercise 10. Pair the halves of the sentences. Write your own list of the completed sentences and translate them into Ukrainian.

1.Economic laws are used to solve a number of different issues a.that enables an individual to be a better producer, consumer and citizen.
2.The macro approach and the micro approach are two ways of looking at b.a value judgment about whether a situation is desirable or undesirable.
3.Microeconomics looks at the behaviour of individual economic units and. c.often used to look into cause-and-effect relationships carefully.
4.Macroeconomics concentrates on the nations total output of goods and services, d.economics and the economy that economists have. normative economics is the study of "what ought to be" in economic matters.
5.A normative statement expresses   e.overall price level, level of employment, and economic growth.
6.Positive economics is the study of "what is" in economic matters, while f.that, generally, seem unrelated to economics.
7.An economic model is a representation of a theory or a part of a theory, g.macroeconomics, on the other hand, concentrates on the behaviour of entire economies.
8.Cultural, ethical and political values are at the heart of economics h.examines how prices are determined in a specific market
9.Microeconomics focuses on the decisions of individual consumers and producers, i.economics and the economy that economists have.

 

1. Economic laws are used to solve a number of different issues that enables an individual to be a better producer, consumer and citizen. 2. The macro approach and the micro approach are two ways of looking at economics and the economy that economists have. 3. Microeconomics looks at the behaviour of individual economic units and examines how prices are determined in a specific market. 4. Macroeconomics concentrates on the nations total output of goods and services, overall price level, level of employment, and economic growth. 5. A normative statement expresses a value judgment about whether a situation is desirable or indesirable. 6. Positive economics is the study of what is in economic matters, while economics and the economy that economists have. Normative economics is the study of what ought to be in economic matters. 7. An economic model is a representation of a theory or a part of a theory, often used to look inti cause-and-effect relationships carefully. 8. Cultural, ethical and political values are t the heart 9. Microeconomics focuses on the decisions of individual consumers, and producers, macroeconomics, on the other hand, concentrates on the behaviour of entire economies. ____________________________________________________________________________ _______________________________________________________________________________________________________________________________________________

 

Exercise 11. Translate the words in brackets into Ukrainian.

Economics is a social science that analyzes and describes production(producting),distribution, and consumption of wealth.

The discipline of economics has two broad branches: microeconomics and macroeconomics.

Microeconomics studies the economic behaviour of specific factors such as businesses and individuals with a view * to realize decision-making process in the face of scarcity and economic effects of these decisions on other participants. One of the goals of microeconomics is to analyze market mechanisms that establish prices for goods and services and allocate limited resources among many alternative uses.

Macroeconomics focus on the economy as a whole with a view of understanding enteractions between overall economic aggregates such as national income, level of unemployment, total output and inflation. Macroeconomics can be used to analyze how best affect the aims of different governmental policies such as economic growth, price stability, full employment and others.

*with a view of/to / ; , .

 

Exercise 12. Translate the texts into Ukrainian.

To some economists, economics as a social science may be divided into positive and normative ones. .
Positive economics looks at facts and avoids value judgements.
Positive economics attempts to set forth* scientific statements about economic behavior .
Normative economics, in contrast, involves ethical precepts and value judgments about what the economy should be like or what particular policy should be recommended based on a given economic generalization* or relationship. ᒺ , .
Positive economics looks into what the economy is actually like; normative economics examines whether certain conditions or aspects of the economy are desirable or not. ; .

*to set forth -

*generalization -

 

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