Text c. The Subject of the Science of Economics

The science of economics is based upon the facts of our everyday lives. Economists study our everyday lives and the general life of our communities in order to understand the whole economic system of which we are the part. They try to describe the facts of the economy in which we live, and to explain how it works. The economist’s methods should of course be strictly objective and scientific.

We need food, clothes and shelter. We probably would not go to work if we could satisfy these basic needs without working. But even when we have satisfied such basic needs, we may still want other things. Our lives might be more enjoyable if we had such things as radios, books and toys for the children. Human beings certainly have a wide and very complex range of wants. The science of economics is concerned with all our material needs: it is concerned with the desire to have a radio as well as the basic necessity of having enough food to eat.

I. Read Text C and say what basic needs and what non-essential wants are mentioned in the text. Put them down in the chart.

Basic needs	Non-essential wants
1. ..... 2. ..... 3. .....	1. ..... 2. ..... 3. .....

II. Speak on the science of economics. The questions below will help you:

1. What is the subject of the science of economics ? 2. What methods do the economists use ? 3. What needs and wants is the science of economics concerned with ?

Text d. Single Currency Not in Circulation Before 2002

A single currency from Paris to Lisbon is getting closer to reality. But EU citizens will have to wait until 2002—2003 before going shopping in ECUs. The “Monnaie de Paris” recently presented the prototypes for the European currency at an informal meeting of EU finance ministers in Versailles. Agreement has already been reached on the range of coins and notes and on the metals used, but the name of the future currency remains a key issue as the British and the Germans seem reluctant to use the original name, the ECU. The Germans have proposed the “Euro” as an alternative, but the real problem is the passage to the third phase of monetary union: this crucial step initially scheduled for 1997 is now more likely to occur in 1999. As the manufacturing of the coins and notes would take about 3 years, the new currency could not come into circulation before the beginning of the next century. The European Commission intends to use this time to make the single currency more familiar to citizens.

I. Translate Text D with a dictionary in written form.

1. Retell the text.

CO N V E R S A T I O N

On Economics

I. Find in the text international words. Write them out. Translate them. Consult the dictionary if it is necessary.

Text. Us Economy

The United States is rich in natural resources, the main being iron ore, coal and oil. The nation produces more than 100 million tons of iron a year. Four fifths of the ore mined in the USA comes from the Great Lakes region. Though a great deal of the ore has been used up, its resources have not been exhausted. Most of the coal mined in the USA is used by power plants to produce electricity. Coal is also used in the chemical industries for the manufacture of plastics and other synthetics. The production, processing and marketing of such oil products as petrol (called “gasoline” or “gas” in the USA) make up one of America's largest industries.

The basic metals and minerals mined in the United States are zinc, copper and silver.

Some of the main crops grown in the USA are wheat, maize, cotton, tobacco and fruit.

Cattle breeding and pig raising make up an important branch of America's agriculture.

To make the farmer's work more productive scientific methods of farming are employed and modern technique of freezing, canning and packaging farm products is used.

The United States is a highly industrialized country with various branches of heavy industry prevailing, namely, the mining, metallurgical, automobile and chemical industries as well as engineering. Many branches of light industry are also developed, among them are the textile, food and wood-working industries.

A great deal of attention in American industry is devoted to research and emphasis is made on the use of labour-saving machines. In the past few years the number of workers has increased only a few per cent, while the number of scientists and engineers in the plants has almost doubled.

Mechanisation and automation do away with thousands of office jobs, intensify production and increase labour productivity. But they also bring about a further growth of unemployment.

New industries are created as new discoveries are made in physics, chemistry and other sciences. Atomic energy, for example, has created a wide range of new industries. Electronics has become a major industry.

Throughout American industry great emphasis is being made on management training. A great number of schools are training young people to become industrial leaders.

American industry is distributed unevenly. Most of the industrial enterprises are located in the eastern part of the country. But industry is spreading out as there is a tendency to build factories far removed from the home plant and closer to natural resources and markets. Good transportation facilities and rapid communications systems make it possible for the main plants to keep in touch with branch factories.

The leading US exports are industrial machinery, electronic equipment, textiles, grain, iron, coal, oil products and chemicals.

II. Finish phrases, using the necessary word combinations or sentences.1. ...is rich in... (coal; oil; iron ore; gold; zinc; copper; uranium ore; water resources). 2. The greater part of the population is employed in... (fishing; hunting; heavy industry; light industry; agriculture; the manufacturing industry; trade). 3. Industry is ... (concentrated in one area; widely dispersed; distributed unevenly; concentrated in several industrial regions). 4. The main industries are... (the metallurgical industry; the chemical industry; the electronic industry; the textile industry; the automobile industry; the wood-working industry; the food industry; the shipbuilding industry; the mining industry; the war industry). 5. Great emphasis is made on... (the development of industry; the development of agriculture; research; management training; employing scientific methods in farming). 6. In the past few years... (new industries have been created; automation has been introduced at most factories and plants; labour productivity has increased greatly; industrial output has decreased). 7. As a resultof mechanisation and automation... (many workers lost their jobs; labour productivity increased greatly; the standard of living was raised considerably). 8. ...trades with...(the neighbouring countries; many countries; a great number of countries all over the world). 9. The main exports (imports) are... (grain; fruit; fish; wines; tobacco; electronic equipment; electrical goods; chemicals; cars; machines; weapons; raw materials; consumer goods; manufactured goods).

III. Complete the sentences.1. ... is rich in ... 2. The greater part of the population is employed in... 3. Its industry is... 4. The main branches of industry are... 5. Great emphasis is made on... 6. In the past few years... 7. As a result of automation ... 8. ... trades with ... 9. The main exports are ... 10. The main imports are...

IV. Render the following text in English.